BUSINESS OPPORTUNITIES

A PRIME RESIDENTIAL DEVELOPMENT SITE OFFERED FOR SALE
IN BUDVA, THE CENTRE OF MONTENEGRO TOURISM AND THE MOST VIBRANT CITY ON THE COAST

The Site

The Site is about 42.000m2 out of which, by the local spatial planning conditions, about 11.000m2 is set aside for internal roads and other infrastructure and therefor is not included in the sale. A total of 31.155m2 is offered for sale on which new developments totalling GBA of 38.000m2 can be developed. The current owners refer to it as the “Golden Hillside” because of the beautiful sun settings which paint the Site in golden-yellowish colours every day.

The Site is on the outskirts of Budva, and it is tucked away in the beautiful background woodland hillside area above Budva that offers privacy, peace and enjoyment. The Golden Hillside development is planned as a luxurious residential complex separated from the town which, in addition to the extraordinary view over the Budva City and the Budva Bay, offers exceptional conditions for holidaying, resting or recreation.

It is 10 minutes away walking distance from the Budva Old Town. With easy access to the new motorway, Tivat Airport, Lustica Bay or Porto Montenegro are all reachable within 30 minutes by car.

Golden Hillside Site location
Golden Hillside Site location
Golden Hillside Site location
Architect’s impression of the future development
Golden Hillside Site location
View from the Golden Hillside Site location
Budva-panorama
Budva-panorama

The Golden Hillside development concepts

There are two development concepts with conceptual designs shown below. A higher density contemporary design stand-alone residential buildings Ug+G+2 or Ug+G+4 with various size apartments or luxury classic style villas with large terraces and courtyards, also shown below on as architect’s impressions.

Contemporary conceptual design-one to three-bedroom apartments

Contemporary design of the development-architect’s impression
Contemporary design of the development-architect’s impression
Contemporary design of the development-architect’s impression
Contemporary design of the development-architect’s impression
Contemporary design of the development-architect’s impression
Contemporary design of the development-architect’s impression
Contemporary design of the development-architect’s impression
Contemporary design of the development-architect’s impression
Contemporary design of the development-architect’s impression
Contemporary design of the development-architect’s impression

Classic villas design-various sizes to suit the terrain and buyer’s taste

Classic design villas-architect’s impression
Classic design villas-architect’s impression
Classic design villas-architect’s impression
Classic design villas-architect’s impression
Classic design villas-architect’s impression
Classic design villas-architect’s impression
Classic design villas-architect’s impression
Classic design villas-architect’s impression
Classic design villas-architect’s impression
Classic design villas-architect’s impression

In the close neighbourhood of the Site other investors have built classic style luxury villas with swimming pools all with commanding view of the Budva town and in the tranquillity and splendour of the hillside. We show bellow a couple of such villas

A villa built in the close neighbourhood of the Site
A villa built in the close neighbourhood of the Site

Further details about the Site are set out in the sale prospectus which we will send you upon request.

All villas and apartments will have:

  • Garage space provided for every residential unit, one or more depending on the size of the residential unit
  • Additional parking spaces for visitors
  • Swimming pools and sunbathing areas
  • Green roof gardens
  • Video and other security devices

At the project/Site level

  • Maintenance and upkeep of all properties
  • Maintenance and upkeep of common green and infrastructure areas and facilities
  • Necessary retail and commercial content
  • Restaurants and bars
  • Multipurpose sport facilities
  • Kids playground
  • A gym and a spa centre

Applicibility of the condo concept

A full-service holiday homes or condo home concept may be applied here. Each property represents a condo unit which enable someone to own a fully serviced holiday home. When they are not using this home, they can leverage the marketing and management done by the hotel chain to rent and manage the condo unit as it would any other hotel room.
All properties are registered in the Cadastral Registry (Land Registry). The buyer acquires and has a freehold title (private ownership) over the residential unit and the land. The property can freely be sold, charged or inherited.
Further details are set out in the sale prospectus which we will send you upon request.

About Budva

Budva by Wikipedia
About Budva by Visit Montenegro
Budva Old Town
The Telegraph - Budva, Montenegro: Secret Seaside
Budva by Lonely Planet
Budva – aerial view
Budva Montenegro–Budva Old Town and beaches

About Montenegro

Montenegro is an independent and sovereign country, defined as a “civic, democratic, ecological state and state of social justice, based on the rule of law”. “Montenegro” in Montenegrin means “Black Mountain” which is associated with its wild beauty and natural resources. Montenegro’s natural wealth is very diverse combining mountains and seaside. On the other side there are numerous mountains with lakes, canyons with attractive sceneries, rivers, all of which represent untouched nature. Considering its size, all these attractions are compactly located very close to each other.
Montenegro's economy is transitioning to a market system. Since regaining its independence in 2006, Montenegro has adopted a legal framework that encourages privatisation, employment and exports. Montenegro uses Euro (€) as the official currency. All borrowings, trades and payments are executed in Euro. Therefore, there is no currency risk involved.

Investment in tourism in Montenegro

Montenegro is one of the fastest growing tourist destination in the Mediterranean. Tourism development focuses on the luxury and upmarket holiday segment. The Government is trying to develop Montenegro as an all year round holiday destination. In mid-August 2019 the Montenegrin Government announces its intention to invest over €100 million in developing ski resorts infrastructure in Montenegro by 2022 further reinforcing Montenegrin claim as “all year-round holiday destination”. This is a further boost for private investments in tourism in Montenegro.
On 13th August 2019 the Financial Times has published its study by fDi Intelligence in Greenfield Foreign Direct investments (FDI) Performance Index 2019. Montenegro came second on the list by scoring 10,82 points. In 2018 Serbia received €3.6 billion direct foreign investments. Montenegro recorded 11 FDI projects in 2018 – its peak year since fDi Markets began recording FDI data in 2003. For more information please follow the link.

It is also low cost, low taxation jurisdiction with liberal travel, visa regime and immigration policy. The corporate tax in Montenegro is 9%, VAT 21%. Foreign companies have the same status as Montenegrin companies. Montenegro offers tax reliefs on foreign source income under an extensive network of double taxation avoidance treaties. Tourism and investment will receive a special boost after adoption of the Montenegro Citizen by Investment scheme which is to start from 1st October 2018. Wealthy individuals will be able to acquire economic citizenship upon investment in Montenegro which includes residential property purchase. This scheme will increase demand for RE assets purchase in Montenegro.

Over the last 15 years many large companies have invested hundreds of millions of Euros into the Montenegrin Hotel and Real Estate Sector:

Financials

The current market price for the residential properties of this type for this type of location is between €2.500-3.500 depending of the level of luxury. We estimate the exit value of the project is between €80-110 million.
The price of the Site is set at €8,5 million which is about 10% of the value of the project. Details of our project calculation values are set out in the sale prospectus which we will send you upon your request.

Further information

We are sole advisors to the seller. If this acquisition opportunity is of interest, please contact Zoran Mitic by email or by tel +381 11 36 35 935 or mobile tel +381 11 63 377 960 for more information about the Golden Hillside Site and its potentials. We have prepared an extensive sale prospectus for the Site which include legal, spatial, design, financial and other relevant information which will help you fully appreciate and assess this Site.

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