The City of Belgrade announced on 14th August 2019 the sale of prime waterfront location for development know as Marina Dorcol (pronounced Marina Dorchol). The location is based on the right bank of the Danube, about 3km downstream from another ongoing waterfront development Belgrade Waterfront by EUA based Eagle Hills Properties nearby Belgrade’s landmark park and old fortress “Kalemegdan”. This is the last large development site on the Old Town side of Belgrade. The Belgrade City centre is 1,8km away and it can be reach within 20 minutes on foot or 10 minutes by car.
The City offers for sale 40.735m2 of land (without the water basin of the Marina itself of about 14.800m2) for a 76.000m2 mixed-use development of a marina, offices, retail, residential and hotel/leisure facilities. About 70.000m2 is earmarked for commercial and residential development while about 6.000m2 is for sport and leisure facilities which includes a marina with about 160 moorings and a nautical centre. The development may be completed in phases. The allowed density is 60%, building coefficient is 3.5. The zoning and spatial regulations allow maximum building height of Ug+Gr+12. The prices of the residential units are likely to be in the region of €3-5000 per sqm.
The reserved (minimum) price for the land is €32,8 million. It will be sold at a public auction on 13th September 2019 to the highest bidder. The purchase price could be paid up as a lump sum with a 30% discount (~€23 million) or in 12 monthly instalments.
The Site was first sold in 2007 to a joint venture company between the Israel based property developer Engel East Europe and a local company. As a consequence of the property market slam in 2008 and subsequently, the project did not proceed. According to the press reports at the time the JV company which acquired the site did not complete the payment of the acquisition price. Engel East Europe, which, at the time accumulated was developing several large real estate projects in few East European countries run into cash flow problems and, we believe, it was sued by its investors and shareholders and filed for bankruptcy proceedings in Tel Aviv. The local partner in Serbia appears to have continued to try to hold onto the Site by re-registering the Site to the local company but without much success. By publishing the offer for sale, the City of Belgrade authorities seem confident that such re-registration attempts of certain but not all cadastral parcels composing the Site are futile and the sale of the Site to another developer could go ahead. Nonetheless, a legal due diligence is recommended, as in any land purchase.
The Site is one of the best positioned development land in the Old Town of Belgrade. It has huge potentials for building high-end residential units, a hotel and leisure facilities and/or offices. Any such development will command top of the market sale or rental prices.
Depending of the architectural design, most property units will have a splendid view on the Danube and its banks. The Site will be very visible from the river. One part of the Site will command a view over Old Zemun (Gardos) panorama while the other part will have the Kalemegdan Fortress in its sight. The Marina itself and its nautical club, restaurants and bars which will pop up around it will simply add more charm and attractiveness to the development.
If one would like to visualise the possible future development of the Site, in addition to Belgrade Waterfront, for example, one may view the Marina Beach Residential Park in Budapest, Hungary which is also built on the banks of the Danube.
We are a financial advisory established in 2001 that operates from Belgrade covering Serbia, Montenegro, Macedonia and Bosnia-Herzegovina. We have excellent knowledge about the Site offered for sale and the Belgrade property market. Our knowledge could assist you a great deal in assessing and analysing the opportunity and preparing a bit for it.
The Serbian economy is in good shape, the growth in the Q2 2019 was 3,1%, for this year it is anticipated the growth to be around 3,5%. On 13th August 2019 the Financial Times published its study by fDi Intelligence in Greenfield Foreign Direct investments (FDI) Performance Index 2019, Serbia topped the list as No1 scoring 11,92. The real estate market is in a very good shape, most new residential developments are sold off-plan, before completion, the vacancy rate for office developments is low, 4,3% according to the latest report by CBRD for H1 2019.
For the Site acquisition we offer the following services and assistance to the prospective buyer and future developer of the Site:
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 Marina Dorcol Site and its potentials.
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