Stock sharing association Ulcinj Riviera will own hotels Bellevue and Olimpik (Olympic), two camps, a nudist lodgment on Ada, central warehouse, and the land around the Bus station.
Podgorica – if the negotiations about the selling of hotel Lido are successfully terminated, Ulcinj Riviera will come out from the bankruptcy with a chance to become a tourist giant again. The company will retain the ownership of the hotels Bellevue and Olimpik, camps Neptun (Neptune) and Safari, nudist settlement on Ada, central warehouse and a part of the land around the Bus station.
That Ulcinj Riviera has potential for success speaks enough the record that after their bankruptcy they will have on their account over 7 millions of euros. The depth of the company, according to the assertions of the bankruptcy management, currently is 3, 5 millions of euros, and Lido is supposed to be sold for 10, 8 millions to a firm from Budva Capital estate behind which stand the Russian capital funds.
The bankruptcy in Ulcinj Riviera was lead in at the end of April 2004 on the request of the Ulcinj Electro supply, because of the dept for electricity which was 230.000 euros. However, the real dept surpassed 12 millions of euros.
By coming out from bankruptcy Ulcinj Riviera will again start to work as a stock sharing association in the major ownership of the state, and will have at disposal minimum 1.500 beds, but with some investments and renewal of the facility that number can increase even before the privatization. Significant ownership shares in the firm also have privatization funds, employed people and citizens who have invested their premium bonds.
The estimated value of Ulcinj Riviera with the entire equipment which it owned before the bankruptcy is 81 million of euros (51 euro per stock); while according to some stock market prices they are worth 22 millions of euros (14 euros per stock).
If the price for Lido is a qualifier for the estimation of the estate which will remain in the ownership of Ulcinj Riviera, then it is clear that the company is more valuable that it could have been imagined a year or two earlier.
The sale of the hotels which were the ownership of Ulcinj Riviera has simply raised the price to tourist complexes on the coast. At the beginning of the mandate of the bankruptcy management, one couldn’t even think that the company will again get the opportunity to be a significant factor in the Montenegrin tourist offer, especially after some controversial sales like the sale of hotel Otrant (Strait of Otranto), and low prices that were offered for some facilities, but later things have been put in order. The selling prices have been growing with a geometrical progression.
More than 2 years ago Ulcinj Riviera has sold the hotel Otrant on Velika plaza (Big beach) to a Russian firm Barkli SK for 2, 5 millions of euros, with the bound of investment of 4, 5 millions of euros. Not long after the American company Becovic management bought from Ulcinj Riviera hotel Mediteran (Mediterranean) for 940.000 euros with an obligation of investment of more than 6 millions of euros. In September this year, the bankruptcy management has sold the hotel Galeb (Gull) to Roksped for about 5, 75 millions of euros. And finally Lido should be sold for 10, 8 millions of euros, which is the biggest price given for some Montenegrin hotel.
Ulcinj Riviera has earlier sold the apartment group Stari grad (Old town), which is made of Dvori Balsica (Court of Balsici) and Palace Venecija (Venice) for something more than 700.000 euros. At almost the same price they have sold the Bus station at the entrance into the town.
The sold hotels price
Mediteran 940.000 euros
Otrant 2, 5 millions of euros
Galeb 5, 75 millions of euros
Lido 10, 8 millions of euros