Budva – the purchase of the 13ha of luxurious land on Smokvica near Rezevici where in September they will start to build a luxurious town hotel which is worth more than 50 millions of euros, testifies that the investors from Russia do not care for the infrastructure when they are buying the land for the construction of the elite lodgments.
It is a hardly approachable parcel, above the steep cliff which goes into the sea, which is overgrown with the small, vegetation, shrubbery, and some olive trees which the Russian company VAS Invest Montenegro paid very expensive.
Russian investors have bought totally 13 ha, of which the Municipality owned 62.000m2, while the rest was the ownership of the local people. Opposition chairman in Budva have estimated that the sale of “Smokvica” was an excellent job because, as the people would say, for a wasteland the Municipality was paid 207€ per meter square.
In the foothill of the parcel there is a wild beach Smokvica with the clear sea water from which rise the bubbles because of the numerous natural wells and to which you can only come by a boat. Until now the parcel above that beach mostly served as a pasture for goats and other cattle which is bred in Pastrovici.
The municipal cash register this year solely for the sale of Smokvica will be around 13 millions of euros richer. The firm behind which stand a consortium of three strong Russian bank men, previously has bought from the local people 7ha of land, so it has set its eye on the piece of the property which belonged to the municipality. Though, as we found out, Russians paid to local people 160 to 180€ for a square meter of land, the authorities in the municipality didn’t want to hear about that price. After a tumultuous auction, on which another Russian company applied, VAS Invest Montenegro has managed to get that part of the land and with that to create an urban parcel, of sufficient size for the construction of a luxurious hotel and rent – a – villas. The sales of the land was last year approved by the local Parliament, and in the budget for this year it is clearly indicated that the money from the sale of Smokvica will spent on the realization of numerous capital investment on the territory of the municipality, from the construction of the primary school, university building up to the construction of a modern boulevard with four tracks through the center of Budva.
If you take into consideration that the Russian beside the municipality land have bought the land from local people, with a simple calculation you can come to a record that for the land, on which the urban conditions are to be created, they gave more than 25 millions of euros, which puts this purchase, after the privatization of IA (Industry of Aluminum) in the greatest investment of Russian capital in Montenegro.
According to the words of the city manager, Aleksandar Ticic, on the route which includes the locality of Smokvice with a General urban plan they have predicted the construction of the tourist capacities.
– One part of the parcels of Smokvice is urbanized, while the other part is not, so the Municipality is in obligation to widen the borders of DUP. They are ready to start the construction already in September, until when they should complete the necessary documents, and we will complete the plan documentation. The municipality will have a multiple benefit from this job, because except the gaining of new elite accommodation capacities on our Riviera, opening of working places and other conveniences, there is a significant income of money from the charging of the public utilities.
Russian investors have stayed in Budva last week and they have presented the concept of the tourist complex which is more similar to a town for rest. They are predicting the construction of a hotel, luxurious villas for renting, and all of that of high category, mostly 5 or even more stars, tennis terrains, and other accessories which such complexes include. The town hotel will not be of a closed type, but all those interested, and above all who have enough money, will be able to stay in such a luxurious place.
AUCTION AS IN THE MOVIES
Auction on the occasion of the purchase of Smokvica was similar to those most interesting scenes in the American movies, when usually two most interested parties are competing by raising the price.
That was the case here, where two powerful Russian firms VAS Invest Montenegro and Elit Montenegro competed for the ownership over Smokvica. Still, Elit Montenegro, behind which, also stands the Russian capital, has gave up at 206€ per meter square and its representative in a gentleman way gave hand to the representative of VAS Invest. Elit Montenegro has also bought a lot of land in the area of Budva Riviera, and it is well-known by the purchase of the rest home of PTT (POST OFFICE, TELEPHONE, TELEGRAM) Serbia in Rafailovici, for which they paid 6 millions of euros, twice as much than the starting price was.
DRAWN BILLIONS OF DOLLARS
One of the three investors who bought Smokvica has the ownership over the international corporation Renaissance Capital, which is the leading independent investment group which is in business on financial markets in Russia and in the countries of the Union of the Independent States. The group serves both Russian and foreign clients which are in business in UIS. From its foundation in 1995, the group has drawn for its clients the investments of about 15 billions of dollars, more than any other financial institution in the region. As a private investment group, which belongs to the management and cooperatives, Renaissance Capital takes up the leading position in all key directions of its activities – on the market of the stock capital , in the investment – banking sphere and on the market of debt liabilities. The leadership of the Renaissance Capital on the Russian market of securities for already third year in a succession is confirmed as well as in the results of the research of Emerging EMEA Research Team, which every year is being conducted among the directors of the biggest Russian and international investment funds of the leading edition in that branch – Institutional Investor.