Real Estate projects in Montenegro

M o n t e n e g r opearl of Mediterranean

April 2009

In the period after obtaining independence, Montenegro has become a very attractive real estate market for both domestic and foreign investors. This is confirmed by a significant influx in the real estate market.

A stable macroeconomic situation, continued improvement of credit ratings, favorable tax systems, simplification of business procedures, and progress in processes of integration (EU and NATO), additionally strengthens the attractiveness of the Montenegrin real estate market. This is especially significant for investors who regard Montenegro as a possible starting point for future activities in the region.

UK Financial Times article from December 28th 2008 placed Montenegro on a 4th position as a place to invest in 2009: “.. Montenegro appeared relatively recent on the second-home buyer radar - in effect only since its split from Serbia in June 2006. It has a small but attractive coastline with little room for significant resort development, limiting the risk of oversupply. And property prices - at €1,550-€3,100 per sq meter on average for new developments - are cheap when compared with many established European locations although they can go as high as €4,000-€5,500 per sq meter. In the longer term, Montenegro aspires to European Union membership, which will significantly lower its risk profile…”

Capital projects in tourism announced till 2009

Porto Montenegro – Pitter Munk Four Seasons

Vas Invest - Kempinski Sveti Stefan Island Milocer Aman Resorts

St Marco Island – Metropol Group Banyan Tree

Skocidjevojka Project – Lustica peninsula Orascom - Joud Fund

Mirax Group-Hyatt

Atlas Capital Center –Capital Investments UE Hilton

Valdanos – Cubus Lux UK

The Porto Montenegro,700mil project in Tivat, initiated by the Canadian industrialist and Barrick Gold Chairman Peter Munk, is by far the largest such venture so far.

www.portomontenegro.com

Four Seasons will build a 300 bed hotel in Tivat within the project Porto Montenegro.The construction will begin this autumn and is scheduled for completion by 2010.It will be the first Four Seasons hotel on the Mediterranean.

It envisions a massive, 800berts mega-yacht marina in the former Arsenal shipyard which occupies around 24hectares

The Porto Montenegro,400mil project in Tivat, initiated by the Canadian industrialist and Barrick Gold Chairman Peter Munk, is by far the largest such venture so far.

Munk's project also calls for an exclusive marina, with full boat repair and servicing facilities and a golf course.

On 15.january, VAS Invest signed a memorandum with Kempinski for building of luxury hotel of highest standard in locality of Smokvica, 12 km south from Budva and 5 km from Sveti Stefan. Building should start in March this year. Russian company VAS Invest will build hotel and Kempinski will take management over hotel.

VAS Invest bought last year over 200000 m2 of the land for 30 million of Eur, together with a bay of Smokvica, untouched beauty of Adriatic sea. They will build city hotel with villas over bay, together with sport terrains, wellness and spa center.Worth of project is estimated to 100 million of Euros.

Kempinski have 110 luxury hotels throughout a world, some of them are The Emirates palace, Ciragan palace in Istanbul , Grand hotel in St Moritz…

Aman Luxury Hotel and Resorts investing EUR 60mil in the three Montenegrin hotels they leased on 30 years. Sveti Stefan Island and Miločer will be managed by Aman, while General Hotel Management (GHM), Aman’s sister company will manage Kraljičina Plaža Hotel.

Sveti Stefan Island

The METROPOL Group's development project for the Saint Marko Island, one of the biggest islands in Montenegro, worth 400mil€ . The resort will be managed by the famous Banyan Tree company

www.banyantree.com www.metropol.com

Mirax Group LLC started with invest over €200 million ( $296.9 million) to build a seaside resort in Montenegro. Mirax Group has launched the project in the most popular part of the Montenegrin coast - the Budva Riviera. The resort will include a hotel, residential and recreation facilities with a total area of 94,000 square meters on 8.7 hectares. It will have luxury villas spread on 26,000 square meters and a residential building and hotel complex covering 30,000 square meters each.Obviously, by new detailed plans of Budva Municipality, they will get a 25-40 floor skyscraper hotel and docks for luxury yachts. Hotel will be by the shape similar to hotel BURJ AL ARAB in Dubai.MIRAX Group is known for its Federation Tower project in Moscow and many other investments throughout a world.

www.astramontenegro.com

Hyatt Hotels and Resorts company will do the management of the hotel

Skocidjevojka Project - Budva It is situated 8km south of Budva and 4km north of Petrovac. Site is 66.000sqm Brand name five star hotel – 210 rooms on 25.000sqm Luxury villas on 35.000sqm,each around 700sqm Marina

www.royal-montenegro.com

www.royal-montenegro.com

The development project plan for Lustica project involves the construction of a hotel complex with 3,320 beds, one golf field, three marinas, one main marina with 100 places and two supporting ones, schools, hospitals, restaurants, bars, shops and a craftworks center. The hotels will be managed by the international, renowned companies, such as Ritz, Carlton, One & Only, Park Hyatt, Sheraton, Six Senses.

Orascom would invest into the Lustica project and in Montenegro in general approximately EUR 1.1 billion, and the project would create approximately 10,000 jobs, out of which 9,000 in the hotel industry.

Lustica project

The development area comprises some 3.4 million sq m, and includes around 3 km of coastline which is believed to be the last stretch of available coastline in Montenegro. The Company's tender submission proposes a development which would include: * A golf course, with a 4 star golf hotel (400 beds) and villas (for sale); * A 5-star beach hotel (500 beds) with villas and apartments (for sale); * A 4-star hotel (400 beds) including a Wellness centre and Spa, with villas and apartments (for sale); and * Amenities such as a casino, a night club, a water park, around 15 restaurants, and other communal facilities.

Valdanos project

The resort is expected to create between 400 and 600 jobs locally once complete.

Atlas Capital Center

www.atlascentar.com

The project will be developed as a mixed-use project which will comprise of retail and residential space in order to capitalize on the synergies of all those developments and to generate additional traffic to the area.

According to the preliminary plans, Atlas Capital Center will include 12 992 m2 of 90 business apartments (apartments will range in size from 80 to 340 m2), 14 678 m2 office space, 12 625 m2 of retail space and 14 352 m2 will be reserved for the hotel.

Total area is 84 600 m2.

The developer plans include a three level garage space, which will be placed in an area of 28 995m2, and which will certainly differentiate the project by addressing the issue of residents’ parking.

Atlas Capital Center is scheduled for completion in Q1 2010

Project value:120mil

Atlas Capital Center

www.atlascentar.com

Similar announced developments in Montenegro

ALT Developments - Maljevik Bay – Bar Municipality

Royal Montenegro-Golf courses and two hotels

Hotel As – Perazica Do – Budva Municipality

ALT Developments

Maljevik Bay

202.000sqm land –planned objects around 260.000 sqm gross The plan includes rent-a-villas(50.000sqm), mixed-use and

civic building, apartments units(130.000sqm) and exclusive hotel resort(80.000sqm), inspired by the historic towns and villages including Kotor and Sveti Stefan in Montenegro and Cavtat and Dubrovnik in Croatia

The investment estimated at 150 mil Eur

ALT Developments

ALT Developments

www.houseinmontenegro.com

Very low density project - 18 holes golf course with condominium and villas, five star hotels and club house

Investment estimated at 200mil www.houseinmontenegro.com

www.houseinmontenegro.com

Hotel As The Russian owned NegaTours is the owner of the As hotel resort in

Perazica Dol. Work is near completion on the six-year project to renovate the hotel, add extra 14 stories, build villas, three helipads, and a marina for 50 yachts up to 25 meters. The Total investment will

exceed 100m euros

NegaTours Ltd

Other developers in Montenegro:

TriGranit

Lamda Developments

The Dorchester Collection Hotel Group

Restis Group

Al Nahyan royal family from Abu Dhabi- First Gulf Bank Capital Investment Hydra Properties

Gintas Group

Bolici Group

David Stanley Redfern

Porr

Strabag

Delta Group – Real Estate

Oleg Deripaska – RUSAL

Roman Abramowich

Ralph Schumacher

Announced tenders-large investments

The €250mn Millennium City Centre willhave a multifunctional hall for congressionaltourism as well as cultural and other events, ahigh-class hotel, shopping centers, businessspaces, 1,800 parking spaces and numerousgreen areas.

Joint venture project with a Government who owns 75% of the land(1500ha)-13km long sandy beach,60 to 100m wide.. 10 billion Eur investment

Velika Plaza (Grand Beach)

Tender for 500 hectares of Ada Bojana Island for the development of upscale tourism, including up to 2,500 hotel beds,to be managed by a recognized international hospitality brand or brands.

Ada Bojana

Blue Horizon

Properties to see

Blue Horizon

CONGRESS CENTER

HOTEL

RESIDENTALS

RESIDENTALS

SPORTS

RESIDENTALS

VILLAS

Blue Horizon

Concept and Areas

5-star hotel resortResidential apartmentsLuxurious villas

Total gross land area – 616.822 m2Gross buildable area – 105.270m2

Hotel, Congress Center, SPA – 36.559 m2Residential apartments - 62.447 m2Villas - 6.264 m2

Blue Horizon

Anex Consultancy is a real estate consulting & brokerage company based in Montenegro.

We are consisted of group of people from Montenegro that have international experience in real estate business.

Our special Focus is on Real Estate developments and investments into Real Estate sector. Our special mission is to attract foreign direct investment and facilitate its establishment in Montenegro

We delivers a comprehensive and flexible range of property related services including initial screening of the most valuable investment opportunities, search & acquisition of land, planning, building consultancy, estate strategy, up to the end user sales.

Our dedicated team brings together a wealth of knowledge of local market, people and proven relations with local Governments and authorities on state level

Understanding what is happening in the market, where, how and when gives us the ability to help investors make wise decisions.

Our strength lies within the ability to deliver rather than to discuss it. Contact us on: [email protected]

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