Government investment arm Investment Corporation of Dubai has agreed to purchase a yacht marina and waterfront development in Montenegro from Montport Capital, the company announced today.
Porto Montenegro Marina and Resort, located within the Bay of Kotor on the Adriatic Sea, is a lifestyle development aimed at boat owners with 228 luxury apartments, 55 retail units and a five-star Regent hotel with more than 80 luxury suites.
Canadian entrepreneur Peter Munk, the founder of the world’s largest listed mining company Barrick Gold of Toronto, conceived and developed the former naval base with an international group of investors led by Lord Rothschild.
The resort recently took part in the Dubai International Boat Show in March.
ICD said the acquisition, its first in Montenegro, was aligned with its plans to procure high quality international assets in fast growing markets.
“The internationally renowned Porto Montenegro presents an opportunity for ICD to access a successful business with significant potential for development expansion, both in the marina and landside,” said ICD executive director and chief executive Mohammed Al Shaibani. “It also represents a strategic fit with our expansion plans into international luxury real estate and hospitality sectors whilst providing exposure to a new geography.”
The development, which has been constructed in less than 10 years, enjoys the support of the Montenegro government, which hopes to position the country as a super yacht destination.
It falls under Montenegro’s elite tourism strategy with incentives including only 9 per cent company and capital gains tax, 7 per cent VAT on marine-related services, no VAT on charters and tax and duty fuel up to 45 per cent cheaper than other European countries.
“I’m enormously proud of what has been accomplished at Porto Montenegro. It has helped transform the perception of Montenegro throughout the world, has sharply increased the country’s tourism revenue, and has created thousands of direct and indirect jobs,” said Montport Capital majority shareholder Peter Munk.
The site boasts 450 berths that are fully built and occupied and has the approvals to construct another 400 and develop 280,000 square metres of additional land.
“Looking ahead, our aim is to realise Porto Montenegro Marina and Resort’s full long term potential,” added Al Shaibani. “Our priority at ICD is to support management in the fulfilment of its ambitious plans, and to further establish Montenegro as a prime European yachting destination.”
ICD’s current projects include the Royal Atlantis Resort and Residences on the Palm Jumeirah. It also acquired stakes in three luxury hotels last year.