Bosnian firm seeks cash-rich real estate investors

Sarajevo-based Unipromet has said it is actively looking for cash-rich real estate companies or funds to invest in projects and completed buildings in Bosnia. While Unipromet is just one of a list of hundreds of companies who are showcasing their projects at the Real Vienna international property fair this week, company coordinator Engin Obucic told PropertyEU that the time is now for international players to invest in Bosnian real estate.

'Bosnia is still largely an undiscovered country, but there's the space and need for investment, for instance, to cater for the growing population influx into Sarajevo,' he said.

Three major international developers - Al Shidi of Saudi Arabia, MPC Holding, Serbia and Triland of the US - already operate in the city and Obucic said firms from Saudi Arabia are showing a particular interest in acquiring development land in the Bosnian capital.

Obucic said the global financial crisis had hit the Bosnian real estate sector hard, but that it had released a lot of discounted assets and development potential on to the market as companies seek to increase their liquidity.

Unipromet has several ongoing projects for sale or for joint venture participation. The main asset is 68,000 m² of land in central Sarajevo, with the potential to develop up to 300,000 m² of space. The company also has a site for a planned 32,000 m² residential/business building in the central business district of the city. The potential uses range from a hotel, to offices and apartments. Some 30% of the scheme is pre-let.

Obucic said the company would consider selling the development plots or entering into a joint venture with a reputable international partner to complete the projects.

Unipromet also intends to sell a recently completed shopping centre in Sarajevo which is 90% leased. Some 100,000 people live in the catchment area.