EBRD mulls EUR 37m financing to Montenegro hotel project

The European Bank for Reconstruction and Development (EBRD) said it is considering providing a EUR 37 mln long-term debt facility to Adriatic Properties to fund the redevelopment of a landmark tourist site into a prime hotel resort on Montenegro's coast.

The Sveti Stefan Hotel project is located on a land plot of 68,000 m² along the Montenegrin Adriatic sea coast. The development project, representing a Public Private Partnership, will be carried out in two stages. Phase 1 will include the refurbishment of the Milocer and Sveti Stefan Island hotels as well as some infrastructure works and the development of an administrative building and some leisure facilities. Completion for the first phase is expected by the end of 2010.

Phase 2 will consist of the demolition of the existing Queens Beach hotel and subsequent redevelopment of a new hotel complex with up to 60 hotel rooms, as well as 60 villa apartments and a Queens Beach spa area, with completion expected in the course of 2012. The total development cost for the project is estimated to amount to EUR 93 mln.

Adriatic Properties is a special purpose vehicle owned by the Restis group of companies, a leading Greek shipping group headed by Victor Restis. Adriatic Properties holds the development, operating and leasehold rights for the development project.