Future Capital raises EUR 72m for project in Montenegro

UK private equity group Future Capital Partners has raised a total of £65 mln (EUR 72 mln) from 38 clients for a new luxury real estate project in Montenegro. According to news website Portfolio Adviser, the £6 bn alternative investment boutique has temporarily closed its fundraising for the £150 mln development in Budva, Montenegro and is expected to resume it at the end of November.

The company, which has been actively seeking investors since January for the project, is teaming up with Atlas Group, fund manager Boka Real Estate Managers and hotel specialist La Cite Development to build the new mixed-use complex, which will include several residential units, a trade fair complex and a 200-room hotel to be run by InterContinental, as well as 100 metres of beach front.

Future Capital Partners is targeting a 'return of between 200% and 300% over the five year expected life of the partnership'. 'This will be derived from the sale of the luxury residential units and a hotel operating contract with a global five-star branded hotel group', the company said.

Construction work on the development is expected to commence in early 2010 and will be completed by mid-2012.

Atlas Group, one of the company's development partners, is one of the largest coastal land owners in Montenegro with a range of infrastructure business in the media, TV and financial services sector. It will construct and own the trade fair as part of the mixed use development.