Orascom Development, a Swiss/Egyptian listed property group, has entered into an agreement with the Government of Montenegro to acquire a 90% stake in Lustica Development Podgorica, the developer of a 6.8 million m[sup]2[/sup] site in Tivat on the Mediterranean's Traste Bay. The State of Montenegro is retaining the remaining 10% of the project, Orascom added. The financial details of the transaction were not disclosed.
Orascom Development, a Swiss/Egyptian listed property group, has entered into an agreement with the Government of Montenegro to acquire a 90% stake in Lustica Development Podgorica, the developer of a 6.8 million m2 site in Tivat on the Mediterranean's Traste Bay. The State of Montenegro is retaining the remaining 10% of the project, Orascom added. The financial details of the transaction were not disclosed.
Orascom said it plans to develop 2,350 residential units, several hotels, a town centre, a marina on the Adriatic Sea, an 18-hole golf course, commercial facilities as well as basic infrastructure requirements on the site. The first development phase includes a hotel, town centre, golf course, and the main mooring area. Orascom expects the first phase to be operational within five years.
The company said the development will expand the group's portfolio to approximately 141 million m2 over nine countries. Based in the Swiss city of Altdorf, Orascom is a developer of fully integrated towns including hotels, private villas, leisure facilities and supporting infrastructure. This is Orascom's third integrated town development in Europe.
Founded by Egyptian businessman Samih Sawiris, the company posted a net profit of CFH 116 mln (EUR 77 mln) in 2008.
