GTC has acquired a majority stake in a luxurious residential project, together with a golf course and five-star hotel, on a 130 hectare waterfront site in the coast of Croatia.
GTC Croatia holds a 75% interest in the residential development and 85% in the hotel project.
Globe Trade Centre S.A. (GTC), through GTC Croatia – its 97% subsidiary – has entered into a partnership that will develop a luxurious residential complex, together with a 18-hole golf course and a five-star hotel on the coastal region of Istria in Croatia.
GTC Croatia will hold a 75% stake in the residential project and will provide 85% of the financing, while existing initiators and shareholders will hold the remaining 25%. GTC Croatia will have an 85% interest in the development of the hotel and provide 100% of any equity required. GTC Croatia will be remunerated for the management of the development, with a 5% fee on the development cost, excluding the land.
The 130-hectare site is located in the north of Croatia, on the Istria peninsula. The unique waterfront location, next to a professional golf course facility and a luxurious hotel, will offer some of the most prestigious residential properties in the booming real estate market on the coast of Croatia. The golf course, which has18 holes may in the future be extended by another 9 holes.
GTC will be a 25%-partner in the company that will manage the golf course facility and residential property, and will also let apartments and villas on behalf of buyers.
In total 20,000 sqm of residential space is to be developed, ranging from 100 sqm apartments to 300 sqm villas.
The five-star hotel will have 20,000 sqm of gross space. Such a unique location for a luxurious resort hotel has already attracted an interest from leading international hotel chains.
Total revenues from the project, not including the hotel, are estimated at EUR 100m.
The project is planned to be completed in 2009.
In parallel, GTC Croatia is undertaking the construction of Avenue Mall in Zagreb – a modern shopping centre (26,500 sqm NRA) together with an office tower(7,000 sqm NRA).
The opening of Avenue Mall is scheduled for Q2 2007, and already more than 80% of the retail space has been leased.