The EBRD is considering providing a €37 million long term debt facility to Adriatic Properties D.O.O

The EBRD is considering providing a €37 million long term debt facility to Adriatic Properties D.O.O (the “Company”), to finance the re-development of a landmark tourist site on the Montenegro’s coast into a prime resort which will set a benchmark for low-density, sustainable tourism. The project is located on a land plot of 68,000 m2 which includes the Sveti Stefan peninsular village and some additional area along the Montenegrin Adriatic sea coast. The Project will be built in 2 phases.

• Phase 1 will include the refurbishment of Milocer hotel (8 rooms and suites) and Sveti Stefan Island hotel (50 rooms and suites), as well as some infrastructure works, an administrative building and part of leisure facilities (restaurants, tennis courts and cafes), to create a new resort to be operated under the brand "Aman Resorts". The redevelopment of Milocer hotel has been completed and the hotel has been operating since January 2009. Sveti Stefan Island hotel is currently under renovation and is planned to be completed before the end of 2010.

• Phase 2 will consist of the demolition of the existing Queens Beach hotel and subsequent redevelopment of a new Queen’s Beach hotel with up to 60 hotel rooms, as well as 60 villa apartments and Queens Beach spa to be operated under the brand “Chedi”. The second phase is expected to be completed in the course of 2012.

News source: EBRD link: article