FOR SALE—7,3HA PRIME RESIDENTIAL AND COMMERCIAL DEVELOPMENT SITE
IN THE HEART OF NEW BELGRADE CBD
Location of the Site
The Site is a disused industrial estate in New Belgrade which consist of urban land totalling 73.771m2, various buildings built on in totalling 38.815 m2 it and all machines, equipment and installations (the movables) in the disused industrial buildings located on the Site. There is significant value in buildings (because of substantial savings in future land tax payable to the City of Belgrade authority) and the movable items which can be sold as scrap metal, which we explain further below.
The City of Belgrade published a Detail Urban Plan ("DUP") which designate the Site primarily for residential development and to a lesser extend for mixed use development compatible with other similar real estate developments in the proximity. It should be noted DUP covers a bit larger area than the Site itself. Further explanation below under the heading "Detailed urban planing for the Site".
In close proximity of the Site there are luxuries residential developments, modern office developments occupied by predominantly international companies, shopping malls with multiplex cinemas, supermarkets and other retail shops, sport facilities, restaurants, cafés and other leisure facilities.
The Old Town and and Belgrade City centre are about 15 minutes away by car and there is public transport available to or from various directions to the future residents, workers visitors to buildings and facilities that will be constructed on the Site. The Belgrade international airport is about 15-20 minutes away too. The Site has road access from several adjacent streets. The Belgrade-Zagreb motorway is also conveniently close.
Other developments in the vicinity
The slide No 3 above shows the locations of some noticeable real estate developments in the vicinity of the Site. There are quite few office, retail and residential developments in the close proximity. We mention few of them for illustration purposes.
- Belville residential development of 130.000m2, all sold out
- Delta City Shopping Mall
- A Block—residential complex with 23 residential buildings and 2 commercial (retail) buildings, developed in 4 phases, 3 phases completed and sold out, the 4th phase is sold out for €2.700-€2.800 pm2
- West 65—residential and commercial complex still being built with 514 apartments from 46-288m2 with underground garages, about 100 retail spaces and residential tower of 37.058m2 (39 floors) with apartment from 80-200m2, prices in 2020, €1.336-€3.730pm2
- Wellport—another brownfield residential development of 500 luxury flats GDA of 50.000m2, a €130 million investment by the Israeli developers Shikun & Binui Group. They are turning the pre-war airport hangers into residential units, prices in 2020 €2015-€2859 pm2
- Airport City Office Complex—186.000m2 office complex in the close vicinity
- Airport Garden—a 20.000m2 site for mixed use development with a hotel
- Belgrade Waterfront—a well-known riverside development by Eagle Hill—177 hectares development land scheduled for development over the next 20 years with about 1 million square meters of apartments and 750.000 m2 of office and retail space. The reported selling prices in 2020 €2.450-€9.159pm2.
Detailed urban planing (DUP) for the the Site
Public utilities infrastructure such as water, sewage, electricity, gas etc is also available.
As it can be seen from the slides above, the urban planning covers a larger area then the area of the Site. The borders of the DUP area can be seen on slides No 1 and No 2. The slide No 2 shows internal roads/traffic. The slide No 4 shows the planned developments on the Site - the light blue area is for residential development, the dark blue area for mixed used residential and commercial development:
- The light blue area-residential multifamily developments on about 23ha, minimum 90% residential, maximum 10% commercial, about 3.350 apartments for estimated 9.720 residents; GF+6 floors+attic
- The dark blue area-mixed use developments, residential maximum 60%, commercial minimum 40%, maximum hight GF+12 floors+attic, about 3.350 apartments for estimated 9.720 residents. The commercial content is described as retail, restaurants, sport facilities, offices, various services, cafeterias etc
In this detailed urban planning, the area outside of the Site is already developed with commercial content (a large supermarket and other retail), office buildings and some luxury residential buildings. The only undeveloped area is the Site.
The numerical summary explanation of the DUP including the Site is set out in the table on the right side.
All new commercial or residential developments in New Belgrade tend to be very modern offices or high end luxury apartments because New Belgrade attracts international companies as tenants, apartments attract highly paid professionals such as bankers, IT engineers, consultants, entrepreneurs and similar who create continuing demand for such properties. Images of some planned and or completed office and residential developments are shown in the slide show below. The office rents are €16-18 pm2, the apartments are sold for €2.500-€4.000 depending of the location, quality of the interior finish etc. We will provide some additional information about the current market prices for office, retail and residential space in New Belgrade
Values and benefits on the Site
The buildings - there are 38.815m2 of industrial buildings on the Site. The future developer will not be obliged to pay the development tax to the City of Belgrade authorises facilities for 58.223m2 of the future residential construction (38.815m2x1,5 coefficient). We will be able to provide the exact value of this savings in due course
The movables – the Site was an industrial complex that went bankrupt several years ago. The business and trademark was sold to another manufacturer who will commence manufacturing elsewhere. The machinery and equipment remained on the Site. There have been a couple of valuation of the movables on the Site. The value of the movables is basically the value of the scrap metal that can be collected and sold to scrap metal dealers. We are aware of an unofficial valuation of the movables on the Site made by a scrap metal dealer in 2016. He estimated the quantity of 30.000 tonnes Fe, 2.000 tonnes Cu and 1.000 tonnes Al, with the total value of €15 million. This value, of course, fluctuates depending on the market price of these metals. We strongly recommend the buyer conduct his own independent valuation as the above valuation were conducted at different times and for different purposes.
Schedule of events
|Bid invitation publishing date||29/06/2022|
|Bid documentation purchase deadline (€500)||25/07/2022|
|Site viewing last date||27/07/2022|
|Bid deposit payment deadline||28/07/2022|
|Public bidding date||01/08/2022|
Assets valuation by insolvency practitioner (our note: valuation is from 2018, asset prices went up since then)
|Bid starting price (minimum reserved price)||€26.000.000|
Our services in this acquisition
- “One stop shop” acquisition advisory (financial, legal, accounting, environmental due diligence etc) through our long term and experienced partners in their respective fields of expertise
- Due diligence
- Valuation, financial modelling, investment risks and returns
- Preparation of the bid and bit submission
- Local acquisition process management from start to completion
- Raising post acquisition finance for the Site development
- Post-acquisition assistance in bringing the acquired Site to its full potentials and profitability
If this acquisition opportunity is of interest, please contact Zoran Mitic by email or by tel +381 11 36 35 935 or mobile tel +381 63 377 960 for more information about the Site and its potentials. We have additional materials and research about the Site which will help you fully appreciate and assess this Site.