Project Teaser
Croatian tourism is achieving continuous growth in the past decade!
BASIC INFORMATION
| Project name | Pašman resort |
| Estimated value | 420.000.000 EUR |
| Project sector | Real Estate / Tourism & Hospitality |
| Project Location | European Union, Croatia, Zadar County, Municipality of Pašman – South side of Pašman island – located in the middle of Croatian Adriatic coast |
| Traffic connection | Excellent connection of the island of Pašman with the mainland with a modern port and very frequent ferry connections and direct connection with the highway ( via Preko or Tkon ). Planned bridge mainland – island Pasman. Zadar International Airport (approx. 20 km) |
| Project owner | Municipality of Pašman |
| Project developer (consultant) | Hosting International LtD |
PROJECT CONCEPT
| Project IDEA | Pašman Resort will be renowned for its community spirit. The project strongly encourages integration, social interaction and the formation of close ties amongst community members. The local workforce, local residents and holiday makers share the same facilities and environment and develop the same passion for the land, the culture and the people. Pasman Resort is a place where different cultures merge and live the Mediterranean dream. The well-being of the local population has been given special attention. Local people will have the opportunity to open and run businesses within the resort and employment opportunities are varied and range from farming to managerial positions (about 7,5 ha of land within tourist zones is owned by private individuals). |
| Project ZONE | Project area is 235 ha with 100 ha of tourist zones (2 zones per 50 ha with a maximum possible accommodation capacity of 2500 beds, a total of 5000 beds), logistic zone 5 ha and 130 ha of agricultural and recreational zones, of which 80 ha are foreseen for the potential golf course. |
| Project SCOPE | Project scope is proposed according to the Conceptual plan of the Project which is included in the Spatial plan of Pašman Municipality and includes:
Soline Bay – Hotel 4* (800 beds), Conference centre ,Vilas (6 units/60 beds)/ Town houses (110 units/572 Zincena Bay – Hotel 7* (160 beds Spa&Wellness, Meditation garden, Viewing platform, Artificial beach, Outdoor Recreational & agriculture area – viewing platforms and rest areas, Jogging trails and pathways and landscaping Logistic zone – Main entrance, Logistic centre, Administration, Central laundries and Fire station, Heliport, Supporting infrastructure – includes Main roads, Roads within the zone, Drainage, Sewerage system, Sewage |
| Project documentation | Available project documentation includes: – Spatial plan of the Municipality of Pašman (main documentation basis that represents mandatory conditions). – Conceptual plan of the Project (only informative and not mandatory, investors can draft Conceptual solutions of the Project in alignment with the Spatial plan of Pašman Municipality). |
CONTRACTUAL PRINCIPLES
| Investors will acquire all business shares in the project company Pašman Rivijera Ltd. The Project company will have the “building right” within the tourist zones and service-logistic zone for 99 years and contracted land lease of agricultural and horticultural surrounding zones for 99 years. Pašman Riviera Ltd. will, after construction, be the owner of all buildings (hotels, villas, apartments, service facilites, recreational facilities…), while the owner of the land will remain the Municipality in accordance with the Property law.
After expiry of the „Building right“ (99 years), the Municipality is obliged to reimburse the company Pašman Riviera Ltd., owned by investors, for the market value of all built property (Property law, Article 295/Paragraph 3), or extend the „Building right“ for a sufficient number of years, but this time without paying a fee. Upon final expiry of the period of the „Building right“, Pašman Riviera Ltd. will return the land and the buildings to the Municipality’s possession and ownership (Property law , Article 295/Paragraph 1). |
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OBLIGATION MATRIX |
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Pašman Municipality obligations |
Investors obligations |
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Land is “right to build” ready |
Recapitalization of project company and nominated costs of project development to date (which include transaction/success fee) payed after contract signature. The structure of payment of nominated costs in installments will be agreed with the project consultant. |
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Access road and infrastructure corridor ready for construction |
Regular payment of the “right to build” fee and land lease fee |
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Functional “Helpdesk” and project incentives implemented |
Upon entering the Project, investors are obliged to develop a detailed conceptual design as a basis for the development of the Urban Plan |
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Urban plan adopted in 1 year period |
Obligation to build the basic infrastructure of the area and a minimum part of the planned hotel and tourist capacities and other tourist facilities within 10 years |
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Determining the sea border |
Commercialization of the Project during contract period. Obtaining the Concession for utilizing maritime goods (with full support from TENDER CONDITIONS Pašman Municipality) |
FINANCIAL INDICATORS
Financial indicators for proposed project scope are calculated on discounted cash flow ( d=3,22% ), /The impact of a potential golf course was not considered/:
- Estimated value of investment: 420.000.000 EUR
- Project observation time frame: 25 years
- NPV: 896.000.000 EUR
- IRR: 14,18 %
- Payback period: 12 years
- Residual value after 25 years: 1.146.000.000 EUR
TENDER CONDITIONS
| The right to participate in the tender | – Payment of the amount for the purchase of the tender documentation (100.000 EUR) – Bank guarantee (2.000.000 EUR) |
| Bid selection criteria | “Building right” fee ( 80% ) + Land rental fee ( 20% ) – Initial minimum annual fee for the “Building right” on leasehold land is 0,40 EUR per m2 ( Building land – T2 ) – Initial minimum annual land rental fee is 0,01 EUR per m2 ( Agriculture land ) ( with 2% annual adjustment ) The higher offer gets more points |
| Additional selection criteria in case of 2 or more same offers | The amount of planned investment in the Project
Offering a higher amount of planned investment in the Project gets more points |
IMPORTANT ANNOUNCEMENTS
| Current Project status | The Project is looking for an investor! |
| Public tender announcement | Immediately after receiving a statement of interest from potential investors |
| Bid selection and start of the Project realization | – |