March 25 (SeeNews) - Serbian construction firm Millennium Team said it has bought bankrupt Belgrade-based firm Danube Riverside, including the historic Hotel Jugoslavija, with plans to invest more 400 million euro ($433 million) in developing the hotel over the next four years.
"With an initial investment of more than 42 million euro, we completed the takeover of the entire location of the former Hotel Jugoslavija," Millennium Team said in a statement on Friday.
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"We have initiated the amendment of the detailed regulation plan, so that we could construct a modern residential and business complex with a high-category hotel, in a location that, after 25 years, absolutely deserves it. The total investments we are planning for the next 4 years in this project amount to more than 400 million euro," according to the statement.
Serbia's bankruptcy supervision agency announced the sale of Danube Riverside in February, saying that apart from Hotel Jugoslavija, Danube Riverside assets include 45,613 square metres of land which it owns jointly with MV Investment. The starting price in the auction was set 3.18 billion dinars ($27.7 million/25.6 million euro). The estimated value of bankruptcy debtor Danube Riverside as a legal entity is 6.35 billion dinars, twice the minimum ask price in the tender, the bankruptcy agency has said.
Local media reported over the weekend that Millennium Team bought Danube Riverside and its assets at the call price.
The commercial court in Belgrade launched bankruptcy proceedings against Danube Riverside in November 2021, with bankruptcy officially declared in May 2022.
Hotel Jugoslavija, located near the Danube river, was built in 1969 featuring 476 rooms, including seven suites. It was partially destroyed by the NATO bombings in 1999.
The company has been active in the construction industry for more than two decades, participating in large infrastructure projects such Belgrade Waterfront, Belgrade Metro, Expo 2027 and the National Stadium. It has been engaged as well in gas pipeline and city gasification projects, completing more than 2,500 km of gas pipelines in Serbia.
(1 euro = 117.199 dinars)