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Croatia's Helios Faros to invest 223 mln kuna (30 mln euro) in 2022

Author Annie Tsoneva
Croatia's Helios Faros to invest 223 mln kuna (30 mln euro) in 2022 Future Valamar nature resort on Hvar - illustration.

ZAGREB (Croatia), October 18 (SeeNews) - Croatia's hotel operator Helios Faros [ZSE:HEFA] will invest 223 million kuna ($34.4 million/29.7 million euro) under its capital expenditure plan for 2022, it said.

The company's supervisory board approved the plan on October 14, it said in a filing to the Zagreb bourse last week.

According to a separate statement issued by its minority shareholder hotel operator Valamar Riviera [ZSE:RIVP], the investments concern the construction of the first Valamar sustainable nature resort, the completion of investments in hotel Hvar, the construction of swimming pools complex Aquamar and overall preparation for the tourism season in the capacities of Helios Faros on the Adriatic island of Hvar.

Nature resort is a new concept of Valamar for sustainable eco-friendly village for family holidays. Its construction will be in line with the strongest standards for green building, including ecologically acceptable building materials with minimum impact to the environment, usage of energy from renewable sources and high level of energy efficiency.

In 2016, Helios Faros [ZSE:HEFA] entered into bankruptcy proceedings, which it exited successfully in July 2019 when Valamar Riviera and pension fund manager PBZ Croatia Osiguranje acquired stakes in the company through repaying Helios' debt to creditors. PBZ Croatia Osiguranje owns more than 77% of Helios Faros and Valamar holds a stake of 20% in it.

During the Covid-marked 2020, hotel Hvar reopened after a renovation.

The longer-term business plan for Helos Faros envisages investments of some 800 million kuna in sustainable tourism by reconstruction and construction of three hotels and resorts of four and five stars.

Valamar Riviera's shares traded at 32 kuna intraday on Monday on the Zagreb bourse, up 0.95% compared to their closing price on Friday.

Helios Faros' shares last traded on September 8, ending at 1,155 kuna, unchanged compared to the previous closing price.

(1 euro=7.507 Croatian kuna)

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