Following the transaction, the Montenegrin government owns 12.2% of Lustica Development's share capital, Swiss-based Orascom Development Holding controls 87.7%, while several minority shareholders hold less than 1% among themselves, data published by the Montenegro Stock Exchange indicated.
Following the registration of the new share issue, Lustica Development's equity capital totals 73.56 million euro divided into 73,559,781 shares of 1 euro in nominal value each.
In January, the government in Podgorica said the company had requested to convert the debt, which includes annual payments for 2019-2022, into 4 million ordinary shares worth 1 euro each. The conversion is in line with a 2009 contract signed by Orascom and the Montenegrin government for the lease of land for the construction of the Lustica Bay resort.
The masterplan for Lustica Bay includes 690 hectares of land bank area and 6 kilometres of coastline, as only 10% of the land area is developed into an integrated town. So far, the settlement includes Marina Village, which is the first neighbourhood in the project and has already welcomed 400 families from over 40 countries to 450 residences such as waterfront marina apartments, townhouses, villas and The Chedi Residence which includes the 5-star Chedi Lustica Bay hotel, Lustica Development said in April 2023.
The second neighbourhood is Centrale, which serves as a town centre, offering facilities such as schools, medical centres, supermarkets, financial services and more. As of April 2023, it had 120 residential units complete, from studios to three-bedroom apartments. The third neighbourhood under development was announced in May, intended to set a new benchmark for leisure, tourism and residential real estate in the area.
Upon completion, the Lustica Bay project will feature more than 3,000 apartments, over 300 luxury villas, seven hotels, a marina with over 100 berths, and a golf course, among others. Works on its development began in 2013, while the entire project is due to be fully operational by 2038.
Total investment in the project is estimated at 1.5 billion euro, Lustica Development has said.
