ZAGREB (Croatia), September 7 (SeeNews) - Singapore-based hotel owner and operator Hotel Properties Limited (HPL) said it is acquiring via its Croatian arm HPL Croatia a stake of 50% in Croatian tourism and real estate company Avenue Ulaganja for an aggregate consideration of 3.5 mln euro ($4.1 million) from Avenue Investments & Asset Management.
“[...] HPL Croatia, a wholly-owned sub-subsidiary of HPL, has entered into an agreement for sale and purchase with Avenue Investments & Asset Management, for the acquisition of one share with a nominal value of 11.1 million Croatian kuna ($1.8 million/1.5 million euro), in the share capital of Avenue Ulaganja,” HPL said in a statement on its website.
Croatia-based Avenue Ulaganja has a registered capital of 22.2 million kuna. It has previously entered into a project agreement with the Croatian government to develop a site for provision of tourist services in newly constructed facilities in Kupari, just south of Dubrovnik, Croatia's top Adriatic tourism destination.
“The investment will enable the HPL Group to expand and diversify its hotel property portfolio to a new market in a fast-emerging tourist location in Europe and one of the most visited tourist destinations in the Mediterranean,” HPL said in a statement on its website.
The site consists of 13.12 hectares of land and 8.6 hectares of maritime domain. It has a leasehold tenure of 99 years which is expected to commence from 2022, subject to fulfillment of certain conditions. There are ongoing works for the design, approval and subsequent development of a 150- key hotel, spa facilities, plus apartments and villas on a beach front location, a short boat ride from Dubrovnik centre.
Avenue Ulaganja has also entered previously into both hotel management and residence agreements with Four Seasons Hotels & Resorts.
“HPL Croatia and the seller have also entered into a joint venture agreement governing certain matters related to voting, management and governance, for the ongoing project to jointly undertake the development of a Four Season Hotel alongside Four Seasons branded residences for sale,” the statement added.
(1 euro= 7.479 Croatian kuna)