The project proposed by Private Project Managment consists of the building that formerly housed the Ministry of Internal Affairs, which is located in the centre of Belgrade. This development is situated in one of the city's main streets, which is home to many of the main embassies such as those of the United States, Canada, Germany, Italy, and Switzerland.
The same area features many of government buildings such as the Ministry of Finance as well as the city's biggest public hospital and high-class residential areas. The location is perfectly situated such that it is linked to the main highway system that connects the city centre with Belgrade's Nikola Tesla Internation Airport as well as the central railway station and fairground complex.
Private Project Management has purchased the complex from the Government of Serbia for 34.5 million Euros. This enables the investors to obtain the necessary licences and other key development permits. According to the proposed project plan, at least 70000 square metres of development space has been secured. The Serbian govrnment has stated that if the investors can bring forth a project that improves the image of this part of the city, the company will be allowed to develop more than 100000 square metres of space. Since this location is prime real estate, two international banks and three hotel chains have already indicated interest in being located within this complex.
Plaza Centers N.V. (“Plaza” or the “Company”), a leading Central and Eastern European emerging markets property developer, today announces that it has won a competitive tender from the Government of Serbia for the development of a new shopping, entertainment and business centre on a total built up area of circa. 100,000sqm (with over 2000 parking spaces) in Belgrade, Serbia . This project represents Plaza’s first step into the Serbian market and fulfils one of the Company’s expansion objectives set out in its Prospectus.
The new complex will be located on the prominent site of the former Federal Ministry of Internal Affairs, situated on the main street which runs through the centre of Belgrade. The area is home to foreign embassies, including those of the United States, Canada, Germany, Poland among others. In addition the Serbian Government, Ministry of Finance, Belgrade chamber of commerce and Belgrade’s largest public hospital are all nearby, as well as the city fair and the future railway station.
Plaza will partner local Serbian developer for the project, which is expected to have a gross development budget of €150 million. The local partner will be entitled to participate in up to 15% of the project, subject to certain conditions while the project management will be rendered solely by Plaza.
Serbia is one of the Eastern European nations where Plaza sees strong potential for future investment opportunities. Plaza also believes that the Belgrade market offers particular potential, with its large populated catchment area of approximately 2.5 million people. Additionally, as Belgrade has not to date benefited from ‘institutional grade’ investment in retail or commercial real estate, this development will have particular significance in terms of providing a new commercial and cultural destination for both domestic and international visitors.
Commenting on the handover agreement, Ran Shtarkman, President and CEO of Plaza Centers N.V., said:
"We are very excited to be taking our first steps into the Serbian market, where we believe our skills and experience in delivering large-scale mixed-use developments can produce significant value, both for our shareholders and for the centre’s tenants and visitors."
"In addition, we look forward to playing a part in the delivery of a new commercial and cultural centre for Belgrade, which we hope will attract a range of high quality international and domestic tenants and thereby unlock the considerable potential we see within the Serbian market."
LocationThe project is located in centre of Belgrade, in near to Highway
SizeUp to 100 000 square metres of office and hotel space
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