Russian Avenue Group Submits Binding Offer for Kupari Tourism Resort Project
On 12 October, the State Property Management Administration (DUUDI) announced that the bidding deadline for the Kupari Tourism Development Project expired on 9 October with only one binding offer received.
The bid was provided by a group of investors led by Vienna-based Avenue Group, in cooperation with the US hotel chain Marriott International. The majority shareholder of Avenue Group is the Russian investor Sergej Gljadelkin (see LPJ Influence below, p. 6). If the offer is accepted, it is expected that Marriott will manage the hotel complex to be built on the site. The project is valued at approximately €100 million. The government’s commission evaluating offers, headed by Tourism Minister Darko Lorencin (IDS), is expected to decide in the next 60 days.
The winning bidder will be entitled to implement the construction of the Kupari I site, lease the Hotel Grand, and will be awarded a maritime domain concession for the purpose of building on and commercially exploiting the adjoined beach for a period of 99 years. The future investor will have a 4-year implementation time-frame to complete the construction of new 4 and 5 star hotels. The investor will also have to meet conservation standards that have been agreed with the Ministry of Culture…