Globe Trade Centre S.A. (GTC), through its 97% subsidiary GTC Croatia, has entered into a partnership that will develop a luxurious residential complex, together with a 18-hole golf course and a 5-star hotel on the coastal region of Istria in Croatia.
GTC Croatia will hold a 75% stake in the residential project and will provide 85% of the financing, while existing initiators and shareholders will hold the remaining 25%. GTC Croatia will have an 85% interest in the development of the hotel and provide 100% of any equity required. GTC Croatia will be remunerated for the management of the development, with a 5% fee on the development cost, excluding the land.
The 130-hectare site is located in the north of Croatia, on the Istria peninsula. The unique waterfront location, next to a professional golf course facility and a luxurious hotel, will offer some of the most prestigious residential properties in the booming real estate market on the coast of Croatia. The 18-holes golf course may in the future be extended by another 9 holes.
GTC will be a 25%-partner in the company that will manage the golf course facility and residential property, and will also let apartments and villas on behalf of buyers.
In total 20,000 m² of residential space is to be developed, ranging from 100-m² apartments to 300-m² villas.
The 5-star hotel will have 20,000 m² of gross space. Such a unique location for a luxurious resort hotel has already attracted an interest from leading international hotel chains.
Total revenues from the project, not including the hotel, are estimated at €100 million.
The project is planned to be completed in 2009.