Dubrovnik Valamar Reshuffle Completed, Investments from Autumn

By 3 February 2022

February the 3rd, 2022 - The Dubrovnik Valamar portfolio reshuffle has been completed, and a new investment cycle is set to begin this autumn, following the main summer tourist season.

As Poslovni Dnevnik/Marija Crnjak writes, Valamar Riviera announced on Tuesday that a transaction with Imperial Riviera was concluded on the last day of January, on the transfer of the Dubrovnik Valamar portfolio to Imperial.

These are three hotels which boast a total of 947 accommodation units, Valamar Lacroma Dubrovnik Hotel, Club Dubrovnik Sunny Hotel by Valamar and Tirena Sunny Hotel by Valamar, with an acquisition value of 95.3 million euros and 100,676 euros per accommodation unit.

"Considering the interests of the acquirers of the hotels in question, the financing of this transaction was secured by taking over the company's credit obligations for two club loans with OTP Banka from Split and OTP Banka from Budapest, and four loans from the Croatian Bank for Reconstruction and Development from Zagreb, totaling 90.2 million euros at the current overall weighted average interest rate of 1.36 percent and secured liens on the hotels being transferred, while the remaining amount of 5 million euros will be paid in cash.

These three hotels in the area of ​​Babin Kuk in Dubrovnik, together with the real estate previously entered into the Imperial portfolio in the process of increasing the share capital (with an estimated value of 352.8 million kuna), will form a sustainable and strategically important technological unit,'' they said from Valamar.

They added that through Imperial, a joint company for growth and development, the Dubrovnik Valamar portfolio, as a destination, will start with the further development of its tourism portfolio as soon as this autumn, through significant investments by both Valamar and AZ pension funds.

As previously announced, the five-year investment plan in the destinations of Dubrovnik, Makarska and Rab is worth 2.1 billion kuna.

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