National Project “Accessible Chalet”. Sergei Polonsky builds chalet in Montenegro without MIRAX GROUP

This week, the Montenegrin government will start accepting bids from foreign investors to participate in the project under the motto "Velika Plyaja" (expected to build a hotel network with the total of 30,000 suites in Ulcinj Riviera), aide to the nation's economic development minister Biserka Dragicevic told the Kommersant daily. According to the ministry's estimates, the project cost is €20 bln and the term of implementation is 20 years. Apart from Prufrock Investments (Greece), TriGranit Development (Hungary), Hydra Properties and Bloom International Properties (UAE), a Russian company is interested in the project, Dragicevic said. A Russian developer considering the participation in this project told Kommersant that this is the MIRAX GROUP. Information was confirmed by the managing partner of the Astra Montenegro project (this project provides for erecting apartments and a hotel with the area of over 40,000 sq. m in Budva; MIRAX GROUP being an investor) Vyacheslav Leibman. He clarified that not the corporation per se but MIRAX BALKAN, owned by him and MIRAX GROUP major owner Sergei Polonsky, was going to participate in the project "Velika Plaja." The partners refused to state their shares in the joint venture.

MIRAX BALKAN has already bought 20 ha of land in Ulcinj Riviera and a land plot with the area of 30 ha is in the process of purchase, Leibman said. At this plot, the developer intends to construct hotels and kiting and surfing centers. Also, according to the businessman, MIRAX BALKAN is planning to build a network of chalets and hotels at the bottom of the mountains of Durmidor and Zhablyak, where the company bought 40 ha of land in late 2008. These areas fall into the jurisdiction of the national project to develop the country's northern territories which will be approved by authorities by late 2009, the Montenegrin ministry of economic development told Kommersant. The ministry source underlined that the authorities would cut the terms of obtaining approvals for investors to build the objects and infrastructure networks.

"The investments in new projects in Montenegro are made without attracting funds of the primary company MIRAX GROUP", said Leibman who refused to specify the exact volume of funds. In early March, the MIRAX GROUP managed to avoid a default regarding the payment of $180 mln to CLN. According to analysts, the total debt of the developer as of early 2009 hit $778 mln. In the words of Leibman, funds needed for the project will be raised partially from western banks with which the preliminary agreements have been reached. Volatility of wholesale prices on the Montenegrin market is insignificant, therefore the banks consider this asset as an acceptable collateral, Mikhail Gets, the managing partner of "Novoye Kachestvo" (New Quality), said. "From the beginning of the crisis, land prices have downed only 10%," he said. Gets estimated that the cost of 60 ha of land in the country's north and south reached €120 mln. According to him, one can build up to 500,000 sq m of fixed assets on this territory.

Partners of MIRAX BALKAN had started up their business in St. Petersburg: Polonsky had begun the business from the developer's company named "Stroimontazh," while Leibman had owned "Leibman Media Group", which bought out the "Obshchaya  Gazeta" daily in 2002 году (then the "Konservator" daily). Since 2007, they commenced to the implementation of the Astra Montenegro project in Budva. According to Budva vice-mayor Lazar Rodjenovic, MIRAX BALKAN is building an entertainment park designed for 6,000 persons, the Miracle Park. According to Leibman, €6 mln was invested in the project, and another €35 mln will be invested in 2010.