By Sarah Townsend
Sovereign wealth fund buys billionaire Peter Munk’s majority stake in Porto Montenegro
Investment Corporation of Dubai (ICD) has acquired an exclusive marina development in Montenegro for a price thought to be in the region of $228 million.
The Dubai sovereign wealth fund has bought Canadian billionaire Peter Munk’s majority stake in Porto Montenegro, one of the world’s largest super yacht marinas.
In a statement, Mohammed Al Shaibani, executive director and CEO of ICD, said: “[The deal] represents a strategic fit with our expansion plans into international luxury real estate and hospitality sectors whilst providing exposure to a new geography.”
The development is in the Bay of Kotor, a World Heritage site on the Adriatic Sea. It was originally a Yugoslav Army naval base that fell derelict and was transformed into a major yachting destination in 2009 by holding company Montport Capital.
Montport Capital was 52 percent owned by Munk, the recently retired chairman and founder of Barrick Gold, the world’s largest gold-mining corporation.
Other shareholders include Russian oligarch Oleg Deripaska and Lord Jacob Rothschild, the fourth baron of the Rothschild banking dynasty, and Bernard Arnault, chairman and CEO of LVMH, the French luxury goods company that owns Louis Vuitton.
According to reports from Canada, the investors have been reluctant to put new investment into the marina in recent years, meaning it became reliant on the sale of condos and property leases to fund further development.
Around two years ago, a $60 million five-star hotel, the Regent Porto Montenegro, was added to the portfolio.
The deal price has not been disclosed but is thought to be around €200 million ($228 million), and a nearby shipyard is thought to be included in the sale.
Munk said: “I'm enormously proud of what has been accomplished at Porto Montenegro. It has helped transform the perception of Montenegro throughout the world, sharply increased the country’s tourism revenue, and has created hundreds of jobs.
“The Investment Corporation of Dubai is the ideal party to take the resort to the next level, and to maximize its great potential.”For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.