Future Capital Partners, the £6 billion alternative investment boutique has announced £40 million of capital for a £150 million luxury real estate development investment in Budva, Montenegro. The firm is also expected to announce a further £40 million capital in the coming weeks.
Investors, who are sourced through UK wealth managers, high-end IFA’s and Private Banks include a number of very high net worth individuals including the Head of Real Estate for an international property conglomerate, a senior Partner at one of the UK’s largest accountancy firms and a host of senior real estate, construction and finance personnel. Future Capital Partners and its development partners* have also injected significant capital in the project.
Opus Partners, one of Future’s real estate investment vehicles, will have approximately £20 million of remaining capacity for external investors, in addition to that already committed. The current round of funding will end in October. This investment is only suitable for Real Estate, Construction or Finance professionals capable of participating intensively in the Project.
The minimum investment is £250,000 and there is target return of between 200% and 300% over the five year expected life of the Partnership. This will be derived from the sale of the luxury residential units and under a hotel operating contract with a global 5-star Branded Hotel group.
Montenegro, on the Adriatic Coast, is one of the fastest growing tourism destinations worldwide and is set to become a hot-spot for luxury tourism developers. The scheme will comprise a luxury apartment complex, five-star hotel and exhibition centre, will include about 100 metres of prime beach front, and is set to be the first development on the seafront of the spectacular bay of Budva. The resort is only a 15 minute drive from Tivat International Airport and is located only 90 minutes from Dubrovnik in the South of Croatia.
Construction work on the development is expected to commence in early 2010 and will be completed by mid-2012. The majority of the revenues are expected to be realised between 2011 and 2014.
Tim Levy, CEO at Future Capital Partners said: “Since its independence in 2006, the Montenegrin government has made tourism the central driver of its economy. Projects such as ours and Porto Montenegro, the luxury yacht marina currently under construction, are evidence of Montenegro’s rapid development as a major tourist destination. The timing of this project, the obvious potential of the Montenegrin property market, as well as the collective strength of the Partnership, looks set to deliver outstanding returns for our investors.”
Future Capital Partners specialises in alternative investments such as renewable energy, international property, biotechnology and media and entertainment. The firm’s products and investment opportunities are available to investors through financial institutions, wealth managers, IFAs and accountants.
-ENDS -
*Development Partners
- Vendor Partner, Atlas Group, one of the largest coastal land owners in Montenegro, is Serbian based with a multitude of core infrastructure business in the media, TV and financial services sector. The vendor will construct and own the trade fair as part of the mixed use development. (www.atlas.rs).
- A local Developer contact, Boka Real Estate Managers, which has managed a local land fund in Montenegro since 2005, delivering average annual returns of 22% per annum, with exceptional political and business connections (www.bokafund.com/about.htm).
- Hotel Operator Consultant, La Cite Development, is a first class Hotel Operator Consultant, who will also be investing equity and debt into the project (www.lacitedevelopment.com).
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Notes to Editors
About Future Capital Partners
Founded in 2000, Future Capital Partners is one of the UK’s leading alternative investment boutiques, specialising in renewable energy, international property, biotechnology and media and entertainment investing and financing. Its 40-strong investment team works closely with Financial Institutions, Wealth Managers, IFA’s and Accountancy firms to raise capital enabling clients to invest in some of the most unique and commercial financial products and services available in the UK marketplace today. The investments are designed to meet the specific needs of investors who are seeking genuine non-correlated investment opportunities, and range from pure equity investments to tax-efficient structures.
Since its establishment, Future Capital Partners has completed transactions and made investments worth in excess of £6 billion and has executed over 500 asset finance transactions. Future Capital Partners also owns significant investments in other industry groups including Novia Financial PLC, the leading technology- based Wrap platform; Aramid Capital Partners, a leading provider of asset backed finance to the global entertainment industry; and Ethanol Ventures Limited which is developing and financing two “wheat to bio-ethanol” plants in the UK.