The Montenegrin Ministry of Privatization and Capital Projects has extended the deadline for the privatization of HTP “Ulcinj Riviera” until November 4. The abbreviation ‘HTP’ actually means ‘hotelsko-turističko preduzeće’, which in English means ‘hotel-tourist company’. 63,52% of the company is for sale.
The company actually owns a few tourist facilities and a lot of land. Apart from the land sale and actually just buying the company, an interesting option is to buy the right to use the land for 90 years. That’s a long-term lease of the land that is owned by HTP “Ulcinj Riviera”. The land includes areas where many hotels are already built and are paying the lease for the land, but also it includes areas where hotels and other tourist facilities will be built in the future, according to the city plan.
The first step any interested party should take is to submit their application to buy the necessary documentation which costs EUR 10,000. They must submit their application by November 4, and until then they can come and see the company and the land in question. Of course, potential buyers, before they actually submit their offer, have to pay a deposit of EUR 150,000 or submit a bank guarantee as a proof that they have that kind of money. Companies are allowed to form consortiums. Interested companies should submit their offers to buy the full 63,52% of the company, and the price offered will be only one of the factors that will be used in the deciding process. In the case of a lease, the interested company must state the yearly lease rates and planned investment strategy, as well as the source of their capital for such investments.
Currently, HTP “Ulcinj Riviera” is owned by the country of Montenegro (10,14 percent), Investment-Development Fund (7,64 percent), The Retirement Fund (25,29 percent), Employment Office (8,43 percent) and Compensation Fund (12 percent).