(AG Real Estate) The Danube orientation of Belgrade - machines in location of future trade center on Ada Huja

Normally, development of the locations intended for building of major projects and ventures requires great skill and knowledge, providing of the necessary budget and plenty of patience. In addition to knowledge and skill, an entrepreneur who smells the success can not achieve anything without the requisite budget. And the patience has its value, which is not negligible. Finally, luck has be to the part of this winning composition as without it neither intellect, money or patience may lead to success.

In the generally familiar process of spatial planning, land development occupies the key place and together with urban planning creates a segment which positively opts for the concept development which will culminate in completion of the planned project construction. This phase is the most difficult part of the project and is equally important as the phase of collecting and rounding off the necessary financial resources.

In developed societies where all processes in the real estate development are regulated and generally known, land development represents the driving force for a location development and for the desired real estate realization. It regularly comprises all urban practices and utilization capacities for the target location where ecology and protection of common interests also have the key place.

Usually, by acceptance and adoption of previous numerous studies about the influence on many parameters and conditions, private investors are supported and specially backed in order to fulfil the general prescribed public interests. Once they are all fulfilled, there are no further obstacles to for a private investor’s interest to be realized. This also means that all procedures which the public interest competently imposes to a potential investor are unambiguous and in compliance with the existing positive legal solutions. In that respect, during further development, any competent authorities who defend public interests stand at positive disposal and render expected support to the private interest and/or investor.

Serbia, who is trying to shape, adapt and adjust its legislation to European standards in the domain of investments and real estate development, has certain problems which hinder these processes. In addition to discrepancies of the existing rules and tardiness in enacting new, Europe-acceptable and clear ones, within the existing regulations and current processes there are cases when due to some incomprehensive and inexplicable reasons unambiguous positive support to investment development is not rendered. Further to non-anticipated lack of comprehension and tardiness in decision making when passing the binding documents which the investors have to expect for a long time, sloppiness, inopportuneness and irresponsibility of the authorities additionally might affect the contemplation of the investors about whether the publicly announced good intentions of the authorities are sincere.

At the time when the financial crisis as a menacing destructive tide slows down further development of many branches of economy world wide, when almost all governments carry out recovering measures in order to protect and support new investments which are now much fewer, it sounds illogical that in Serbia exist development ventures which at the moment have to ask for support of the public interest. In certain cases even when public interest is almost completely fulfilled! Forgetting that in most cases completion i.e. physical realization of an investment i.e. real estate means creating new jobs, it is simply inexplicable that in Serbia such cases are possible and still exist!

New development localities in Belgrade

With a desire and in an attempt to modernize and facilitate the urban development of Belgrade and to reserve valuable and potential locations and territories for further positive development of real estate and all accompanying infrastructural contents, the Master plan of Belgrade was adopted in 2003. With validity for the following twenty years, it should have defined the guidelines which also, obeying the expectation for a modern development of the city, facilitate the choosing process of the target and/or, to the city, necessary investments by potential investors.

Among other things, a special strategic target of that Master Plan is the orientation of Belgrade towards the Danube as one of two most significant corridors passing through our city and country. That orientation reflects in a row of varied business, maritime, tourist, recreational, but also central and residential contents along the right bank of the Danube, in addition to considerable and diverse structure on the left bank of the Danube. The novelty in this plan is the proposal for reducing industrial capacities in the zone of Ada Huja in favour of central activities and the proposal for completing new locations in the zone of Reva. Stretching new central contents from the right bank of the Danube deeper towards the interior of the city texture will be most dominant at Dorćol and along Roosevelt street.

Inside the spatial zones, there have been determined 57 urban entities within which special characteristics are grouped more closely. These are, by the rule, the locations reserved for out-of-the-city hypermarkets, shopping malls, wholesale markets, and alike. New business complex at Ada Huja, between the freight railway station and the Danube bank, has an opportunity to become, with appropriate contents, the center of this part of the city with a particular aim on improving the looks of the city from the Danube. The most valuable potential for future development of this entity is the area where this part of the city descends to the river and which is today in its largest part undeveloped. Natural barriers in this entity are active landslides on the slopes of Zvezdara and the improperly maintained landfill of Ada Huja.

New center at Ada Huja

The new Master Plan has defined the solution of the bank area downstream from the Pančevo bridge so as to enable functioning of the Port „Beograd“, whereas the dimensioning of the planned freight railway station and the accompanying contents is to be performed by a detailed plan study in compliance with its role, primarily in the function of the Port and the existing business contents in this part of Belgrade.

Within the bank belt, between the freight railway station and the Danube, the concentration of central contents, and/or specialized center on the bank of the Danube, which is of significance for the City, has been planned. This center will be connected with the residential hinterland but also with a wider city zone which will be accomplished via Roosevelt Street and Despot Stefan Street. Developing the Danube quay as a green area, this center has to be connected with the sports-recreational complex at Ada Huja. For accomplishment of that goal, Master plan of Belgrade 2003 has foreseen that „exceptionally within the entity of Ada Huja (between the bridge and the paper factory) it is possible to transform the former landfill into a new complex for commercial activities, by elaboration of an urban project instead of an open bid and regulation plan, as foreseen for other major projects“.

Current situation

For realization of Master plan of Belgrade 2003, in 2004 there was bid invitation for letting on lease the land for building a trade center [v1] at Ada Huja. Upon initiative of (the then) potential investor „Montmontaža“ d.d. Zagreb („Montmontaža“ was in 2007 purchased by the present owner, the Luxemburg fund BRIF – „Balkan Reconstruction Investment Fund“) to develop at the subject location, in cooperation with the trade chain and Italian partner „Mercatone“, a trade center complex, the urban project was elaborated and accepted. In that way a new complex was formed thus positively reconsidering the option of the trade centre building at Ada Huja location, which was confirmed by enactment no. 350.1-446/03-IH-03 of 19 January 2003, issued by Secretariat for Urban Planning and Construction.

It was followed by issuance of the Building permit in the form of the Decision on the building permit no. 351-351/2005-IH-04 issued on 5 August 2005 and the process of the major project elaboration was finished by submitting the documentation on 2 August 2007 to Secretariat for Urban Planning and Construction. The Study on evaluation of environmental influence of the Market center at Ada Huja is at public inspection which will be finished by a public debate on 5 February 2009. The Decision on acceptance of the Study might be issued (under condition that all deadlines are observed) during April 2009. The contractor has been chosen and issuance of the Certificate on receipt of the documentation is expected upon issuance of the Decision on acceptance of the Study on evaluation of environmental influence.

Unless there appear any unpredictable surprises, sometime in April or May 2009 is expected the beginning of this project realization. Firstly: by rehabilitation of the landfill foreseen within preparation works at the subject location, and then by physical construction of the very buildings. The estimated budget for realization of this venture performance is about 86 million Euros, and according to the Contract (fully paid) and the Annex to the Contract with Belgrade Land Development Public Agency, the fee for land development is about 13,400,000 Euros.

It is foreseen that this complex employs 800 people. These will be new jobs taken by those who fulfil the standards of knowledge and behaviour prescribed by the employer.

The future complex of the Trade center at Ada Huja will consist of the following entities:

Building 1 of projected area of 43,153 m2 and Building 2 of projected area of 6,973 m2 with open air storage area of about 4.153 m2.

Building 1 has been designed as a single-storey. Some of technological areas (in the part of the entertainment center – in the zone of cineplex cinemas, above the technical block of the Market center and hypermarket technological block are at the inter-floor. Building 1 consists of five functional complexes:

1. Central part of the Trade center with premises for retail shops of ready-to-wear commodities, clothes, shoes and consumer goods, catering and service activities, having total area of 17,680.30 m2

2. Hypermarket where there will be stored 60,000 articles for sale, consisting of the sales part, technical block, warehouse, economic* block (with cool storage and rooms for food preparation), wardrobe and toilets for the employees, having total area of 17,921.00 m2.

3. Entertainment center

4. Household appliances shops, and

5. Furniture shop

The entertainment center has been designed with several sub-complexes: the cineplex zone with three cinema theatres, bowling alleys linked with the central cafe and the billiard room, recreational zone with gym, fitness rooms, three squash courts, reception and the wardrobe with toilets, playground for children, internet cafe, media center and rooms for entertainment machines. Total area of the Entertainment center is 5,911.62 m2.

Household appliances shops (total area of 2,506.51 m2) and furniture shop (total area of 2,629.51m2) have been designed as retail premises with the belonging warehouse, technical block, toilets, management offices and sales area.

Building 2 has been designed in the function of a megamarket of type „do it yourself“ (metal fancy goods, hand and electrical devices, wall and floor panels, sanitary goods, electro-material, lighting, various wood products – plywood, refined chip-board, hardboard, and other) and garden center. Total area of the Building 2 is 6,973.00 m2. An open-air storage with an area of 4,153 m2 has been foreseen with Structure 2.

Among other functional and technological contents, the following should be highlighted:

· Internal traffic network with the surface for parking lots, where 2133 parking places are planned for needs of customers and employees, out of which number 124 parking places for the persons with special needs;

· Surfaces intended for pedestrian communication;

· Greenery and alike;

· Dual purpose shelters: designed area of the structure is about 417 m2

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