EBRD financing for construction of hotel and business center in Belgrade - Loan worth €8.5 million

(the Old Mill)

The European Bank for Reconstruction and Development (EBRD) announced on January 12 that it would support the refurbishment of a historical site in the Old Town of Belgrade, with an investment to finance the redevelopment of one of the city’s most famous landmarks, the Old Mill, a listed building located in front of the Gazela bridge.

The EBRD’s €8.5 million equity investment in Prigan Holding, part of the Austria-based Soravia Group, will be used to finance the development of a new hotel and office center on the site of the Old Mill. The total project investment will amount to €55 million.

"This is an important major investment in Serbia since the economic crisis and it shows that confidence to the country is returning”, says Soravia-Group CEO Hanno Soravia,”

“The EBRD is delighted to support the redevelopment of the listed Old Mill building, which will contribute to the revitalization of the Old Town of Belgrade, and enhance the offer of quality accommodation and office space in this strategic location”, said Sylva Gansser-Potts, EBRD Director for Property and Tourism.

As part of the project, the Old Mill will be fully restored, with its refurbished original features providing the frontispiece to the new complex. The building will be converted into a modern hotel including 240 rooms, conference rooms, spa facilities and restaurants, with a total area of 15,000 square meters.

An additional office-tower with total floor space of 3,900 square meters will be built in the adjacent area. The new complex will also have 150 underground parking lots.

The new development will address the current undersupply of hotel accommodation and office space in Belgrade, particularly in the Old City where state authorities and many corporations are located. The construction works are due to begin by June 2011 and the hotel’s opening is expected in spring 2013.