LOVCENINVEST A.D.

LOVCENINVEST A.D.
RESIDENTAL - BUSINESS SETTLEMENT “MALO BRDO”
Investment project
LOVCENINVEST A.D.
GENERAL INFORMATION ABOUT THE INVESTOR
LOVĆENINVEST AD Podgorica
81000 Podgorica, st. II Crnogorskog bataljona, No. 2i
Main activity:
Investment engineering and consulting in the construction industry, construction of
residental and commercial buildings.
+ 382 20 273 125;
fax: + 382 20 220 122;
E-mail: lovceninvest@yahoo.com
LOVCENINVEST A.D.
HISTORY
1971 - Founded as a business association.
1980 - The founder of the Engineering Faculty in Podgorica.
1990 - Transformed into a company with initial capital of 30 companies in the field of design, construction, building
trades, construction materials, equipment and related activities.The founders are even 45 employees of the
former Lovćeninvest.
BUSINESS REFERENCES
In the past 40 years, along with its founders and partners, it designed, built or participated in the construction of a large
number of residential, industrial, tourist, administrative, educational, sports and other high-rise buildings in the country
and abroad.
We built hundreds of kilometers of highways, local and unclassified roads, tens of kilometers of railway, over a hundred
bridges and a number of hydro-power facilities. When it comes to foreign countries, we built facilities in Libya, Iraq,
Germany, Czechoslovakia, the USSR and Russia.
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LOVCENINVEST A.D.
Until 1990, along with its founders and partners, Lovćeninvest
has designed and built, among others the
following capital facilities:
Roads: Herceg Novi - Kotor, Tivat - Budva - Petrovac - Bar - Ulcinj, Titograd - Petrovac, Titograd - Cetinje - Budva,
Titograd - Nikšić - Plužine, Titograd - Kolašin - Mojkovac, Bijelo Polje - Ivangrad - Rožaje - Titova Mitrovica, city traffic
arteries, local forests and non categorized roads...
Many parts of railroad Beograd - Bar (Smokovac, Bioĉe, Bratonožići, Lukovo, Krušev potok, Ostrvica), the section of
Yugoslav part of the railroad Titograd - Tirana.
About hundred of bridges on the railroad Beograd-Bar and other roads in Montenegro.
Hydroelectric power stations: “Perućica”, “Glava Zete”, “Mušovića rijeka”.
Barriers and accumulative channels:
Bjelopavlica Plain...
“Slivlje”, “Krupac”, “Liverovići”, an embankment on Skadar Lake, melioration of
Since 1990, year as a joint stock company, Lovćeninvest built:
Constructions in
the country
Abroad
Business Center “Kruševac” in Podgorica (1992),
Dispatching Center of the Electric Power Company of Montenegro in Podgorica (1992),
Elementary school “Štampar Makarije” and ES “Pavle Rovinjski” in Podgorica (1993),
Business-residental facilities in the settlement “Malo brdo” in Podgorica:
L1, L2 (1991), V1,V4 (1992), N3/N4 and L3 (1995-1996).
Business-residental unit in the urban plot no. 42 DUP “New City1 and 2“ (2005-2007)
Russia: industrial complex in Raskazov; KVK, Pavilion 2 and Forum as part of International exhibition center in Moscow;
Reconstruction of “Soljanka” in Moscow; Business-residental unit in the street “Ĉisti pereulog”
Germany: reconstruction of a nursing home in Rastatt; Parking Heertorplatz in Fulda; New central post office in Bonn;
Construction of bridges Tallbrücke and Saaletalbrücke - BAB A 71, Erfurt - Schweinfurt (2001-2003).
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LOVCENINVEST A.D.
Business Center “Kruševac” in Podgorica
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LOVCENINVEST A.D.
Business-residental facilities in the settlement “Malo brdo” in Podgorica
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Elementary school “Štampar Makarije” and ES “Pavle Rovinjski” in Podgorica
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LOVCENINVEST A.D.
Business-residental unit in the urban plot in Podgorica
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LOVCENINVEST A.D.
FUTURE CONSTRUCTION
Residental - Business Settlement “Malo brdo” (Little Hill)
INTRODUCTION
Lovćeninvest AD has on disposal its own location to build on, in the urban area of Podgorica, covering an area of about
70.000 sq.m. The entire area is equipped with appropriate infrastructure. So far, about 300 apartments were built, and all
conditions for a continuation of building are fulfilled. Total area of free land for construction is around 53.000 sq.m on which
can be build over 65.000 sq.m of residential and office space.
Within the urban design of the city area of Podgorica, the area of “Malo Brdo” (Little Hill) was treated as part of a
comprehensive system of housing in different types of objects (strings, villas, independent buildings with a smaller
number of housing units, etc..), which ensures to future clients a wide variety of dwellings. We also planned to build an
office space, mostly in the ground floor of a number of housing units, intended for service activities for functioning of
that area.
The area in which the Lovćeninvest started construction and plans new buildings covers 69.440 square meters. So far, about
19.000 sq.m of residential and business premises were built and in accordance with the existing detailed urban plan, over
65.000 sq.m more is plan to be constructed.
When developing the detailed urban plan "Momisici A", particular attention was paid to:
- planning the construction of facilities that will ensure high standards of living;
- planning related additional facilities to the extent meeting the daily needs of the population;
- adjusting the planned construction to the terrain, so that conflict of natural and constructed is avoided.
These are preconditions that will affect the entire complex, through design and construction, to get characteristics of a
residential settlement.
Important determinant of the settlement itself is the concept of transport, with clearly segregated school and pedestrian
thoroughfares. The system of transverse and diagonal street alignments provides a good supply of all facilities in the resort,
for regular and special needs. Transport at rest is solved in a qualitative way - by building garages in the objects themselves,
and partly along the road.
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LOVCENINVEST A.D.
LOCATION
With its location, topography and other natural features, the area of “Malo brdo” (Little Hill) is one of the most attractive
locations in Podgorica, especially for housing. When it comes to Podgorica, construction of housing in the settlement “Malo
brdo” (Little Hill) was the first planned attempt to develop the organized urban settlements on the hill.
An area which is included in the Detailed Urban Plan (DUP), whose owner is Lovceninvest, is located in the northeast of the
settlement “Malo brdo” (Little Hill), between wheels 46 and 115. Contact zones in this area are River Moraĉa and a corridor of
the forest belt, which positively affects the microclimate of the zone.
Residential and business settlement “Malo brdo” (Little Hill) is located in the city, 3 km far from the Republic Square,
which is the central town square, with excellent connections to all parts of the city, through the existing road network.
It should be noted that, due to geographical location and topography, the site has excellent insulation, ventilation, views ...
The terrains on the slopes of the “Malo brdo” (Little Hill) are stable and very favourable for construction and do not require
application of special measures for funding. The underground water level is low and equals to 15 m.
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LOVCENINVEST A.D.
Plan of Podgorica with marked locations
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LOVCENINVEST A.D.
Project “Malo brdo” - disposition of planned facilities
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LOVCENINVEST A.D.
Project “Malo brdo” traffic-planned state
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LOVCENINVEST A.D.
OVERVIEW OF PLANNED CONSTRUCTION IN THE “Malo brdo” (Little Hill)
Besides the already built 19.000 sq.m of residential and office space, about 65.000 sq.m is planned to be built. An
overview of the planned construction by urban plots is given in the table below:
Urban plot
Area of an urban
plot in m²
gross developed
area in m²
2/36
3189,58
4320,00
2/37
3543,34
4320,00
2/38
3745,42
4320,00
2/43
2945,79
3888,00
2/44
1457,20
1656,00
2/9
2676,74
4166,96
2/11
1579,65
2/12
3126,49
2448,00
3162,00
2/13
42,00
2/45
1386,01
1296,00
2/14
50,00
2/54
1913,90
2232,00
2/47
45,00
2/53
2340,50
2232,00
2/46
42,00
2/52
1461,31
1872,00
2/15
839,46
1343,14
2/16
1001,26
2/51
2228,46
1872,00
1602,01
2/18
1085,67
2/50
1727,10
2232,00
2/21
834,64
1737,07
1335,42
2/49
1630,66
2232,00
2/22
634,43
1015,09
2/48
1645,96
1872,00
2/39
805,25
1288,40
Total zones 2
48169,01
61410,19
2/40
583,29
933,30
1/61
1916,43
1728,00
2/41
543,20
869,20
1/62
743,49
1189,60
2639,16
2592,00
2/42
2/34
1262,22
1656,00
2/35
3058,99
4320,00
4555,59
4320,00
52724,60
65730,19
Total zones 1
zone 1 and 2
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LOVCENINVEST A.D.
Project “Malo brdo” - urban plots
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LOVCENINVEST A.D.
MARKET
Podgorica as an administrative and university center, where quarter of the Montenegrin population lives, is an
immigration region, which along with a population growth affects the rapid and stable increase in population in the city and
generates a constant demand for housing.
Not counting the inherited deficit, only in the period from 2007 to 2011, the demand in Podgorica was 10.563 dwellings, or
about 739.410 sq.m of living space, given the average size of an apartment of 70 sq.m.
year
2007.
2008.
2009.
2010.
2011.
No. inhabitants
mid-year
176.569
178.554
180.809
185.046
185.937
No. households
mid-year*
53.505
54.107
54.790
56.075
57.346
Annual growth
households
657
601
683
1.285
1.271
concluded
marriages
1.380
1.117
1.330
1.124
1.115
Demand for
dwellings**
2.037
1.718
2.013
2.409
2.386
* Number of inhabitants was divided with an average size of a household which is 3,3 **
Demand for dwellings = increase in households + concluded marriages
In previous period 6.366 apartments have been completed, in Podgorica, with total area of 474.457 sq.m. The deficit of the
apartments in Podgorica 2011. was 4.197 apartments (official statistic).
So, the market is there and the problem is not in the sale, but in the reduced purchasing power of the population. With
affordable loans for the purchase of apartments, with appropriate garanties, everything what is built, would have a buyer.
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LOVCENINVEST A.D.
ECONOMIC ASPECT
The expected price of construction in a “Malo brdo” (Little Hill) is €889,00 sq.m gross facility area. The cost structure is as
follows:
Construction - handicraft works
Design, management, monitoring and others
Municipal contributions
Price of land (300,00 €/sqm-urban plot)
550,00
40,00
84,00
215,00
889,00
Construction of the entire complex would cost approximately
sq.m
sq.m
sq.m
sq.m
sq.m
€ 58.433.970,00 (65,730 sq.m x € 889 / sq.m).
Taking into account the quality of the location, quality of construction and planned housing standards, it is estimated that
the selling price of the apartment will be at least 1.400 €/sq.m.
The average selling area of buildings that will be built in the “Malo brdo” (Little Hill), accounts for 80% of the total
developed area, so that through the sale of apartments the total revenue of €73.617.600,00 is planned.
Therefore, we expect gross profit of 26% on the invested capital, which makes this project very attractive to potential
investors.
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