Future Capital Partners raises £40m for unique real estate development
24.09.2009
Future Capital Partners, a £6 billion alternative investment group, has announced that it has raised £40 million of capital towards a £150 million luxury real estate development in Budva on the Montenegrin coast.
Located on the seafront of Budva bay, the development is to include an apartment complex, five star hotel and exhibition centre. Construction work on the development is set to start in early 2010 to be completed by mid 2012, with the majority of revenues expected to be realised between 2011 and 2014.
Investors, who are sourced through UK wealth managers, high-end IFAs and private banks, include a number of very high net worth individuals from the real estate, construction and finance sectors, the company said in a statement.
Future real estate investment arm Opus Partners is seeking an additional £20m towards the project from 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.
Development partners include Serbian corporation Atlas Group, one of the largest coastal landowners in Montenegro, developer Boka Real Estate Managers, and hotel operator La Cite Development.
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.”
Founded in 2000, Future has investments in renewable energy, international property, biotechnology and media, with total investment and transaction value over £6bn. Portfolio companies include Novia Financial PLC, Aramid Capital Partners and Ethanol Ventures.
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