Exclusive Green Resort Zelena Punta

AN EXCLUSIVE “GREEN” INVESTMENT OPPORTUNITY

The Zelena Punta resort, whilst very accessible, differentiates itself from competitive locations and the “mass tourism” locations on the Adriatic coast as a green resort situated adjacent to areas of significant natural beauty. Eco-tourism is expected to be one of the fastest growing segments in the market with an expected CAGR of almost 15% per year (Statista, 2023). Together with the Resort’s emphasis on gastronomy, musical experiences and sporting activities, the developers have taken this opportunity to design and develop the Resort with a sense of privacy and exclusivity underpinned by a genuine care and respect for the environment.

As such the developers have made efforts to “future-proof” the investment value as the Resort appeals to an ever-larger market of more discerning and environmentally-conscious travellers.

In its commitment to sustainable tourism which is expected to be one of the fastest growing segments of the tourism market, the Resort will only operate with e-bikes, e-scooters and solar lighting. Internal combustion engines will not be permitted except for e.g. arrivals/departures of guests’ own cars and emergency / similar vehicles.

The Resort is also committed to recycle as much as possible in an effort to minimise the resort’s carbon footprint.

Buying-in early

The Resort, whilst established and operating, is still in its early development phase.

Currently (Aug 2023) 14 of the initial 34 Apartments are committed or sold and the next phases will provide a further 36 apartments. Early investors are therefore presented with a unique opportunity to buy into the development early and hence profit from its expected future rental and capital value growth.

The vendor’s expectations are that the rental income connected with the property will grow by approx 15% annually over the next 5 years.

Similarly, the expectations are that capital values will also increase by approx. 15% over the same period assuming also that the wider resort benefits from successfully completed development works and maturity of the resort branding.

The resulting expected IRR (net annual return after estimated tax liabilities) is expected to be approx. 8.2% assuming a successful exit in the target hold period of 5 years.

The refurbished apartments and buildings are all fully adapted and permitted for short-term vacation use and the Resort benefits from permitting for operations as a tourist resort (under the T2 designation of the spatial plan.

There are a total of 34 refurbished Apartments with areas ranging from 30 to 76 m2. A further 36 apartments will be completed by Summer 2024.

Location

The property is part of an exclusive, fully-managed, green resort situated within a beautiful, natural environment just steps away from the beach on the island of Ugljan, a few kilometres from Zadar on the Croatian coast (only 30 minutes by ferry).

The Resort is undergoing a wider re-development including a complete refurbishment of the apartment buildings. Currently there are four, two-storey apartment buildings which were refurbished and completed in Summer 2023 comprising 34 apartments and the Skakaona beach-club restaurant and bar.

Further works are underway to complete the refurbishment of the remaining three apartment buildings - Oleander (Autumn 2023), Lovor and Levanda (Summer 2024) totalling a further 36 apartments and plans to develop a brand new beach club, luxury villas and mid-class bungalows.

All of the apartment buildings are within 30m - 150m of the beach.

The subject property is Apartment 2.3, a south-facing apartment with a direct sea-view situated on the 1st floor of the two-floor “Palma” building.

The extensive refurbishment works to the apartment buildings includes; new roofs, insulation, windows and doors and tastefully designed and brand-new interiors including fully-equipped kitchens, bathrooms, bedrooms and living rooms. In addition all technical infrastructure has been replaced including electrics, internet, sanitary rooms, HVAC and water/sewerage.

The wider property caters to all generations. Exceptional gastronomy, water attractions, a new sports area, a new beach club and playgrounds for children all form an integral part of this unique resort.

The entire Resort, including the subject property, is fully managed by the experienced hotel and resort operator, Premium Star Hotels. In addition to Zelena Punta, they also operate several exclusive 4-Star hotels and resorts including the Salamandra resort and the Hotel Sliezsky Dom in Slovakia and the Hotel Trakoscan in Croatia.

The Resort is closed from the beginning of October to the end of May. The seasons are defined as follows in the Rental Agreement;

• High Season - 1st July to 31st August
• Shoulder Season - 1st June to 30th June & 1st September to 30th September
• Low Season - 1st October to 31st May

We are also finalising negotiations with the operator that all of Investbay’s token-holders for the Apartment will benefit from being able to visit the resort year-round (rather than only in the core season June-September).

In addition, we are also simultaneously negotiating with the operator that in some cases (anticipated to be limited to three weeks in total per season), token-holders booking during the core season will also have the possibility possibility of similar discounts afforded to standard owners on a number of services including for example 15% discounts on gastronomy and on selected dates, free access to children’s programmes, childcare and use of the sports facilities (padel courts, multi-use pitch, volleyball, football, minigolf, entry to the marine water park and general sports equipment). In addition, 50% discounts apply for the hire of sports equipment including jet skis, e-bikes, pedal bikes, canoes and other equipment and group exercise classes.

Note: As noted above, negotiations are in progress and as such we can not guarantee the above