Building plot Vrnjacka Banja, Serbia

Opportunity

An opportunity for purchase of an excellent building plot in the centre of Vrnjačka Banja, which consists of 2 cadastral plots of approximately the same size, 507m2 and 508m2, with a total area of 1,015m², which together form a construction area of regular shape.

The land is included in the detailed regulation plan of Vrnjačka spa in the section "Apartments and guest houses" - AP1.

The construction of 2 buildings with a total of 40 apartments and 18 garage spaces is planned. Due to unevenness of the terrain, the objects are placed in a cascade in relation to each other, as you can see from the rendering of the conceptual design in the picture gallery above.

The cadastral plots are owned by a special-purpose company ("Company") that was formed for the purpose of construction of buildings on them. Both KPs are free of encumbrances or other charges.

The offer includes:

• Both cadastral parcels
• Documentation - with the purchase, the customer receives the following documentation and benefits:
  1. Building permit
  2. Location construction conditions
  3. Master Construction Project (with all parts)
  4. Report on energy efficiency
  5. Report on the assessment of the impact of the construction of residential buildings on the mode of exploitation of thermal-mineral waters
  6. Report on geotechnical foundations
  7. Report on fire protection
  8. A turnkey offer by a very high-quality construction company to build the project
  9. Web site for the sale of apartments
• Paid local construction land levies €38,000, architects €12,000 and other costs in the amount of around €10,000 (total €60,000), therefore the actual price of the construction plot is €565.000. The local construction land charges payable to the city’s administration are today much higher than levied on our client, which is an additional benefit.

Transaction - sale of the construction plot with all documentation or sale of a special purpose company (SPV) on the basis of "debt free cash free" (DFCF), which means that the existing debt is deducted from the purchase price, cash in the company's bank account is added to the purchase price. For more details plese see more in the section "Additional Information" below.

Description

The plot is located about 1.5 km from the centre of Vrnjačka Banja, about 5 km from the highway. There is a project construction documentation from we present some basic elements:

• Basic purpose of buildings: multi-family housing
• 2 residential buildings, B, GL+2F+mansard
• Plot area 508m² and 507m² - total 1.015m
• Gross buildable area 1.011,70 m² and 1.011,70 m² total 2.023,4m²
• 18 garages (8+10)
• 40 residential units (20+20)
• Total net area 1,648.88 m² , (810.96 m² + 837.92 m²)
• The entrances to both buildings are oriented towards the southern side of the plot.
• The height of the crown of building no. 1 is 8.80 m in relation to zero elevation
• The height of the crown of building no. 2 is 8.80 m in relation to zero elevation
• The constructive system of the buildings consists of a reinforced concrete skeleton structure
• Sidewalks and footpaths are planned around the building, which connect the parking spaces with the building and green areas on the sides of the buildings.
• As a rule, parking is provided on the construction plot (above ground or underground) outside the area of public use.

Location

The construction plot is located near the Jezero mineral spring, only 150 meters from Vrnjačka Banja Park and the pedestrian zone. Nearby are the springs Slatina and Snežnik, as well as a kindergarten, school, olympic pool, aqua park and many other tourist attractions of Vrnjačka spa.

The plot is located in the southern part of Vrnjacka Spa, close to the centre. It is positioned on a hill that descends towards Slatinski venac street. The immediate surroundings are dominated by individual residential buildings and multi-story apartment-type buildings. Ostroška Street is a narrower local road that connects the neighbourhood with Slatinski Venac Street. The street is two-way and narrow, where only passenger and delivery vehicles can travel, so it is a quiet residential area. In the immediate vicinity in the direction of the centre, there are "Hotel and Aqua Park Vrnjačke terme", other hotels, villas, boarding houses and apartment buildings, catering facilities and retail stores, and public buildings are a little further away.

• Distance from the Jezero mineral spring 230m
• Distance from the main promenade 450m
• Distance from the Roman spring and the main park 900m
• Distance from the Hotel Fontana 1,4km
• Distance from the city centre 1,5 km

Market

According to World UNWTO Tourism Barometer from January 2024, in 2023, Serbia was the first destination in the world in terms of the growth rate of income from foreign tourists compared to 2019, with a jump in income of +79% compared to 2019.

According to the data of the Republic Institute of Statistics, a total of 4.192.797 tourists visited Serbia in 2023, which is 8% more than in 2022. There were 20% more foreign visitors compared to 2022 and for the first time there were more two million foreign tourists, mostly from Russia, Turkey, Germany and China.

According to preliminary data from the National Bank of Serbia, in 2023, a record income from foreign tourists was achieved in the amount of €2.5 billion, which is about 80% more than in 2019. The most visited tourist destinations outside the big cities in 2023 were Vrnjačka banja, Zlatibor, Sokobanja and Kopaonik.

Vrnjačka Spa is one of the most attractive tourist destinations in Serbia and the most visited spa in Serbia. Vrnjačka Spa is located on the southern edge of Šumadija, and it is about 200 km from Belgrade, 50 km from Kruševac and about 20 km from Kraljevo. The construction of the "Morava Corridor" motorway opens the possibility of increasing the number of arrivals of foreign guests, as it makes Vrnjačka Banja more accessible for tens of millions of people traveling from Central, Northern and Western Europe to Turkey, Greece, North Macedonia. The Morava airport, which is 20km away also contributes to this.

Vrnjačka spa is one of the leading tourist destinations in Serbia. As a spa and tourist destination, it offers a wide range of services that attract guests from Serbia and the region. Its thermal waters have been used for medicinal purposes for 1.700 years, since the Roman Emperor Constantine. In addition to the well-known Merkur Spa, other major tourist attractions of Vrnjačka Banja are Aqua Park Raj, the Panoramic Wheel, Lovefest, landscaped hiking trails, etc. Guests are served by numerous restaurants, hotels and apartments. An additional attraction is the 7km Gondola from the centre of Vrnjačka Banja to Mount Goč, which the municipality of Vrnjačka Banja is building with the family of tennis player Novak Đoković. A new tourist attraction "Paradise mountain Goč" will be built on Mount Goč, which includes the construction of docks on the lake, a large adventure park, an adrenaline park, the completion of sports fields that have already been started, as well as the construction of a summer stage and several viewpoints , which will all contribute to the improvement tourist potential of this mountain.

Thanks to investments in infrastructure, tourist facilities and promotion in recent years, Vrnjačka Spa attracts visitors throughout the year. These investments have contributed to improving the quality of services provided by Vrnjačka Spa, increasing the number of tourists and raising the reputation of the Spa as one of the most desirable destinations in Serbia. Due to its accommodation facilities, four- and five-star hotels and a congress centre, Vrnjačka Banja is increasingly the choice of high-paying guests, as well as the host of numerous business events. In the past few years, dozens of new high-category hotels with rich wellness and spa facilities, worth almost €200 million have been built. The offer is completed by the ZOO garden, the Japanese garden, the Labyrinth Park, the adrenaline park, sports halls, football fields built according to FIFA standards, the Sculpture Park, the waterfall that is perfectly integrated into the natural environment of Crkveni Brdo, and above all, 60ha of landscaped park areas in the heart of Banja.

From the table below, the growth of the tourism industry in Vrnjačka Banja in 2022 was significantly higher than in 2021, which was partly the result of the cancellation of the COVID 19 measures. More importantly, in 2023 tourist arrivals and overnight stays of both domestic and foreign tourists continued to grow.

In recent years, with the increase in purchasing power and demand the market prices of the holiday homes in Vrnjacka Banja is constantly increasing. Currently, the limited offer of new buildings in the centre of Vrnjačka banja is in the average range from the €1.800 to 2,400 pm2. The table below shows the prices of apartments in Vrnjačka Banja in 2022 and 2023.

The prices in the high end residential and business complex Zepterme are offered in the range from €2.900 to €3.200pm².

The table below shows activities on the real estate market of Vrnjačka Banja in the period 2019-2022.

The growth of apartment sales in Vrnjačka Banja has been constant in the past 4 years and this trend will continue. In tourist places such as Vrnjačka Banja, Zlatibor or Kopaonik, buyers are mostly from outside who invest in their second or third property as a business, investment property that should bring them income from letting and from the increase in the price of the property itself. One of the business opportunity for this Resort is for the new owner to sell the apartments to retail buyers and subsequently to manage the apartments and the Resort for and on behalf of the owners (rental pool).

Further info

We are the seller's advisors. Our fees are paid by the seller.

Cadastral plots, documentation and other tangible and intangible assets and rights are owned by a special purpose company (SPV), which was established to develop this construction plot. Due to other obligations, the current owners have given up on realizing the project themselves.

Options for purchase:

• The building plot consisting of 2 cadastral parcels, both without encumbrances and with building permits and other documentation or
• The company (SPV) on the basis of "debt free cash free" (DFCF), which means that the existing debt of the company is deducted from the purchase price, cash in the Company's bank account is added to the purchase price. The company has no employees. If purchasing the Company, there will be no conveyance tax payable which shall apply in case of the purchase of the building plot amounting to 2.5% of the purchase price or €15,625.

Commercial banks have expressed their willingness to provide construction loan for the construction of this facility.

Contact us for further info

SEECAP is the sole and exclusive advisor to the seller. Our fees are paid by the seller. Contact us for any additional information, as our task is to answer all your questions. For further information please contact us by email [email protected] or by mobile phone/Viber/WhatsApp/Telegram +381 63 377 960 ili +381 11 36 35 935 or by using contact form below.