BelRE-special

8/7/2019 BelRE-special

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Serbia - the expanding

market for growing profits

Ready to Invest

Learn about the most attractive projects...

Listen Expert's advice


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Heartfelt Hospitality

This issue marks the launch of the BelRESpecial Magazine,intended to serve asa valuable guideto the real estate mar-ketsof Serbiaand itsneighbours. Within itspages:

We will showcase some of the most intriguing projects We will chat with the real estate investment experts

from worlds leading companies with branch offices inSerbiaand other countriesin the region

We will keep you informed of the potentials for growthand ready-to-invest projects

We will use our influence to turn possibilities into actu-al projects

And,finally, we will shareour delight when we see our ef-fortsgrow to fruition

The current Crisis hascaused the developers interest in in-

vesting in our region to wane. In the meantime, the pricessettled at a stable level, new options began to appear, andour legislation was synchronized with the legislations of EUmember countries. The market has matured in both itsopenness to foreign investments and in the incentivesoffered for those investments.

While working on this issue,I stumbled upon a text on Bel-grade in a brochure for one of the major projects and feltthe need to quote a fragment of that text here:

Belgrade is located at the crossroads of Eastern and West-ern Europe. No other place anywhere in the world com-

bines ever so smoothly the temperament and the passionof the Orient on one side and the elegant charm of Europeon the other. Alwayson the route of Eastern armies' foraysinto the West or vice-versa, destroyed and rebuilt for somany times, Belgrade lackscontinuity in architectural stylesthat other European cities boast of; however, the visitorlooking for heartfelt hospitality, excellent cuisine and enter-tainment will find all of thisand be more than satisfied with

what thiscity that never sleepshasto offer instead...

I hope you will find ample reasons to keep on readingand that I will see you again soon.

Editor-in-chief


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E x p e r t ' s A d v i c e

S e r b i a t h e E x p a n d i n g M a r k e t f o r G r o w i n g P r o f i t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

P o s i t i v e i m p a c t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

F o c u s o n t h e R e s i d e n t i a l M a r k e t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

D a n o s i n A l l i a n c e w i t h B N P P a r i b a s R e a l E s t a t e ,

f i r s t y e a r o f S e r b i a n o p e r a t i o n s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

S e r b i a n P r o p e r t y M a r k e t L e a d i n g i n t h e R e g i o n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1

T h e S e r b i a n r e a l e s t a t e m a r k e t i s s t i l l u n d e r s u p p l i e d . . . . . . . . . . . . . . . . . . . . . 1 2

M a c e - t h e m o s t s u c c e s s f u l p r o j e c t m a n a g e m e n t

c o m p a n y i n S E E r e g i o n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 4

Q u a l i t y A w a r d 2 0 0 9 f o r S p i e g e l f e l d I n t e r n a t i o n a l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 5

R e a d y t o I n v e s t

A t t h e c o r n e r o f t w o B o u l e v a r d s , n e x t t o D a n u b e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 6

M a r i n a O a s a n e w s p o t o n E u r o p e t o u r i s t m a p . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2

C i t y o f N i s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 8

G r o w w i t h u s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 0

C O N T E N T S

B e l R E M a g a z i n e

B e l R E M a g a z i n e i s p u b l i c a t i o n o f B e l R E

F a i r a n d D y n a m i c C o m m u n i c a t i o n s

G r o u p d o o , r e g i s t e r e d i n B e l g r a d e ,

S e r b i a

9 0 , C a r a N i k o l a j a I I

B e l g r a d e , S e r b i a

+ 3 8 1 1 1 3 4 4 0 2 4 7

o f f i c e @ b e l r e . o r g

w w w . b e l r e . o r g

E d i t o r - i n - C h i e f D u s i c a G a k o v i c

E d i t o r i a l S t a f f a n d C o n t r i b u t o r s

M a r i j a J e r e m i c

M a r k o L a z i c

J o v a n P o p o v i c

M a r k e t i n g

V i o l e t a S i m i c

o f f i c e @ d c g . r s

+ 3 8 1 1 1 2 4 3 4 3 4 6

P r e p r e s s

D y n a m i c C o m m u n i c a t i o n s G r o u p

T r a n s l a t i o n

D y n a m i c C o m m u n i c a t i o n s G r o u p

P r i n t

T I M A g e n c y

* J a n u a r y S e p t e m b e r 2 0 0 9 S o u r c e : N a t i o n a l B a n k o f S e r b i a

S e r b i a t h e

E x p a n d i n g M a r k e t

f o r G r o w i n g P r o f i t s

T h e q u a l i t y o f S e r b i a s b u s i n e s s c l i m a t e h a s

b e e n r e f l e c t e d i n 1 4 b i l l i o n o f F D I s i n c e 2 0 0 1 . . . .

4


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22

32

OngoingProjects

Metropolit an Apartments,Wesrt End........................................................32

New retail park in Sabac, Factory Outlet..................................................33

Mosaic city mall, Visnjicka Plaza.....................................................................34

Vig Plaza,Kragujevac Plaza...............................................................................35

Infinity, Zeland..........................................................................................................37

Royal Apartments...................................................................................................42

International Cent er Galleria............................................................................44

Blue Center, Home&Office Dorcol................................................................45

South Avenue Apartments,Morinj Springs............................................47

FIDIC- branded Serbian engineers

ready to export globally.....................................................................................38

............................................................................................48


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4 | No.5 March 2010 | BelREMagazine

Since the onset of economic reforms

in 2001, Serbia has grown into one ofthe premier investment locations inCentral and Eastern Europe. Over thepast nine years, inward FDI in thecountry totaled 14 billion, while theReal Estate industry alone attractedmore than 700 million of foreign dir-ect investment.

International property developers are

led by Israeli investorsPlaza Centersand Central European Estates are ex-pected to implement 500 millionand 400 million worth projects, re-spectively.Additionally, Engel Group isto start theconstruction of its160mil-lion residential and business complex,while Africa-Israel Corporation and Tid-har Groupwith their 200 million first

business park in Serbiawon theOECD award for the largest Greenfield

investment in South East Europe in

2005. In a ground-breaking project, In-dian Embassy Group plans to build a

428 million state-of-the-art IT park inNorthern Serbia. Other key internation-al playersin the local market includeIs-raeli GTCInternational, Austrian Graweand IMMORENT, U.S. Ocean Atlantic,Dutch Vondel Capital, and otherworld-classreal estate companies.

International developers in Serbia canlargely benefit from the following:- Booming market potential, featur-

ing e.g. highest office yields in East-ern Europe of 10%;

- Robust economic growth of morethan 6%between 2004and 2008;

- Low overhead costs, includingEuropes second lowest Corporate

Income Tax of 10%;

- Attractive tax incentives such asthe 10-year Corporate Income Taxholiday for large-scale investmentprojects;

- Quality human resources reflectedin 11%annual productivity growthsince 2004.

In Ser-bia, there isstrong demand in the real

estate market, particularly in the resid-ential and retail segment. As a resultof robust economic growth andstrong FDI performance prior to theeconomic downturn, demand forquality office space was on a steadyrise. Likewise, the residential experi-enced an upward trend due to asteady increase in household income

and a wide availability of mortgageloans.

Serbiathe Expanding Market for Growing Profits

We are very optimistic about

the business climate in Serbia

and have already experienced

many of the benefits of

investing here.

Mr. Robert Snow, Managing

Director, GTCSerbia

Thequalit y of Serbiasbusinessclimate hasbeenreflected in 14 billion of FDI since 2001. Keyinvestment benefitsinclude great

market potential, strong economicgrowth, low operating costs, favorable tax incentives, and skilled labor force

Dragan Pejcic FDI Advisor, Serbia Investment and Export Promotion Agency

SiepaInvestment and

PromotionAgency


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BelREMagazine | No.5 March 2010 | 5

For years,Serbia was among Europes fastestgrowing economies. Between 2004and 2008, economic growth averaged

6.3%, while GDP per capita almostdoubled. Strong GDP performancewas largely driven by service sectorssuch as telecommunications, retail,and banking. In addition, local food,beverage and construction industriesexpanded rapidly.

Cost-effectiveoperating in Serbiaisensured through

competitive tax rates, labor and ut ilitycosts. Corporate tax rates are amongthe lowest in EuropeCorporate In-come Tax rate stands at merely 10%,while VAT is set at 18/8%. In addition,total labor expenses average below50% of the level in EU members fromEastern Europe.

On top of this, overheads can be fur-ther cut down by taking advantage ofa variety of tax incentives. Key tax in-centives include a 10-year CorporateIncome Tax holiday for investment pro-

jectsof over7 million, variousCorpor-ate Income Tax credit schemes or2-3-year Salary Tax and Social Insur-ance Contributionsexemptions.

Serbiaslabor force combines exceptional

working efficiency with sizable laborsupply. With a unique combination ofhigh-quality and low costs, it is one ofthe key factors in reaching a strongbusiness performance. The quality of the local labor force is reflected in ro-

bust industrial productivity, rising atan 11% annual rate over the past fiveyears. Technical education is particu-larly stronghigh school students areamong the best performers at world

contests in natural sciences, while Ser-bian engineers are well-known fortheir expertise. In addition, Serbiaboasts the highest English speakingproficiency in Eastern Europe.

*January September 2009 Source: National Bank of Serbia

FDI in the Real Estate Industry in Serbia (EURin million)

Source Coll iers International Serbia

The number of inward

Greenfield FDI projects in

Serbia went up from 5 in 2003

to 63 in 2007.

Ernst & Young, SEE

AttractivenessSurvey,2008


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To set up or expand your businessat alow cost and in the minimum amountof t ime, you can address to the coun-

trys central investment institutionSerbia Investment and Export Promo-tion Agency (SIEPA).

We are proud to offer our referencelist that includes some of the largestmultinational companies, namely Fiat,Kronospan, Ball Corporation, Grundfos,

Knauf,and many others.

SIEPA puts a special focus on the realestate industry, reflecting the import-ance of its development to the Serbi-an economy by providing thefollowing:

Promotion of cities and developersat renowned international fairs;

The database of investment loca-tions in Serbia;

Regular surveys and detailed ana-lysesof the sector;

Working with investors in identify-ing locations and assisting in thelegal processes;

Information on businessservice pro-vidersin the Real Estate industry.

Please visit Serbian national stands at

worlds leading Real Estate fairs, whereselected Serbian citiesand developersare exhibit ing and offering their ready-to-invest locationsand projects.

Thus, we would like to invite you tocontact our specialized staff ready toassist you and your business interests.

Working with us is simple, effectiveand free of charge.

Serbia Investment andExport Promotion Agency (SIEPA)3,VlajkovicevaSt.5th Floor11000 Belgrade,Republic of SerbiaPhone:+381113398550

Fax:+381113398814E-mail:[email protected]

The oft-mentioned Crisis, dull andheavy, did not manage to skip Serbiaand it will apparently last throughout2010. The real estate market, or

more specifically the developmentindustry, suffered perhaps thestrongest from its impact, but thisindustry isall more likely to be the firstto see the light at the end of thetunnel. For the first time,authoritiesinSerbia wisely used the period ofreduced investments to bring a seriesof regulations which will greatly

improve the legal framework,facilitateinvestment processes, and as the

biggest news this framework willguarantee ownership of the land.Another positive impact of the Crisisiscertainly the fact that it brought thesquare metre prices and the level of

rent back to their real frames. Thus,foreign investors will no longer facewhat used to be a common scenario ayear or two ago, when local partnersexpectations ranged between 40 -80% higher than what they wereoffered. Still, we advise foreigninvestors to cooperate with local

partners in order to avoid the periodnecessary to adjust to the market and

learn the procedures, and, mostimportantly, to save time in findingprime locations.

The real estate market in Serbia is stillquite underdeveloped in all segmentsother than office space where around100.000m2 remain available for rent.

However, the total amount of officespace is still at least half as large asin

other cities in the region, or,specifically told, Zagreb (almost 1/3the population of Belgrade).Development of the so-calledsecondary market citiessuch asNoviSad, Nis, and Kragujevac is alsoevident.

The pricesof residential spaceand theamount of rent saw a drop in the

range of 20 30% compared to theprevious year, but King Sturge notesthat price will decrease in the futureand the square of newly constructedbuildingsfor sale will range from 1300(in suburb) to 3000 (in the elitequarters). Prices of rent for Class Aoffice space will be from 13 - 16 EURdepending on the location, quality

and quantity of the buildings area forlease.

Srdjan VujicicDirector of King Sturge Serbia

Posit ive impact

For the first time, authoritiesin Serbiaare

wisely usedthe lessactiveinvestmentperiod and brought a seriesof regula-tionswhich will greatly improvet helegalframework, facili tate investment pro-cessesand asthe largest news, guaran-teeownership of the land.



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Bearing in mind that the year preced-ing 2009 was quite dynamic and, I

would say, successful for most in-vestors who were bringing their pro-

jects to a close at that time, weentered 2009 gliding on the wings of

that success. Practically speaking,when we discuss the activities relatedto the commercial real estate market,this means that we were not yet feel-ing the dramatic effectsof the Crisisatthe beginning of 2009. However, theremainder of the year certainly saw aslowdown and, in the majority of

cases, a delay in key investmentswhich had been planned for 2009,

which resulted in very few transac-tions closed during the entire last year.Since the stockof modern office spacewas enlarged by approximately 20%in 2009 with the completion of theprojects that were started before theCrisis, there was a notable increase invacancy rate which grew to morethan 25% at the end of the last year.This came as a result of the increased

office stockand the reluctanceof com-paniesto move their businessesin thelight of global financial crisis. The en-tire situation thus led to a great pres-sure on rents, necessitating a pricecorrection and a greater willingnesson the investors part to accommod-ate the lessees with more competitiveincentive packages.

On the other hand,the residential mar-

ket felt a somewhat more stable situ-ation in the other half of 2009 and an

increase in demand resulting from theprior price correction and the re-intro-duction of subsidised housing loans.According to our data, at the end ofthe last year,citizens faith in the stabil-ity of the market was somewhat re-newed, as well as the willingness toopt out for apartment purchase.

We should also remember that the re-

tail space market was also heavily im-pacted by the economic crisis, bothglobally and locally. The impact wasnot only in the rental price dynamics,but also in the ratio of supply and de-mand. Namely, some retail chainstem-porarily postponed their internationalexpansion plans, waiting for the eco-

nomic and financial indicators to be-come moreoptimistic.

The real estate market in Serbia shouldshow signs of recovery as early as inthe first half of 2010, considering thefact that banks are graduallyreconsidering reintroduction ofmortgage financing, which will enticenew developments in all sectors ofthe property market. We expect over100,000 sq m of new office space to

be completed in 2010. This marketsegment is still very underdevelopedin comparison with the region, withless than 450,000 sq m being offered,which is less than a third of thecapacities of Bratislava, or as little as20%of the offering in Budapest.

As for the retail market, it is still un-

developed and carries a great poten-tial. The supply grew rapidly in 2009,

particularly after the opening ofUsce shopping mall, which attractednew brands which had not beenpresent on our market previously, butthe global economic crisis generallycaused a mild shift the focusmovedfrom the landlords market to the ten-ants market. Despite the Crisis, it is ex-

tremely positive that we saw severalnew names enter the market, repres-

enting important investments, includ-ing Mr. Bricolage and Kika; the factthat Mercur chose Belgrade to buildits largest retail store, and Mercatorcontinued the expansion of its retailchain isalso very signigicant.

Considering the insufficient develop-ment of our market compared to theregion in all its sectors we can cer-

tainly expect a better use of that po-tential in the near future. Despite thecurrent slowdown in activities in theproperty market, I believe the seg-ment which will definitely regain thefocus, once the market recovers, willbe residential market. Anothersegment which also bears significantpotential and will certainly continue

to develop will be that of retail space.

Dragan RadulovicDirector of CBRESerbia

Focus on the Residential MarketIn anticipation of the recoveryof the Serbianproperty market, we spoke about the major trendsincertain segments of thismarket to Dragan Radulovic, Director of CBRichard Ellis for Serbia

Aside from residential,

another segment which will

continue to develop will be

that of retail space.


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During its 42-year work as an interna-tional eminent property adviser,Danos Group has developed large

database of the users of services,which includes public companies, fin-ancial institutions, market chains, cor-porate clients, private investors andother usersof services.

Company "Danos & Associates" hasstarted doing business in Serbia inalliance with "BNP Paribas" group, be-

fore one year ago. The companysheadquarters are located in Belgrade,with the local team of experiencedprofessionals. About the situation atreal estate market in Serbia, we are

speaking with Jovan Jovanovic, Direct-or of Danos Serbia, and Head of

Valuations and Investment Advisory,ZanaSipovac.

I believe that there is not going to be

a significant increase in the volume ofcommercial real estate transactionswhen compared to 2009. We at theDanos Company have observed aslight growth of queriesrelated to thelease of office and retail space in thefirst two months of 2010, primarilywithin the territories of Belgrade andVojvodina.

Business space tendencies remain fo-cused on Class A real estate, wherenew lesseesare quickto recognize thechances for negotiating additional be-nefits when agreeing on rent and thespecific obligation aspects of leaseagreements, where we are observingthe biggest growth in demand forsmall and mid-sized office space, ran-

ging from 150 to 400 square metres.

As for retail, the market itself finallyreached a new point at the beginningof this year, where the owners of real

estate came to better understand thesituation and managed to adjust their

profit expectations to match the actu-al financial moment. It was this view-point shift that enabled the increasein the number of successfully closedtransactions for our company, primar-ily for the main pedestrian zones ofdowntown Belgrade, as well as retaildevelopmentsacrossSerbia.

Since the democratic changes, Serbiahas maintained, on paper, that it wasopen to foreign investments. Unfortu-

nately, what we, as a country, failed toaccomplish during the ten years ofour transition is to provide a clear,transparent, and, most important ofall, affirmative legal framework. Thiscomponent is critical in the eyes offoreign investors, and weighs heavilyin the decisions they are makingwhen they allocate capital in the re-

Danos in Alliance with BNP Paribas Real Estate, firstyear of Serbian operations

Operating for 42 years, DanosGroup is an alliance member of BNPParibasReal Estate, specialized property division, whichoperatesthrough 80 officesin Europe, the MiddleEast and United States, having over 3500employed professionals.

Jovan Jovanovic

Director of DanosSerbia

"Danos & Associates" plans to

become the new market

leader for complete region of

theBalkans.

I think the entire professional

community understands very

well that the recovery process

for the market will be long

and arduous, and we see

2010 as the period of stabiliz-

ation and synchronization.


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gion of South-eastern Europe.

Until now, our neighbours haveshown much more sensitivity to con-structing legal frameworkssuited to at-tracting foreign investments; however,the announcements issued by theGovernment of Serbia over the pastfew months, which spoke of the finalsimplification and speeding up of own-

ership transfer procedures, are encour-aging.

I would advise those investors whoare already present to use this mo-ment to consolidate their operationsin order to reach conditions where

they can optimize their business oper-ation expensesin Serbia.

Our advice to new clients on Serbian,

market which the Danos Company together with our parent network BNPPARIBASReal Estate points towardsthe most profitable investments, is tofocus on affordable residential devel-opment in Serbia; next, we firmly be-

lieve that logistic centres are one ofthe most prospective sectors; finally,

investing money in land acquisition isalways good longterm venture. Also,FDIs are heavily needed for primary in-frastructure in Serbia, helping the de-velopment of commercial real estateand, by inference, our economy ingeneral.

I think the entire professional com-munity understands very well that therecovery process for the market willbe long and arduous, and we see2010 as the period of stabilization andsynchronization.

Realistically speaking, the business

space sector will bear most of the con-sequences of the World FinancialCrisis, but we also expect the banks tofinally become more sensitive to theneed for financing development pro-

jects,which is crucial in order to makethe first step towards definitivemarketrecovery.

About valuations services and invest-

ment consalting, we are talking withZana Sipovac, Head of Valuations andInvestment department in Danos Bel-gradeOffice.

The personnel is a key factor of suc-

cessful consulting company and ourdepartment for valuations and invest-

ment advisory gathershighly qualifiedand professional individuals with

proven track record on the local mar-

ket and internationally. Our profes-sionals have knowledge of local

conditions and regulations and wideexperience in real estate sector in-cluding privatizations, mergers andacquisitions and corporate advisory.Offered services are in compliancewith international standards and regu-lations of the Royal Institution ofChartered Surveyors (RICS) and are re-cognized by high level of transpar-ency which is a key strength

especially in these turbulent times.Also, each team member is encour-aged and supported by the Companyin terms of professional certification.

Zana SipovacHead of Valuationsand

Investment Advisory

"Danos" plans to refresh

professional standards in the

domain of real estates, to

increaseefficiency,aswell asto

improve the operations of its

clients with the business planorientated towards the whole

paletteof services.


12/52


I still cannot confirm positive move-ments on the market despite positivesignalsthat we hear from officials. Realestate market is almost frozen andoverall market activity is insignificant.It is difficult to put responsibility toone side such as banks and their lackof interest in financing of real estate

projects. It is closed circle, on the oneside are potential buyers and occupi-

ers that are conservative regardingbuy/lease decisions while on the oth-er side are banks that are concernedabout reliability of potential investorsand market realization of their pro-

jects.

Unfortunately,we cannot observe realestate market out of the entire eco-nomy and positive movements in real

sector.

Formal education and professional cre-

dentials together with on field experi-ence which enables good

understanding, recognition of specificcasesand analytical approach to prob-lem solving.

The first thing in order to achieve EUstandards is improvement of local reg-ulation and adoption of the new legalframework regarding valuation prac-tices through Law on conditions forconducting appraisal expert activities.The new Law will bring qualitative reg-

ulation and necessary transparency ofprofessional practices in Serbian mar-

ket.

Proven market experience, reputationon local and international marketsandquality of services is the main compet-

itive advantages of Danos that havebeen recognized by BNP Paribasgroup aswell.Something that differen-tiates Danos from other companies inSerbian market is strong formal frameof our activities since the company isrecognized by RICS (Royal Institutionof Chartered Surveyors) organizationwhich is visible also in Danos logo.

The company has more than fortyyears of experience in Greece and

Cyprus and diverse customer base in-cluding public sector, financial institu-tions, companies and private

individuals.

Our professional and dedicated con-sultants with different field of expert-ise are assigned to provide the mostcompetitive and tailor-made advicetothe each client.

For any further inquries,

please contact:

DanosIn AlliacewithBNPParibasReal Estate

6, Vladimira Popovica St Belgrade11000 SerbiaT+381 112600603

[email protected]

Offered services are in compli-ance with international

standards and regulations of

the Royal Institution of

Chartered Surveyors (RICS)

and are recognized by high

level of t ransparency which is

a key strength especially in

theseturbulent times.

The new Law will bring qualit-

ative regulation and neces-

sary transparency of

professional practices in Ser-

bian market.


13/52


We are talking about investment op-portunities and challenges in Serbiawith Robert Schweizer,the Vice Presid-ent of Investments for the region ofCentral Europe in Merrill Lynch.

'First, I have to say that foreign in-

vestors perceive Serbia asa part of theregion, not as a separate market. Fur-ther on,theyexamineSerbiafrom mul-tiple perspectives - economic growthamong many attracts the investors,and calls for the context of invest-ments, then from the perspective ofthe political situation and of course

the banking sector. And these are thesectors which we choose whether to

invest in or not - said Robert Sch-weizer. He noted that it isobviousthatthe Serbian economy has been de-pendent on foreign credits in the lastfive years, that GDP is negative andthere is no indication that it will getany better in 2010. All these are indic-ators that represent a significant riskfor investors. However, the good

news, is that the banking sector ishighly ligit, supported by Greek, Italianand Austrian banks'.

'Serbia obviously needs financial re-

sources, logistics and surprisinglymore "A" Class office space. Of course

it is impossible to do this all at once.The rental termsand priceshavestabil-ized a bit and hopefully will remainso', mentions Schweizer.

'I think that Belgrade presently doesnot need another shopping center. Inthe future there will be need for shop-

ping malls, however not only in Bel-grade, but Novi Sad and Nis. In terms

of logistics, I think Serbia has the po-tential and a bright future, somewhatlike Romania several years ago', addSchweizer.

Schweizer believes that it is particu-larly interesting to invest in the hotelbusiness in Serbia. 'I havent heardabout so much interest in the hotels

as I have heardin the last 6months. A hugeamount ofGreek money

could be inves-ted in this sec-

tor. Forexample, a pro-

ject of rearran-ging hotel"Yugoslavia",and Delta's Con-tinental wouldbe able to at-

tract enough capital.''Serbia is probably one of the most in-

teresting markets in Europe. Themoney will come from Israel, Greece,and perhaps more of Austrian in-vestors. Large investments from West-ern European countries may haveswung Serbia, but a lot of moneyshould flow into Serbia from theneighboring countries for various his-torical reasons', concluded Schweizer.

Serbian Real Estate MarketLeading in the Region

Robert SchweizerVice President

for Investmentsfor CentralEuropeMerrill Lynch

Ada Bridge

The construction workshave begun inlate October 2008. and thecompletion of the bridge isscheduledfor late 2011. Very important

infrastructural project over the Savariver, Ada Bridge will connect Old with

New Belgrade and significantly reducetraffic passing through the city centreand the older Gazela Bridge. This newbridge will be a part of the internalmagistral ring, it will also carry a thirdof Belgrade's metro lines, connectingthe outer parts of New Belgrade with

the central areas. The project isexpected to cost 160 million euros in

total. The bridge's main tower will be200 metre'stall.


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Being heavily dependent on foreign in-vestment however, due to the limiteddevelopment of local industry and pro-

duction, Serbia suffered indirect con-sequences of the crisis. The effect and

consequences of the market turmoilare the most obvious if we observethe real estate market- the office mar-ket being the most directly hit seg-ment as foreign companiespostponed their decisionsto enter theSerbian market or spread their activit-

ies and scope of services. The govern-ment did support one sector, byintervening in the residential develop-ment market, offering subsidizedloans for buyers of new apartments

and trying to stimulate movement onthe market which had ground to a

halt by early 2009. Almost every officemarket in Europe is hit by effects ofeconomic crisis in terms of decreasedoffice rents and increased vacancylevels. Office rental levels havereached their bottom levels since the

beginning of the modern office mar-ket in Belgrade after 2000s.

The average asking rents for new of-fice space in Belgrade were at the

levels of EUR 15.5 per m2 per monthfor Class A and EUR 12.5 per m2 permonth for Class B office space. Cur-rently, around 178,000 sqm of Class Aand Class B office space is under con-struction and set for delivery in the Bel-

grade market during 2010. Majority ofthese project were started in the peri-od 2008/1st half 2009 and arepresently in final stages of develop-ment. Most distinguished projects un-der construction are Blue Center (ClassA, CBD, GBA 35,000 sqm) and Tri ListaDuvana (Class A, CBD, GBA 11,700sqm). In the following six monthsperi-

od, the supply levels are expected toexceed demand, creating a moderate

saturation of Belgrade office market.Further corrections in vacancy ratesare expected, with the overall vacancyincreasing from the present 19.70%toestimated 23.0% by the end of 2010.The achieved head rents for Class A

and Class B space in Belgrade havepossibly reached their bottom levels

during the second half of 2009. It isexpected that rents will remain at sim-ilar levelsin 2010.

The retail sector experienced new de-velopments and market entries, andwas the most active segment in 2009.It still experienced adjustments

amidst the new economic conditions,mostly in the form of decreased retail

turnover and rent. Compared to othercountries, Belgrade has higher rentallevels due to a lack of supply on themarket, and the decreased construc-tion rate of planned modern shop-

ping centers. The ratio between retailspace and number of people is signi-ficantly lower in Belgrade than othercities in the region with only 92m2 ofretail space for every 1000 people.

This ratio is considerably higher inother cities Sofia 100 m2/1000

The Serbian real estate market is still under supplied

By entering the market t ransition processrelatively late, compared to other countriesin the Central andEastern Europeanregion,Serbia did not advance far enough ahead in economic termst o suffer heavy consequencesof the global economic crisis.

The average asking rents for

new office space in Belgrade

were at the levels of EUR15.5

per m2 per month for Class Aand EUR 12.5 per m2 per

month for Class B office

space.

The retail sector experiencednew developments and

market entries, and was the

most activesegment in 2009.

It is highly optimistic to say

that 2010 will be a year of

recovery in all segments of

the Serbian economy and real

estatemarket.


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people, Bucharest 150, Zagreb 400,Budapest 430 etc.Having this in mind,in the mid- to longterm, Belgradehas a great potential for developmentof retail objects. In Belgrade, a shop-

ping mall in Rajiceva Street (GLA19,000 sqm) is presently under con-struction, with the opening date ex-pected for 2012. TQ City in Indjija isexpected to open in 2010. The com-pany BlackOak Developments is devel-oping GLA 30,000 sqm the first serbian

Factory Outlet center in Indjija, whichis set for delivery in December 2010.This modern outlet center will com-

prise around 125 retail units. In NoviSad, pipeline includes Park City and

Big CEE shopping malls, expected fordelivery in 2010/2011 period. InDecember 2009, Serbian companyDelta Holding started the constructionof a retail center Delta Park (GLA23,000 sqm) in Kragujevac. Upon de-velopment by 2010/2012 period, thiswill be the first retail park in Serbia. In2010, vacancy levels in Belgrade highstreets are expected to increase by

10% on average, while existing shop-ping mallsshould keep vacancy at 0%,but with possible rent reviews.

Bearing in mind that the industrial mar-ket is closely aligned to the fate ofthe economy, particularly in terms ofproduction levels, it is not surprisingthat 2009 saw several projects being

postponed or cancelled.There are cur-rently around 35,000sqm of various

projects under construction in Bel-grade and surrounding industrialzonesin Vojvodina, aswell asthe addi-tional 50,000 sqm of projects in differ-ent phases of preparation. Under

current economicconditions,new sup-ply is expected to lead to an increasein the vacancy rate followed by a pos-sible decrease in current rents by theend of 2010. Many investors have se-cured the land lots, and are expectedto start constructions in the following

period of 2010/2011.It ishighly optim-istic to say that 2010 will be a year ofrecovery in all segments of the Serbi-

an economy and real estate market.Gradual market recovery is expected

to begin in the second half of 2010;however this process will be slow.The signs of real recovery will be seenin at least 12-18 months. We dont ex-pect a significant increase or decreasein FDI in 2010. Considering the inter-national economic crisis, the FDI in-flow to Serbia was satisfactory in 2009reaching 1.1 Billion EUR. In 2010, FDIinflows are expected to remain at ap-

proximately the same levels as 2009.Most of SerbiasFDI inflows have beenoriented towards large privatizationsand that trend is likely to continue in2010, but we also hope to see moregreen- and brown-field investors com-ing into the market. We expect FDI tohave a positive impact on the officeand logistics market to the extent that

new companies are coming into thecountry they will need space to ac-

commodate their expansion. The ex-pectation of international companiesentering the Serbian market is largelywhat fuelled the speculative office de-velopment market, when the crisis hit,

companies pulled back their expan-sion plans leading to the oversupplyon the Belgrade market. We hopethat new companieswill enter in 2010and beyond to stabilize the supplyand demand curve back to where itwas in 2007. There are a large numberof investors in Serbia.

The biggest investor in Serbia is USA,

however the most important in-vestors in real estate segment in Ser-bia are Israeli, Greek and Austriancompanies due to vicinity of thosecountries to Serbia, their knowledgeof the Serbian real estate market andmutual historical connection.

There is potential in both residentialand retail sectors for foreign invest-

ment due to the fact that the Serbianreal estate market is still under sup-plied. Logistics market, which is at thebeginning of its development path,presents a great investment oppor-tunity for foreign companies. Thehighest activity in the upcoming peri-od is expected in the infrastructuresegment with several projects in thepipeline -bridge over Ada, Corridor X

and Corridor XI highway projects etc.

We always advise all the investors in-terested in Serbia to consult profes-sional consultants, and not localagents who will not provide valid in-formation which is relevant for theirentry into the market. Transparency isthe most important for successful

businesscooperation.

The biggest investor in Serbia is USA, however the most

important investors in real estate segment in Serbia are Israeli,

Greek and Austrian companies due to vicinity of those countries

to Serbia, their knowledge of the Serbian real estate market and

mutual historical connection.


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Following that survey, published inthe last World Architecture magazine,we have invited Branislav Simovic,Mace Regional Director, to tell us

something about Mace,their businessphilosophy and activities.

Since founded in 1989, Mace hasevolved into a multi-disciplinary glob-al consultancy and project manage-ment construction company and hasenjoyed significant growth thanks tothe support of Mace clients and em-ployees.

Currently Mace is operating in 28

countriesand continuesto achievesig-nificant market share in the commer-cial, aviation, arts, residential,regeneration, retail,utilities, rail, educa-tion, healthcare and local authority sec-tors.

'Recognizing Mace asa reliable partnerand innovator in the practice support-ing permanent development in vari-ous fields of construction industry, in2004 Philip Morris International en-gaged us in the project of tobacco

factory complex reconstruction in Nis,Serbia. The project was successfully

completed in April 2006 and sincethen, we are successfully working onall major projects across South EastEurope region. With our 103 employ-ees, 23 projects and offices in Serbia(head office), Montenegro, Croatia,Macedonia Slovenia, Bosnia andHerzegovina and high international

standardsof serviceswe are providing,Mace SEE holds the leading position

on the regional market',said Simovic

'Maybe the best definition was givenby Top 10 Architects recently sayingthat Maces top-down, dogged de-termination to deliver ensuring clientsfull satisfaction is what separates us

them from the pack', said Simovicwith a smile.

Continuing, Simovic said: 'Mace busi-ness approach, services portfolio anddetermination to fulfil beyond clientsexpectations is what is giving Mace aleading position on the regional mar-ket'.

'Our services portfolio span the entire

property life cycle and it comprisesmanagement of design, develop-ment, programme, project, cost andfacilitiesmanagement in addition to afull construction delivery service. It isthrough the integration of our ser-

vices that Mace adds value for clients,providing clear and transparent sup-

port and direction throughout theconstruction lifecycle',said Simovic.

'For us, the Client was, still hasand willalways be the centre of the Macebusiness globe where facilitatinggreater economic, environmental andsocial benefits from the built projects

on clients satisfaction is the onlymeasurement of our success', finished

Simovic.

Mace - the most successful project managementcompany in SEEregionMace is oneof the worldsmost successful companiesin the scopeof project management construction industry and just recentlyMace waselected asa best Project Management partner / company by worldwide industry practices.

Branislav SimovicCivi l / Structural Engineer, BSc./MSc.Mace Regional Director


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Spiegelfeld International is an interna-tionally active real estate companybased in Vienna, Austria. With ourbranch office in Belgrade, established

in 2005, the company representsa reli-able partner in brokerage, advice and

appraisal of office and retail property,commercial property, investment, res-idential real estate, as well as facilitiesused commercially for agriculture orforestry. Due to the strategic orienta-tion to the international and regional

markets, Spiegelfeld hasalso been thefirst independent Austrian real estate

firm to establish subsidiariesin Croatia,Romania, Serbia and Ukraine. Also, bycooperation with local partnersSpiegelfeld became a reliable partnerto many clients in other Central andEastern European countriesaswell.

Vision of our company in the future

period is to establish long term busi-ness activities at the Serbian market,

as well as to develop the completeproposal of services, being success-fully provided for decades to the cli-ents from all over Europe. Followingthe worldwide and European trends,Spiegelfeld is ready to engage strong

efforts into the assistance during exe-cution of modern real estate projects,

due to its great reputation, which wasbuilt mostly in Austria,but also in oth-er European countries. The companyhas long-term experience in monitor-ing market circumstances and provid-ing real-estate services. This year,Spiegelfeld International obtained theQuality Award 2009 from the Austrian

Chamber of Commerce as the bestreal estate company in Austria.

Radivoje NijemcevicDirector of Spiegelfeld International

Quality Award 2009 for Spiegelfeld International

Vision of our company in the futureperiod isto establish longterm businessactivitiesat the Serbian market, aswell ast o developthe complete proposal of services, being successfully providedfor decadesto the clients from all over Europe.

Construction of the first phase of theInformation Technology Park in Indjija,

where the job should get about 2500workers, isto begin thisyear.

At this time, Embassy Group ispreparing project documentation fora building permit for the constructionof 25 000 square meters of officespace with all necessary facilities,services, restaurants, banks and

facilities for rest and recreation. Forthe first phase of construction of IT

Park, Embassy Group has leased 50hectares of land and settled all

obligations to the municipality.Embassy Group will invest 30 millionUSD in building and 20 million USD ininformation-technology equipment.

In the second phase, all constructionwork of IT Park at a total of 220hectares with investment of morethan USD 300 million in facilities and

200 million USD in IT equipment,should be completed by the end of

the 2014th and be employed a totalof 25000 workers.

Embassy Group is building IT Park in Indjija


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The Belgrade mixed-use development called Blok

12 is located in Novi Beograd on a 4.0 ha site at thecorner of Bulevar Umetnosti and Bulevar Nikole

Tesle. The footprint allowable is 12,000 m2 and thebuildable area abovegrade is130000 m GBA.

One sideof the lot is facing the Danube River,with aview of the river and the park along the river. Theother side is facing the House of Government(former SIV).

At the corner of two Boulevards,next to Danube

Themost desirableBelgrademixed-usedevelopment

The lot allows for 30 percent of

construction while the rest remains

green with public access. According to

the general plan, the height of the

building and the number of floors is

unlimited. With regard to gross

amount, there is a 130000 m of apossibleconstruction development.

Perspective view,

option 1according toLaguardaLow

Architectspreliminarydesign



19/52


The construction of tall buildingsis permitted including theconstruction of hotels, hotelapartments and business spaces.The residential space is planned totake up to 50 percent of the futurebuilding space.

There are several options how thetotal amount of space could bedivided.The possibilities and needs for aconstruction of a 10 000 mexclusive shopping center is beingestimated and considered aswell.

Perspective view, option 2, according to LaguardaLow Archit ectspreliminary design


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The heart of the location is planned for greenand aquatic environment.

In vicinity of Danube walking area and bikepath makes this part of the city one of the

favorite for life.

Also, New Belgrade as the new corporativecenter of Belgrade, attracts more businesspeople for living.

The parking space will be constructed mainlybelow ground levels.

Vertical section of Retail, according to the preliminary design of LaguardaLow Archit ects

Perspective view option 1


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The architectural design will reflect modernarchitecture as well as clients and potentialinvestorsneeds.

According to preliminary design ofLaguardaLow Architects, the project will consistof a 5-Level Retail/Entertainment center of45,000 m2 GBA, Hotel block of 30,000 m2 GBAin 30 Levels, 2 Residential blocks totaling 70,000m2 GBA in up to 50 levels, and Parking belowgrade for approximately 1,500 cars.

The lot of Blok 12isprimelocation in Belgrade

Sheme proposed by LaguardaLow Architects


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The company Development Blok 12 (Razvoj Blok12) was established in 2006, in Belgrade, from

experienced professionals, with the aim to set upthe highest standards in the apartment

construction business.

Development Blok 12 engages in constructionand sale of commercial and residential buildings.

Only the highest standards are being used in the

creation of both businessand living spaces.

Ljubisav Djuricic, attorney and the Member of theBoard, says: 'We want everyone to feel safe andcomfortable in our buildings. We areaccommodating the world trends and modernstyle to the needs of our clients and guaranteethat our experience, expertise and professionalism

will fulfill their expectations. We have beenestablishing such principles through construction

and development of our colossal and courageousprojects. These standards continue to besupported by our contemporary concepts andcooperation with the world known companies inthisbusiness'.

Also, he points: 'Blok 12 is a prime location inBelgrade. Nowadays You can hardly find

something similar in the city. Only 10 minutesfrom the downtown, and in the center of New

Belgrade; next to Danube walking area, which isseveral kilometres long with numerous caffees

Site plan, option 1 according to LaguardaLow Architectspreliminary design

Roof plan, option 1according to LaguardaLow Architects

preliminary design



23/52

and restaurants.Also, the site issurrounded by green areas'.

'If You look over the Belgrade, there are no high

class mixed-use development or complex. AndBlok 12 have perfect enviroment for an exclusiveproject: surrounded with green areaand businesspremisses in several office buildings and officeparks, next to old residential complex andpedestrian by Danube and only couple ofminutes from city center and highway', addDjuricic.

'Therefore, we have to make something

extraordinary from it - the complex which will besymbol of New Belgrade, and represent modernway of living',saysDjuricic.

'Block 12 is grandiose project, suitable for bigdeveloper. Our idea is to offer partnership indeveloping project or to sell one part of theproject, for example, for developing the hotel or

shopping center',concludesDjuricic.

Site plan, option 2 according to Laguarda Low Architectspreliminary design

Roof plan, option 2according to LaguardaLow Architects

preliminary design

For investment inqueries,please contact:

Razvoj Blok 12BraceBaruh 11

11000 Belgrade,Serbia+ 381 (0) 11 30 30 100+ 381 (0) 11 21 06 145

[email protected]



24/52


Marina Oasa future new spoton Europe tourist map

Belgradeoffersa few dozen hotels that vary in capacity, qualit y of service and category, with over 6.5thousandberths. All of the hotelsarealmost exclusively dedicated to guests visit ing Belgrade. What Belgradelacks,however, isa single tourist complex offeringa wide rangeof new-type tourist services.

Marina OASA, a single unique nautical tourismcentre in the vicinity of a city of two million

inhabitants situated over the two great rivers, willbe open to the maximum satisfaction ofnumerous local nautical tourists and otheradmirersof the Danubeand itsnatural beauty.

On the hillsides of Brestovik, 3 km away from theGrocka town center and 30km from downtownBelgrade, along the Belgrade - Smederevo main

road, on a 2 ha plot situated right on the Danuberiver bank, the ex-Investbank's Resort was built

backin the mid-sixtiesof XXcentury.

Carefully planned in details by the

town-planning documents, with built

infrastructure and excellent traffic

connection, Marina OASA the is one of

themost attractivetourist development

destinationsfor theinvestors.


25/52


Being the most popular tourist destination on theDanube downstream from Belgrade, this beautifultourist complex was well-known at the time as"The Bank's Resort ". The embankment was builtfeaturing a well-organized jetty, with berths forriver craft and a ramp for pulling boats out ofwater.

The entire complex is covered in carefully plantedabundant greenery, horse-chestnut trees, poplarsand pine trees. There are walking paths and cartracks, lawns, decorative shrubbery and flowers.

Modern city life dictates the need to develop andupgrade tourist destinations located in thecountryside, away from the city center, withquality wellness and sports-recreational facilit ies,

where, amidst peaceful natural surroundings,accompanied by high quality food and hotelservice,one may renew individual levels of energy,constantly depleted bystressful activities ofeveryday life.According to the recentdevelopment project, ex-

Investbank's Resortshould become amodern centre ofnautical tourism calledMarina OASA, offeringvarious assorted services such as nautical andsports tourism, hotel accommodation, wellnessand relaxation, congress tourism, gastronomy,hunting &fishing and many others...

The Danube is a river that

connects Serbia with other

European countries, therefore

it has a major role in the

Serbian Tourist Development

Strategy.


26/52


The General Urban Plan of Belgrade, among top

imperatives of the city's development in thefuture, underlinesregulation of a growing demand

for well-organized river-bank locations. Theconcept popularly known as "the city'sdescent tothe rivers" represents one of the key trends withinthe Belgrade town planning.

Marina OASA nautical tourism centre is located inthe central part of this exclusive zone. Carefullyplanned in details by the town-planningdocuments, with built infrastructure and excellenttraffic connection, Marina OASA the is one of the

most attractive tourist development destinationsfor the investors.

According to the project by the ArchitecturalDesign Office DORStudio, led by Dusko Djordjevic,the Belgrade architect who has, for 25 years, beeninvolved in design and development of wellnesshotels in Switzerland and in cooperation with theSAVATH Hospitality Management company

consultants specialized in management &

consulting within hotels and tourist industry, theconcept design for ex-Investbank's Resort

development and improvement was prepared, i.e.the design of the future tourist-nautical centreMarinaOASA on the Danube river bank.


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For the purpose of hotel accommodation services

within the MarinaOASA a modern structure will beerected with the capacity of 40double rooms. Thisbuilding will be characterized by contemporarydesign, fully functional facilities and qualitymaterials. The ground floor will include a hotellobby with reception, restaurant and a spaciousterrace overlooking sports facilities/playgroundsand the Danube.

Beneath the lobby, at sports grounds level, awellness centre will be built with total area of

1,300 m2 including a covered swimming pool and jacuzzi tubs, fitness room, sauna, tepidarium,massage roomsand relaxation treatments facilitiesaswell asa beauty center.

The hotel will have 40 double rooms. Apart fromthe main Marina OASA hotel building, the guestsmay also be accommodated at an apartmentblock consisting of 20two-bedroom apartments.

For the purpose of sports tourism visitors mayenjoy a covered sports hall with two playgroundsfor mini sports, two fitness rooms and a children'splayroom; there are also 4 open mini-sportsgrounds, athletic track with the highest-qualitytartan surface; an open swimming pool for adults


28/52


by the river and children's pool, total area of 250

m2, with accompanying pool facilities and waterslidesas well as a covered 180 m2 swimming poolwith fitnessroom within the hotel building.

Sports tourism services will be provided forpreparationsof top local and international athletesand sports teamsas well as for those who practicesports for recreational purposes, sports schools,summer camps and sporting day's events

organized by business companies and otherinstitutions.

For nautical tourists a contemporary marina will

be built on the Danube bank, with over 50 berthsfor river vessels of different sizes, from smallscooters, power boats and yachts to large rivercruisers. Marina OASA will offer concierge andservice/maintenance facilities for river craft,organized autumn boat conservation, winterstorage and spring preparation. For other gueststhere will be a choice of organized touristexcursions along the Danube to the followingdestinations: Belgrade, Vincha, Viminacium,

Golubac and Silver Lake.

Congress tourism services will be provided tocompanies, banks and other commercialorganizations, for meetings and seminars ofprofessional associations and societies, who will

be able to organize variousgatheringsand eventsfor theirmembers.

The position by the Danube, just 30 km away from

downtown Belgrade, makesthe tourist zoneof Grocka

one of the city's most exclusive tourist potential.

European Corridor 7, pronounced one of the top ten

priorities for development in near future, stretches

along the Danube. This potential is enhanced by the

fact that the European transport corridor 10 also runs

through Belgrade.


29/52


For this purpose, a separate congress centre isprovided on the ground floor and first floor, withtotal area of 800 m2,fully furnished and equipped

with all necessary technical and other utilities inorder to facilitate conditions for a comfortablestay,accommodation and workof the participants.

Excellent cuisine represents the basis of a quality

tourist offer. The gastronomy block of the MarinaOASA nautical-tourism centre consists of two

restaurants: the main hotel restaurant sitting 170

people, located next to the lobby on the groundfloor and the seasonal restaurant on the river bank,right next to the open swimming pool adjoining

the sportshall.

The restaurants will be well equipped andfurnished in compliance with HACCAP standards.Apart from nautical, sports, congress and othertourist purposes, those restaurants willaccommodate guests who wish to organizebusiness or family dinners, cocktail parties and

other events.

The project isdeveloped by Appraisal Associates(www.asa-appraisalassociates.com) in consult ation with

Savath Hospit alit y Management (www.savath.rs). For investment inqueries, please contact:off ice@asa-appraisalassociat es.com or visit www.marinaoasa.com


30/52


Due to its specific geographic posi-

tion, Nis has been known through his-tory asthe gateway between the East

and the West. The main t ransport ax-is, highway and railroad, comes fromthe direction of Belgrade to Niwhereit branches towardsthe south leadingto Thessaloniki and Athens (E75) andtowards the east to Sofa, Istanbul andfurther towards the Middle East (E-80).

Air traffic iscarried out through the air-port Constantine the Great, the

second passenger and cargo airport inSerbia. Airport Constantine the Greatgenerates enormous investment po-tential.

With a unique combination of high-quality and low-cost skill-set, work-force in City of Nis is widely regardedas a strong business performancedriver.

The quality of intellectual capital inCity of Ni is based on its educationalsystem generating well-educated,fast-learning, multilingual and IT liter-ate people at 13 faculties of the Uni-versity of Nis, four higher and 14secondary schools.

City of Ni hasaccepted the basic prin-ciples of modern local administration

that imply an efficient, available and

accountable local self-government

Finalisation of Coridor X (East: Nis Bulgaria and West: Nis Macedo-nia)

GaspipelineSouth Stream International Airport Constantine

the Great Cargo center at International Air-

port Constantine the Great Solid waste threatment plant Waste water collector system Waste water threatment plant Science Technology Park TEHNIS

(Brownfield revitalisation of Elec-tronic Industry 100.000 sqm

Electronics, ICT, Mechanical En-

gineering) Custom free zoneNi

BusinessIncubator Center Ni Regional development Agency

South

Technology Park and IncubatorTEHNISNis

Industrial zonesurface: 57,4 ha Area for new Greenfield invest-

ments: 16 ha Area for new Brownfield invest-

ments: 101.000 m2 Industrial zoneDonjeMeurovo Location size is approx. 12ha and it

isdivided into smaller lots. It is intended for light industry, lo-

CITYOFNIS

Withapproximately300.000citizens,Nis,acityonriverNisava,third largest cityinSerbia,isanimportant regional,administrat-ive,economic,cultural anduniversitycentre


31/52


gisticsand respective services.

The tenant, in relarion to lease fee isentitled to the grace period of 2

years The location is connected to waste

water network, water supply net-work, gas with drafted projects ofaccessand internal roads

North NiIndustrial Zone Covering up to 174ha, out of which

the majority isprivate property

accessroads, water supply and sew-erage system, electricity, gas and

telecommunication networks. Lozni Kalem NikaBanja (Spa of Ni)

recreative center Only 10 km from theCityof Ni, Ni

Airport is only 10km away and Cor-ridor 10 one of the mainEuropean highways 5km.

Detailed Regulation Plan definestwo sections: recreation and sportsin the northern part and touristic-

commercial capacities in the south-ern part

The location isequipped with infra-structure.

Ada eneva sportsand recreationarea

Total area of the plan:50,72 ha The purpose of the location - sports

and recreation facilities.

Investment structure - Private Pub-lic Partnership :

1. Charging services and parking con-trol on open public city surfaces

2. Services for waste transport, citywaste landfill management, publicsanitation

3. Green market services4. Intercity busstation5. Public transport company gsp (bus

and mini bustransport )6. Company for public roads con-

struction and maintenance7. Otherppp activities

- Waste water treatment: construc-tions of collector for waste waterand waste water treatment plantsESCO company for public lighten-ing system management: invest-ment in public lightening

equipment: pillars, lamp posts andautomation for system conducting

- Management with public toilets: re-paration and building new publictoilets

- Construction and managementwith new heating sources( heatingplants)

City of Ni, situated on 597 km,hasa

great touristic potentials. In NikaBanja (Spa of Ni) there are many facil-itiesthat can be used for the purposesof recreation or convalescence, aswellas for organizing congresses and con-ferences, or varioussportsand culturalevents. Investment touristic potentialscan be found in untouched nature in

Nis vicinity, its mountains suitable forextreme sports, hunting and fishing

and in rich thermal and mineral wa-ters, already discovered by domesticand foreign tourists.

With the birth of FLAVIUS VALERIUSCONSTANTINUS in NI, later city ofNis got its significant place in theworld history. Constantine the Great

issued Milan Edict, an important doc-ument in 313 and gave to Christianitythe equal status with the other Ro-man Empirereligions. The intention ofCity authorities is to celebrate 1700years of the proclamation of Christian-ity asa religion in 2013, together withCity of Milano (ITA), City of Trier (GER)and City of York (GBR) and revive the

first Christian Emperor, Constantinethe Great.


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Our team of experienced consultants will provideyou with highest level of services at any time, fo-

cused on the desire to meet your interest andprovide complete information on this unique in-

vestment opportunity. In this concept, Stara Plan-ina Resort is the first innovative year-roundmountain resort in Southeastern Europe.

Master plan of Stara Planina ski resort, drafted bythe world-wide acknowledged Ecosign company,in compliance with internationally accepted stand-ards, brings together this breath-taking naturalbeauty, modern trends in organizing accomoda-tion facilities, aswell asstate-of-the-art installations

for winter and summertime activities.

This combination of Nature in its magnificentpristine state and local way of living in activemountain villagesrepresentsa model of sustainbledevelopment of tourism that, in addition to beingunique in architecture and landscape terms, offersmaximum comfort to visitors. And only a few stepsaway from hotels, apartments or villas will you find

the most modern installations for winter and sum-mer activities.

The network of most up-to-date ski lifts has beendesigned in such a manner so as to observe the

natural forms of the mountain and operate alongthe most attractiveskiing slopes.

All-day activities in both winter and summer, willbe taking place in untouched nature, in the imme-diate vicinity of the resort. Partners interested ininvesting into the development of Stara PlaninaResort may find a wide range of optionsfor a safeinvestment.

In addition to this great investment opportunity,we would liketo offer you to grow together. In de-

veloping the master plan for Stara Planina Resort,we have already built to a large extent the infra-structure necessary for its functioning.

In line with the development phase of the StaraPlanina Resort master plan, we can offer lots withalready prepared desings for development of ho-tels, apartments, terraced villas, as well as lots fordevelopment of private housescomplex.

This approach offers you a possibility to find a

Grow with us...


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The municipality of Kanjiza offered to the investorstwo great locations for investment in northernSerbia.

As one of the best current opportunities for invest-ment in this municipality, Kanjiza presented an in-dustrial park not far from the border crossingHorgos. Park is located in the working zone, near

the railway station, railway Subotica - Szeged andCorridor 10.Land, which is in complete ownershipof the local governments is 20 hectares and isequipped with infrastructure.

'The building isdesigned to accommodate clean in-dustry and development of services in the borderzone. Whether it will be an industrial parkor logist-icscenter is left to the investor to decide', saysMs.

Piroska Vadas Cava, Senior Associate or the eco-nomyin the Municipality.

She noted that the municipality provides signific-ant benefits for investors regarding the paymentof rent, fees for land development and other feesfor arranging construction land. Other locationsfrom which the Municipality of Kanjiza expects sig-nificant revenue, is Kanjiza Industrial Zone, next tothe regional road R119, near the railway stationand close to Kanjizacompany "Potisje Kanjia" and

"Ceramics". The industrial zone covers 3.75 hec-taresof land and hasthe possibility of extension to7ha.'The detailed plan of regulation has been made,and infrastructure development plans are in pro-gress. Now we are in the phase of the division ofthe area of plots of varioussizesfrom 600 to 2,000m2. For the infrastructural equipment we're usingthe resources of the National Investment Plan

funds and the municipal budget, and expect to at-tract private capital', said Ms. PiroskaVadasCava.

Kanjiza Offer to the Investors the Land inthe Industrial Zone and Industrial Park

business opportunity here as developmental part-ner, as company specialized in management, or alesseefor the already development facilities. Itsourwish to have you as a partner and work neck and

neck on the development of Stara Planina Resort,asa great businessopportunity,and grow togheth-er...

Contacts:JPStaraplanina (PEStaraplanina)MilosaObilica 1,Knjazevac

Telephone/Fax:+381(0)19 731110Belgrade Branch,Zagrebaka3,BelgradeTelephone:+381 (0)11 2626596,Fax: +381(0)11 218 14 68,www.rpsp.rs


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Metropolitan Apartments is a modernresidential-commercial complex in Bel-

grade which offers its owners thehighest level of residential accommod-ation.The entire complex isbeing con-structed according to the higheststandards of quality, technical facilitiesand safety. Surrounded by parks, inthe immediate vicinity of Zira shop-ping centre,schools,healthcare institu-

tions and major traffic routes in thecity, Metropolitan Apartments offer a

unique concept of living in the capitalcity.

The facilitiesof the Metropolitan Apart-ments will be complemented by well-known cafeterias, banks, shops andsports facilities. Life in the Metropolit-an Apartments will offer its residents

all the benefits of modern city hous-ing - peace and tranquility, prestige

and an easy access to all the cultural,educational, sports and social facilitiesavailable in Belgrade.

What makesit special, apart from theirexcellent location in the heart of Bel-grade, is the highest level of quality ofconstruction, thoroughly plannedfunctionality, modern technical solu-tions and maintenance of common

areasand surrounding greenery.Apart-ments consist of four sections with 80

apartmentsof variousstructures,eight-een business spaces and an under-ground car park. The project includesa childrensplayground as well asa fit-ness center within the building. Im-portant details such as a safety frontentrance, sandwich wall panels, topquality wrought iron fitt ings, oak hard-

wood floors, central heating, air condi-tioning and state-of-the-art electric

elevators going from the under-ground garages, distinguish this resid-ential-commercial complex.

The entire complex is covered by sur-veillance cameras and will also in-

cludeon-site security guards.

The construction of the complex hasbeen entrusted to the Monterra d.o.o.company from Belgrade. The financesof the project are entirely managedby Erste Bank a.d. Novi Sad and Hypo-Alpe-Adria-Banka.d. Beograd.

Exclusive sales of the complex has

been entrusted to ColliersInternation-al. The estimated date of completionfor thiscomplex isDecember 2010.

Metropolitan Apartments

One more office and retail complexlocated in Tosin Bunar as a part ofblock 60 in New Belgrade.This projectconsists of two independent 5-storey

office buildings with authentic archi-tectural design, gross area of 12500

sqm, underground garage of 1500sqm and open space parking with 88place. The investor is company City In-vestment.

Construction started July 2009, finish-ing it isplaned for March 2010.

West End Office Building



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Sabac hasalwaysbeen a center of eco-nomy and culture in the areaof Podrin-

je and larger region. The municipalityof Sabac covers an area of 795km2.Sabac as the largest town in the westSerbia, has approx 123000 inhabitants.Town has a very good traffic connec-tion with Belgrade (distance 85 km)thanks to the Corridor 10 (E70) that is

just 20 km from town (plans for con-

struction of this 20 km are in the faseof preparation). From Novi Sad it is

only 73 km, and from Valjevo 68km.Distance from the border with Bosniaand Herzegovinais36km.

There is a very well developed infra-structure, aswell aspossibility of using

all three transport options (river, rail-way and traffic).

Retail Park will be located in the Indus-trial zone at the entrance / exit fromthe city, along very frequent mainroad, 2 km from the city center. Thislocation with construction of bridgeand bypass road will become evenmore attractive. Land plot is on the

way between town and car showrooms, near the future Fair,car market,

wholesale market, etc.

Retail Park will be built on the landplot of 35 000 sqm, next to futureHome center. Very attractive possibilit-ies of investment offers "Free zone"

(enables production and trade ofgood that are tax free) that is located

close to Industrial zone.

New retail park in Sabac

Renowned international brands at af-fordable prices are finally coming toSerbia! Blackoak Developments is de-veloping the first factory outlet centerin Serbia - Belgrade Outlet ShoppingCenter.

Belgrade Outlet Shopping Center hasan extraordinary,highly visible and eas-ily accessible location and lies within25-minute drive from two major citiesin the country, capital city Belgradeand provincial capital Novi Sad.

With total area of 30.000m2 this pro-

ject will encompass 125 retail unitswith state of art design, featuring amix of local,European and Internation-al designer, high street and sportsbrands, a wide range of coffee barsand restaurants, a childrens play-ground and over 2000 parking spaces.This center is being developed withina far larger mixed use development

that will include a more traditional Re-tail Park, an Office Campus and a busi-

nessstyle Hotel.

Belgrade Outlet Shopping Center willprovide a unique and entirely newshopping experience to visitors forless than current retail prices. FactoryOutlet introduces a concept wheremanufacturers sell their stock directly

to the public through their ownbranded stores, offering discounts of30-70%all year round.Belgrade OutletShopping Center isset to open by theend of 2010.

The outlet is operated by GVA Outlets,UK-based company specializing inoutlet leasing and operation manage-

ment and leased by Colliers Interna-tional,leading real estate company.

The first Factory Outlet development in Serbia



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Vojvodina is the highest purchasingpower region in Serbia with 2,031,992

inhabitants. Mosaic will be situated inNovi Sad, the second largest city in Ser-bia with 350,000 inhabitants, and thebiggest trade area of Vojvodina, withtotal catchment area of 550,000 inhab-itants. With 91,000 m2 of gross build-ing area, 39,000 m2 of gross leasableareaacrossthree levels,and 1,748 park-

ing spaces in a multilevel garage, Mo-saic city mall will be the first and

largest international-class family-ori-ented shopping and entertainmentcenter in Vojvodina. Mosaic city mallwill have more than 100 shops, andunique entertainment. Ground floorwill have18,000 m of leasable area.

The open layout of the mall provides

excellent visibility to all shops, whilethe well-balanced selection of tenants

providesvisitors with the highest levelof shopping comfort.

Several elevators and escalators willlead to the first floor that will have15,600 m of retail area, and a galleryintersected with many connectingbridges. The anchor tenants posi-

tioned on both sidesensure high visit-or frequency. Entertainment area,

located on the second floor will offermany fun and enjoyable features in-cluding: Cineplex, bowling, gamesarea, food court and restaurant. Alllevelswill have direct access from themultilevel garage.

The developer is Ocean Atlantic Inter-national in partnership with Immo

East.

Opening is scheduled for autumn2012.

Mosaic city mall - shopping and entertainmentcenter in Vojvodina

Visnjica Plaza will be a welcoming ad-dition to Palilula and its neighboringmunicipalities. With a lettable area of46 500 m2, Visnjicka Plaza will consistof 1100 parking spaces, 2 levels of re-tail and 1 level of leisure and entertain-ment.

Visnjicka Plaza will be the ideal loca-

tion to do and get everything u wantand need. Whether it's your monthly

shopping in our 4,550 m2 conveni-ently located Hypermarket, your dailyvisit to the gym or your weekly outingwith the family. Visnjicka Plaza will bethe ultimate entertainment spot in thearea; with a 7 hall cinema, Slot ma-chines, Fantasy Park and Fitnesscentreto name just a few.

The restaurant and food court havebeen perfectly located on the top

level to incorporate the breathtakingviews of the Danube River throughour well design glass faade and ceil-ings. Visnjicka Plaza is definitely aplaceforpeople with a taste for life.

Visnjicka Plaza


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This class A office building is situatedin the prime New Belgrade location.

On the crossroad of three majorboulevards, Block 11a is easily access-ible and ideally positioned on the citymap. Designed as a clever buildingand totaling 16,000m2 VIG Plaza willbe home to the highest quality officespace available in Belgrade.

VIGPlazahasbeen designed in compli-ance with the highest quality stand-

ards as a modern and highlyfunctional office building. This state-of-the-art 9-storey building hasdouble layered glassfaade with integ-rated solar protection pane system,providing optimal amounts of naturallight and circulation of fresh air. Heat-ing system that is supported by geo-

thermal heat pump, cooling systemconsisting of cooling beams and fan

coils and mechanical ventilation unitsresponsible for inserting fresh air, willprovide optimal climate conditionsand maximum comfort in the working

environment. Automatic control sys-tems, access control security system,

round the clock technical support andfacility management services, allowsfeeling safe and relaxed in the offices.

The philosophy behind this project isvery simple and in line with the globaltrends. Use of renewable geothermalenergy, high quality, performance ma-

terials and smart solutions, optimizethe long-term run-

ning costs. Saving en-ergy and reducingpollution contributesto the environmentwe all live in.

Spiegelfeld Interna-tional is an exclusive

representative for of-fice lease in the new

VIG Plaza office build-ing. With its uniquefeatures, position andclass A office stand-

ards, the building represents NewBusinessClass in New Belgrade. In ad-

dition to becoming the new headquarter for Vienna Insurance Group,VIG Plaza will offer 6,200 rentablesquare meters of modern office spacefor maximum flexibility.

This exclusive office building is sched-uled to open in second quarter of

2010.

Vig Plaza new business class in New Belgrade

Kragujevac Plaza is investment ofPlazaCentersSerbia.The mall will offer 26 500m2 of let-table area with 120 fashion stores tocater for each individuals needs andpreferences. Also offering a variety ofservices such as banks and phar-macy's, shopping is now aconvenientpleasure. Quality family time will have

a new meaning as the mall containsan entertainment center which con-

sist of a Fantasy park with Bowling, bil-liardsand playgroundsand dinner hasnever been so easy- just pay a visit tothe 350 seat food court or relax in oneof our aromatic coffee shops.

Kragujevac Plaza


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The most exclusive part of Belgrade,Dedinje, will see the realisation of an-other prestigious residential-businessestate 22000 sqm. The residential part

of the complex will consist of 3 villaswhere apartments will range from250sq/m to 500sq/m for exclusivepenthouse units. The business sectionwill be facing the street and it will in-clude business apartments, restaur-ants and multifunctional conferencehall with modern IT technology in-stalled. The complex will have under-

ground garage with capacity for 80carsaswell.

The construction will be carried out us-ing the highest standard materialsandinstallations and basic characteristicsof all facilities are modern and simple

architecture, functional layout and se-cured entrance. All buildings will havecentral air-conditioning system.

The price for the apartments in thiscomplex is still unknown, but it is ex-pected to be formed by a future devel-

opment and the state of the market inthisarea.

This project is located on a great loca-tion and it will satisfy all needs ofmodern family lifestyle. The projectwill carefully preserve existing green-

ery and surrounding ambient of theneighborhood. Started in August2008, expected to be completed in2010.

Zeland - a new residential business projectin Belgrade

In every big city in the world there arebuildings whose elements were simul-

taneously the basic elements of cul-ture, progress and the future.Buildings, which changed historyalong with perception!

By its amorphousglass surface, Infinityreflects not only the lights of a metro-polis, but also the unique culture and

the surroundingsof the city centre.

Infinity consists of six residential apart-ments located between the secondand seventh floor. Each of them cov-ers one whole floor ( 260m), exceptfor the apartment on the seventhfloor, which is a two-level apartment( 450m). Every apartment isequipped with full home manage-

ment system with touch panel and re-mote controllers, which regulates

HVAC system, wall and floor heatingand cooling for every room, ambient

lighting, scene selection, audio andTV/video system, security system...

On each the ground floor, first floorand basement level, there is commer-cial space with an entrance and win-dow facing the street (750 m).

On the underground level of the build-ing,which isreachable by the car elev-

ator, there is a garage for passengercars.Prestigious restaurants and old bo-hemian cafs are located just a fewminutes away from Infinity, as well asvarious clubs that make Belgrade themost exciting city in Europe.

The developer is local companySrbostampa.

"Infinity" building for the future


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Serbian engineering sector has been well-known

for its experience and quality of service for dec-ades, both domestically and internationally. In or-

der to build on the existing knowledge, andbecome more competitive in worlds changingand more demanding market, eminent Serbian en-gineering companies formed the Association ofConsulting Engineers of Serbia (ACES). Further-more, ACESbecame a member of the InternationalFederation of Consulting Engineers(Fdration In-ternational DesIngnieurs Conseils) FIDIC, grant-

ing its members credibility to export their servicesabroad.

Andrea Sehic, ACES Executive Director, explainswhy this is a significant step for the Serbian eco-nomy and construction sector in particular. Estab-lishment of the national association of consultingengineers is a major success for the sector. We

have committed to

advancing the en-gineering profes-

sion to the benefitof the general pub-lic and clients, andpromoting the in-terests of consult-ing engineers andtheir private prac-tice, especially by

intensifying ex-change of profes-

sional, business andother experiences, market information and con-tacts, among members of the Association andtheir colleagues abroad. With the growing mem-bership of companies that are recognizing thecompetitive advantages of FIDIC, our goal is to ad-vocate for higher standards in the engineeringbusiness, and market our knowledge and skills in-ternationally, bringing revenue and jobs to theSerbian economy.

Association of Consulting Engineers of Serbia en-compasses leading Serbian consulting engineer-ing companies, including C&N Consult, CPM,DeltaInvest, Delta Inzenjering, DOMAA, EC Harris, ENER-GOPROJEKT, Tahal-FIDECO, IK Consulting, MACE,Masinoprojekt, Mostprojekt, Siemens, VMS, and YUBuild. Association was established in April 2009with support from the USAID Serbia Competitive-

FIDIC-branded Serbianengineersready to exportservicesglobally!

Association of Consult ing Engineersof Serbia - ACES:Enhancing Exporting Potential of the SerbianEngineering Sector

Association ofConsulting

EngineersofSerbia (ACES)becomemember of FIDICin September2009

"Our vision isto enable Serbianengineering consulting com-

panies to compete with for-eign companies with thesame quality of service and amore competitive price forthat...''


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ness Project, and it was endorsed by the Serbian

Ministry of Environment and Urban Planning, Min-istry of Economy and Regional Development, Min-

istry of Trade and Services, and Ministry ofInfrastructure. Soon after that, in September 2009,ACESbecame the official member of FIDIC. ACESapplication wasapproved at the annual FIDIC2009Conference Delivering Sustainable Solutions toGlobal Challenges which washeld in London.

FIDIC represents the largest worldwide organiza-

tion for internationally distinguished standards inmanaging construction projects. It was founded in

1913 with headquarters in Geneva, Switzerland.FIDIC embodies business interests of the consult-ing engineering industry globally, has 83 countryassociations as its members, and over 3 millionconsulting engineerswithin its network. The adop-tion of FIDICstandards will increase the competit-iveness of Serbian construction companies in theinternational market, improve the quality of ser-vicesprovided, and will directly reduce opportunit-ies for corruption in the construction and

engineering services industry. Furthermore, Serbi-an firms must be in complianc

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