3 February 2020
JML FINANCE (LUXEMBOURG) SARL
Julius Meinl Living agrees to acquire a second property in Belgrade
Julius Meinl Living PLC, through its group companies, acquires prime real estate assets for development into serviced residences that the group will then operate itself (“Julius Meinl Living”).
Julius Meinl Living PLC is fully owned by the Meinl family who, over the last 150 years, have demonstrated their expertise in Central and Eastern Europe in consumer goods, retail and real estate. The aparthotels will have a premium positioning and will operate under a brand that reflects the Meinl family heritage.
As a first step towards fulfilling Julius Meinl Living's aim of opening at least 15 properties with a combined total of 2,000 guest rooms and apartments over the next three to six years, the group's first property is under development on Senovazne in Prague, in the Czech Republic, and will have 168 guest rooms and apartments. The main construction works commenced in July 2019 and are continuing according to plan. The property is targeted to open in Q3 of 2021. Cushman & Wakefield have appraised the net development value of the property as being €66 million as at December 2019.
Julius Meinl Living has now additionally signed a binding forward purchase agreement in relation to a property on Bulevar vojvode Bojovi?a in Belgrade, Serbia. The location of the property is close to the heart of the Belgrade Old Town and is approximately 400 meters from the meeting point of the Danube and Sava rivers.
The property is under development as part of a wider development called “K-District”. It is intended that Julius Meinl Living's property will have a gross above-ground area of 8,824 m2 and that, once complete, it will have 129 guest rooms and apartments in addition to 96 underground parking spaces.
In addition to Julius Meinl Living's aparthotel, the wider K-District development will, once complete, comprise 750 residential units and three office buildings, as well shops and restaurants at ground level. The development is being constructed in two phases. Construction of the first phase is currently at an advanced stage.
Construction of Julius Meinl Living's property will take place as part of the second phase and is intended to commence in August 2020. The property is targeted to open in Q4 of 2021.
The estimated cost of the property to Julius Meinl Living, taking into account the purchase cost and all other costs is expected to be approximately €26 million.
For more information on the K-District, please see www.kdistrict.rs.
In parallel with progressing negotiations in relation to already identified pipeline properties, Julius Meinl Living will continue to seek additional pipeline opportunities. In so doing, it will seek to minimize development risk, whilst focusing on the timely opening and ultimate potential of each property.
Julius Meinl Living will also continue rapidly to progress work on the operating side of its business. Updates will be provided in due course on the design, branding and technology offer that are intended to make Julius Meinl Living properties “go to” destinations, and to make Julius Meinl Living the leading provider of serviced residences in Central Europe.