Although due to persistent media propaganda, the public is convinced that Belgrade Waterfront is the “real estate project of the century”, its two dependent companies recorded in 2020 a deficit of almost 18 million euros.
Also, by the end of 2021, they will have to repay 25 million euros, which were loaned to them by their majority owner based in Abu Dhabi, writes the weekly NIN.
A few weeks ago, the news that âMrs Nada had become the proud owner of apartment no. 3000 in the Belgrade waterfront developmentâ was circulated on social networks. This information was intended to let people know that all is well with the âproject of the centuryâ.
Unfortunately, it doesn’t look like this, as the state, as the minority owner (32%), will not receive a single penny from the project this year – not because the official majority owner, Belgrade Waterfront Capital Investment LLC, based in Abu Dhabi (68%) is unwilling to share the profits, but because no profit was made last year. And even if there were, there was little chance the state would get a share.
In 2018 and 2019, Belgrade Waterfront generated a surplus of 2.45 and 1.84 billion dinars respectively, but the state stayed on the sidelines as no decision was made on the distribution of profits. In 2020, the company recorded a net loss of 327 million dinars and no decision was even taken to cover the debt, as had been done with the losses of 2016 and 2017, totaling 2.4 billion dinars.
Although accompanied by an incredible media campaign, the company ended up in the red in 2020, as did its two subsidiaries – BV Galerija and BV Kula – incorporated in 2017. BV Galerija recorded a net loss of 1,357.4 million and BV Kula 409.4 million dinars. Thus, the expenses of the three companies are 17.8 million euros higher than their operating income.
Indeed, with projects of this type, it is not uncommon for expenses to exceed income for several years after the start of the project, since the money raised in advance is only recorded as income when the apartments are fully completed and occupied. However, few expected that in the six years since the establishment of the joint venture, not a single dinar would be paid to the public treasury on a dividend basis, although officials say when (if) it will be completed, Belgrade Waterfront will be worth more than 3 billion euros. The costs that the state has borne are already measured in the hundreds of millions of euros.
This article is also available in: Italiano