After a long wait, the international public tender, or call for expressions of interest for the selection of an Investor for the large infrastructure project “Urban Regeneration of Land in Šibenik – Batižele Project” has finally been announced.
The subject of the Public Call offer represents land with a total area of 220,839 square meters, owned by Batižele d.o.o., which includes real estate with an area of 31,500 square meters that will be allocated for the benefit of the City of Šibenik and Šibenik-Knin County, on which the same will build and finance public facilities.
An investor is sought, which can be a single company or a consortium of bidders acting together as one entity. The investor selection process is divided into two phases: Phase A (Pre-qualification Phase) and Phase B (Submission of Offers).
In the first phase of the tender, interested investors are invited to submit their expressions of interest no later than February 19, 2024, and confirm their qualifications. After that, non-binding offers are submitted, followed by a due diligence process and finally binding offers from interested investors.
Within three weeks after the completion of the first phase, Batižele d.o.o. will make a decision on the selection of qualified investors. Selected qualified investors will have the opportunity in the second phase, which will last 12 weeks, to submit their binding offers according to clearly defined evaluation criteria, and each offer must include: a statement of commercial terms, a master plan, a business plan proposal, and a bid guarantee.
The investor selection process among the received binding offers will last six weeks, and this process will be based on the assessment of the financial and technical excellence of the received offers.
Batižele d.o.o. will sell the land intended for predominantly residential construction and land for public infrastructure to the selected investor, while a 75-year construction rights agreement will be signed with the investor for the remainder of the development land.
The initial purchase price of the land intended for the construction of the residential component is 562.68 euros per square meter. The initial purchase price of the land intended for the construction of communal infrastructure is 186.53 euros per square meter. The initial fee for the construction right is 2.24 euros per square meter per year.
As unofficially reported, among the interested investors, domestic companies, foreign investors, and developers already present in the Croatian market are expected, as well as completely new foreign names.
Interest of large domestic and foreign investors
– The industrial location of Batižele, or the former factory of electrodes and ferroalloys TEF, represents a model example for urban brownfield regeneration in Croatia. This is an area surrounded by natural beauty, right on the Adriatic coast, and at the same time in close proximity to the historical core of the city of Šibenik. Due to the extremely attractive location, great potential, and importance, this project has attracted the attention of both citizens and investors from the very beginning. Numerous actors are eagerly waiting to see the completion of the project and its final product, which will certainly enrich the area of Šibenik and increase interest in this city, says Vedrana Likan, director of Colliers Croatia, Slovenia, and Bosnia and Herzegovina.
