EBRD financing for redevelopment of Old Mill Belgrade

By EBRD  Press Office

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The EBRD is supporting the refurbishment of a historical site in the Old Town
of Belgrade, with an investment to finance the redevelopment of one of the
city’s most famous landmarks, the Old Mill, a listed building located in front
of the Gazela bridge.

The EBRD’s €8.5 million equity investment in Prigan Holding, part of the
Austria-based Soravia Group, will be used to finance the development of a new
hotel and office centre on the site of the Old Mill. The total project
investment will amount to €55 million.

As part of the project, the Old Mill will be fully restored, with its
refurbished original features providing the frontispiece to the new complex. The
building will be converted into a modern hotel including 240 rooms, conference
rooms, spa facilities and restaurants, with a total area of 15,000 square
meters. An additional office-tower with total floor space of 3,900 square meters
will be built in the adjacent area. The new complex will also have 150
underground parking lots.

The new development will address the current undersupply of hotel
accommodation and office space in Belgrade, particularly in the Old City where
state authorities and many corporations are located. The construction works are
due to begin by June 2011 and the hotel’s opening is expected in spring

“The EBRD is delighted to support the redevelopment of the listed Old Mill
building, which will contribute to the revitalization of the Old Town of
Belgrade, and enhance the offer of quality accommodation and office space in
this strategic location”, said Sylva Gansser-Potts, EBRD Director for Property
and Tourism.

“The prime-location of this project, located on the main crossing of a major
road artery ”Gazela” and the prestigious Knez Milosa Boulevard, ensures a unique
visibility to the new complex as well as close proximity to Belgrade´s trade
fair complex and new train station. This is an important major investment in
Serbia since the economic crisis and it shows that confidence to the country is
returning”, says Soravia-Group CEO Hanno Soravia,”

Since the beginning of its activity in Serbia, the EBRD has committed over
€2.4 billion in various sectors of the country’s economy, of which almost €600
million in 2010.


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