Blackard Global, an American company based in Dallas, Texas – which has been responsible for over two billion in investments for real estate projects around the world, regretfully has to say that it is abandoning its investment project on the Croatian island of Pašman.
Although they have encountered a professional approach, a transparent attitude and satisfactory communication with the Pašman municipality and Zadar county, the Blackard Global investors must withdraw from the project for several reasons, according to Novac/Jutarnji List on December 11, 2019.
American Encounters Unexpected Financial Obligations
Considering that the American firm had already invested hundreds of thousands of dollars in the Pašman project, their desire to invest was more than obvious. Blackard Global was informed from the beginning that there were certain financial obligations that, as a future investor, they would have to settle. However, they were not aware that those obligations amounted to more than 10 million EUR. Although the two parties managed to reduce this amount to around two and a half million euros, it was still considered an investment risk. It is significant that Blackard Global was the only company that had ever applied for this competition to develop the area.
Properties, Plans and Permits not Secured
It should also be noted that the golf course portion of project had not yet been included in the spatial plan of Zadar county, marina and beach concessions have not been secured for the company Pašman Riviera d.o.o. There was no urban development plan, which was the obligation of the investor after purchasing a stake in the Pašman Riviera company, and part of the land is still in the hands of private owners. In short, it was a greenfield investment, but the financial liabilities were more like a brownfield investment, which was not acceptable for Blackard Global.
Considered High-risk Investment Overall
“For us, as well as for any investment fund from the United States of America, this investment of almost $500 million would simply pose too much risk. If we had built a resort and there had been a future disruption in the Mediterranean tourism market, we would have been in financial trouble. Since the competition guidelines do not allow for the sale of real estate, we would not be able to maintain the stability of the project. Also, the municipality was not able to provide any guarantees for us as investors. In my experience, capital investments anywhere in the world must be attractive to investors. Unfortunately, that was not the case here,” revealed Jeffory D. Blackard, CEO of Blackard Global.