November the 7th, 2022 - With news of Arab investors more or less dominating the local press of late (see the Fortenova saga), could another investor from that part of the world end up taking over Brac Airport?

As Poslovni Dnevnik/Marija Brnic writes, before going into any details, it's important to say that the state intends to withdraw from the ownership structure of Brac Airport, located (as the name should suggest) on a certain Central Dalmatian island across from the City of Split. The first step in starting the procedure for the sale of the shares the government has within that company is contracting work with consultants to assess the company's value, and then those shares that will be offered through a public tender.

DO Advising and Agram Brokers were hired as appraisers, and judging by past practice, it can be expected that CERP will announce a tender for the sale sales in early 2023. Although, as a rule, such procedures are only initiated when investors express interest and submit letters of intent, unofficially from CERP it has been circulating that the Brac Airport government shares sale is proceeding as part of the plan to reduce the state portfolio, and allegedly without the need for prior inquiries from investors.

However, as has been heard from several interlocutors, the majority owner of the company - Sunce hotels, which holds 50.2% of the shares, is interested in the complete takeover of Brac Airport. CERP, on the other hand, has 33.8% of the shares available for sale, and according to data from the ownership structure of Brac Airport, the state has a total of 38.5%, while smaller shares are held by Svpetrvs hotels, HT, the municipality of Puscica, Sardina and some other small shareholders.

Sunce hotels was taken over a year and a half ago by an Arab investor from the United Arab Emirates - Mohamed Ali Rashed Alabbar and his company Eagle Hills Real Estate. Several people in the know claim that until now he has been focused exclusively on the hotel business, but he is allegedly interested in the complete takeover of Brac Airport as well, which is extremely important for Brac's tourism.

However, significant investments are needed, and projects have been being discussed and prepared for years. Admittedly, other investors related to the tourism sector on that island, which were involved in the relatively recently opened (and controversial) Grand Hotel View, could also be interested, and more greenfield investments are underway.

New airport director Petra Bonacic-Sargo also announced the investment in the annual financial report for last year, but when asked about the plans, she didn't go into details.

"Even before the coronavirus pandemic, we applied for two infrastructure projects in order to extend the track and reconstruct the passenger buildings with the help of EU funds. We haven't given up on them, we're still working on them and we hope for a positive outcome,'' said the director of Brac Airport.

At the time when the projects were being prepared, the head of the company from Brac was Tonci Peovic, and the plan was to extend the runway from 1,760 to 2,400 metres and widen it from 30 to 45 in order to enable the landing of larger planes. Investments were also prepared for upgrading the terminal building, and the airport was then going to be made to be able to receive three large aircraft at the same time.

A total investment of around 21 million euros was foreseen, however, in the meantime, certain changes have taken place and now, according Peovic, there is no reason for such a large investment and expansions for Brac Airport. Originally, the project was prepared based on cooperation with the Austrian TUI and a fleet whose planes had 175 seats, but that cooperation no longer exists, and Croatia Airlines has been renewing its fleet and replacing the existing planes with the Airbus 220, and the tendency, he adds, is to switch from turbo-propellers on jets and airplanes that carry fewer passengers.

According to his assessment, and he left the company before the summer, it is enough to extend the runway to 2100 to 2200 metres and keep the width as it is now. Considering the characteristics of the terrain, this will greatly reduce the cost of the investment, estimated to stand at a whopping 6-8 million euros, and there remains the possibility that part of the money for reconstruction and modernisation will also be provided through EU funds.

For more, make sure to keep up with our dedicated news section.

October the 15th, 2022 - The Croatian restaurant chain Koykan, known for its so-called ''fast-casual'' style, is set to spread to the German and Austrian markets following a new investment round.

As Poslovni Dnevnik writes, on Wednesday this week, the Croatian restaurant chain Koykan presented its expansion plans for the wider European Union (EU) market to investors, which includes the opening of as many as fifty franchise restaurants in Germany and Austria by the tear 2025. The Croatian chain Koykan is otherwise quite the unique restaurant concept that offers a wide range range of street food dishes and international cuisine in one place, from Asian and Mexican to Mediterranean and American, all based on high-quality and fresh local ingredients.

In order for the company's ambitious plan to expand its business to the European Union market to come true, the founders of Koykan plan to attract an investment worth one million euros with the help of the digital investment platform Funderbeam, and would-be investors have confirmed their interest in investing in this rapidly growing Croatian street food franchise.

"Funderbeam is a global digital platform that enables startups and developing businesses to raise capital under more favourable conditions than venture capital and other forms of investment at that stage of business development. At the same time, Funderbeam also enables individuals to become part of the business success of innovative and growing businesses as small investors with an investment of as little as 250 euros. This is a significant change in the world of investments, since until now such investments were reserved only for large institutional investors,'' explained Ognjan Despot, the director of Funderbeam for Central and Eastern Europe. He also pointed out that Croatian companies have already raised more than six million euros through various Funderbeam investments, while total investments through Funderbeam amount to more than 50 million euros.

"We didn't just decide to take this step overnight. Over the past decade, we've learned a lot, often from our own mistakes, we've worked persistently, we've developed, and only now are we truly ready for expansion into the European Union markets. With the help of Funderbeam, our goal is to raise one million euros in Series A and with that spring our step, to open up fifty franchise restaurants throughout Germany and Austria over the next three years," explained Boro Milivojevic, one of the co-founders of the Croatian restaurant chain Koykan.

Every company on Funderbeam must have a leading investor who contributes to the campaign's credibility with their investment, and the leading investor in Koykan, Mato Marcinkovic & Partners, emphasised that here in the Republic of Croatia, it is necessary to activate the investment climate in promising companies that plan to expand to a much larger market in Europe.

Davor Bruketa, a partner in the famous Croatian branding agency Bruketa&Zinic&Grey, joined Koykan as one of the investors. "After hearing about Koykan's story a few months ago, I decided to invest and financially support the project. The expansion of the first Croatian fast-casual restaurant chain is also interesting to my agency, so we decided together that Bruketa&Zinic&Grey will help with the design, digital advertising and brand activation for their franchise expansion," says Davor Bruketa.

The Croatian restaurant chain Koykan wants to include all of its fans in this project, therefore both Koykan employees and major suppliers have become investors, and the desire is for customers who like the famous Koykan classics such as their burgers, gyros, wraps and other offers to join in as well. The fundraising campaign on Funderbeam is set to continue for another month, and the currently expressed interest in investing has already exceeded the initial expectations of the founders.

For more on Croatian companies and investments, make sure to check out our dedicated business section.

September the 23rd, 2022 - The Zagreb Brewery (Zagrebacka pivovara) recently presented its brand new Zapresic logistics centre, into which they've invested close to 18 million kuna.

As Poslovni Dnevnik writes, the Zagreb Brewery presented its impressive recent investment in a new logistics centre, which will also double up as a distribution and commercial centre in Zapresic near the City of Zagreb.

The investment that was presented in the form of the new Zapresic logistics centre is a continuation of this well known company's wider investment cycle in the expansion of its overall production and storage capacities.

"Our new investment cycle marked this very important year for us, in which we celebrate 130 years of existence," said the President of the Management Board of the Zagreb Brewery, Miroslav Holjevac.

This year's investment cycle, he said, is important because it increases competitiveness on the market and the quality of customer service. He also noted that back in June this year, an investment of an even higher 64 million kuna was presented in the form of a technologically advanced line for filling and packing cans in their production facility in Zagreb.

The investment in this new Zapresic logisitcs centre has worked to successfully expand the company's logistics areas and covered storage areas as well as a truck terminal, which will ensure a safer and easier flow of traffic.

Additional storage areas necessary due to the increased production capacity and new product range have also been secured. 5,400 square metres of storage halls and an additional 9,000 square metres of external logistics areas were constructed, including a brand new truck terminal.

For more, make sure to check out our dedicated business section.

September the 10th, 2022 - The Koprivnica-based Nexe Group (Grupa) has completed its impressive 4.3 million kuna investment.

As Poslovni Dnevnik/Jadranka Dozan writes, on Wednesday, Koprivnica's Nexe Group marked the completion of the investment of one of its components, the Koprivnica company IGMA, in a new concrete plant.

This component is involved in the exploitation and processing of gravel and sand and the production of concrete and concrete elements, and the investment in the concrete plant in Drnje worth a massive 4.3 million kuna also equals the modernisation of concrete production and adaptation to new technologies.

As the company pointed out, the construction project included a concrete production area with a mixer, an in-line aggregate tank with a total capacity of 120 m3, and three cement silos with a capacity of 80 m3 each. The accompanying buildings next to the concrete plant, the additive storage and control container, and the waste concrete separator have also been completed.

On the occasion of the presentation of the work of the new concrete plant, it has been stated that the goal of this investment is the additional rationalisation of resource management, the additional improvement of product quality and the level of environmental protection, as well as the meeting of increasing market demands. IGMA also explained that it is a logical sequence of the company's growth and development, which resulted in a 10 percent increase in revenue and a 27 percent increase in net profit back in 2021.

Karlo Sisl, the director of IGMA, said that he believes that with this project, the company will continue its market success and secure a future for both its workers and production. This Koprivnica company has been operating as part of the wider Nexe Group since back in 2006, and since then, investments worth more than 86 million kuna have been made in the modernisation of technology, new products and quality.

"At IGMA, we apply the following business policies: investing in production, business processes, employees, as well as building relationships with the local community. Current projects confirm that the Nexe Group intends to further develop its operations across Koprivnica, among which, the EU-funded project to increase energy efficiency and the use of renewable energy sources stands out. Support for this project was approved from the Competitiveness and Cohesion Operational Programme of the European Fund for Regional Development and the EU Mechanism for Recovery and Resilience tender, in the amount of 14.5 million kuna.

For more, make sure to check out our dedicated business section.

August the 27th, 2022 - Komiza on the beautiful Dalmatian island of Vis is set to get a brand new five star hotel complex as part of a large 52 million euro investment.

As Poslovni Dnevnik/Marija Crnjak writes, the entry of Marriott's lifestyle brand Autograph into Hotel Bisevo has now been officially signed off. As was announced by the company Modra spilja on the Zagreb Stock Exchange on Thursday, the members of the company's management, following the approval of the general assembly and the supervisory board, have now signed the License Agreement for the Autograph Collection hotel brand, under which the Hotel Bisevo in Komiza on the island of Vis will operate.

As was previously written about, this is part of a huge investment totalling 52 million euros in the construction of a new exclusive hotel in Komiza, in which the company Modra spilja is entering with the majority shareholder, PBZ Croatia osiguranje (insurance) pension funds.

In place of the bulky concrete building of the current two-star Hotel Bisevo, Komiza will be richer for a five-star hotel in the year 2025, which will fully fit into the natural environment provided by Vis, and view of the town, as well as a new promenade by the sea.

The 3LHD architectural studio, the Bruketa&Zinic&Grey agency and the Hotel&Destination Consulting consulting company were all engaged in the realisation of this project alongside the investor.

The Autograph Collection brand otherwise belongs to what is known as the "premium distinctive" group of Marriott hotels, which lies somewhere in the middle between luxury and select hotels, and in terms of content and style, these are unique hotels that emphasise the local culture and history of the locations in which they're constructed, as opposed to dominating the destination and overriding the history of the place.

For more, make sure to check out our dedicated business section.

July the 2nd, 2022 - A massive two million euros has been invested into a beautiful Rab beach which falls within the scope of one of many large hotel complexes - Valamar Padova.

As Poslovni Dnevnik writes, the brand new sandy Rab beach at the Valamar Padova hotel and the The Beat Beach Club have now been officially opened! The value of Imperial Riviera's investment in this project in which the new Rab beach was revamped stands at more than two million euros.

With this investment, Imperial continues to invest in the development of the destination of the island of Rab as a whole and improve the quality of the tourist offer. The number of guests during the height of the summer tourist season had exceeded the beach capacities of the island of Rab, and especially the properly equipped beaches. Way back in 2012, Imperial Riviera initiated a project for the construction, expansion and improvement of the beaches in the Banjol area, which stretches from the Valamar Padova Hotel to the Padova Premium Camping Resort, according to a statement from the City of Rab's administration.

"Today, Imperial Riviera is the fifth largest tourist company in all of Croatia, and we're aware that in the great competition across the tourist market, we must ensure the continuity of investment in the quality of our facilities and content, including the beaches, which are an integral part of our overall offer. Imperial Riviera's strategic commitment within the Valamar Group is to respect the concept of sustainable development in all business segments, from protecting the natural environment to supporting local culture, lifestyle and relations with the local community. This includes taking care of the arrangement and maintenance of the beaches, which are equally enjoyed by the local population as they are by tourists, and which significantly improve the touristic competitiveness of the destination," said Vlado Mis of Imperial Riviera.

The construction and arrangement of the Rab beach in front of the Valamar Padova hotel enabled the employment of twelve new employees. The project included the filling of about 5,000 square metres of the coastal area, the construction of a breakwater, infrastructural and horticultural landscaping, a new promenade, beach facilities, a sanitary facility and equipping it with the most modern beach equipment, including canopies and sunbeds, as well as several attractions for children. With a capacity for about 700 swimmers, the new sandy Rab beach within the Valamar Padova hotel is currently the most modern and most beautifully decorated beach on the entire island.

The newly renovated beach is otherwise managed by Imperial Riviera as a concessionaire, and in addition to guests of the Valamar Padova hotel, the beach is also open to local residents and other tourists staying on the island of Rab.

For more, make sure to check out our dedicated business section.

July the 1st, 2022 - The well known Croatian Bluesun hotel chain which is based in Dalmatia has invested an enormous 45 million euros back into its impressive capacities, renovating approximately 800 rooms.

As Poslovni Dnevnik writes, summer is here and the height of the tourist season is rapidly approaching. As such, Bluesun Hotels & Resorts, one of the leading hotel chains in all of the Republic of Croatia, has invested more than 45 million euros in the renovation of six properties in its portfolio. The investment resulted in the renovation of almost 800 rooms in the Bluesun Hotel Elaphusa, Bluesun Hotel Borak, Bluesun Holiday Village Bonaca in Bol on the island of Brac, Bluesun Hotel Maestral, Bluesun Hotel Soline in Brela and Residence Kastelet in Tucepi.

The Bluesun hotel chain, with more than sixty hotels under its belt, points out that they managed to make the investment in less than half a year, in very challenging times and a during years marked not only by the coronavirus crisis, but also by rising prices owing to inflation and the ongoing horrendous war in Ukraine which broke out earlier this year following Russian invasion.

They also stated that when revamping the Maestral Hotel in Brela, they paid a lot of attention to the preservation of architecture, to the extent that they worked closely with conservators in order to avoid mismatching with the historical and emblematic typical Dalmatian architecture of the area.

All of the investment work, worth more than 45 million euros, was carried out by local construction companies, the Bluesun hotel chain made sure to note, saying they believed it was important to focus on local talent who best understood the environment in which the works are being carried out. Radnik from Krizevci, Kamgrad and Krekic-Avangard worked on the renovation of six of this company's hotels, while the main designer was the company Stabilnost, who also provided their expert supervision of the projects as they were carried out.

"With this investment, we're paying tribute to the people, the local economy, the community, history and the flawless Adriatic coast. We'd like to say a sincere thank you to the partners and our exceptional team who brought us to where we are today. It's amazing what we've achieved,'' said Mubarak Al-Khalifa, CEO.

For more, make sure to check out our dedicated business section.

ZAGREB, 10 June 2022 - A survey by the German-Croatian Chamber of Industry and Commerce (AHK) shows that over 80% of the companies are ready to pick again Croatia as a business and investment destination.

The survey, conducted by the AHK from 25 February to 26 April in 16 central and eastern European countries, shows that the biggest challenges for entrepreneurs are high energy prices and a lack of skilled labour force.

The poll covered a total of 983 companies, including 105 local and foreign companies in Croatia.

Presenting the findings of this year's survey, AHK Chamber president Thomas Sicla said that "a high number of companies, that is 84%, would again choose Croatia as a destination for their investments."

The findings of the survey for 2021 showed that that 74% companies would pick Croatia again as a business and investment destination.

Every other respondent describes Croatia's economic situation as satisfactory

More than a half of the respondents in this year's survey, that is 53% of them, see the economic situation in Croatia as satisfactory, which is a 10% rise compared to the previous survey.

Furthermore, 21% described the situation as good.

One in three respondents says economy has improved

Also a third of those polled believe that the economy in Croatia has improved since last year.

Concerning the perception of the economic developments, in other countries covered by the survey a similar number of respondents as in Croatia find the economic situation to be good.

Nearly 97% of entrepreneurs optimistic

The lion's share of the business people polled in this survey (97%) are optimistic about the prospects for doing business.

More than a half of the respondents believe that there will be improvements in their businesses, and a mere 10% are afraid of deterioration.

As for the short-term repercussions of the war in Ukraine, 80% of the respondents point to growing energy and raw material prices, and 56% point to disruptions in supply chains.

One in five respondents is afraid of losing business partners.

Asked when they expect the normalisation of the situation in the supply chains, 45% say they expect it in 2023, while 20% do not believe that it could be achieved in the foreseeable period.

Croatia's advantages and disadvantages

Croatia's EU membership, adequacy of tertiary education, skilled workers, infrastructure and productivity and motivation of employees are cited as the five advantages of Croatia.

The country's disadvantages and challenges are insufficient struggle against corruption, tax burden, non-transparent public procurement and the public administration.

The performance of the current government was assessed as satisfactory by 35% of the respondents and as bad by nearly 40%. 

For more, check out our business section.

June the 10th, 2022 - A massive 52 million euro project is set to begin the transformation of gorgeous Vis island, bringing it up to a far higher level when it comes to tourism.

As Poslovni Dnevnik/Marija Crnjak writes, with a huge investment of 52 million euros in the construction of a new exclusive hotel in Komiza and bringing Marriott's lifestyle brand Autograph Collection to the Republic of Croatia for the veru first time, the company Modra spilja (with the majority shareholder being PFZ Croatia osiguranje) will initiate the transformation of Vis island.

On the site of the bulky concrete building of the current two-star Hotel Bisevo, Komiza will get a five-star hotel that will fit entirely into the surrounding natural environment and the view of the city, and a promenade by the sea which will soon be walked along by some new guests, the users of Marriott's loyalty club.

In addition to the investor, the architectural studio 3LHD, the Bruketa & Zinic & Gray agency and the company Hotel & Destination Consulting have all been engaged in the realisation of this project, which has been underway for the last year now.

"Our goal on Vis island is to develop a high value-added tourism product, with a globally recognisable hotel brand that guarantees standards recognised around the world, in order to better capitalide on this remote and unique destination. We simply want to take advantage of the distance and harder accessibility of this destination which is ideal for an escape from reality, for wellbeing, and for the recovery of both body and mind from hectic lifestyles.

Autograph is ideal for such a product, because it's a brand in which each hotel is different, it has its own special story that is usually related to local culture or traditions, and the content is related to that,'' explained Mario Radakovic, a member management of the company Modra spilja.

As it is known, the pension fund PBZ CO paid its creditors back in 2019 and ended the bankruptcy proceedings of Modra spilja, after which the company was listed on the Zagreb Stock Exchange, and there was a recapitalisation to maintain liquidity during the coronavirus pandemic and to prepare investments.

Marriott is currently in the process of licensing the Autograph Collection brand, concluding a financial structure with both creditors and investors, and amending the urban development plan for the Komiza settlement (UPU) so that all permits can be obtained.

The preliminary design bears the signature of the Zagreb-based company 3LHD, which presented it to the local community about 10 or so days ago. A completely different concept of hotel will now be built, with almost the same number of rooms, but with a significantly reduced environmental impact and total visibility from the sea.

HDC was in charge of designing the concept, the market positioning, the content and the financial projection of the project, while Bruketa & Zinic & Gray will be in charge of branding and designing the central theme of the hotel.

It's worth noting that the Autograph Collection brand belongs to the so-called "premium distinctive" group of Marriott hotels, which is in the middle in terms of luxury (between luxury and select hotels), and in terms of content and style, they are unique hotels that emphasise local culture and traditions. Under the Autograph Collection brand, there are about a hundred hotels on five continents, most of them in Europe, Central America and down in the Caribbean.

It's already known that a very important segment in the up and coming Komiza hotel will be wellness, which will recreate the famous Blue Cave attraction on the island of Bisevo, with a number of indoor and outdoor pools and facilities surrounded by a rich Mediterranean garden, which is another important component of the project. Otherwise, the hotel will consist of several smaller buildings connected by corridors.

It will reinterpret the urbanism of the town with courtyards in a modern way, and Zagreb's 3LHD has placed all of the infrastructure underground, including the garage. The hotel will have a total of 133 accommodation units. An additional 28 residences are planned to be cascaded above the road and be naturally connected to the existing facilities in Komiza. With several outdoor pools, a large infinity pool with a roof top bar right next to the promenade by the sea, some rooms will have private pools, and the turnkey investment will stand at an enormous 320 thousand euros.

In addition to all of the above in the transformation of Vis island, this large project will be maximally "green", in accordance with the possibilities of this remote location, so that a good part of local materials will be built into it, and solutions will be sought that will be sustainable in the future maintenance of all of the facilities. Radakovic emphasised the great importance of existing good infrastructure on Vis island and the intentions of local authorities to further improve it.

“As a volcanic island, Vis has its own water sources, which is very important for the sustainability of the project, as well as the largest island solar power plant in the entire Adriatic. For our guests, we plan transfers from Split Airport as well as the re-establishment of sea routes to Italy, which will be interesting for the future development of tourism on the island,'' said Radakovic.

The closure of the entire construction of this huge future investment should be completed in the next six months. That in itself is a prerequisite for the start of construction, which could begin in the spring or autumn of 2023, and it is planned to last for 18 to 24 months. Objectively, the new Autograph Collection Vis could be on the market for the 2025 summer tourist season, the investor predicts.

For more, make sure to check out our dedicated business section.

ZAGREB, 22 May 2022 - The company called Phyox, specialised in production of microalgae, substances rich in minerals, vitamins, antioxidants and unsaturated fatty acids, has invested 6.6 million euros in a microalgae production project in the city of Novska, the Večernji List daily reported on Sunday.

The project will enable the commercial production of microalgae for the pharmaceutical industry.

The project has already gone through the stages of laboratory tests and trial production and the production of microalgae for commercial purposes is expected to start soon. 

There are plans to produce 40 tonnes annually.

According to the information on the web site of this company owned by four Croatian and German partners, "Phyox d.d. was created by combining the competences, experience and resources of its founders who after many years of technology development, decided to implement their microalgae production project in Croatia."

"Microalgae (Phytoplankton) are microorganisms that produce oxygen (Oxygenium) through photosynthesis, which is how the name Phyox was created."

Microalgae are with over two billion years of existence considered to be the oldest living cellular organisms on Earth.

The Večernji List daily quoted the company's  senior executives Franjo Orešković and Bernd Hermann as saying that the project was well accepted by the local authorities in Novska, during the mayorship of Marin Piletić.

Therefore, the company decided to set up the project in the industrial zone of Novska, 90 kilometres east of Zagreb.

Phyox is focused on the production of microalgae suitable for use in the food, pharmaceutical and cosmetic industries.

For more, make sure to check out our dedicated business section.