President of the Municipality of Budva Nikola Jovanovic submitted a request to the Commercial Court in Podgorica for the immediate purchase of the dilapidated building of the former Yugoslav River Shipping Company (JRB) near the Old Town, part of the property of the failed Podgorica company and bankruptcy debtor "Vektra Montenegro", a businessman Dragan Brković.
"Considering that the Municipality of Budva is the applicant for the purchase of part of the assets of the bankrupt debtor 'Vektra Montenegro' in accordance with the advertisement and that it has paid a deposit in accordance with the offer, and that the advertisement has been canceled, we believe that the conditions from Article 134 of the Bankruptcy Law on sale by direct negotiation have been met," stated the first man of Budva in the request, which "Vijesti" had access to.
The bankruptcy administration canceled the advertisement it had published at the beginning of September, to which, in addition to the Municipality of Budva, a company from Nikšić also submitted a bid.
Jovanović then submitted a bid on behalf of the Municipality of Budva in the amount of the starting price announced by the bankruptcy administration, in the amount of 6.902.789,20 euros. Previously, the Budva parliament gave the green light and authorized Jovanović for the local administration to participate in the advertisement.
In his request to the Commercial Court, Jovanović pointed out that the Municipality of Budva is initiating proceedings for the direct purchase of part of the bankruptcy debtor's property.
"I ask that, in accordance with Article 134, point 12 of the cited law, you initiate the procedure before the Creditors' Board and state your position, in accordance with our initiative. The decision on granting authorization to the Mayor, which the Budva Municipal Assembly adopted on August 25 of this year, stipulates that as the Mayor, I am authorized to submit an offer for the purchase of real estate owned by the bankrupt debtor. In accordance with the legal procedure and positive legal regulations, if the Creditors' Board adopts our request, please inform us again, along with the submission of the appropriate decisions, so that we can submit to the Budva Municipal Assembly for a statement the draft Decision on granting authorization to the Mayor for the purchase by direct negotiation and possibly provide funds for the purchase from the budget for 2026," Jovanović stated in the request.
The city's coffers are currently full. The municipality of Budva has enough money to initiate purchases worth millions, as 17 million euros that were earmarked for capital projects were carried over from last year to this year. This gives Jovanović's administration the opportunity to buy attractive real estate and return property that was once state-owned to ownership.
At the assembly session on August 25, Jovanović said that the Municipality is purchasing the JRB building, while the land is disputed and the status will be resolved through civil proceedings with the state.
"We are buying the JRB building, which has an area of 815 square meters, including residential and commercial premises. The land is the subject of litigation, and if it is proven that it belongs to the state, we will get it for free. If not, the Municipality will be able to buy it on market terms. This is an opportunity to preserve the cultural and historical heritage of Budva."
As stated in the explanation of the parliamentary decision, which was voted by a majority of the councilors from the ranks of "Budva our city", the European Union, the Civic Movement URA and the Democratic Party of Socialists, the bankruptcy trustee announced the sale of the assets of "Vektra Montenegro" in Budva - the plot and building of the former JRB, at a starting price of 6.902.789,20 euros.
FROM ĐORDJEVIĆ TO BRKOVIĆ
The bankruptcy administration two years ago, which was appealed by the Protector of Property and Legal Interests of Montenegro Bojana Cirovic, announced the sale of the JRB building with a plot of land at a starting price of 7,5 million euros, while the year before that, the price at the first sale was eight million euros. There was no buyer.
The JRB building, which has been abandoned to the ravages of time for several decades, was built almost nine decades ago, in April 1936. The building was built as a National Health Center and the plot was ceded to the Hygiene Institute by the decision of the Budva board, or rather the then assembly, on April 8, 1936. In the post-war period, it was given to the Yugoslav River Shipping Company for use.
Dragan Brković, close to the political top of the DPS, sold an attractive property almost two decades ago for three million euros from a citizen of Belgrade. Nenad Djordjevic, a former high-ranking official of JUL.
For years, Đorđević, who was also the owner of a land complex on the island of Sveti Nikola, which he then sold to a businessman Stanko Subotic Canet, intended to turn the JRB into a hotel, build a small marina and other accompanying facilities for high-paying clientele. However, since he was not allowed to do so, because the planning document had not been adopted, he decided to sell it. The Podgorica company “Vektra” entered the scene, then at the zenith of its business success.
Even Brković did not manage to realize his visions immediately, during the investment boom when many foreign businessmen were interested in investing in Budva. On its website, "Vektra" previously had a detailed elaboration of all the projects it intends to implement, including plans for JRB.
Brković pledged that property in the name of credit lines of a total of 60 million euros with domestic and foreign banks. The building has been falling into disrepair for years, and in previous years there have been initiatives from the Municipality to buy the building and return it to the ownership of the city.
Last year, the Administration of Local Public Revenues of the Municipality of Budva initiated the procedure for forced collection of a tax claim in the amount of 170 thousand euros from "Vektra Montenegro", and after it was not settled, a mortgage was registered on the JRB building.
ADRIATIC GUARD WAITS FOR THE DECISION OF THE ASSEMBLY
Jovanović had previously initiated administrative proceedings to return the Adriatic Watch, a 9th-century cultural and historical monument and former Benedictine monastery, to the hands of the Budva Municipality. Two and a half decades ago, through a strange set of circumstances, the local government sold the Adriatic Watch, which was then converted into a hotel and restaurant.
"Vijesti" recently reported that Jovanović gave his administration permission to inform the current owners that the local government is ready to purchase the valuable building for 3,4 million euros.
The decision must be approved by the local parliament, and it is expected that the councilors could vote on it at the next session of the Municipal Assembly.
Considering that it is a cultural monument, the state, or rather the Municipality, has the legal right of pre-emption.
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