Post by radovic on Jan 28, 2008 10:37:37 GMT -5
What is behind privatization of many enterprises?
Cepter making ‘Cepter City’ from IMT
Author: Svetlana Vukoviæ | 28.01.2008 - 06:00
The New Belgrade based tractor factory ‘IMT” is only one in a series of examples of enterprises that were purchased with the only motif of acquiring an attractive location. Filip Center has no intention at all of dealing with tractors, the same as Milan Beko and Miroslav Miskovic who bought ‘Belgrade Port’ had no intention at all of dealing with port activities.
Well-informed people claim that Cepter is going to build at the present location of ‘IMT’ factory a shopping mall, ‘Cepter City’ that shall expend as far as ‘Delta City’.
Petar Matic bought ‘BIGZ’ but neither is he going to publish books. Nikola Zivanovic bought ‘Belgrade Cinemas’, but he does not intend to screen any movie in them. Goran Novakovic bought ‘Zmaj’ but is not going to manufacture agricultural machines. Aleksandar Vlahovic and Danko Djunic bought ‘Novi Dom’ but they, too are not going to manufacture furniture. Examples of this kind are endless.
Attractive 35-acre piece of land
Filip Cepter offered 121 million Euros for ‘IMT’. In view of the 35 acres of land and strong competition this is one of the largest transactions carried out until so far.
‘Belgrade Shipbuilding Company’ that has exceptionally attractive location by the very bank of the Danube covering 44,000 square meters was bought by Cepter in 2003 through a liquidation procedure. The price he had to pay was only several million Euros.
He made a good bargain, too when purchased ‘Centrotextil’ for only 18.9 millions. For that some he got a business building of 6,785 square meters in the most prestigious Belgrade area, Knez Mihajlova Street, then a selling store in Kragujevac (2,650 sq. m) and a selling store in New Belgrade (3,387 sq. m).
Cepter also bought ‘Jugometal’ for 330,000 Euros and got a building of one thousand square meters.
Of course, there are no data indicating how many privatization transactions over recent six years were made for getting the real estate only.
The regulations are such that the price of an enterprise being offered for sale is determined based on the business results and to some extent the real estate.
Petar Maric, for example purchased BIGZ at the price of less than 200 Euros per a square meter. Now, together with ‘Merrill Lynch’ he is starting its reconstruction into a prestigious hotel. Until he completes the projects and collects all permits, the two-year period during which he must not change ‘BIGZ’ business activity (books) shall expire.
Change of activity
Enterprises sold in auction have to keep continuity of business dealing over the period of two years and those in tender over the period of five years. In the meantime a buyer is free to work on the change of business activity. When requesting that change to be approved by the Privatization Agency, the buyer explains that the old activity is making no profit.
A billion Euro profit
Miskovic and Beko purchased ‘Belgrade Port’ for about 40 million Euros. If they want to sell it today, the land of 120 heaters can be sold for at least 1.2 billion Euros. Miskovic and Beko are saying nothing about the sale at the moment. It is interesting that the competent authorities, completely aware of the fact that the port shall be removed leaving an incredible land for construction of business-residential bloc, are also say nothing.
Expecting the change, Miskovic and Beko bought a month ago ‘Belgrade Wine Factory’ on 44,000 square meters also near the Danube for about 6 million Euros.
Beko bought ‘Rapid’, a foreign trade company for less than 5 million Euros and got with other real estate also a building of 3,000 square meters at one of the most attractive locations in Belgrade. Examples of this kind are endless, too.
Cepter making ‘Cepter City’ from IMT
Author: Svetlana Vukoviæ | 28.01.2008 - 06:00
The New Belgrade based tractor factory ‘IMT” is only one in a series of examples of enterprises that were purchased with the only motif of acquiring an attractive location. Filip Center has no intention at all of dealing with tractors, the same as Milan Beko and Miroslav Miskovic who bought ‘Belgrade Port’ had no intention at all of dealing with port activities.
Well-informed people claim that Cepter is going to build at the present location of ‘IMT’ factory a shopping mall, ‘Cepter City’ that shall expend as far as ‘Delta City’.
Petar Matic bought ‘BIGZ’ but neither is he going to publish books. Nikola Zivanovic bought ‘Belgrade Cinemas’, but he does not intend to screen any movie in them. Goran Novakovic bought ‘Zmaj’ but is not going to manufacture agricultural machines. Aleksandar Vlahovic and Danko Djunic bought ‘Novi Dom’ but they, too are not going to manufacture furniture. Examples of this kind are endless.
Attractive 35-acre piece of land
Filip Cepter offered 121 million Euros for ‘IMT’. In view of the 35 acres of land and strong competition this is one of the largest transactions carried out until so far.
‘Belgrade Shipbuilding Company’ that has exceptionally attractive location by the very bank of the Danube covering 44,000 square meters was bought by Cepter in 2003 through a liquidation procedure. The price he had to pay was only several million Euros.
He made a good bargain, too when purchased ‘Centrotextil’ for only 18.9 millions. For that some he got a business building of 6,785 square meters in the most prestigious Belgrade area, Knez Mihajlova Street, then a selling store in Kragujevac (2,650 sq. m) and a selling store in New Belgrade (3,387 sq. m).
Cepter also bought ‘Jugometal’ for 330,000 Euros and got a building of one thousand square meters.
Of course, there are no data indicating how many privatization transactions over recent six years were made for getting the real estate only.
The regulations are such that the price of an enterprise being offered for sale is determined based on the business results and to some extent the real estate.
Petar Maric, for example purchased BIGZ at the price of less than 200 Euros per a square meter. Now, together with ‘Merrill Lynch’ he is starting its reconstruction into a prestigious hotel. Until he completes the projects and collects all permits, the two-year period during which he must not change ‘BIGZ’ business activity (books) shall expire.
Change of activity
Enterprises sold in auction have to keep continuity of business dealing over the period of two years and those in tender over the period of five years. In the meantime a buyer is free to work on the change of business activity. When requesting that change to be approved by the Privatization Agency, the buyer explains that the old activity is making no profit.
A billion Euro profit
Miskovic and Beko purchased ‘Belgrade Port’ for about 40 million Euros. If they want to sell it today, the land of 120 heaters can be sold for at least 1.2 billion Euros. Miskovic and Beko are saying nothing about the sale at the moment. It is interesting that the competent authorities, completely aware of the fact that the port shall be removed leaving an incredible land for construction of business-residential bloc, are also say nothing.
Expecting the change, Miskovic and Beko bought a month ago ‘Belgrade Wine Factory’ on 44,000 square meters also near the Danube for about 6 million Euros.
Beko bought ‘Rapid’, a foreign trade company for less than 5 million Euros and got with other real estate also a building of 3,000 square meters at one of the most attractive locations in Belgrade. Examples of this kind are endless, too.