Published 29. October 2019.
The recapitalization of Imperial Riviera will amount to HRK 426 million following the General Assembly's decision. The recapitalization includes Valamar Riviera in the amount of HRK 106 million, AZ mirovinski fondovi with a total of HRK 296 million, Allianz Zagreb with a total of HRK 18 million and Allianz Invest in the amount of HRK 6 million.
Imperial Riviera's share capital increase is the beginning of the five-year business plan which predicts investments in tourism in the amount of HRK 1.5 billion. The investments will be directed towards the reconstruction and renewal of owned facilities and the expansion of Imperial Riviera's portfolio with Valamar managing operations.
Imperial aims to expand business to new destinations, and with the Supervisory Board's approval dated 29 October 2019, Valamar and Imperial concluded the Purchase contract for Valamar Zagreb Hotel in Poreč, in the amount of HRK 182.15 million. This winter, Imperial will invest over HRK 100 million to increase facility quality and reposition the hotel with additional Maro services for families. Hotel Zagreb will be renamed into Valamar Parentino, thus this project is part of Valamar and Imperial's overall investment plan for the Pical zone.
"Increasing the share capital of the joint venture for the management and investment in the region's tourism property is a logical continuation of Valamar's successful cooperation with institutional investors. It is also a statement of confidence from all participants in the recapitalization of the growth potential of Croatian tourism and the long-term sustainability of the hospitality industry investing in its employees, destinations and quality of tourism,” said Željko Kukurin, CEO of Valamar Riviera.
Kristian Buk, CEO of Allianz ZB društva za upravljanje obveznim i dobrovoljnim mirovinskim fondovima, said that the primary objective of this investment is the optimal return for AZ pension fund members. He added that the model is the best guarantee of investment success, it is AZ's long-term interest as an institutional investor and consistent with Valamar's long-term development strategy, with high corporate governance standards in Imperial Riviera.
To further professionalize and improve corporate governance, a new arrangement of Imperial Riviera's Supervisory Board was established. A new Management Board with two members was determined, with term of office lasting from 1 January 2020 to 31 December 2022. Vlado Miš, former President of Imperial's Management Board, was re-elected, and Sebastian Palma, long-time director of Strategic Planning and Controlling in Valamar, was appointed as the second member of the Management Board. He will manage finances and investments in Imperial Riviera.