The International Finance Corporation (IFC) is preparing a financing package of up to €150 million for the next development phase of Porto Montenegro in Tivat, introducing long-term institutional financing into one of Montenegro’s largest tourism and mixed-use investment projects.
The proposed package consists of an €85 million senior secured A-loan from IFC’s own account and an additional €65 million B-loan or parallel loan expected to be mobilised from commercial lenders. The financing is planned to be committed in several tranches and will support part of Porto Montenegro’s five-year investment programme. The total cost of the planned development phase is estimated at €150 million, equivalent to approximately $172 million based on the exchange rate used in project documentation.
IFC financing structure and ownership background
The borrower is Adriatic Marinas d.o.o., the company responsible for owning, developing and managing Porto Montenegro’s residential, marina, hospitality and commercial assets. Adriatic Marinas is wholly owned through PM Holdings One Person Company LLC, a company based in the United Arab Emirates and ultimately controlled by the Investment Corporation of Dubai, the sovereign investment arm of the Dubai government.
The financing package will also benefit from a guarantee provided by ICD Hospitality & Leisure LLC, another wholly owned subsidiary of the Investment Corporation of Dubai. The guarantee provides additional support to the transaction by adding recourse to an international sponsor rather than relying only on project-level revenues generated from property sales, hotel operations, marina services and commercial leasing.
Development programme expands Porto Montenegro masterplan
The investment programme is expected to increase the completed portion of the Porto Montenegro masterplan from approximately 24% to 47%. The next phase includes the SIRO hotel, sports and wellness facilities, mid-market food and non-food retail, recreational areas, Tivat’s first cinema, a multipurpose creative-industry centre with media and content-production studios, and a modern outpatient clinic.
Additional supporting infrastructure will include roads, sewerage systems, laundry facilities, utilities and telecommunications networks. The development is intended to expand Porto Montenegro beyond its existing marina and luxury residential base by adding hospitality, healthcare, retail, leisure and creative-industry facilities.
The SIRO hotel, operated by Kerzner International, opened in May 2025 and focuses on fitness, recovery and wellness-oriented hospitality. Further development in Synchro North is expected to include anchor tenants such as an outpatient clinic and kindergarten, alongside retail, leisure and creative-industry facilities.
Existing assets and concession area
Adriatic Marinas has held long-term ground and water concession rights over approximately 240,000 square metres of government-owned land since 2007.
The existing Porto Montenegro development includes:
- a marina with 512 berths;
- 620 residences across 11 buildings;
- 153 retail units;
- two hotels;
- a naval heritage museum;
- educational facilities.
The assets covered by the new financing are planned within the existing project footprint. No additional land acquisition or expansion beyond the current concession area is required. The project site previously operated as a military shipyard and underwent remediation before the first development stage. IFC’s environmental and social due diligence continues to monitor historical contamination risks. The project has been classified as Category B, meaning potential environmental and social impacts are considered limited, site-specific and manageable through established mitigation measures.
Sustainability-linked financing requirements
The IFC financing includes sustainability-related conditions connected to environmental performance targets covering water consumption, waste management and energy efficiency. The financing structure includes requirements linked to internationally recognised environmental certification for the SIRO hotel. IFC is also considering advisory support related to green-building certification and diversity and inclusion assessments.
The sustainability targets are linked directly to financing conditions, with compliance affecting loan pricing benefits or other terms.
Financing role and market impact
The IFC-led structure provides access to longer-term debt financing that is generally difficult to obtain solely through Montenegro’s domestic banking sector. The B-loan or parallel-loan component is expected to attract commercial lenders by using IFC’s due diligence, environmental framework and monitoring standards. The transaction does not involve a sovereign guarantee from Montenegro. Porto Montenegro remains a privately financed development supported by its Dubai-based sponsor and multilateral and commercial financing rather than direct state borrowing.
Tourism and economic significance
Montenegro recorded 2.73 million tourist arrivals and approximately 15.37 million overnight stays in 2025. Tourist arrivals increased by around 4.7%, while overnight stays declined by approximately 1.5%, indicating shorter average stays and increased focus on visitor spending. Porto Montenegro’s expansion is aimed at increasing economic activity through marina services, luxury accommodation, restaurants, retail, wellness services, property management and local supply chains.
The addition of healthcare, cinema, kindergarten and creative-industry facilities addresses the limited year-round commercial and social infrastructure often associated with coastal tourism developments. IFC expects the investment to create employment and increase opportunities for Montenegrin suppliers, particularly small and medium-sized enterprises. The operational phase is expected to generate recurring demand through hotels, marina services, healthcare, maintenance, retail and food-and-beverage activities.
Foreign investment and development standards
The financing comes as Montenegro continues to attract significant foreign capital into real estate. In 2024, net foreign direct investment reached approximately €491 million, equivalent to around 6.6% of GDP. Real estate accounted for more than half of gross foreign direct investment inflows. During the first ten months of 2025, property investment reached approximately €406 million, representing an increase of almost 12% compared with the same period.
Unlike individual residential purchases, the Porto Montenegro financing combines property development with hospitality, commercial operations, healthcare and infrastructure under an institutional financing structure. IFC participation also introduces additional environmental, social and governance requirements, including contractor monitoring, labour documentation, grievance mechanisms and life-and-fire-safety standards.
Implementation risks and future financing
The main implementation challenge remains coordinating construction of buildings, infrastructure and operating concepts across the wider masterplan. Potential risks include construction-cost inflation, contractor availability, imported-material lead times and limited availability of skilled labour in Montenegro.
Revenue stabilisation will also depend on the performance of hotels, clinics, cinemas, commercial spaces and retail facilities. Residential sales can generate earlier income, while hospitality and commercial assets require longer operating periods to reach full performance. The phased financing structure allows loan disbursement to follow construction progress and lender requirements before subsequent tranches are released.
The planned €65 million B-loan or parallel facility will provide an indication of international lenders’ appetite for Montenegrin tourism-sector projects supported by IFC. The expansion phase is intended to transform Porto Montenegro from a marina-focused luxury development into a broader urban and hospitality destination in Tivat.
