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Cubus bets on marinas

• FROM: July 2006 |
• TAGS: travel & leisure, cubus lux |
• COMMENTS: Add yours

• Cubus bets on marinas
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Croatian casino operator Cubus Lux was transformed in March when marina developer Plava Vala reversed into the company.

The Olive Island marina will initially have 187 berths and phase II will add a further 110 berths. The first phase, which is almost complete, costs €5m while the second phase should cost less than €1m. There is a shortage of marina berths in Croatia and when it is completed the marina could be worth up to €40,000 per berth. Even assuming a low end figure of €30,000 per berth suggests a marina valuation of €9m which would cover more than half of the market valuation of Cubus Lux.

Management also plans to build a golf course on the coast. There may even be potential for marina berths in the area. The development of the course and other buildings will cost around €100m. Some of this will come from pre sales but Cubus Lux may need a partner. Cubus Lux has pro forma net cash of around £800,000. The figures for 2005 only include the three casinos, the third of which opened last July. Turnover rose from £484,000 to £571,000 while the loss also edged up from £453,000 to £497,000. Marketing the casinos to Italians will help improve business out of season. This year will also see initial revenues from renting marina berths. Three year leases will be sold to the first customers which will help cash flow but only the income relevant to the year will be recognised in 2006.

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