Milan Rakovic - Investment Analyst

23 July 2019


Milan Rakovic - Investment Analyst

In the interview for Porto Novosti, Milan Rakovic, Investment Analyst at Porto Montenegro, evaluates the current key projects of the shipyard in Bijela and new residences within nautical village in Tivat. In his role, he is assessing development potential of the company and individual projects by quantifying available data through financial models.

The last major investment project of Porto Montenegro is a project of redevelopment of the former Bijela shipyard into superyacht repair and refit facility - what is the summary of this project?

The beginning of this project’s realization is an important development phase, not just for Porto Montenegro marina, but for the local community in the Bay of Kotor – range of business opportunities is wide, and the benefits will be visible quickly and reflected in the long-term. We are completing the full yachting service offer to the existing and future clients, all in the attractive location in the Bay of Kotor. As an urban planner, analyzing the extent to which Porto Montenegro project had an indirect impact on the development of the town of Tivat in a positive sense, I can also assume how much the Montenegro Yacht Services project will, in time, leave a similar impact on the development of Bijela and return it to the nautical map of the Mediterranean.

We must note that Bijela Shipyard, that provided refit services since 1927, laid the foundation for a project that will certainly represent a milestone in the nautical industry of Montenegro, bearing in mind that we are bringing Damen, company that has been providing its shipbuilding and repair services in an equivalent period, on a global level. It is of great importance for the local community not only the fact that the company will eventually employ over 300 people, but that they will have the opportunity to be taught by experts from Damen – skills in the field of construction and repair of a wide range of vessels of this company are globally recognized.

The same question goes for the project of extending Regent Pool Club Residences and construction of Elena Residences - both projects will be completed this summer?

Our clients will receive the keys of their apartments in Baia and Elena residences this summer. Baia, along with the existing Aqua wing, will complete the complex around the pool that represents Regent Pool Club Residences, and we are particularly proud of Elena residences which, owing to its position, will become a new core of the so far built part of Porto Montenegro.

We also present a new service in Elena, called M Residences, which aims to provide tenants with a consistent quality standard and high level of comfort through our rental management system, as well as additional lifestyle services tailored by the owner's specifications. Baia and Elena show the determination of the entire team in Porto Montenegro which is now formed of many new members as well as people which have been the heart of the organization for years.

You are also continuously included in assessing the value of all future projects within the concession area of Porto Montenegro. What are further strategic challenges of the project?

Considering that Porto Montenegro has so far completed its wide range of exclusive residences, firmly establishing itself alongside other luxury projects in the Mediterranean, especially with this year's addition of Baia and Elena residences, our next challenge is the diversification of the offer. That said, we do not aim only to compete with other projects, but to create a unique urban environment that will create the quality of life at the highest standards providing services and related benefits.

Investment analysis of Porto Montenegro project is certainly one of the most important segments of strategic planning. Readers will probably be interested to know what are the steps in this process?

Simply put, investment analysis is based on the evaluation of profitability and identifying potential risks. The results of evaluation measure how certain investment can fit into the overall investors’ portfolio, especially for large-scale project such as Porto Montenegro. The investment can be seen as one building, the entire plot or a designated space in the building that has a wider range of business opportunities based on its physical parameters.

The entire research is primarily carried out in order to generally start with the assessment. By completing the research through each project, we find a variety of challenges that make this job interesting. Whether that research examines, for example, the market for a certain type of business, or physical elements of a new facility, it serves as a base for further evaluation.

There are many methodologies that we use in evaluating investments, but the end result is almost always based primarily on finding investment opportunities, the calculation of future cash flows and comparison of the income vs. total cost calculation. This last step gives us a result on the basis of which we make key decisions in terms of further executions.

You studied Urban Planning in London at the prestigious University College London, which is among the top ten in the world for many years. After graduating, you returned here to begin your career in an international environment in your home country. What are the benefits of this decision?

At the present time of educational and business globalization I think that whoever has the opportunity to study at renowned universities around the world, need to try to return to their country afterwards and contribute to their community by expanding the acquired experience. I am not saying that the foreign educational institution is stronger than ours in its academic program, but they have more resources for individual development of the students, more specific programs tailored to the ambitions of individuals, as well as education through technological sophistication that is essential for the development of any industry. In the very early course of my studies at University College London I have identified my desire to come back and contribute with my own experiences, not only within the field of my profession, but also with additional acquired skills. In this way, developing countries like Montenegro can get into international business practices more quickly and efficiently, so that future generations can enjoy more productive business environment. This said, the benefit is clear. The expansion of the variety of experiences and knowledge in order to attain a higher level of professional creativity.