The Investment Corporation of Dubai (ICD), the principal investment arm of the government of Dubai, has agreed to the purchase of Porto Montenegro Marina and Resort from Montport Capital. The purchase price was not disclosed.

The acquisition is said to be in alignment with ICD’s strategy to add high quality international assets in fast growing markets to its substantial portfolio. The transaction marks ICD’s first investment in Montenegro and the yacht marina sector, both of which are expected to experience strong growth in coming years.

“The internationally renowned Porto Montenegro presents an opportunity for ICD to access a successful business with significant potential for development expansion, both in the marina and landside,” says Mohammed Al Shaibani, executive director and CEO of ICD. “It also represents a strategic fit with our expansion plans into international luxury real estate and hospitality sectors whilst providing exposure to a new geography.”

Porto Montenegro was conceived and developed by Canadian entrepreneur Peter Munk, founder of Barrick Gold – the world’s largest listed mining company – who, with an international group of investors led by Lord Rothschild, envisioned and financed the transformation of a derelict naval base into a major yachting destination. In only 10 years, Porto Montenegro has established itself as a prime destination for the yachting community.

Montenegrin Prime Minister Milo Djukanovic says the government will continue to work closely with the new investors to implement a clear nautical tourism development strategy in Tivat and Boka Bay, and to further position Montenegro as a high-end tourist destination.

In addition to 450 berths already built and fully occupied, and with the necessary approvals in hand to build another 400 berths plus develop land with a BUA of 280,000sq m, the resort has the potential to double in size and become the leading luxury yacht port on the Mediterranean.

“Looking ahead, our aim is to realise Porto Montenegro Marina and Resort’s full long-term potential,” says Al Shaibani. “Our priority at ICD is to support management in the fulfillment of its ambitious plans, and to further establish Montenegro as a prime European yachting destination.”

ICD is currently developing the Royal Atlantis Resort and Residences, a set of hotel rooms, suites and luxury apartments at Palm Jumeirah. Last year, ICD acquired stakes in the W Hotel in Washington DC, the Mandarin Oriental in New York, and the One&Only in Cape Town, South Africa. It also owns significant equity interest in Kerzner International Holdings Limited (KIHL), the international operator of the One&Only, Atlantis and Mazagan brands.