Monaco's Mareterra district made $3 billion profit in six months with Kazakh billionaire Bulat Utemuratov among investors

Monaco's newest neighborhood has delivered one of the most profitable real estate outcomes in history. Mareterra, a 6-hectare luxury district built on reclaimed land along the Mediterranean Sea, generated $3 billion in net profit for its investors within six months of completion, according to Forbes Australia, which cited financial filings from one of the project's backers.

Kazakh billionaire Bulat Utemuratov was among those investors and among those who received a share of the proceeds.

"When you deliver something of genuine distinction the market responds accordingly," Utemuratov told Forbes. "Beyond the financial outcome there is real satisfaction in having supported a development that has become a landmark for Monaco and the region."

A decade-long bet on reclaimed land

Mareterra was initiated by Monaco's ruler, Prince Albert II, as a territorial expansion project designed to extend the principality's footprint into the Mediterranean. The development took 11 years to complete and cost approximately $2.3 billion. Engineers installed 18 enormous concrete caissons on an underwater embankment to create a seawall around the reclaimed land, on which villas, apartment buildings, plazas and gardens were later constructed.

The development's most distinctive building is Le Renzo, a 17-story ship-like residential complex designed by Pritzker Prize-winning Italian architect Renzo Piano, housing 47 luxury apartments.

The numbers behind the profit

Total property sales from Mareterra exceeded $6.6 billion, generating enough revenue to cover construction costs, repay a $1.2 billion bond and deliver more than $1.8 billion in taxes and concession fees to the Monaco government. After those obligations, the company behind the development cleared $3 billion in net profit within six months of completion.

Apartments in the district are priced at approximately $12,900 per square foot, roughly twice the cost of properties in Dubai's most exclusive neighborhoods. One six-bedroom villa spanning approximately 41,700 square feet, featuring a wine-tasting room, indoor and outdoor pools, a spa and a sauna, is expected to command more than $220 million (€200 million).

Who owns Mareterra

In 2015, the Monaco government signed a concession agreement with SAM L'Anse du Portier, a newly established real estate company, to develop the district. The public works division of Bouygues, the French engineering group controlled by the Bouygues family, was involved in the construction. The Bouygues family held a 10% stake in the vehicle, with private investors holding the remaining 90% through the SCA Anse du Portier investment vehicle.

Mareterra's largest investor was Patrice Pastor, a member of Monaco's prominent Pastor real estate dynasty, with a 26% stake. The Casiraghi family held 10.5%. Other investors included the Lopez de la Osa family, Swiss billionaire brothers Giammaria and Mario Germano Giuliani, and Utemuratov, each holding stakes ranging from 5% to 10%.

Under the concession agreement, investors financed the project and were entitled to its profits, after real estate sales taxes and a one-time payment of $460 million to the Monaco government.

Who moved in

Mareterra's combination of Mediterranean location, architectural prestige and Monaco's tax environment, where residents generally pay no income, inheritance, property or capital gains taxes, has attracted some of the world's wealthiest buyers.

Ukrainian billionaire Rinat Akhmetov purchased a 21-room, five-story apartment in Le Renzo for approximately $550 million, one of the most expensive residential property transactions ever recorded. British billionaire Jim Ratcliffe and Formula 1 world champions Max Verstappen and Charles Leclerc are among the reported residents.

The district has also benefited from growing instability in the Middle East, which has affected Dubai, one of Monaco's primary competitors in the global luxury residential market, redirecting some ultra-high-net-worth demand toward the French Riviera.

Utemuratov's involvement in Mareterra is one of several recent developments connecting the Kazakh billionaire's family to European financial markets. Earlier this year, his son Anuar joined the board of British fintech company Pockit, whose investors include former Manchester United manager Alex Ferguson and Revolut chairman Martin Gilbert.