Investment Corporation of Dubai (ICD), the investment arm of the Dubai government, has agreed to the purchase of the Porto Montenegro Marina and Resort in Montenegro.

ICD which is building its hospitality portfolio and holds a significant equity stake in Kerzner International Holdings, founded by South African entrepreneur Sol Kerzner and the operator of the One&Only, Atlantis and Mazagan brands, is buying the waterfront development from Montport Capital, the company said in a statement, which did not disclose the value of ICD’s investment.

ICD, which is currently developing the Royal Atlantis Resort and Residences, a mixed-use development on Dubai’s Palm Jumeirah, had last year acquired stakes in the W Hotel in Washington, the Mandarin Oriental in New York, and the One&Only in Cape Town.

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 acquisition is in alignment with ICD’s strategy and “represents a strategic fit with our expansion plans into international luxury real estate and hospitality sectors while providing exposure to a new geography,’’ Mohammed al-Shaibani, executive director and CEO of ICD, said in the statement.

Porto Montenegro was developed by Canadian entrepreneur Peter Munk, founder of Barrick Gold of Toronto – the world’s largest listed mining company – who, with an international group of investors led by Lord Rothschild, financed the transformation of a naval base into a yachting 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 built-up area of 280,000 square metres, the resort has the potential to double in size, according to the statement.