A 71 mln lev shopping mall will be added to the gated under construction in north-eastern Sofia. The company that will develop the mall project, Sofia Building Enterprise, Wednesday was granted a First Class Investor certificate by the local investment promotion authority.

Sofia Building Enterprise, a subsidiary of construction firm Sofia Building Company which is developing the Tsarigradski housing community, is specially incorporated for the purposes of the mall project. The new shopping center is sited in proximity to the outlets of German retailer Metro and Austrian DIY chain Praktiker and to the locations of planned Carrefour and Turk Mall commercial developments.

The Tsarigradski Mall development will have a footprint of 2.0 ha and a total built-up area of 105,000 sq m, including 35,000 sq m of lettable retail space. The office component of the mall will deliver 15,000 sq m of lettable premises. The construction of the mall, which will employ 1,200 staff after completion, should get underway in the fall and wrap in 2009.

Sofia Building Enterprise provides 30% of the project financing with the remainder coming from an unnamed bank. The mall site is part of the land initially designated for the development of the Tsarigradski residential compound. The tenants of the complex will move into their new homes this summer.

The second section of the complex will be delivered in 2008 with all three sections expected to be completed by 2009, providing housing to 4,000 tenants. There are unsold apartment units only in Tsarigradski III with prices starting from 55o euro/sq m. Sofia Building Company is currently scouting for sites for residential construction in Sofia and along the Black Sea coastline.

FairPlay International (FPI), the Bulgarian construction and property development company, and Bulgarian Property Developments, a company listed on the London Stock Exchange, have earmarked 80 mln euro for the construction of shopping malls in Plovdiv, Pleven and Vidin, said FairPlay executive director Mario Zahariev. The project in Pleven has so far made the fastest progress. Construction on a 3.65 ha site should get underway this summer with delivery seen in 2008.

Work on the retail center in Plovdiv will begin by the end of 2007 while the Vidin project is scheduled for kick-off in early 2008, said Zahariev. On Tuesday, FPI and Bulgarian Property Developments were granted a First Class Investor certificate by the local investment promotion authority for their 50 mln euro project Logistics Park Varna.

Located in the Western Industrial Zone in Varna, on the Black Sea coast, Logistics Park Varna has a total build-up area of more than 80,000 sq m, including high-quality warehouse space, administrative offices, and wholesale outlets, according to the website of Colliers International, the exclusive real estate consultant for the property.

In addition to standard warehouse space, Logistics Park Varna will provide specialised premises, including temperature-controlled storage and optional cross-docking facilities. The project has readily available infrastructure including electricity, water, natural gas and telecommunications.

The project will be delivered in three stages, with the first phase, comprising 24,000 sq m of total build-up area, scheduled for completion by March 2008.

The Bulgarian defence ministry plans to execute swap and sale transactions involving 250 properties around the country in 2007. A total of 108 properties will be swapped for apartments to meet the ministry’s department housing needs. A decision is yet to be taken whether to sell or swap another 80 of the properties.

The list of properties slated for disposal includes the 55.9 ha airstrip in the village of Musachevo some 30 km from Sofia. The ministry is also offering 3 sites with a combined area of 156 ha near the Straklevo airport in the Ruse area and 175 ha in the vicinity of the former military air field in the village of Kondofrei, in the Radomir area.

Some 300 ha of arable land and properties in Sofia’s Bozhurishte residential district will be exchanged for housing units. The list of properties earmarked or sell/swap includes 1.13 ha of land in the village of Enemona, near coastal town Nesebar, and 5 ha in another coastal town, Pomorie.

The defence ministry will swap a 17.2 ha parcel in Razlog and three buildings in the Betolovoto, an area with 2 golf resorts and a number of holiday villages under development.

dnevnik.bg

Analogue of the big project “Super Borovets” is under development by the businessman Hristo Kovachky. It will be situated in Mala Tsurkva, Govedartsy and Maljovitsa villages. General construction plan of the area is now being prepared, and is about to be completed by the end of May. Joint company “” was created last year for the purpose of the new project. 50% of the shares are owned by Samokov municipal and the remaining shares belong to “El-El Impex”, whose sole owner is Hristo Kovachky.

The plan is to create 5 tourism centres, which will be able to service 8-10 thousand tourists, explained from “Nadar 2006”. The so-called resort-and-tourist location will comprise three zones, where 50-70 km of ski slopes will be constructed.  After the plan is accepted, the total amount of the investment will also become clear. The investment will be times bigger than that for the project in “Boriko” location. 23 million BGN were planned for “Boriko” project.

The municipality owns 25% of the company which will develop the “Boriko” location. The municipality will preserve this share irrespective of the amount of the investment. The construction of a winter stadium, and a two-seats lift with capacity to transport 1000 visitors per hour. There will be 3 ski slopes for beginners as well as an artificial snow installation. The project will also bring about the improvement of the entire infrastructure.
Two ski slopes, named Sitnyakovo 5 and Sitnyakovo 6 will be constructed in the Martinovi baraki site. The slopes are due to become ready by the end of the year.
24 Hours Daily

with excerpts

Some 1,000 vacation homes in Black Sea resorts Sunny Beach and St. Vlas have been listed for sale, shows data of local real estate brokerage portal imoti.net. A third of the apartments were bought at 600-800 euro/sq m three to four years ago and now the owners are trying to sell them at double the purchase price.

The holiday homes have been listed after the rent income they generated fell short of their owners’ expectations.

Most of the units are occupied for no more than 3 weeks and that amount of rent income is insufficient to cover year-round maintenance, let alone eke out a profit, commented imoti.net analysts.

The asking price of holiday homes in the two resorts starts from 450 euro/sq m and tops out at 2,500 euro/sq m with the average price at 900 euro/sq m.

Oversupply has developers struggling to move properties still under construction at sale prices above 1,000-1,200 euro/sq m, forcing them to throw in incentives like furnishings.

Only fully-furnished seaview properties command sale prices of over 1,600 euro/sq m.

The first of four retail and entertainment centers currently under construction in Bulgarian coastal city Varna will open for business in June, said Dorelov, the local company developing the property.

The 9 mln euro , located near Varna’s landmark Culture and Sports Palace, will feature 50 shops, 15 office units and 135 indoor and outdoor parking spaces.

Central Plaza, with a built-up area of 11,200 sq m, will have its own monthly advertising publication and will be managed by a specially incorporated company.

Liber Property Solutions has the exclusive agency rights for the mall inventory which will rent in the 20-70 euro/sq m range. Another 2 retail and entertainment centers in Varna should welcome their first customers by the end of 2007.

Interservice Uzunovi, the Bulgarian home appliance and consumer electronics retailer, is investing 35 mln euro in the Mall Varna development. The 50,000 sq m mall will occupy a 16,500 sq m site near the future outlet of German food retailer Kaufland.

Luke, the real estate investment trust incorporated by Carl-Heinz Pfohe, the German owner of Bulgarian Ford dealer Moto Pfohe, is building Pfohe Mall in Varna. The 26,000 sq m Pfohe Mall will have 17,500 sq m of retail floor area and 6,500 sq m of raking space and should open by the end of 2007.

Orchid Mall Varna, a project of property developer Orchid Developments, is due to launch by September 2009

Local company Terra Tour Service has announced plans to invest 71.8 mln levs in a golf resort near the town of Pravets, 40 min away from the capital city of Sofia. The project will be granted a First Class Investor certificate by the InvestBulgaria Agency, the local investment promotion authority. Terra Tour Service is managed by Vasil Zlatev, father of Lukoil Bulgarian executive director Valentin Zlatev.The 60 ha resort will comprise a PGA-level course, clubhouse and 35 villas.
Terra Tour Service, which owns 4 hotels, game parks, sports venues, spa center and a Pomorie holiday complex, plans to self-finance 30% of the project cost and borrow the remainder.

The Pravets development is the 5th golf resort awarded a First Class Investor certificate after projects in Pomorie, Razlog, Kavarna and the village of Kurilo near Sofia.

Litex Commerce, a Bulgarian company active in fuel retail, energy, beverages, alcoholic drinks, tourism and construction, will invest 100 mln euro in a holiday village near the coastal city of Balchik, reports news agency SeeNews, citing Litex CFO Ilia Terziev.

The 60 ha development, which will feature 500 villas, hotel and sports venues, should be completed in a couple of years.

A total of 126 villas will be completed during the first stage of the project due to get underway this summer. This part of the undertaking will be financed by Litex Commerce. The remaining stages would require the soliciting of external financing either from banks or from a partner for the creation of a joint venture.

The coastal area between Balchik and Kavarna is experiencing rapid development with projects for no less than 3 golf courses and a dozen holiday villages already in progress.

The supply of contemporary industrial facilities continues to increase steadily, Colliers International reports. Demand, too, continues to grow driven by increased quality requirements by both local and international companies. Owner occupied and build-to-suit developments continue to form almost the entire inventory of modern industrial space.

Land prices of industrial zoned land in some locations increased to unrealistically high levels, while rents for prime industrial space remained stable. The development of the first logistics park was initiated in Varna.

Local and regional infrastructure continues to improve as EUR 731.5 million in Bulgaria and EUR 2,761.25 million in Southeast Europe are being invested in transport infrastructure projects alone. Owner occupied and build-to-suit developments continue to form almost the entire inventory of modern industrial space.

The bed capacity in the Razlog/Bansko skiing area will jump to 200,000 over the next 5 years, Razlog mayor Lyuben Tatarski said in a statement based on the number of building permits issue by the two municipalities.

According to Tatarski, five new resorts will pop up alongside Razlog and Bansko which are already established destinations. The local government official tipped Betolovoto, where 2 golf complexes are already under developments, Dobrinishte, Bania, Predela and a golf hotspot taking shape just outside Razlog.

The only thing that could sidetrack the multimillion euro investments are the latest changes to the land use regulations and the uncertainties surrounding the designation of protected sites under EU’s Natura 2000 program.

The municipal authorities are campaigning against a recent legislative amendment which bars them for a period of 5 years from disposing of land unclaimed by its rightful owner. According to Tatarski, the changes should not apply to land that will be contributed to the golf course developments because it consists of rugged and rocky terrain unsuitable for farming. The Razlog municipal council has so far given the go-ahead to 7 golf course projects.

The municipality plans to set up joint ventures with each respective developer, contributing parcels ranging from 140 to 220 ha which translate into an equity stake of 20-30%. Tatarski said one work-around in case the law is not amended would be to prepare a land management plan stating that 30% of unclaimed land will be earmarked to compensate owners while the other 70% will be given over to golf resorts. Another option is to draft a masterplan where the farmland parcels slated for golf developments are rezoned as urbanised land.

The last 4 golf resorts approved by the Razlog municipality will be developed by Austria’s Nord Investment, Britain’s Emerging Capital Fund Management and the local Razlog Valley Golf and Balkanstroy. Investment is seen at 60-100 mln euro, said Tatarski. The golf resorts should be completed within 6 years.

Over 130 ha of land adjacent to the first golf resort set to partially open for business this summer have been bought up by developers at 100 euro/sq m. They are already building a number of holiday villages with local and foreign fundsDnevnik daily

High quality warehouse areas offered on the Bulgarian market occupy 700 000 sq m. This is 60 per cent less than the actual demand. Several major problems affect the sector. Among these are  high prices of plots appropriate for the construction of industrial properties and the bad infrastructure.

Prices of appropriate for the purpose plots exceed 35 euro per sq. This is the average sale price in Central Europe. Sale prices of industrial properties are similar all around Central Europe and are comparable to those in Bulgaria. Rental price higher that five euro per sq m is considered higher than average levels in Central and Eastern Europe.

Improving the infrastructure in Bulgaria’s industrial areas will stimulate the market. Industrial property market would become more attractive both for private warehouse owners and for large-scale European players.

In 2006 investors were only talking about big projects in the industrial property sector. In 2007 some of them will be carried out. Analysts expect that the first major projects will appear in 2008. This is a logical result after foreign developers and investment funds stated their intentions to enter the Bulgarian market.

At the moment rental prices of industrial properties vary from three to 5.5 euro per sq m. Vacant space is a rare. Warehouses of poor quality could be rented for one to two euro per sq m. Vacancy rate for this class of properties is 40-50 per cent. Expert do not expect changes in these figures until the first quality logistics centres appear on the market.

Dnevnik Daily 

The Black Sea Property Fund, which invests in the development of housing and holiday homes in Bulgaria, has acquired development land in the Malinova Dolina district of the capital Sofia for 4 mln euro, Regulatory News Service, the news outlet of the London Stock Exchange, reported on Wednesday.

The development cost for the 24,599 sq m site is expected to be between 7 and 8 mln euro. Current ‘as-built’ sale prices, based on comparable properties selling in the region, are estimated at 1,150 euro/sq m including VAT, giving a gross development value of 20 mln euro, Black Sea Property Fund said in a press release.

The AIM-listed fund will develop the land into a residential complex. Construction will be financed primarily through a debt finance facility with a local bank, together with deposits from off-plan sales.

Planning permission is already in place and construction is expected to commence towards the end of 2007 with completion anticipated to occur in spring 2009. Sales are expected to commence during the second half of 2007.

The site is 15 minutes drive from the city centre and its neighbours include the Business Park Sofia, as well as the Residential Park Sofia.

Properties in this area appeal to the wealthier residents of Sofia and there has been an increase in the number of gated residential complexes to cater for this market. The site is located close to one of the stations for the proposed Sofia subway.

Lewis Charles Sofia Property Fund Limited has signed a contract with Winslow Developments to regulate and eventually develop a holiday village project near Bania, which is close to the Bulgarian ski resort of Bansko, the fund said in a press release quoted by news agency Dow Jones on Monday, April 2.

Winslow Developments and the Lewis Charles Sofia Property Fund have signed a 4- year contract for the implementation and management of the project. The deal, which could generate approximately 113 mln euro in total project revenue, subject to planning permission, involves the regulation of the 121,420 sq m area within the next year, the planning and construction of a holiday village, as well as the marketing and sales of the completed buildings.

The two Companies are continuing discussions concerning the arrangements for after-sale property management. The Fund announced the acquisition of the land at Banya in August 2006. The Banya project, subject to the grant of planning permission, will involve the building of a first-class holiday village consisting of chalets and spacious apartments. The village will provide all the necessary facilities to guarantee the maximum comfort of its residents such as tennis courts, swimming pools, spa centre, restaurant and bars. The development is situated on a hill offering very attractive views of the Rila, Pirin and Rhodopi Mountains.

Lewis Charles Sofia Property Fund is an AIM-listed investment company focused on investment in the Bulgarian residential property market. The fund has a portfolio of about a dozen projects, mainly in Sofia, Veliko Tarnovo and winter resorts.

Winslow Developments operates since 2001. The company invests primarily in Bulgarian ski resort Bansko where it has completed 5 projects and has another 2 in development. The developer has also completed a villa community in Sofia and a logistics center in the village of Petrich.

In 2006, Winslow Developments announced it will implement jointly with RREEF, the real estate investment arm of Deutsche Asset Management, the global investment management business of Deutsche Bank, 2 large-scale residential projects in Sofia. The two developments, with cost estimated at 100 mln euro, will deliver a total of 1,000 apartments.

A foreign construction company would build Ropotamo Plaza, a skyscraper to replace the former Ropotamo restaurant by Tsarigradsko Shosse, once the investor, International Capital Group, receives a building permit.

Residents of the adjacent apartment building, however, object the plan, even though International Capital Group and the Sofia municipality own the land where the apartment building now stands, as well as the site of the future skyscraper beside it. Apartment residents have only the right to construction. The investor has offered them to divide the land, but they have refused the offer and have brought the project to court.

The British-Spanish construction company specialises in high-rise constructions and bridges. If the project gets the go-ahead, it will meet all European construction standards, International assures. In addition to hiring a foreign construction company, they have trained their own engineers abroad.

MORE ABOUT ROPOTAMO PLAZA

The tower is being built on the place where untill yesterday was sitting Restorant Ropotamo - one of the best places 15-20 years ago. It was demolished, and they announced this new highrise. It will have an estimated floor count of 30 (+/- 2 or 3) and an estimated height ot 103 meters/338 feet. The building will have 4 underground floors that will be used for 200 parking spaces and 25-50 more on the ground. The tower will house the new version of Restorant Ropotamo, SPA Center, Pool, Fitness Center, a small Mall, 7 floors of offices and the rest will be high class expensive residential apartaments. There is a possibility that instead of the offices, the floors will be used for a “5-or-more stars” hotel. The building will be the first one to have an own 30-meter long tunnel which will allow cars to get to the parking spaces. On the ground the building will be surrounded by water and a small park. All of this will be great news for the people who will live there, but they will have to pay quite a lot for that. The building will have two energy and water sources and the maker claimed that it will be built entierly to furfill all of EU reglaments…

If done right, this one will try to claim the title of the highest building in Sofia . The current highest building is Hotel Rodina - 104 meters. It was built in 1981 and has 25 floors. It is followed closely by two other buildings that are 99 and 98 meters tall. They are even older - built in 1979 and 1976 respectively. So the new one will actually be one of the first newly built highrises over here.