Archive for April, 2007
Wednesday, April 11th, 2007
Industrial property demand and supply grow in Bulgaria
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.
Tuesday, April 10th, 2007
Construction pace in Bulgarian ski resort of Razlog reaches one of famous Bansko
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
Thursday, April 5th, 2007
Demand for logistics and warehouse property in Bulgaria exeeds supply with 60%
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
Thursday, April 5th, 2007
Black Sea Property Fund to build residential complex in Malinova Dolina district of the capital Sofia
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.
Monday, April 2nd, 2007
Banya area holiday village development announced close to the Bulgarian ski resort of Bansko
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.
Monday, April 2nd, 2007
A foreign construction company would build Ropotamo Plaza - a new Sofia skyscraper
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.