Archive for June, 2007
Friday, June 29th, 2007
Rents in Sofia are still low and are expected to increase gradually
Rent levels in Sofia are still low 
, on the average by 28 per cent, according to participants in an investor.bg poll. Nearly 15 per cent of those questioned said that rents were high at the moment and would register decrease. According to 10 per cent, rent levels have reached a peak and would grow no more.
Investor.bg reported that the results of the poll show that no predictions can be made concerning developments in the property rental sector in Sofia. Property agents said that some districts would experience price growth for specific types of residential property. Rents will increase in prestigious districts and in those experiencing market dynamics.
According to agents, the rental increase will vary from five to 10 per cent. Rental levels in Sofia are still much lower than those in other European capitals. As a result agents predict further growth in rents.
Wednesday, June 27th, 2007
The Bulgarian company Unique Estates is the new affiliate of Christie’s Great Estates
Bulgaria is the first of the 12 new EU members, where the leading brand for luxury properties Christie’s Great Estates chose for its new affiliate the Bulgarian company Unique Estaes Luxury Properties.
The contract was signed yesterday June 26th, 2007.
Christie’s Great Estates is the world’s largest network of real estate brokers specializing in the marketing and sale of luxury properties. The company is fully owned by Christie’s International – the world’s biggest auction house. The Chrisite’s Great Estates global network includes nearly 35 000 sales associates operating from 850 offices in more than 35 countries. The network’s combined annual sales top $125 billion.
Unique Estates is a Bulgarian company, specializing in luxury properties and is part of the biggest real estate holding in Bulgaria AG Capital. The negotiation process with took more than two years.
Wednesday, June 20th, 2007
Dobrich working on industrial zone project
Dobrich is among the 10 Bulgarian cities actively working on the development of industrial zones.
The Dobrich municipality, North-eastern Bulgaria, has won a Phare-funded project to develop the industrial zone scheme with assistance from the Volunteers for Economic Growth Alliance (VEGA), mayor Detelina Nikolova told a conference on public-private partnerships organised by the USAID and VEGA.
The defence ministry has granted the Dobrich municipality use of a decommissioned military outpost with an area of 42.4 ha. The site for the future industrial park is conveniently located in close proximity to railway, road and gas infrastructure.
The new zoning plan of the city should be ready by the end of 2007. It will include the architectural plan for the industrial zone.
The municipality intends to participate as a shareholder in a corporation specially set up to develop the project.
Wednesday, June 13th, 2007
Polish developer GTC to build shopping mall in Varna
GTC Bulgaria, the local unit of Polish developer GTC, has acquired a 65% stake in a retail project in Bulgarian coastal city Varna, the parent company said in a press release on its corporate website. The project comprises 37,000 sq m of net rentable area.
Upon completion, scheduled for Q4 2008, the shopping center will generate about 9.5 mln euro in rental income annually. The company said it has also agreed the terms for the acquisition of two more retail sites in Bulgaria. The remaining 35% belongs to the owner of the land, a reputable local entrepreneur.
The total development cost, including land, is estimated at 77 mln euro.
A zoning permit has already been obtained for the project. Construction will start as soon as a building permit is received.
The shopping mall will be located at the intersection of the city’s major transit routes, next to popular housing districts. Varna is the third-largest city in Bulgaria and one of the main tourist destinations on the Black Sea coast, with 330,000 residents.
At the moment, there are two shopping and entertainment centers in development in Varna. Interservice Ouzounov, the Bulgarian home appliance and consumer electronics retailer, is building Mall Varna while a real estate investment trust owned by the local Ford dealer is developing Pfohe Mall. Both should open by the end of 2007.
Orchid Mall Varna, a project of property developer Orchid Developments, is also due for kick-off. In addition to the site in Varna, GTC Bulgaria has agreed on terms for the acquisition of two other retail projects in large Bulgarian cities.
The two projects comprise a total 60,000 sq m of net rentable retail space. The completion of those transactions is subject to positive results of due diligence.
In June 2006, Polish news portal bankier.pl. reported that GTC Real Estate Investments Bulgaria will invest 1.5 mln euro in a new office development in Sofia.
It was reported that GTC Real Estate Investments Bulgaria planned to buy a 4,500 sq m lot for the construction of 7,200 sq m of office space.
Construction was due to get underway in the second half of 2006 and finish by early 2008.
In April 2006, GTC said it had signed an agreement to acquire 3,800 sq m of land in an attractive district in the Bulgarian capital, in proximity to the American Embassy. The acquisition price was named at 2.4 mln euro. The lot was zoned for the development at least 11,600 sq m of net office and retail space. Construction was scheduled to commence in the first quarter of 2007.
Tuesday, June 12th, 2007
Balkania bed capacity to reach 10,000 through 2010
The bed capacity in Balkania, the mountainous tourist region encompassing the municipalities of Teteven, Apriltsi and Troyan in Central Northern Bulgaria, will jump to 10,000 over the next 2-3 years, said Daria Zarichinova from Tour Club ReMark which is marketing the destination.
The club said at least 30 projects for the construction of new tourism facilities have been approved in the Apriltsi area alone. The bed capacity of area resort Chiflika has doubled over 2006 while at least 4-5 new hotels are under construction in resort village Ribaritsa.
Developers are preparing to build half a dozen of holiday homes villages in the region. The biggest investment in the Balkania region so far is the 4 mln lev Venika hotel in Chiflika. The 3-star facility offers 100 beds.
Tourist arrivals in the region are expected to increase by 20% this year.
Friday, June 8th, 2007
Bulgaria Buy to Let to invest in villa communities near Sofia
Bulgaria Buy to Let, the local property investment company, said will invest an undisclosed amount in two villa communities near Sofia. The company said the single-family homes will be marketed to high-income earners looking for a cozy and quiet residential environment in suburban areas at a short commute from the city center.
The gated Princess of Vladaya complex will comprise 23 two-storey detached houses and should be ready by the end of 2008. The second development is located in the village of Petarch. It will place on the market 200 houses and will feature shops, swimming pool, basketball and tennis courts. A communal bus line will offer rides to the city every 30 minutes.
The cheapest home will sell at 132,000 euro for a built-up area of 110 sq m. The most expensive home will sell for 290,000 euro for a built-up area of 240 sq m.
The company plans to acquire more land plots for residential development.
Thursday, June 7th, 2007
Spanish company Riofisa says Sofia mixed-use development to kick off soon
Riofisa SA, a leading Spanish real estate company, said it expects to secure all necessary construction permits and commence work on its mixed-use development in Sofia, said Carlos Pilar, in charge of the company’s international expansion. Riofisa Wednesday was granted a First Class Investor certificate by InvestBulgaria Agency, the local investment promotion authority.
Pilar said the conceptual design of the development will be completed promptly and the company will apply for the relevant permits as soon as possible. The 280,000 sq m built-up area scheme, sited near the Sofia central train station, should be completed in late 2009 or early 2010.
The launch of the 85,000 sq m retail component of the scheme will attract retailers that are not yet present on the Bulgaria market but usually have leases in Riofisa commercial properties.
In addition to retail outlets, the shopping center will feature a supermarket, casino, bowling alleys and cinema theaters.
The property, with an initial estimated cost of 335 mln euro, will be anchored by an 90 m high-rise housing offices and a hotel. The other components of the scheme are still being put together and it has not been decided if they will be office or residential, said Pilar.
In 2006, Riofisa unveiled a 215 mln euro project for a commercial and entertainment center in Plovdiv, Bulgaria’s second biggest city. Pilar said on Wednesday that the land plot for the scheme has been purchased but refuse to name the location.
Wednesday, June 6th, 2007
Bulgaria eco ministry holds Tishman commercial park development
The 200 mln euro commercial park near the Sofia International Airport being developed by U.S. company Tishman is being held back by the insistence of the Bulgarian environment ministry that the investor submit an environment impact assessment (EIA) for the project. The project cannot be gain construction approval before all the relevant permits are granted by the environment ministry.
The size of the Tishman development has qualified the company for a First Class Investor certificate and administrative support. The InvestBulgaria Agency, the local investment promotion authority, assisted Tishman in arranging a meeting with the ministers of economy and environment to discuss the problem. Initially, the company was asked to submit an EIA but that requirement was later dropped after it was successfully litigated by Tishman.
The U.S. company was then asked for additional information certifying that the project is safe and meets all relevant environment standards. ‘The requested documents have been handed in and we are awaiting the response of the regional environment protection directorate,’ said Pepa Dimitrova from Tishman’s Bulgarian office. is a multi-purpose mix of office, logistics, storage and hotel buildings located 300 m from the new terminal of the Sofia airport. The commercial park will have a 10 ha footprint and built-up area of 256,000 sq m, including 100,000 sq m of office space, 20,000 sq m of warehouse floor area and 40,000 sq m of hotel premises.
A subway station, providing a transportation link with the downtown and the western-most boroughs of the capital, should open in the vicinity of the commercial park within 3 years. A total of 90,000 sq m of office space will be placed on the market during the initial stage of the project. Some 20,000 sq m of logistics and industrial floor area will be built by the fall of 2007.
30,000 sq m of Class A low to mid-rise office buildings will be ready in the first half of 2008.