Arco Real Property Holdings, a joint venture between Arco Capital and Deutsche Asset Management's DB Private Equity & Private Markets group, has decided to develop and construct a new office building in Business Park Sofia (BPS). The investment volume for this new building will be around €30 million.
The building has already been substantially pre-let to major international tenants. KPMG IT Service and Bulpros Consulting will initially occupy the vast majority of the building which is being developed specially for their requirements. Additional tenants will be able to let smaller areas of the building from around 200 to 3000 square metres. As of today, Building 15 has been 80 percent pre-let.
The Sofia office market appears to be well short of supply for Class A schemes. "The vacancy rate at BPS has been less than 1% for the past 18 months; it has never been so low," Moskov said. "The overall market has picked up through an increase in re-letting and new leasing activities. Take up has grown significantly, and CBD pre-leases are becoming a trend. In the past few years, new office buildings were either almost fully rented through pre-leases or by the first few months after opening, at the latest.”
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