ARTICLES LABELLED WITH TAG Bulgaria

GTC continues its growth strategy and further expands its portfolio in Sofia. The developer and asset manager purchased Mall of Sofia, a prime shopping centre and office tower in Sofia’s Central Business District, seizing opportunity in the growing economy in Bulgaria. The property was formerly owned by Europa Capital.

The Black Sea Trade and Development Bank (BSTDB) and Postbank (Bulgaria) will jointly provide €58.3 million (€32 million and €26.3 million, respectively) to help finance the construction of a Marriott hotel in Sofia, the first hotel of the international chain in Bulgaria. The 12-year loan will be extended to I Tower Development JSC, a special-purpose company set-up in Bulgaria. BSTDB acted as arranger of the deal. The operation aims at meeting the growing demand for high-quality business and tourist accommodation and conference facilities in the Bulgarian capital.

Hungarian investor and developer Wing has acquired two office buildings in Sofia, Bulgaria for a total of €9.85 million. The DXC Office Building has 8,000 sqm GLA, while the BULMAG Office Building offers 770 sqm of leasable space.

According to the latest analysis prepared by the Capital Markets team Cushman & Wakefield, investment volumes in Central and Eastern Europe reached nearly €13 billion in 2017. All CEE countries grew at a similar rate and maintained their share of the overall regional volume. Despite political risk perceptions, Poland grew most rapidly at 9% y-o-y from approx. €4.6 billion to €5 billion, which was the highest result recorded in the last 10 years. 2018 has already seen the benefit of deals that slipped from late 2017 with the investment volume in Q1 2018 likely to exceed €3 billion.

Colliers International, Automotive Cluster Bulgaria and Pwc conducted a second consecutive survey of the automotive industry in Bulgaria. There are approximately 130 automotive companies in the country, producing components for top international automotive brands. These are predominantly Tier 1, 2 and 3 suppliers and include producers, which service other industries as well.

Avestus Capital Partners, an Irish real estate investment and asset manager, sold a landmark office building in the heart of Sofia. Moskovska Business Center changed its owner after several months of negotiations with strong interest from local and foreign investors. The buyer is a Bulgarian company owned by private investors with interests in different fields of business. The transaction price has not been disclosed. Cushman & Wakefield Forton acted as an exclusive advisor to the seller.

2017 was a record breaking year for the Bulgarian office market with almost 200,000 sqm take-up in Sofia. The investment volume has also been the strongest ever with €1 billion invested in commercial property (land acquisitions included) from which income generating assets hold €870 million. Cushman & Wakefield Forton summarised 2017 on the Bulgarian office, retail and industrial markets.

At ca. €12.98 billion, 2017 recorded a 3.3% increase over 2016 (€12.56 billion) and, for the second year running, set a new record transaction volume for the CEE region. JLL has registered continued appetite from investors for the full range of assets across the entire region.

The outlook for Central and Eastern European markets is still positive according to the RICS Commercial Property Monitor. Results for Q3 2017 show that both occupier and investment demand are still on the rise across the region. The peak of the current cycle is, however, undoubtedly getting closer.

Investment flows into the CEE-6 region’s commercial real estate markets rose 12% y-o-y in the first nine months of 2017. The €7.6 billion closed deal total coupled with a still full pipeline of deals under consideration suggests that the annual cycle high of €12.2 billion invested last year is likely to be matched or overhauled. Substantial growth in Czech and Bulgarian volumes were the drivers of the momentum in the January-September 2017 period, says Colliers International in its latest report.