ARTICLES LABELLED WITH TAG Sofia

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.

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.

In the next two years Delta Holding plans to invest €600 million in real estate projects in Serbia, Bosnia and Herzegovina and Bulgaria.

The Bulgarian property market is booming with the total transaction volume expected to exceed €1 billion in 2017. The outlook for the future is highly positive: strong demand, underpinned by solid economic growth, encourages developers to start new projects in all segments of the market.

Through its subsidiary NEPI Rockcastle has acquired Paradise Center in Sofia, Bulgaria from BULFELD EOOD for €252.9 million, resulting in an acquisition yield of approximately 7%. The transaction will be effective upon obtaining approval of the Bulgarian Competition Authority.

During the first half of 2017 demand and supply of modern retail space in Bulgaria have been aligning with each other, according to a new research by Colliers International. During the period, modern shopping centers retail space supply balanced with demand by keeping its previous levels of 791,760 sqm in the country and 406,660 sqm in Sofia. Together with this for a few periods now, retail space absorption has been steadily going up. During the last half-year period, it recorded an 11% increase, providing for demand - supply balance. 

South African fund Hystead has acquired of The Mall, one of the largest shopping centres in Bulgaria, located in the capital city Sofia. The acquisition, upwards of €156 million, represents the fourth investment in the region by Hystead Limited, a joint venture between Hyprop Investments and Homestead Limited, who previously acquired the Delta City shopping centres in Podgorica and Belgrade alongside Skopje City Mall in Macedonia at the end of 2016. 

Through its subsidiary NEPI has concluded agreements to acquire the Serdika Center and Serdika Office buildings in Sofia, Bulgaria for €207.4 million.