Date Target Vendor Investor Size Comment
March 24 Construction of golf resort Sofia Municipality Spanish developer Ferry Group EUR 150 m Spanish Ferry Group has received a first class investor certificate for its over EUR 150 m Katina Golf Resort project, near Sofia. The complex will incorporate a golf course, swimming pools, tennis courts, a hotel, residential buildings and retail outlets on a territory of 90 ha. The investor has also undertaken to build a wastewater treatment plant that will service the adjacent villages of Katina and Kurilo as well as the golf resort. The finished complex will employ over 700 people.
March 24 Outlet construction Pernik German retailer Kaufland BGN 6 m Kaufland has received the Pernik municipal council's approval on the conceptual design of the 3,000 sqm store which should open by the end of Q1 2007. Following the opening of its first store in Plovdiv, Kaufland expects to open units in Sofia, Haskovo, Varna, Sliven, Yambol and Rousse by end 2006.
March 23 To invest in property in major urban areas Bulgaria, Romania, Turkey and Ukraine Guernsey-based Eastern European Property Fund Limited EUR 28.9 m The fund intends to invest in a range of office, retail, industrial and residential properties in the target countries, with an initial focus on office and retail property.
March 22 To develop industrial and commercial real estate projects Bulgaria Spanish construction and engineering group Detea EUR 120 m Detea, through its 2 subsidiaries in Bulgaria - Commercia and Ubbicalia, will invest EUR 120 m by 2011. The company’s largest project will be a EUR 50 m retail and leisure centre, named Commercial Park Sofia, which will occupy a 17.5 ha site near the Sofia Business Park. The center should be completed by early 2008. Other Detea’s projects include a EUR 3 m Volvo Trucks sales and repair centre in Sofia, a EUR 15 m logistics centre near Sofia Airport and other.
Deals, contracts, tenders and outsourcing for a total value of more than BGN 2 mln. and projects of strategic interest to Bulgaria
With the contribution of SeeNews (published by AII Data Processing Ltd) and Rivas
GOVERNMENT AND EU | REAL ESTATE AND FINANCE | EU TOPICS
Date Subject Institution Comment
March 28 Investors eye disused military airport in Gotse Delchev Gotse Delchev mayor Vladimir Moskov The Gotse Delchev municipality intends to create a joint venture with private investors and operate the facility as an aviation hub for low-cost and charter carriers, thus turning it into an aerial gateway to the nearby famous ski resort Bansko and some other Bulgarian resort villages.
March 27 Bulgarian environmental watchdog once again approves Canada's Dundee Project Environment Ministry The Environment Ministry has given a final approval on the environmental impact assessment report on the Chelopech gold extraction mine project. The environment permit will determine the fulfillment of the company goals for the Q3 2006. The first class investor Dundee Precious Metals, employing 750 people in Chelopech, has so far invested USD 125 m in 2 projects in Bulgaria and is expected to make additional USD 175 m.
March 27 Bulgaria's Atomenergoremont hired for Maritsa Iztok 2 project Media Japan's Mitsui, hired to rehabilitate the first 4 units of Bulgarian TPP Maritsa Iztok 2, has subcontracted Atomenergoremont to dismantle outmoded equipment and install new infrastructure. The EUR 226 m rehabilitation project should be completed by 2009.
March 23 Bulgaria plans EUR 300 m guarantees for EU loans for N-Plant construction Economy Ministry The EUR 300 m guarantee is a political move aiming to secure EU's backing for the project. The loans for the construction of the nuclear power plant at Belene will be received from Euroatom and EIB. The future investment vehicle that will build the Belene NPP will be 51% state-owned and the strategic investor will control the residual equity. Italian ENEL, Czech CEZ, Germany's E.ON, as well as Russian and Belgian companies are interested in becoming strategic investors in Belene.
March 23 Parliament clears privatization plan for Bulgarian flag carrier Bulgarian parliament The 2-stage competitive procedure for 99.9% stake in Bulgaria Air is open to strategic and financial investors but not consortia thereof. The state will retain a golden share and will ensure post-privatization control. Candidates can be strategic investors domiciled in Bulgaria with at least 51% held by Bulgarian, EU or EFTA countries individuals or corporate entities. They will be required to certify annual proceeds of at least EUR 100 m for each of the past 2 years and traffic of at least 750,000 passengers. Financial investors should certify EUR 250m in assets or EUR 150m in equity.
News and events important for investors related to the Bulgarian legislation, government and EU policy, financial and real estate sectors.
With the contribution of SeeNews (published by AII Data Processing Ltd) and Rivas

Equest Balkan Properties buys Bulgaria mall for EUR 94 million

Equest Balkan Properties (EBP), the property investment company focused on commercial, retail and industrial property in Southeast Europe acquired City Center Mall, a shopping centre under development in central Sofia, Bulgaria, for EUR 94 million.
This represents an unleveraged investment yield on full occupancy of 9% by the end of 2007.

City Center Mall comprises 44,424 sqm of built-up area and 22,146 sqm of lettable space on six levels, with underground parking for approximately 500 cars. The mall currently has 72.3% of the lettable area contracted with 53 tenants signed.

There is strong demand for the remaining space and EBP is already in discussion with a number of potential tenants, including international and local retailers.

It is planned that the mall will be opened by mid May 2006.

This transaction brings Equest’s total investment to date to EUR 144 m, following the EUR 10 m acquisition of the 3-star Serdika Hotel in Sofia in Jan 2006. The 131-room hotel was previously owned by insurer Allianz Bulgaria. The fund intends to refurbish the hotel and the adjacent Sofia Film movie theater, adding shops and office premises. Equest expects to generate an annual return of 10% from the lease of the commercial outlets on the property.
Showcase of important issues, deals, and events.
With the contribution of Rivas
March 29, 2006