Greek investments in Bulgaria soar since 2005

Probably because of its proximity and similar business mentality, Bulgaria is a natural point of interest to Greece. This interest has risen sharply since 2005 when Bulgaria’s accession to Nato and forthcoming EU membership started sounding investment security bells to Greek business.

In a sign of growing confidence in Bulgaria’s economic potential, Greece also set up the Hellenic Business Council in Bulgaria (NBCBG) in 2005. This private non-profit organisation, which aims to intensify Bulgarian-Greek business ties and investments, has on its board Greek-born CEOs running companies and financial institutions in Bulgaria and about 50 Greek-owned corporate members.

Alfa Developments acquires Landmark’s portfolio

Alfa Developments, fully-owned by Bulgarian industrial group Alfa Finance Holding, has formally notified the Commission for the Protection of Competition (CPC) of its intention to acquire 75 per cent in property developer Landmark, Alfa Finance said in a statement on March 17. The proposed deal needs CPC approval to go through.

The seller is Bridgecorp, owned by Landmark managers Richard McDonald and Tanya Kosseva-Boshova, who acquired the company last year for 210 million euro in the biggest re-sale transaction on the Bulgarian real estate market. Bridgecorp's shareholders will continue to hold a 25 per cent stake. Alfa Developments is planning to expand the portfolio with new acquisitions of assets in Bulgaria and on the Balkans.

Bulgarian Industrial Association has warned that the country's real estate sector and related industries should brace them

Real estate market is saturated, Bulgarian news agency (BTA) quoted BIA chair Bozhidar Danev as saying. There were more than 20 000 unsold holiday apartments in Bansko and another 200 000 along Bulgaria's Black Sea coast, all of them built with bank loans that needed to be repaid, he claimed.

Intercompany debt at the beginning of 2008 was roughly 100 billion leva, according to BIA estimates, which assumed that debt maintained its annual 20 per cent average growth rate from previous years.

The figure exceeded 81 billion leva in 2006, but was only 34 billion leva in 2001. The combined value of the intercompany debt exceeded Bulgaria’s gross domestic product by 65 per cent, Danev said.

For Sale: Most Expensive Apartment in Bulgaria

The luxury penthouse property is situated in the charming city of Varna, and is being offered for sale by Eurosilex, priced at 1.2M Euros. Varna is Bulgaria’s largest city on the Black Sea coast and is currently experiencing a period of expansion with demand for new homes rising sharply. The new property is part of the Kavala Street development, which offers a total of 19 luxury apartments, with 17 parking spaces, an office and a snack bar. Construction started in April 2007 and is scheduled to be completed by December 2008.

The luxury penthouse apartment is a state of the art property, offering a bespoke design and high class living. With a total area of 553.35 square meters, spread across two floors and an outdoor terrace, the luxury apartment has ample room for a family, plus plenty of space for entertaining.

Federal Development, Petrol Holding to invest $3B dollars in real estat

Bulgarian Real Estate - Federal Development, an international real estate development and asset management company, and Bulgaria's Petrol Holding, the second largest oil products wholesaler in the country, said on February 19 2008 they agreed to create a joint venture that would focus on developing mixed-use real estate opportunities in Bulgaria.

Initial plans focused on converting and redeveloping approximately 50 sites, owned by different entities within the Petrol Holding group of companies, including Petrol AD, Naftex Petrol and Evrocapital Bulgaria, which manages its real estate assets. These sites will be converted from oil servicing facilities to mixed-use developments that will likely include office, retail, and residential components.