Shop till You Drop: Bulgaria Gets a Mall
 |
 |
 |
 |
Shop till You Drop: Bulgaria Gets a Mall
Bulgaria’s first Western-style shopping mall, City Center Sofia, will open in the capital on May 12 with a six-screen cineplex and shops like Calvin Klein and Mango.
A second mall also is expected to open a few weeks later, the first wave of the 155,000 square meters, or almost 1.7 million square feet, of shopping center development in the pipeline for Bulgaria over the next two years, according to research by Cushman & Wakefield, the real estate agency.
While its neighbors cannot boast much shopping center space - for example, Romania has 15.2 square meters per 1,000 residents while the EU average is 171.1 square meters - Bulgaria has been the only European country to have none at all.
But the country’s plans to join the European Union in January have energized its economy. Salaries here average only 335 lev, or $210, a month, but they have been increasing by 10 percent a year. The economy grew 5.5 percent in 2005, compared with 1.8 percent in the EU, and consumer bank loans have been increasing around 50 percent a year since 2001.
Equest Balkan Properties of Sofia, listed on the London Stock Exchange and with EUR 200 M, or USD 245 M, in equity, bought the almost- completed shopping mall in March for EUR 94 M.
The mall totals 44,000 square meters, with about 22,000 square meters of leasable retail area divided into 100 units, including three anchor stores - a six-screen cineplex, the Bulgarian Piccadilly supermarket chain and Technomarket, an electronics hypermarket. Slightly more than 75 percent of the space is rented.
"It will attract middle class, upper middle class and affluent Bulgarians, who until now have missed such a shopping and lifestyle center with all the services easily accessible," said Deyan Kavrakov, Equest investment manager in Bulgaria.
The Mall of Sofia, which plans to open sometime at the end of May, was built for a little more than EUR 50 M by Cinema City International of Israel, Aviv Construction and Public Works of Israel and Quinlan Private, an international real estate and investment advisory group based in Ireland. General Electric Commercial Finance Real Estate also bought into the project last September. Colliers, the exclusive leasing agent, said the mall reached 100 percent occupancy in January.
The enormous mall structure adds a splash of color and sparkle to its gray urban surroundings. Its 75,000 square meters includes 22,000 square meters of leasable retail space, divided into 130 shops; a 12-screen multiplex and an IMAX 3-D movie theater; 10,000 square meters of office space; and 22,000 square meters of parking.
"This is a necessary step. If you meet a major retailer who wants to come to Bulgaria, the first thing they ask is ’Is there a shopping mall? Where is my shop going to be located?’ Until recently there was none," said Ivan Velkov, general manager of Colliers Bulgaria.
Until now, most international retailers have been located on main streets or one of the 23 "big box" outlets that first appeared in Sofia in 1999. Rents in storefronts range from EUR 50 to EUR 120 per square meter per month, compared with EUR 30 to EUR 60 in the Mall of Sofia, according to Colliers.
"The so-called strategic investors in the retail branch don’t like to divert attention from their sales in order to deal with investment issues like whether to invest in a shop, build, expand or move," said Evgeni Kanev, director of financial advisory services in Bulgaria for KPMG, the worldwide accounting firm. He said experience had shown that large sales volumes cannot be made in small shops, but until now there had been no alternative.
"This is why commercial property developers believe this a such a big opportunity for a city with a population of 1.5 million," Kanev said.
The rush for retail is part of Bulgaria’s new economic development. Romania, its northern neighbor, has a similar standard of living but a population about three times Bulgaria’s. It got its first shopping mall in Bucharest in 1999.
While Bulgaria has taken longer than some of its neighbors to move beyond communist-era retailing, Yvonne Court, head of retail research and consultancy for Cushman & Wakefield in London, said it should be no exception to the rule that dramatic retail growth follows EU membership and the subsequent economic development.
More news:
Invest 64 million euro in the first business park in Plovdiv
Funds for agricultural land have nearly 600 thousand decares
The new offices Sofia in 2008 will not meet demand
More investment in property transactions are expected in Bulgaria in 2008
Build residential complexes for 73 million BGL in Sofia
Spanish Riofisa presents its 270 million euro Civis Center
Bulgarian property sector to post even growth in 2008
Hotel developments devour 9,200 ha of fields, forests
Bulgarian Land Development to invest 27 mln euro in new ski resort
Bulgaria Property Moves Upmarket Away from its Traditional 'cheap 'n' cheerful' Image
Eli Egosi: Grand Mall Varna will be a Landmark
Bulgaria's Linexa Lansdowne Co. Gets 1st-class Investor Certificate
Grand Mall Varna will be a Landmark
Tishman to open property presentation suite for Sofia scheme
Foreign Investors Interested in Properties in the Rhodopes
INVESTORS TO BUILD VILLA SETTLEMENTS IN BULGARIA’S RHODOPE MOUNTAINS
HOTELS AND VACATION COMPLEXES OFFERED FOR SALE IN BULGARIA
New Bulgarian mountain resort to absorb 255 mln euro
BULGARIA TO DEVELOP FURTHER ECOTOURISM OPPORTUNITIES
Bourse listing for FairPlay Properties
Property investors observe Bulgaria's progress
Offplan tax break homes in Spain from £32,000
EBRD to invest 500 mln euro in Bulgaria over next 2 years
UK Investors Snap up Properties in Bulgarian Resorts
Prime Residential Areas in Bulgaria at EUR 820-1650m2 2005
Bulgarian property market may get huge boost from tax changes in Britain
Realtor to invest 200 million euros in Balkans
Equest Balkan Properties Raises GBP140 Million In AIM Float
Estate Agents Urged to 'Sell SA First'
BULGARIA'S PAMPOROVO RESORT KEEPS CURRENT INFRASTRUCTURE PRICES
Equest Balkan to raise cash for property investments in Bulgaria
Equest Balkan to raise cash for property investments in Bulgaria
Investment transactions with real estate seen at 1 bln euro in 2005
Bulgaria s Real Estate Trusts Lure Investors to the Black Sea
Varna leads Bulgarian property market price-wise
Bulgaria to Build EUR 118 M Golf Courses
Developers bet on gated seaside communities
Black Sea Property Fund to build apartments in ski resort Pamporovo
Golf project proposed for Razlog area
2 Bulgarian hotels earn Thomson kudos
Equest fund to invest in residential, holiday developments in Sofia, near Bansko
Greek Alpha Bank eyeing expansion in Bulgaria
Golf project for Pavlikeni area, Veliko Tarnovo District, tabled by Icelandic firm
Proceeds from Sunny Beach power distributor sell-off may be invested in resort infrastructure
Spaniards to Build Golf Complex near Sofia
REWE Intends to Invest EUR 100 M in Bulgaria
4-Star Bella Vista Beach Club Offered for Sale
In aftermath of Mall of Sofia deal, GE mulls further Bulgarian investments
Lewis Charles Fund to Raise Capital for Investment in Bulgarian Properties Sofia
Bulgarian property investors Bansko hit the slopes
Latest offers:
For sale Apartments 2 Bedroom in town Sofia - Mladost 4 135000 EUR
For rent Apartments 1 Bedroom in town Sofia - Manastirski Livadi 600 EUR
For sale Apartments 1 Bedroom in town Sofia - Manastirski Livadi 115000 EUR
For rent Apartments 2 Bedroom in town Sofia - Ivan Vazov 1400 EUR
For rent Apartments 2 Bedroom in town Sofia - Iztok 1000 EUR
For rent Apartments 3 Bedroom in town Sofia - Oborishte 1200 EUR
For sale Houses Cottage Chalet in town Sofia - Boyana 308000 EUR
For rent Apartments 3 Bedroom in town Sofia - Lozenec 750 EUR
For sale Studio Apartments in town Sofia - Centre 50000 EUR
For sale Apartments 1 Bedroom in town Sofia - Centre 139000 EUR
For sale Apartments 2 Bedroom in town Sofia - Centre 142500 EUR
For rent Apartments 2 Bedroom in town Sofia - Lozenec 700 EUR
For sale Apartments 3 Bedroom in town Sofia - Lozenec 292500 EUR
For rent Houses Cottage Chalet in town Sofia - Manastirski Livadi 2500 EUR
For sale Land Plot Residential in town Sofia - Geo Milev 220000 EUR
For sale Factories Industrial in town Sofia - Trebich 818000 EUR
For rent Apartments 2 Bedroom in town Sofia - Boyana 500 EUR
For rent Apartments 1 Bedroom in town Sofia - Centre 450 EUR
For rent Houses Cottage Chalet in town Sofia - Dolni Lozen 1000 EUR
For rent Houses Cottage Chalet in town Sofia - Dolni Lozen 1000 EUR
For sale Studio Apartments in region Burgas - Sunny Beach 37400 EUR
For sale Studio Apartments in region Burgas - Sunny Beach 34000 EUR
For rent Apartments 1 Bedroom in town Sofia - Centre 650 EUR
For sale Apartments 1 Bedroom in town Sofia - Centre 246000 EUR
For sale Studio Apartments in town Sofia - Centre 115000 EUR