GTC strengthens its position on the shopping mall market in Central & Eastern Europe. GTC Bulgaria has acquired 66.67% stake in the company developing Galeria Burgas. Investment with net retail space of 36,000 m2 to be completed in 2009.
GTC Bulgaria, a subsidiary of Globe Trade Centre S.A. – a leading developer in Central & Eastern Europe – has acquired shares in a company developing Galeria Burgas, a modern shopping mall being built in the fourth-largest city in Bulgaria (population 270,000). The facility, with a total letting area of 36,000 m2 will produce annual revenues estimated at EUR 9 mln. A complex of 600 apartments will be built next to the shopping mall.
GTC Bulgaria, in which Globe Trade Centre S.A. holds 95% of the share capital, purchased 66.67% of the shares in the investment in the Bulgarian city of Burgas. The developer plans to build the shopping mall on an attractive site in one of the fastest-growing cities on the Black Sea. The rest of the shares will remain in the hands of the reputable local partner.
Total development cost of the mall, with a net area of 36,000 m2 to let, is estimated at EUR 40 mln, including the purchase price for the land. Annual rental revenues should be about EUR 9 mln. The opening of Galeria Burgas is planned for the third quarter of 2009.
A complex of about 600 apartments with a total net area of more than 61,000 m2 is planned to be built next to the shopping mall.
Burgas, the fourth-largest city in Bulgaria, is located on the south-central coast of the Black Sea. Renowned seaside resorts for tourists are located in the immediate vicinity of the city. The city is also an important transit hub; the largest international airport in the country is located just 10 km away, and a well-developed bus network links the city to the whole Bulgarian seacoast. The city itself is an important and lively center for tourism, commerce and industry.
GTC is actively investing in the shopping mall sector in Central & Eastern Europe. In addition to the completed projects of Galeria Mokotów and Galeria Kazimierz in Poland, and Avenue Mall in Zagreb, Croatia, the firm is developing other modern shopping malls in Poland, the Czech Republic, Croatia, Romania andBulgaria. Globe Trade Centre S.A.’s total net share in the area of these investments is more than 300,000 m2.
In the case of Bulgaria, GTC plans to build retail facilities in Varna, Stara Zagora and Burgas with a total letting area of close to 100,000 m2. The steady growth of demand for modern retail space noted since Bulgaria joined the European Union, combined with the significant growth in tourist traffic in the region, assures a high rate of return on investments in this sector.