GTC Bulgaria has acquired a retail site in Varna.37,000 sq m NRA mall is going to be completed in Q4 2008.Terms of acquisition of two more retail sites in Bulgaria have been agreed.
GTC Bulgaria has acquired a 65% stake in a retail project in Varna, Bulgaria’s second-largest city. The project comprises 37,000 sq m of net rentable area. Upon completion, scheduled for Q4 2008, the shopping centre will generate about EUR 9.5 million in rental income annually. Acquisition of another two retail projects in Bulgaria is progressing.
GTC Bulgaria, a 95%-subsidiary of Globe Trade Centre S.A. (GTC S.A.), acquired a 65% stake in a retail project in Varna. The remaining 35% belongs to the owner of the land, a reputable local entrepreneur.
The shopping centre will comprise about 37,000 sq m of net rentable area. The total development cost, including land, is estimated at EUR 77 million. After completion the project is expected to generate EUR 9.5 million in annual rental income.
A zoning permit has already been obtained for the project. Construction will start as soon as a building permit is received, and is planned to be completed in Q4 2008.
The shopping mall will be located at the intersection of the city’s major transit routes, next to popular housing districts. Varna is the second-largest city in Bulgaria and one of the main tourist destinations on the Black Sea coast, with 330,000 inhabitants.
In addition to the site in Varna, GTC Bulgaria has agreed on terms for the acquisition of two other retail projects in large Bulgarian cities. The two projects comprise a total 60,000 sq m of net rentable retail space. The completion of those transactions is subject to positive results of due diligence.
Per capita retail space in Bulgaria is one of the lowest in the region. The country’s recent EU accession is expected to stimulate development of the retail market in Bulgaria, as demand for modern shopping malls will increase along with the growing disposable income of local residents, supported by the spending power of foreign tourists.