Industrial Park Sofia East (IPSE) logistics project in Elin Pelin municipality, 25km east of Sofia, would cost 125 million leva if current plans are developed fully, Alexander Gebov, head of Paladin Property Development, the industrial park's project manager, said on March 5.

It will spread on 70 ha of land, 96 per cent of which has been already rezoned from agricultural into land for construction development, and will provide space for light manufacturing, logistics and warehousing, benefiting from completely integrated infrastructure.

The park will benefit from its proximity to two major traffic corridors, Trakia and Hemus highways, as well as direct access to railroad and Elin Pelin train station.

The speculative part of the project is about 25 ha, most of which would likely be developed according to the build-to-suit concept, that is, to meet the requirements of future tenants.

Colliers International Bulgaria is the agent of the industrial park and has already secured a deal with distribution firm Kaven Orbico for a four-hectare logistic centre, to be developed within three years. Kaven Orbico's centre would have a gross actual area of 22 000 sq m and is the biggest logistics segment deal in Bulgaria.

IPSE is expected to serve an area with a radius of 150km, reaching Plovdiv and Sapareva Banya, catering to the needs of Sofia, Pernik, Kostenets, Blagoevgrad and Vratsa regions, Gebov said.

The site's infrastructure is yet to be developed in line with modern standards, he added, saying that the projected link with the Trakia and Hemus Highways will make IPSE even more attractive to investors.

Paladin Property is in talks with another potential contractor and hopes to reach a deal in the near future, Gebov said.