Sun, Nov 08 2009
Scottish property group Miller Developments is the new owner of Mall Varna, foreign media reported on November 16 2006.
The deal was sealed for 120 million euro, and according to the Sunday Herald, this is the group's biggest property transaction in continental Europe. Keith Miller, chief executive of the Miller Group has been quoted as saying that with this acquisition, Bulgaria becomes one of the eight countries in which the company is operating outside the UK.
Mall Varna opened in June 2008 and it is the largest new retail and leisure development in Bulgaria, spreading on 33000 sq m and housing 150 shops. In addition, it offers a food court, multi-screen cinema, bowling alley and features brands such as Esprit, Swarovski and Adidas, among others.
Austrian bank group Raiffeisen funded the deal as Miller Developments represented itself, while vendor Interservice Uzunovi were represented by Cushman & Wakefield in association with Forton International.
"Despite the current economic climate we expect the retail market in Bulgaria to continue to grow, making this prime asset a very attractive investment opportunity," the Sunday Herald has quoted Miller as saying. "The investment is part of the group's ongoing strategy to expand its presence in Europe."
"Lack of proper management and coherent strategy to attract new clients" is petitioners' main concern. Retailers say that they were promised short-term financial assistance but this was unforthcoming.
Office rent transactions peaked at 65 000 sq m between July and September 2008, but collapsed to 10 700 sq m in Q3 2009, Forton manager Sergei Koinov said.
Most potential buyers are now opting to buy a luxury flat in the range of 120 000 to 150 000 euro or a single family home for about 500 000 euro.
About 30 000 to 35 000 people employed in the construction sector were facing redundancies in 2010, Bulgaria's Regional Development Minister Rossen Plevneliev said on October 26.
Average market prices of housing in Bulgaria dropped five per cent in July-September, measured quarter-on-quarter, the National Statistical Institute said on October 23 2009.
The European Investment Bank (EIB) has released a 43.5 million euro loan to Sofia Municipality, for infrastructure projects worth 88.1 million euro in total