Latest Property and Economy news from Bulgaria. News for Visitors and Investors

30.06.2008 Zarneni Hrani Bulgaria To Open Biodiesel Plant Next Month

Zarneni Hrani Bulgaria will open a biodiesel plant in Provadia next month, executive director Georgi Kostov told shareholders today.
“We expect our H1 profit to come to 2.5 mln leva (1.27 mln euros), but we must take into account the seasonal nature of our business – the second half of the year is usually a stronger period for us,” he also said.
“In the next several months we will be focusing entirely on the new plant. During H1 Zarneni Hrani Bulgaria acquired a grain warehouse in Nova Zagira and a mill complex. The company is planning to work in cooperation with a leading international company in its biodiesel business,” he added.
This year Zareni Hrani Bulgaria plans to invest 36 mln leva. Planned investments for the next years are as follows: 53 mln leva in 2009, 43 mln leva in 2010, and 3 mln leva in 2011 and 2012 each. That means a total of 138 mln leva (70 mln euros) in the five years to come.
The company's second biodiesel project will be the most expensive (100 mln leva).
This year's revenues are seen at 285 mln leva (145 mln euros) and profit is expected to reach 21.7 mln leva (11 mln euros). The prognoses for the following two years are as follows: sales at 446 mln leva and profit at 31.2 mln leva in 2009 and sales at 598 mln leva and profit at 42.6 mln leva in 2010.
The company's aims at achieving a 10% market share in the purchasing of grains, a 33% share in the purchasing of oil-bearing seeds, a 33% share in the sales of vegetable oils and a 66% share in biodiesel sales.
At a general meeting today, shareholders decided to add 2007 income (11.843 mln leva, 6.05 mln euros) to Reserves.
14,397 shares changed hands today at prices between 2.38 and 2.50 leva.

28.06.2008 The best countries for doing business

Bulgaria fills 44 point in the ranking to the best countries for doing business, produce by Forbs. Romania anticipates our country only with several points, to be rated to 40 point in this indicator
The combination between the low inflation and the low unemployment, the focus on the enterprising and the lower taxes make Denmark the best place for business, according Forbes. These parts, help the country head the year, that is third, of ranking along with the high estimates for innovation and technical progress, known before as Forbes Capital Hospitality Index.
To be elected the best they have analyzed by Forbes the business-climate in more than 120 national economies, as the focus has been put on the degree of the personal freedom as for example the right of engagement in free and fair elections or the freedom to expressing as well organization.
The right of the monetary demand on the part of the minor stockholders in the case of the corporate misuses views the defense of the investors, while the corruption views the number and the frequency to the misuses with corporate assets for a personal advantage. These factors together with the economic policy, permitting the free trade, and the low inflation, create general concept for this how far a country is proper for stock investing.
The business continues to profit from the low corporate taxes in Ireland and the drug maker-Shire was the latter that went from the UK in Ireland in April. The telecommunication company Skype that is as well daughterly on Ebay calls Estonia its home.
Denmark heads the ranking for 2008 by as ascending to three points of comparison to the old year. Ireland did gigantic jump from 19 points, to measure up to the second stand. Finland gets to four points up to the third point, while USA is lowered with three points to the fourth. The large jumps are gained by countries as Ireland and Estonia in the scoring chart (24 points high to number 10 ) and Saudi Arabia ( 37 points high to number 47), that are limited the bureaucracy, impedes the entrepreneurs that hope to do business within their borders.
Japan registries one falls from the greatest downtimes of the ranking From With 21 stands in a 24-point

27.06.2008 Sofia mall market to reach saturation soon

In 2008, entrepreneurs still find commercial and business centres the most appealing projects for investment. But there is a possibility this tendency to change after 2010, when all planned construction is completed, the market in Sofia might become saturated, consultants Arco Real Estate said in a statement.
In addition to the four shopping malls, there are a further 18 projects announced. For some of them, the foundations had been already laid, including Bulgaria Mall on Bulgaria boulevard, the CIVIS Centre near Sofia's Central railway station and Olympian mall and tower on Slivnitsa boulevard, among others.
The ones still in development include Forum Sofia, which will be located across from Business Park Sofia; Eurogate, a complex in Lyulin district; and DV South Mall complex in the Lozenets borough.
According to Arco Real Estate, the Bulgarian market for shopping centres is booming because of the country's accession to the European Union. Many foreign investors try to find a niche in the local market, the statement said.
Another possible reason for the interest in the mall developments may be considered the fact that the they are the sort of venue that matches the needs of modern Bulgarians. The shopping centres are gradually replacing the old merchant streets in town as being outdated and unfit for the dynamic lifestyle of urban people.
“Right now the Bulgarian market is literally flooded with shopping malls, and the prices asked are not adequate for a developing market,” Gerard Groener, an executive director for the Dutch Corio N.V. has told ow Jones Newswires, as quoted by the Bulgarian website investor.bg.
Corio is one of the biggest real estate companies in Europe and some time ago had intentions of making some substantial investments in Bulgaria. At the moment, Groener was quoted as saying, the lack of proper management and the extreme price increase have led the projects development to a halt.

26.06.2008 Experts Think Oversaturation on the Segment of Shopping Malls Possible After 2010

The projects for shopping and business centers will be the most attractive ones for investors in 2008. However, experts from Arco Real Estate, say oversaturation on the market may start to be felt around 2010, when all projects hat are being developed now get competed and enter into operation.
Currently there are four malls in Sofia and there are 18 more planned. Half of those are already under construction – Serdica Cebnter on Sitniakovo Blvd, Bulgaria Mall on Bulgaria Blvd, CIVIS Center behind Central Railway Station, European Center on Tsarigradsko Shose, Sofia Acropolis in Ovcha Kupel area, Business Town Sofia in Mraz Plant industrial area, Olympian Mall and Tower on Slivnica Blvd, San Stefano Plaza on San Stefano Str and Tsarigradski Mall on Tsarigradsko Shose.
Other mall projects in an earlier stage of development are: Forum Sofia, which is to be situated opposite Sofia Business Park, Eurogate in Liulin area, near the road to Kalotina border point, Mage Mall Sofia on Queen Joanna Blvd, Europa Park on Totleben Blvd, DV South Mall in South Park, Lozenetz.
Arco Real Estate experts think the shopping mall segment in Bulgaria is booming. One of the reasons for that is the EU accession, after which many international labels wished to occupy the niche that the Bulgarian market presents.
Another reason is that shopping malls respond to the lifestyle of contemporary Bulgarians. As soon as the very first malls opened doors, street shops began to be recognized as old-fashioned and not suitable to the dynamic city life. The convenience of the centers, which offer a variety of goods and services under one roof is a very important factor.
The shopping malls are designed in such a way that customers spend a lot of time inside. They offer everything from food, designer clothes and shoes, to medicines, as well as different entertainment.
All this saves time and time is what modern people value most, experts conclude.

25.06.2008 Sofia’s Vuzrazhdane Park to stay construction-free

Councillors from the Socialist party accused municipal company Sofiiski Imoti of selling 2.1 ha of land in the Zona B5 neighbourhood to Sigma Remont, a private company owned by a Seychelles-registered firm. Sofia mayor Boiko Borissov said on June 18 that there would not be any building activity in Vuzrazhdane Park while he is city mayor, municipality spokesperson Tsvetanka Krusteva told the Sofia Echo.
As previously reported by The Sofia Echo, competing claims over the ownership of a large land plot from Vuzrazhdane Park near Sofia centre have sparked a row on June 6.
Councillors from the Socialist party accused municipal company Sofiiski Imoti of selling 2.1 ha of land in the Zona B5 neighbourhood to Sigma Remont, a private company owned by a Seychelles-registered firm. Sofiiski Imoti chief executive Alexander Shopov, who rejected the allegations, said the municipal company never sold the land and that he was at a loss to explain how Sigma Remont acquired the ownership paperwork.
The land plot belonged to the municipal real estate company Sofiiski Imoti, Borissov said.
After Borissov filed a complaint, Sofia City Court issued on June 13 a ban on any deals with the land plot in question until the legal dispute is over, the city hall said in a media statement. Borissov has also ordered Sofiiski Imoti management to start legal action to restore municipal ownership of the land plot that is to become part of the planned Vuzrazhdane Park.

24.06.2008 Sofia’s Vuzrazhdane Park to stay construction-free

Councillors from the Socialist party accused municipal company Sofiiski Imoti of selling 2.1 ha of land in the Zona B5 neighbourhood to Sigma Remont, a private company owned by a Seychelles-registered firm. Sofia mayor Boiko Borissov said on June 18 that there would not be any building activity in Vuzrazhdane Park while he is city mayor, municipality spokesperson Tsvetanka Krusteva told the Sofia Echo.
As previously reported by The Sofia Echo, competing claims over the ownership of a large land plot from Vuzrazhdane Park near Sofia centre have sparked a row on June 6.
Councillors from the Socialist party accused municipal company Sofiiski Imoti of selling 2.1 ha of land in the Zona B5 neighbourhood to Sigma Remont, a private company owned by a Seychelles-registered firm. Sofiiski Imoti chief executive Alexander Shopov, who rejected the allegations, said the municipal company never sold the land and that he was at a loss to explain how Sigma Remont acquired the ownership paperwork.
The land plot belonged to the municipal real estate company Sofiiski Imoti, Borissov said.
After Borissov filed a complaint, Sofia City Court issued on June 13 a ban on any deals with the land plot in question until the legal dispute is over, the city hall said in a media statement. Borissov has also ordered Sofiiski Imoti management to start legal action to restore municipal ownership of the land plot that is to become part of the planned Vuzrazhdane Park.

21.06.2008 Holland Corio: Bulgaria floods with plazas

“At the moment the Bulgarian market is flooding with merchant's plazas, and the rates that are paid cannot no longer be identified as Good Starting developing Market. The development of the market there largely is followed at the moment.”- this was announced in Dow Jones Newswires from Gerard Gruiner , An executive director of one of the biggest public real estates companies in the Europe- Dutch Corio NV.
Corio were plans of live expansion in Bulgaria, but the lack of” proper management” and the fast increasing rates to the real estates have led stagnation of the projects of the company in Bulgaria, told Gruiner.
Elce Corio scheduled large gettings in 2009 by as playing the fiscal weakness at companies that they have been most badly affected by the credit crisis, uncovered Guinter.
Corio aims to sell French portfolio in a office-buildings as well as more small buildings with trade areas in Holland, as the first deal is possible to be gained later this year or at the beginning of 2009.The assets are valued at 400 million euros in France and can be sold in a packet or by separately.
In April Corio sold its portfolio of a office and industrial areas in Holland for 650 million euros. The group plans to concentrate on the trade segment with which to reflect the approach of its bigger French rival Unibali-Rodamco.
The forthcoming acquiring most probably will be in progressing fast economies as those in Central and Eastern Europe, Where the company planned to expand from the base in Turkey, Gruiner specifies.
The Dutch company has market capitalization of nearly 3, 6 billion euros and is included in the index AEX. The net profit of the group for the last year is 802 million euros.
To 31of December 83 of the hundred from the Corio portfolio was formed by trade areas, from which 42% are in Holland, 27 % in France, 17% in Italy, 8% in Spain and 6 % in Turkey.

20.06.2008 Residents of Sofia’s Mladost district protest against construction plans

One of the green areas in Mladost that would be built up, according to the new master plan. Photo: sofia-maldost.comThe initiative committee of Sofia’s Mladost district’s residents, together with Zelenite political party (Bulgarian Greens), will stage a rally on June 23 at 7pm in front of the Mladost district hall to protest against the district's urban plan, which envisions building up areas between blocks of flats and the “destruction of green areas” in Mladost.
The committee has created a website, where they put pictures and descriptions of all places that would be "destroyed", and called on fellow residents to “Come to clearly express our standpoint and disagreement with this madness!”
The reason for the rally is the detailed master plan of the district, which includes many new residential and business buildings to be constructed over the existing green areas, yards and children’s playgrounds.
Zelenite said that the priorities for development of Mladost district should be completely different: new kindergartens, completing the construction of the metro, new connection to Tsarigradsko Chaussee boulevard, construction of underground parking lots and new sports playgrounds.
Approached for comment by The Sofia Echo, Mladost district chief architect Boyka Kudreva said on June 20 that it was funny that the residents planned to protest in front of the local municipality building, as its employees are only mediating the residents’ will to Sofia municipality, which is the one to take the final decision about what parts of the detailed master plan would be approved and what would be rejected. About the protests, Kudreva said, “This is unnecessarily adding fuel to the fire incited by political ambitions,” but said that she did not know which political party was behind it.
Kudreva said Mladost municipality is holding additional public hearings on June 24-26 and on July 1-2 to hear the residents’ complaints and to receive their written suggestions about the district’s detailed master plan. Sofia chief architect Petar Dikov will also attend the public hearings and the residents will get their chance to complain directly to him, she said.

18.06.2008 IRISH AIR LINGUS TO FLY DUBLIN SOFIA

Irish low-cost airliner Aer Lingus announced it would start a new twice weekly service between Dublin and Sofia for its winter 2008 schedule, along with new services to Hamburg, Newcastle,Salzburg and Agadir . In addition, the company will increase the frequency of flights to a number of other European destinations, a company media statement said.
Aer Lingus currently operates a flight to the Black Sea resort of Bourgas, which was launched earlier this year.
Enda Corneille, Aer Lingus corporate affairs director, said the new serivce "demonstrates our response to the continued consumer demand across our route network and is further testament to our proposition of low fares and great service," the company statement said.
The new flights are scheduled to start October 28 2008, selectproperty.com said.

16.06.2008 Orco Property Group -the housings market in Bulgaria bears a potential

The company „Orco Property Group” announced that did not feel negative influence in the world credit crisis and keep its interest to the sector of home real estates in Bulgaria and Romania , announced Property xpress.
"We continue to explore the housing markets in Bulgaria and Romania" - the vice prime minister of the company Ales Wolbuda during representing the solutions of 2007 tells.
In Croatia, which is the VIP tourist destination for Czechoslovakia, we foresee realization of projects – second home. They will be oriented as to the czech, so as well to the other tourists.
Wobruda add that the residential sector is continuing to be the main source of clients for the company. During the last year, Orco sold 1503 apartments. As is being expected in this year the incomes from sales access 197 million euros.
Orco vice president sad that the company has not not been determined by the credit crisis in USA or from the rise in the construction prices of 5 of 9 %, that It is according to the conditions of EU.
“We have not still felt a special consequence of the credit crisis in USA ,or from advance in the construction charges in our country say Wobruda”. He added also that 40 %of the residential project of the “Citadela” company in Prague is being sold already, despite sales are said barely in march this year - We do not build with sure at the base to speculation.”We have certain finances for 2008."
In the present year the company will invest over 700 million euros, as 190 million euro of them can be saved if their office project in Bucharest is postponed. This though at some manner will not be associated with the crisis in USA.
“Since long time in Central and East Europe is being seen lack of choice housings and many contractors will be bound up in this in the next fey years.”- added Wobruda.
In last year Orco close doubled its assets until 2,4 billion euros. The net profit reached 87,5 million for 2007, that is with 9,5 % less from the hoped 100 -112 million.
Except in Czechoslovakia, the company be at in Paris, Warszawa and Hungary also. The expecting incoming of Orco for this year amount to 347 million euro. That is with 15 % more than last year.

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