Bulgaria's town of Gabrovo to obtain its first mall

29.11.2007

Construction of Terra Centre Mall in Bulgaria's central town of Gabrovo has already started, investors Terahim 97 Ltd have reported.
Terra Centre will be the first vast scale shopping centre in Gabrovo Municipality, home to 76 000 people. The five-floor complex, with a 16 000 sq m gross area, will house retail areas, supermarket, entertainment and restaurant areas, offices for the mall's management and lodgers as well as an underground parking space. Investment in the mall is in the range of 15 to 20 million leva. The project's development is financed by the local DZI Bank. The contractor is native firm Glavbolgarstroy. Consultants and leasing agents of the project are NaiProCon. Talks with potential clients have already started and some popular brands have already give expression interest in renting out mall space. Rental levels are in the range of 15 to 25 euro a sq m. The retail centre will be geared towards the average and unexpensivest than average price range.
“We expect 9 per cent profitability from the project in 10 to 11 years,” the project's consultants told. “And this is a very high yield. In Varna and Sofia malls produce a yield of about 7 per cent and the percentage is even expected to go down. For other CEE countries the percentage is 6 per cent, for example.”
Several investment funds have expressed serious interest because of the high profitability of the project, a spokesperson from NaiProCon told.

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