colliers magazine 75

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Colliers OfficesColliers Southeast Europe OfficesColliers Southeast Europe Selected Assignments

More than 290 offices in over 60 countries worldwide

4: news

6: office projects

8: interview: “the world and the economy are changing fast over time and we have to act accordingly”

9: european trade center – a landmark office project

10: office offers Sofia

15: office offers Varna

16: interview: "Attracting BPO companies to Bulgaria builds on a win-win situation"

18: property management – the first line of defense

20: retail projects

22: market research findings – first half of 2009

23: interview: “RICS ensures the highest standards of excellence and integrity”

24: residential projects

26: vertical gardens – an ecological art in the cities

28: logistics and industrial projects

in this issue:p.

Business Park SofiaBuilding 7B, 2nd floor1766 SofiaTel: + (359) 2 976 9 976

Business Park VarnaBuilding 1, 1st floor9009 VarnaTel: + (359) 52 968 888

[email protected]/bulgaria

news from Bulgaria4

news

colliers magazine

Park Mall hosts two Music Idol concerts

Park Mall visitors had the privilege to be part of the two Music Idol concerts with the participation of four young stars from the third edition of the music show. The talented young artists enjoyed crazy summer shopping at Park Mall, followed by paparazzi, media representatives and fans who were happy to receive an autograph and sing together with the music stars.

Colliers releases H2 2009 market research findings

More than 35 representatives from leading Bulgarian TVs, print and online media attended the special event where Colliers International presented the latest market research findings for H2, 2009. The Bulgarian management team highlighted the main trends in the office, retail, industrial and residential segments (from right to left: Atanas Garov, Managing Director; Tatiana Emilova, Manager, Residential Brokerage Services; Anton Slavchev, Manager, Offices and Business Parks and David Davidov, Director, Commercial Brokerage Services).

Read more about Colliers’ market main research findings forH2, 2009 on page 23.

Second "Colliers Connects" eventin Varna

Over 200 representatives of the business community in Varna gathered for a second time during the Colliers Connects event, discussing the potential of Varna as an outsourcing destination. Partner of the event is the global leader in Human Resource solutions, ADECCO.

Read more about the second Colliers Connects event onpage 17.

Colliers Studio Imoti with a second edition

“Are we near the bottom of the residential property prices?”, “Is this the right moment to buy a property?”, “What are the factors that determine the quality of the residential properties?”, “What should the investors' profit be?” These were some of the topics, discussed at the second Colliers Studio Imoti video on www.colliers-residential.bg. Rosen Plevneliev, General Manager of Lindner Immobilien Management, Bulgaria was the special guest who shared the most important factors, determining a quality residential property. He also advised the site’s viewers how to calculate whether the investment is a cost-effective one and shared the process of the price formation from the investors’ perspective.

To watch the latest issue of Colliers Studio Imoti, go towww.colliers-residential.bg

Scholarship Program withCity University

For Colliers International, investing in knowledge and education has always been of great importance. Since 2008, our company has supported City University’s corporate scholarship program, covering the annual tuition fee of third–year graduates with specific GPA. After announcing a competition on “Green buildings – moving the real estate sector to the next level” research paper topic, candidates presented their paper to a committee comprising Colliers International employees. The 2009 scholarship winner was Daniel Bobotanov – a third year graduate in City University, who demonstrated clarity of thought and excellent presentation skills as well as a well–structured thesis, thorough research and clear conclusions.

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colliers magazine

news

“Urban philosophy” at Colliers Day

For a third consecutive year, Colliers International gathered hundreds of professionals in the real estate sector, representatives of the business community, the public administration and the media at Colliers Day. This year the special guest and speaker was

the prominent architect Dominique Perrault – the winner of the Sofia Secondary Center architectural competition – who shared his vision and experience on the Urban Philosophy – the topic of the event – and the development of the modern urban environment.

Exclusive representation services for Sofia Ring Mall

Colliers International signed an agreement for exclusive landlord representation, legal and marketing advisory services with Sofia Ring Mall. The new mall will have a GLA of 72,000 m2 and is adjacent to the first long-expected IKEA shop in Bulgaria. The mall will offer a 10,000 m2 hypermarket, a 8,000 m2 do-it-yourself, and a two-levels area occupied by retailers offering customers a variety of goods and services, fashion, shoes and accessories shops, restaurants and entertainment activities. The project, planned to be ready in 2012, is situated in the south part of Sofia ring-road, located closely to densily populated residential areas at the foot of Vitosha mountain.

Exclusive representation of Serdika center’s office part

Colliers International signed an exclusive brokerage, legal and marketing advisory agreement for Serdika offices. the office tower, developed by Immorent, is part of a larger project with a shopping mall. The building has a total of 8 office floors with app. 28,000 m2 GLA on an excellent location by Sitniakovo bldv., close to the capital’s downtown. The tower is expected to be ready in the fall of 2010.

Carrefour enters Mall Pleven

The French retail chain Carrefour will open a hypermarket in Mall Pleven, renting 2,400 m2 on the shopping centre’s ground

floor. Colliers International provides exclusive brokerage, legal and marketing consultancy services to the project. In addition, Colliers will be the Property Management company which will operate the mall that is expected to open in 2010. The first hypermarket of the French group opened in Burgas Plaza Mall in April 2009.

Largest ever fashion lease facilitated by Colliers International

Three important anchor tenants signed with Carrefour Tzarigradsko Mall in Sofia - Peek & Cloppenburg, Inditex and Kino Arena.

Peek & Cloppenburg will open a large, genuine department store that will feature a rich variety of international fashion brands. The German fashion retailer signed a lease contract for a 3,600 m2 flagship store. This is the largest ever fashion lease on the Bulgarian market, and was facilitated by Colliers International.

Retail giant, Inditex, has chosen Carrefour Tzarigradsko Mall for five of their brands: Zara, Bershka, Stradivarius, Pull and Bear and Massimo Dutti, which is also the first and only one in Bulgaria so far.

The largest Bulgarian cinema operator, Kino Arena, has signed a long-term lease agreement for a 12–screen cinema in the mall. This will be the fifth cinema complex that Kino Arena is operating in a shopping mall in Bulgaria.

First female MRICS member in Bulgaria

Mrs. Nevena Marinova-Bogoeva, senior valuer at Colliers International, recently became the fist female RICS member in Bulgaria. RICS (Royal Institution of Chartered Surveyors) is the leading organization in the world of professionals in real estate, land, construction and environmental assets. What are the benefits of being a RICS–certified professional, what additional

value does a MRICS certified valuation bring to clients and more – read the full interview with Ms. Marinova-Bogoeva on page 22.

Project naMe Location Size cLaSS Parking aMenitieS key BenefitS coMPLetiondate

LandmarkCentreVarna

Varna, Central Business District, in close proximity to the City Hall and the Sea Garden

TBA 10,500 m2GLA 6,300 m2Floor plate 1,200 m2

Class A office space

two–level underground parking with 72 parking spaces

• many restaurants, cafés and office supply stores within walking distance• bank branches and the entire downtown shopping area in close proximity

• landmark building with classic architectural design and distinctive exterior• less than 10 minutes away from the international airport• flexible floor areas and efficient accommodation options• convenient parking• property management services

Q3 2009

BuLgariaHouse

Sofia, close to the crossroad with Todor Kableshkov Blvd.

TBA 12,400 m2GLA 10,500 m2Floor plate 212 – 2,200 m2


underground parking with 65 parking spaces

• Bar & Dinner (in the building)• Billa hypermarket within walking distance• gym within walking distance• number of restaurants and bank branches within the area

• located in one of the most dynamic commercial and residential areas in Sofia on Bulgaria Blvd.• excellent visibility • easy access by foot as well as public and private transportation• convenient underground parking• flexible partitioning

Tenant Ready

PLatinum Business Center

Sofia’s Central Business District

TBA 8,665 m2GLA 6,954 m2


available (underground and open–space)

• conference facilities• on–site short term apartment • fitness center• café

• exceptional design and high quality materials• state–of–the–art systems and communications• high level security• access to a number of amenities• property management• governmental and financial institutions within walking distance• blue chip tenant mix

Tenant Ready

serdika offiCes

www.serdika-offices.com

Sofia’s Broad Center, Sitnyakovo Blvd.

TBA 35,000 m2GLA 28,000 m2Floor plate up to 4,000 m2


underground and open-air parking for office cars – 500 parking lots

• hypermarket, shopping, wellness and entertainment facilities• bank offices• food court and restaurants in the shopping area and the office part

• a benchmark office center adjacent to the shopping mall• created by a highly–experienced international team of companies• Class A office space with contemporary technical specifications• great visibility and quick access to downtown Sofia• high optimization of working space, flexibility in partitioning

H2 2010

Business Park sofia

www.businesspark-sofia.com

At the foot of the Vitosha Mountain, about 20 minutes away from the Central Business District in Sofia

TBA 300,000 m2Class A office

space4,000 parking spaces

• bank branches• restaurants and cafés• pharmacy• copy center and office supply• car service and rental• supermarket• electronic and home supply hypermarket• multiplex with 15 screens• Holiday Inn Hotel

• provides efficiency, flexibility and convenience for corporate tenants• attractive work environment, with abundant opportunities to relax and find new inspiration• good infrastructure • conveniently reachable from all major boulevards and direct access to the Ring Road• within a 10 minute drive from the international airport• high level of security

Tenant Ready

euroPean trade

Center

www.etc-bg.net

Tzarigradsko Shousse Blvd. – one of the busiest traffic arteries in Sofia

TBA 72,000 m2GLA 50,000 m2Floor plate 440 – 2,100 m2


more than 800 parking spaces within easy reach on three levels under the office buildings

• wide variety of shopping and leisure facilities• banks• mobile operators• office supply store• restaurants, cafés and food court

• a landmark office project • excellent location and accessibility• the highest office building in Sofia, offering unmatched visibility • easy access to the Central Business District and Sofia International Airport• good access by public transportation• each building has direct access to the underground garage and storage facilities• contemporary building management systems and property management

Q1 2010

exclusive office Projects

Mrs. Kosseva-Boshova, congratulations on your new role as CEO of European Trade Center. There has been a significant increase in the office vacancy in the past six months. Many large scale projects are in the pipeline and the absorption is falling. What makes you confident that European Trade Center will be a success?

ETC offers a great location on the most important boulevard in the city, easy access from the center via a newly-built underground tunnel under Tzarigradsko Shosse, convenient synergy with the Carrefour Tzarigradsko Mall, and of course excellent quality of the office space.

The crisis and the total lack of bank financing removed most of the unprofessional developers that were about to flood the market with more and more projects. That effectively curtailed the supply side of the equation. The crisis forced many companies to reevaluate their office needs and try to optimize their office space and costs. Many realized they are using old-fashioned offices, with poor space planning and often high energy consumption, thus paying more than the value received. This will drive the demand for new office space in the second half of the year especially in light of the first recovery signs in the USA and Europe; most tenants are multinational and decisions are taken in their headquarters.

Which tenants have already chosen European Trade Center?

Our first tenants are Bulgarian Telecommunication Company (BTC) and Carrefour – with 23,000 m2 and 6,700 m2 respectively. It is interesting to note that the lease signed with BTC back in January is the largest commercial lease on the Bulgarian market. We are currently finalizing negotiations with a few companies that work closely with BTC or are tenants at the mall - thus taking advantage of the synergy effects of this large development.

What are the next milestones of the project?

The rough construction of all five buildings is done and the beautiful facade is installed. We are now focused on the finishing works. The first two buildings shall be ready in December ’09 and January ‘10 respectively, when BTC and Carrefour moves in. The rest of the buildings will be ready in the first quarter of 2010. Very soon we will have a sample office so that potential tenants are able to see how their offices will actually look like.

You have significant experience in the real estate sector – both on the developer and consultancy side. What is the most important lesson from the business that you are taking with you to European Trade Center?

The most important lesson is that the world and the economy are changing very fast and very dramatically over time and that we have to react accordingly.

From a developer’s perspective, what is the outlook for the office market in 2010?

I believe the worse is behind us – by "worse" I mean the uncertainties in the economy. During the first months of the year all companies were on hold, waiting to see what will happen with the global economy and themselves. Most of them are now well advanced with their restructuring programs, some have laid-off employees, and some have cut other operating costs. The important fact is that now most companies have a clear plan of how to proceed and overcome this difficult period. Yes, most of them are striving to further cut costs and optimize expenses. This is perfectly achievable if they move to a new well planned and managed office like ETC.

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interview

colliers magazine

"the world and the economy are changing fast over time and we have to act accordingly"tanya kosseva — Boshova, Ceo of european trade Center

colliers magazine

9

an impressive project

Currently the largest office center under construction in Bulgaria, European Trade Center (ETC) provides excellent office solutions by offering high–quality office space and a pleasant working environment.

The impressive size of the project and the location next to one of the main road arteries in Sofia, makes ETC a genuine landmark to the city. For tenants that means high visibility and a complete business solution, with all amenities within walking distance.

Location and accessibilityETC is conveniently located on one of the most important boulevards in Sofia, Tzarigradsko Shousse Blvd, less than ten minutes from the city centre and a convenient five-seven minutes drive from the international airport. There is easy access by car and public transport. The area is fast developing into a new hub for both business and administrative activities.

ETC is connected to Carrefour Tzarigradsko – a 60,000 m2 shopping mall, which provides a wide variety of business services, shopping and leisure facilities.

Size and scopeThe impressive project comprises five Class A office buildings of varying height with a total build-up area of72,000 m2. Upon completion, the tower closest to the boulevard is expected to be the highest office building in Sofia.At 65 meters, and 17 floors above ground, Building A dominates its surroundings with its impressive size and architecture, delivering high visibility to the entire complex.

More than 800 parking places will accommodate the needs of tenants and visitors, with the majority located within easy reach on three levels under the office buildings. Parking is separated from the shopping mall parking by access control. Each building in ETC has an individual entrance and direct access to the underground garage and warehouse facilities. All buildings are serviced with multiple, high-speed elevators, securing fast and easy access to each floor.

Working environment

European Trade Center offers contemporary office space with state–of–the–art specifications including raised floors, suspended ceilings, Category 6 cabling, four-pipe HVAC system, building management system, CCTV etc.

The open space layout and the floor plates ranging from 440 to 2,100 m2 provide maximum flexibility and excellent solutions for any business size.

Last but not least, ETC has contemporary building management systems and property management, ensuring the smooth and secure operation of the project.

EUROPEAN TRADE CENTER in brief

Investor: European Trade Center LTDExclusive real estate consultant: Colliers International

• Five Class A office buildings• 50,000 m2 office space• Own parking (800 parking spaces)• Excellent accessibility • Outstanding visibility• Synergy with Carrefour Mall• Complete working environment• Property management• Ready spring 2010

european trade Center an impressive office project

10 office offersmain boulevards

sofi

a LocationTypeLayoutFloor Plate SizeRentAvailability

Tzarigradsko Shousse Blvd.OfficeOpen space260 – 3,600 m2 12 Euro/m2Q1 2010

LocationTypeLayoutFloor Plate SizeRentAvailability

Tzar Boris Blvd.OfficeOpen space620 – 740 m210.5 Euro/m2Tenant Ready

BenchMark Business Center is a landmark building with distinctive design and visibility. The project is providing class A office space in close proximity to the Sofia International Airport and is 15 min away from CBD. The building offers two-level underground and open-air parking with a total of 400 parking spaces. There is accommodation and fine dining in close proximity, two on-site restaurants and conference facility next to the project. Office premises available vary in size between 260 and 3,600 m2.High class of building systems and quality finishes are provided. DB

Intradings Business Center is a modern office building representing two underground parking levels, restaurant and show room area on the ground floor and six office floors. It is strategically situated on Tzar Boris Blvd. With great visibility, close to the Ring Road and 5-10 minutes away from Sofia downtown by private and public transportation. Intradings Business Center provides efficient 4–pipe HVAC system, ventilation, high category structural cabling and is powered by two independent sources of electricity supply. Automated building management system secures monitoring and control of all installations in building, ensuring undisturbed operations for its tenants. DB


Vladimir Vazov Blvd.OfficeOpen space400 – 650 m26 Euro/m2Tenant Ready

The multifunctional complex Terminal is located 3 km away from the Sofia downtown area. It has good transport communication to the Ring Road and the main traffic arteries to Varna and Burgas. The project comprises show rooms, hotel and on-site restaurant, underground and open air parking. The office part provides a high quality finishing works including suspended ceilings and a central HVAC system. GU

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This is only a selection of our properties. For an individual consultationplease call our offices on tel. 02 976 9 976 in Sofia, or 052 968 888 in Varna

sofia

office offers main boulevards


G.M. Dimitrov Blvd.OfficeOpen space1,100 m215 Euro/m2Tenant Ready


Tzarigradsko Shousse Blvd.OfficeOpen space500 m214 Euro/m2Tenant Ready

Iztok Tower is a Class A office building conveniently located on G.M.Dimitrov Blvd. The development features contemporary high–standard finishes and building systems and allows functional workspace distribution. Parking spaces are available for tenants in the building and accross the street. The easy access to one of the main traffic arteries in Sofia–Tzarigradsko Shousse Blvd., and the good accessibility by public transportation are important factors when considering Iztok Tower as a possible location for your office. DB

AVI Business Center is an office building located on Tsarigradsko Shousse Blvd. The project features high visibility and is in close proximity to the city center, the Airport and Business Park Sofia. AVI Business Center has modern building systems, open–space floor plan and competitive rent levels. Underground parking lots are availabe. AGG

LocationTypeLayoutFloor Plate SizeRentSales PriceAvailability

Tzarigradsko Shousse Blvd.OfficeOpen space 9,180 m29.5 Euro/m21,000 Euro/m2Tenant Ready


Ring RoadOfficeOpen space600 m212 Euro/m2Q3 2009

The project High Tech East is located on Tasrigradsko Shousse in the area of the 7th kilometer. It carries the characteristics of a Research and Development building, featuring large open-space floor plates, exceptional weight loads and heavy duty elevator. With attractive rent and sales price levels and good communication and visibility, High Tech East represents suitable office solutions for clients with corporate needs. GU

Matrix Tower is an office building located at the entrance of Residential Park Sofia opposite Business Park Sofia and in close proximity to the planned metro station. It features 4,000 m2 office and retail space with high quality of finishes and building systems and is characterized by relatively good ratio of underground and open parking spaces. Amongst the key benefits of the building are the option for short–term lease and the excellent value for money proposition. VG


Business Park Sofia AreaOfficeOpen spaceup to 1,100 m2 13,5 Euro/m2Tenant ready


Business Park Sofia AreaOfficeOpen space3,900 m210 Euro/m2Tenant Ready

Kambanite Business Center is one of the upcoming office locations near Business Park Sofia, across the Ring Road. It is a Class A office development with maximum available floor plan of 1,100 m2. The building is 50% occupied and tenant–ready. The tenants of this office building will have the opportunity to use all the amenities on the ground–retail floor. The building features modern building systems, flexibility of the space and sufficient number of parking lots. The main strength of Kambanite Business Center is the great visibility and easy access by car and public transport. VG

Sofia Business Centre is located on the Ring Road, just across from Business Park Sofia. The building features contemporary state–of–the–art systems, which would meet highest standards for office space. SBC is easily accessible and offers a sufficient number of parking lots. Among the main advantages of this class A office development are the big, open space floor plates of approximately 3,900 m2, appropriate for the corporate needs of large tenants as well as the high visibility. DB

Location

TypeLayoutFloor Plate SizeRentAvailability

Stamboliiski Blvd./Opalchenska Str.OfficeOpen space490 m216.5 Euro/m2Tenant Ready

Sofia Tower offers five floors of modern office space, operated as an independent part of the first shopping and entertainment center in the country – Mall of Sofia. The concept and design of this landmark building unites more than 70,000 m2 of shopping, entertainment and office space. This combination provides office tenants with all the benefits of multiple business services, conference facilities, cozy cafés, restaurants and fitness center in close proximity to their corporate offices. GU

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sofi

abusiness Park sofia area

broad center / cbd

office offers

sofia

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broad center / cbdoffice offersLocationTypeLayoutFloor Plate SizeRentAvailability

Todor Alexandrov Blvd.OfficeOpen space500 – 700 m215 Euro/m2Q4 2009


CenterOfficePartitioned292 m214 Euro/m2Tenant Ready

Crystal Business Center is a Class A building located in downtown Sofia on Todor Alexandrov Blvd. and Osogovo Str. The project features modern design with up to 8,000 m2 of open layout office space, contemporary building systems, including BMS and state-of-the-art finishes. For a building located in central Sofia, Crystal Business Center offers the luxury of 86 underground parking lots and more space across the street. The opening date is planned to be at the end of 2009. DB

7M building is an office building with prime downtown location. The property has a frontage to Fritiof Nansen Blvd. and faces the National Palace of Culture. It features excellent visibility and accessibility, modern architecture and design. The building has all the necessary telecommunications infrastructure with computer cabling and network, telephone lines, as well as central air conditioning and controlled access to the floors. AGG


CenterOfficePartitioned180 m211 Euro/m2Tenant Ready


Totleben Blvd.OfficeOpen space173 – 286 m28 Euro/m2Tenant Ready

Located in the heart of the Central Business District, this is an excellent opportunity for a corporate headquarters. Gladston 5 is situated in the area between Hristo Botev and Vitosha boulevards. The infrastructure in this area is good and there is easy access by public transportation. The building offers five underground parking spaces which makes it one of the few properties in the downtown area offering parking solution. The central location in combination with available parking spaces, the great visibility and state–of–the–art finishes make this building an attractive office destination. GU

The project features a new office building with central location and very good visibility on Totleben Blvd., as well as accessibility to major traffic arteries in Sofia. It offers flexible office layouts at competitive rent levels, providing good value for money. VG

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Suburban VarnaOffice Open space560 – 700 m210 Euro/m2Q1 2010

Varna Towers is a shopping, entertainment and administrative center located on one of the main crossroads in Varna where Vladislav Varnenchik Blvd. and Republika Blvd. meet. The location has perfect access by private and public transport and it is within 10 min. drive both from the center of Varna and Varna International Airport. The project is the highest business center in Varna, offering unmatched visibility. It features two office towers of 12 floors each, class A office space with high quality finishes, flexible floor areas and efficient accommodation options; direct access from the underground parking with 550 parking lots, additional ground parking with 250 parking lots; access to a wide variety of shopping and leisure facilities, restaurants, cafes and a food court.


CenterOfficeOpen space3,000 m217 Euro/m2Tenant Ready


Zlatovruh Str., LozenetzOfficeOpen space350 m210 Euro/m2Tenant Ready

Business Center Tzum offers exclusive location, high quality of finishing works and exceptional tenant mix. Located in CBD, neighbouring the Council of Ministers and the Presidency, Tzum represents a desirable office solution. Along with the AC and ventilation systems and high category cabling, the building features 24/7 physical security and video surveillance as well. AGG

This office building is located on Zlatovruh Str. as part of a residential development and has a GLA of 1,000 m2. The office part has a separate entrance with a reception area on the ground floor and has office units on the three floors above, each with a floor plate of about 350 m2. Zlatovruh Building features high quality finishes in the common areas and HVAC system; ventilation and server rooms are provided per each floor. There are 10 underground parking lots included in the rent. DB

sofi

ava

rna

broad center / cbd office offers

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LocationTypeLayoutFloor Plate SizeRent

Availability

Central location, VarnaOffice/ RetailPartitioned220 – 290 m2office space – 10 Euro/m2retail space – 15 Euro/m2Q3 2009

LocationTypeLayoutFloor Plate SizeRent

Availability

Suburban, VarnaOffice/ RetailOpen spaceapprox. 2,000 m2.office space – 12 Euro/m2retail space – 15 Euro/m2 Tenant Ready

The building a fully renovated monument of culture is located in the city of Varna, in close proximity to the City Hall and the museum of archaeology. It is one of the few buildings left that keeps the architectural spirit of old Varna, at the same time offering high class contemporary comforts. The building has three office floors with floor plates of the following sizes:290 m2, 258 m2, 220 m2. There is a step–free access to all floors via a lift. Modern HVAC system, kitchen premises. Gas supply is included. The 100 m2 yard offers the opportunity for having a nice outside sitting area during the summer season.

Business Park Varna is a complex of 9 class–A office and multifunctional buildings. The unique location of Business Park Varna provides easy accessibility, convenience and flexibility to corporate tenants. Businesses can benefit from open–space offices, warehouses and retail space, as well as from an infinite number of services. Business Park Varna offers high–class communication network, 4–pipe HVAC system with individual temperature control, independent electrical supply system and property management services. Building 8 is the third building that is already open and offers office and retail space for rent.


Suburban, VarnaOffice/ ShowroomOpen space 770 – 826 m215 Euro/m21,600 Euro/m2Q3 2009


Suburban, VarnaIndustrial/ Retail/OfficeOpen space from 400 – 1,000 m2from 4 Euro/m2from 600 Euro/m2Tenant Ready

The building is located in a very fast developing area. Most of the well–known hypermarkets for food, electronics, furniture and home accessories are positioned there. The location provides fast access to the central part of the city and is in a 2–minute drive from Varna Airport. It offers many advantages for the tenants because of the open space of the inside disposition, easy access and good visibility. High quality finishing. Suitable for single or multiple tenant occupancy.

This building is developed according to international practice and standards. It provides ready–to–use high quality warehousing/production/retail space on 3 floors and one office floor on top. Ample parking, good access for cars and trucks. The building is designed to meet single or multiple tenants’ requirements and each floor can be used separately. Internal docks between the floors. The elevator is with a loading capacity of 2 tons with 5 stops. The weight capability of the floor plate is 5 tons/m2.


varn

aoffice offers

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Mr. Garov, there is more and more talk about Business Process Outsourcing (BPO) as an opportunity for the development of the Bulgarian economy. Could you briefly explain what BPO services are, and what prospects and opportunities they potentially provide to the Bulgarian economy?

Business process outsourcing (BPO) is a form of outsourcing that involves the contracting of operations of a specific business functions or processes to a third–party service provider.

Furthermore, BPO services are often referred to off-shoring of operations of a given company to other geographic locations, where this company could gain efficiencies, and/or specific skills. BPO services are found within many different segments including financing and accounting, customer service, IT services and research and development.

Attracting BPO’s to Bulgaria builds on a win-win situation, which could create long-term, sustainable work places especially for young people. Working in an international environment, applying best practices gives young people an opportunity for developing skills and gaining experience they would otherwise have to leave the country to acquire. By attracting BPO’s to Bulgaria we can prevent brain drain while developing the local economy.

What are Bulgaria’s main advantages?

There are four major reasons why Bulgaria can be considered a favorable destination for BPO: The strong Research & Development (R&D) background provides a base for R&D centers. There is a long tradition for analytical thinking in Bulgaria, and this provides great opportunities for the development and manufacturing of cutting-edge technologies.

The availability of a well-educated and motivated work force. More than 30% of the Bulgarian population speaks a foreign language, and that percentage is significantly higher among the younger part of the population. There are 53 universities with 274.200 enrolled students in the 2008/2009 academic year. This provides a significant potential for BPO service providers.

Bulgaria has a leading location in CEE from a cost/quality perspective. We have an appealing work-life balance which is attractive for international professionals. This, combined with the geographic and cultural links with Europe, Russia and Middle East, makes Bulgaria an attractive location.

Last, but not least Bulgaria has a sound economic environment with EU membership, stable currency, low corporate and personal taxation etc. This creates an attractive, low-risk business environment.

Where is Bulgaria standing in terms of outsourcing practices compared to other EU and EU-accession countries? Who are our main competitors?

Bulgaria is the leading cost-quality location for BPOs in Europe and consistently ranks in the top 15 worldwide, being number 1 most competitive destination in Europe based on the following three categories: financial attractiveness, people and skills availability, business environment.

In 2009, AT Kearney rates Bulgaria as the “new offshoring star in Europe” from a financial attractiveness perspective. Bulgaria ranks as the 1st most cost attractive BPO destination in Europe and 13th worldwide based on the following components: compensation costs, infrastructure costs, tax and regulatory costs.

On a global scale India is one of the leaders in BPO services, but several countries in Central Eastern Europe are working on positioning themselves on the BPO map – Czech Republic and Hungary probably most successfully right now.

Within which segments or activities do you find the largest share of outsourcing?

There is a growing number of experienced BPO professionals in Bulgaria – software solutions, engineering services, telecommunications, customer care, datacenter support, procurement, programming, real estate, finance & accounting, human resources just to mention a few.

Very often, you see companies that outsource certain activities to a low-cost country only to move again 10 years later when the cost level in the country has increased. That is hardly the kind of sustainable, economic development Bulgaria needs?

That is absolutely correct. This often happens when a country

"attracting BPo companies to Bulgaria builds on a win-win situation"atanas s. garov, managing director of Colliers international, Bulgaria

BPo

colliers magazine

The second Colliers Connects event in Varna, whose topic was the outsourcing opportunities in the city and the region, gathered more than 200 guests from various industries.

Special guest speaker was Detlev Hoch, Director, Head of Global Software and Services Practice in the international consultancy company McKinsey & Co. He discussed the perspectives of Eastern Europe as an Outsourcing and Offshoring (O&O) location and the potential of Varna to become “the Silicon Valley” of the Black Sea.

According to McKinsey, in 2008 Eastern Europe has been gaining market share in the global O&O market. Expressed as percentage, Research and Development (R&D) gained 2% – from 10% in 2007 to

12 % in 2008 – a real Eastern Europe stronghold. In terms of jobs, there were some 200,000 FTE‘s* employed in Eastern Europe’s O&O centers, on average 22% more then in 2007 (164,000). Bulgaria still holds a modest share – appr. 3.5% of the a/m, yet it has a slightly higher growth (27%) than average EE (22%).

Mr. Hoch emphasized that places like Varna have a unique advantage of combining several important factors for O&O development -– from infrastructure, to qualified workforce and perfect blend of work aspects of life and entertainment opportunities.

The inspiring speech was followed by a success-story in outsourcing in the biggest city on the Black Sea coast –Keppel FELS Baltech Ltd -– a leader in marine and offshore design, who shared their close to 15 years successful outsourcing experience in Bulgaria.

The two presentations were followed by a networking cocktail where managers and entrepreneurs from the tourism, IT & telecommunications, banking & finance, human resources, real estate, advertising, consulting, healthcare, facility management and services exchanged ideas for the new opportunities for their city.

*Full Time Employees

positions itself solely as a low-cost country. Our vision is market Bulgaria on a number of other factors as mentioned above; the strong R&D tradition, the quality of the workforce, the geographic advantages and the attractive business climate. If positioned as such destination, Bulgaria would have a much more sustainable role in the global outsourcing / off-shoring field.

Why have three private companies taken this initiative to promote Bulgaria as favorable attractive outsourcing destination?

Together with Adecco and Deloitte, Colliers International has started this initiative because all three companies feel very strongly that there is an opportunity for the country and the business that should not be missed. As a developing economy we should not always rely on government initiatives, but as a business community be part of developing the solutions that are needed to grow the economy.

Naturally, we realize that such an initiative is quite impossible without a strong support from government on all levels. We are

all willing and actively seeking to cooperate with the authorities to promote Bulgaria in the global BPO industry.

What is the value that Deloitte, Adecco and Colliers International can bring to companies looking to outsource to Bulgaria?

The teams of Colliers, Adecco and Deloiite have experience in various industries in advising BPOs in Bulgaria. The scope of our services enables us to provide companies with local advice and consultation through all the phases of set-up or relocation. Our core competencies will provide end–to–end solutions for establishing and maintaining a successful and stable BPO structure from feasibility studies, company set–up, recruitment and HR consulting, to advising on and providing real estate and procurement solutions, and assisting the business in the operational process after the establishment of the companies.

We are aiming at being an end-to-end solution, and are developing our service based on the strengths and capabilities each one of the companies have.

Varna | an attractive outsourcing destination

colliers magazine

BPo

17

18

The commercial real estate market is getting increasingly competitive; the gap between supply and demand continues to widen, with increasing vacancies and downward pressure on rental prices. In challenging times building owners increasingly look to property management to provide the answers.

The property manager is the owner’s first line of defense in preserving the value of an asset: tenant retention is the name of the game. That’s because an empty space compromises more than just the owner’s cash flow of monthly rental payments: the owner must also shoulder marketing costs, tenant improvements and brokerage fees to fill a vacant space.

It’s no wonder that a cardinal rule in business—focus first on keeping the clients you have, then on attracting new business—also applies to holding on to good tenants. The foundation for this strategy is also back-to-basics business common sense: there’s no substitute for face time.

“You’ve got to be in front of the tenants,” says Sue Iggulden, Managing Director of Colliers Real Estate Management Services in Portland, Oregon in the US “You can’t manage effectively if you’re not talking to the tenants and walking through their space on a very regular basis. It gives tenants the opportunity to speak up. That ‘hey, I’ve been meaning to tell you…’ conversation can be priceless.”

Strong property manager involvement puts owners in the best position to retain tenants, because they can fix problems early and identify issues that don’t warrant a service call. “Our regular policy of tenant surveys reveals a lot, and ultimately

we’ve found that tenants who have regular contact with the property manager are more satisfied,” says Iggulden.

George Chambers, Senior Vice President of Colliers Real Estate Management Service in Canada, says a compelling argument for integrated services—where the property manager and leasing agent work for the same company—is tenant renewals. “The property manager has the history and relationship with the tenant, which allows the leasing agent to structure a renewal package offering that is more closely aligned with the tenant’s needs,” Chambers said.

The second line of defense is cost-containment, and since tenants and landlords alike are feeling the economic downturn, they have been more willing to cooperate to save money.

For example, turning down the heat a couple of degrees, installing sensors to turn off lights in unoccupied areas, and asking employees to empty individual recycling bins in a central area save energy and janitorial expenses.

Property managers can advise landlords on small improvements with a short pay-back time to increase the efficiency of their properties. Automating HVAC controls is one example; solar panels may also have a short cost-recovery time due to tax incentives.

For retail tenants, property managers can play a key role in encouraging cooperation to promote the property and cross-promote the retailers, such as coordinating sale dates and advertising.

“Tenants who didn’t bother with cooperation before now realize that everyone’s in the same pickle,” Iggulden said.

She advises owners to look at each property and service individually before cutting back on core services such as security. While one retail center may feel no impact with lesser security patrols, another center across town might see increased vandalism, which would harm tenants and create a negative perception of the center.

The third line of defense leaves no stone unturned. “Owners are under enormous pressure to achieve certain targets for the rate of return they’ve promised their investors,” says Chambers. “There’s also a huge amount of scrutiny around accounting and financial reporting.”

In the past, owners benefitted from declining cap rates, which boosted the value of their buildings without any increase in net operating income (NOI). Now, as cap rates increase, the value

Property management – the first line of defenseby Heidi stout tretheway, marketing manager of Colliers international, north america

good to know

colliers magazine

of the real estate is declining sharply. The only variable the owner can control is the property’s net operating income.

Chambers explained that a EUR 1 increase in net operating income for a property with a 7 percent capitalization rate increases building value by EUR 14. Property managers who find cost savings for an owner create a multiplier effect in the total value they deliver.

For example, Iggulden’s team, which manages a large, recently expanded retail center, saw a budget line item for annual testing by the local stormwater jurisdiction. They approached the agency and won approval to change the testing period to every other year.

The total savings for the owner this year is EUR 40,000, which could translate into an increase of EUR 560,000 in the building’s value.

The final issue for property managers is collecting rental payments and tenant charges. Chambers hastens this process by hosting a regular “Coffee Break Series” online conference call to train Colliers property managers in credit and collections. “Too often, tenants get a bill and it just sits on a desk waiting for approval,” Chambers said. “We show property managers how to follow up on the invoice and ask open-ended questions.” To accelerate payment, property managers are instructed to take a proactive approach to supplying documentation for the tenant invoice, and to ask about their anticipated timing for payments.As a result, owners collect their pass-through costs faster and improve their cash flow. In today’s rough-and-tumble property game, the property managers play the owner’s key defensive roles by keeping their eyes on the bottom line.

colliers magazine

good to know

Warning signs of tenant distressProperty managers say there’s no substitute for walking through the property and tenants’ spaces.

Top tenant complaintsFix these issues and you’ll minimize tenant complaints, which can maximize tenant retention.

Dos and Don’ts of Cost DeferralsOwners can preserve their cash flow by delaying some maintenance and upgrades—but beware of causing the property to look distressed.

Tenant Surveys Can Increase SatisfactionConsider asking your tenants these key questions to learn more about their concerns, and how you can boost tenant retention by serving these needs.

19

Project naMe Location Size/gLa/

totaLcatchMent

areaParking coMPLetion

date deveLoPer deScriPtion

PARK MALL

www.parkmall-sz.com

Park Mall is located on a main traffic artery in the eastern part of the city with excellent access to the Ring Road and Trakia highway, which connects Sofia with the Black Sea coast.

19,500 m2more than 650,000

potential clients within an hour’s drive

more than 1,000 parking spaces

OPERATIONAL Alexandra Group

Park Mall is the first mall in the region of Stara Zagora – an area of rapid development in recent years. The region is very dynamic and continues to attract significant foreign investment. More than 110 retail and entertainment units, along with restaurants, food court and children’s playground complete the experience for both customers from the region and travelers passing through the city. In addition to Piccadilly supermarket and Kino Arena, Park Mall includes brands like Reserved, Mango, Terranova, Calliope, Kenvelo, XYZ, Sprider, KFC, McDonalds and Costa Café. Property Management Services provided by Colliers International.

BURGAS PLAZA

Burgas, Transportna Str., close to the extention of the Trakia highway coming from Sofia into the city, and leading to the Black Sea resorts of Sunny Beach and Nessebar.

28,000 m2

exceeds 445,000 people with additional tourist traffic of more

than 1 millionpeople

1,270 open–air parking spaces

OPERATIONALGort Securities and

Bridgecorp

Burgas Plaza has the advantage of being the first shopping mall in the Burgas Black Sea region created according to international standards. Burgas Plaza feature the first Carrefour hypermarket in Bulgaria located on 12,000 m2. The shopping centre consists of two levels – ground and first floor, offering more than 90 retail stores, restaurants and cafes. The diverse tenant mix in the mall includes brands such as Carrefour Hypermarket, Marks&Spencer, New Yorker, Deichmann, Mango, Terranova, Calliope, Benetton, Starbucks, KFC, McDonalds etc.

CARREFOUR TZARIGRADSKO

MALL

Sofia,Tzarigradsko Shousse Blvd.

66,000 m2more than 2,000,000 people within 10 km.

drive

Over 2,700 parking spaces; easy

accessibility by public transportation

spring 2010Assos Capital

/investor/

Carrefour Tzarigradsko Mall project is designed to be a shopping destination for the entire region, featuring more than 200 retail shops – introducing new international brands to the market. The 14,000 m2 Carrefour hypermarket anchoring the shopping mall will be the first in Sofia and the largest in the country. Peek & Cloppenburg, Zara, Bershka, Stradivarius, Pull & Bear and Massimo Duti are amongst the major anchor tenants.

BULGARIA MALL

www.bulgariamall.bg

Sofia, intersection of Bulgaria Blvd. and Todor Kableshkov Blvd.

33,000 m2exceeds 2,000,000 people within 10 km.

drive

more than 1,100 parking places on 4 underground levels

spring 2011London Sofia Properties and

Salamanca Capital

Bulgaria Mall will be the first shopping center in Bulgaria which will be positioned as an upper scale shopping mall representing medium to premium international retail brands together with high quality Bulgarian retailers.A 900 m2 Esprit anchor and Marc O`Polo store are amongst the retail brands, featuring in Bulgaria Mall. Close to the downtown of Sofia, it has an excellent location at the intersection of two main boulevards near some of the most affluent residential quarters of the capital.Property Management Services provided by Colliers International.

GRANDMALL

www.grandmall-varna.com

Varna, intersection of Vladislav Varnenchik Blvd. and Andrei Saharov Str.

52,000 m2600,000 people

within less than an hour’s drive

more than 1,700 parking spaces – two underground levels plus deck–parking

building

spring 2010Orchid

Developments Group Ltd.

Grand Mall offers high visibility and excellent accessibility by car and public transportation. The mall is anchored by a Carrefour hypermarket, Inditex Group brands – ZARA, Bershka, Stradivarius, Pull&Bear and Arena multiplex.Property Management Services provided by Colliers International.

GRANDPLAZA ROUSSE

www.grandplaza.bg

Rousse, Lipnik Blvd. and Tzar Osvioboditel Blvd.

37,500 m22,6 million people within one hour’s

drive1,000 parking spaces spring 2011 Proekt Ruse AD

Grand Plaza is a modern international–style shopping center, enjoying an excellent downtown location at the crossroads of two major boulevards in the center of Rousse. It is designed as a unique mixed–use complex, offeing the combination of a shopping center, a sports hall, a hotel and an office facility in one single location. It will feature a Carrefour hypermarket of 9,300 m2, and more than 120 retail stores of varied tenant mix.Property Management Services provided by Colliers International.

MALL PLEVEN

www.mallpleven.bg

Pleven, Sofia Blvd.,Mindilikov Square

17,500 m2850,000 people

within an hour’s drive

400 parking places on two underground

levelssecond half of 2010 Aladin EOOD

Mall Pleven is the first and largest shopping mall of this type and concept in the region, located in the downtown area of Pleven. The strong tenant mix includes both international brands, which will be introduced for the first time in Pleven, and successful Bulgarian retailers and entertainment operators The total built–up area, which will exceed 47,000 m2, will include a Carrefour supermarket, retail shops, and an entertainment section.Property Management Services provided by Colliers International.

CITY MALLSTARA ZAGORA

Stara Zagora,Nikola Petkov Blvd. 24,500 m2 640,000 people


1,300 parking places on two underground levels plus parking

on top

2010 Evrobuild Ltd.City Mall Stara Zagora will represent a shopping mall development, anchored by a Carrefour hypermarket and retail section accommodating more than 80 retail units, food court and restaurants. The Project is situated within5 minutes drive from downtown and will be serviced by an open–air parking and two underground parking levels.

SOFIA RING Sofia,South Ring Road 72,000 m2

more than2,000,000 people within 10 km drive

approximately 2,000 parking spaces 2012 South Ring Mall

Sofia EAD

The mall will be developed as part of a commercial and residential project. The project will incorporate a shopping mall, a business centre, a hotel and an adjacent IKEA store with a GLA of 28,000 m2. The other part to the northern edge of the park will include residential towers and private compounds.

exclusive retail Projects

Project naMe Location Size/gLa/

totaLcatchMent

areaParking coMPLetion

date deveLoPer deScriPtion

PARK MALL

www.parkmall-sz.com

Park Mall is located on a main traffic artery in the eastern part of the city with excellent access to the Ring Road and Trakia highway, which connects Sofia with the Black Sea coast.

19,500 m2more than 650,000

potential clients within an hour’s drive

more than 1,000 parking spaces

OPERATIONAL Alexandra Group

Park Mall is the first mall in the region of Stara Zagora – an area of rapid development in recent years. The region is very dynamic and continues to attract significant foreign investment. More than 110 retail and entertainment units, along with restaurants, food court and children’s playground complete the experience for both customers from the region and travelers passing through the city. In addition to Piccadilly supermarket and Kino Arena, Park Mall includes brands like Reserved, Mango, Terranova, Calliope, Kenvelo, XYZ, Sprider, KFC, McDonalds and Costa Café. Property Management Services provided by Colliers International.

BURGAS PLAZA

Burgas, Transportna Str., close to the extention of the Trakia highway coming from Sofia into the city, and leading to the Black Sea resorts of Sunny Beach and Nessebar.

28,000 m2

exceeds 445,000 people with additional tourist traffic of more

than 1 millionpeople

1,270 open–air parking spaces

OPERATIONALGort Securities and

Bridgecorp

Burgas Plaza has the advantage of being the first shopping mall in the Burgas Black Sea region created according to international standards. Burgas Plaza feature the first Carrefour hypermarket in Bulgaria located on 12,000 m2. The shopping centre consists of two levels – ground and first floor, offering more than 90 retail stores, restaurants and cafes. The diverse tenant mix in the mall includes brands such as Carrefour Hypermarket, Marks&Spencer, New Yorker, Deichmann, Mango, Terranova, Calliope, Benetton, Starbucks, KFC, McDonalds etc.

CARREFOUR TZARIGRADSKO

MALL

Sofia,Tzarigradsko Shousse Blvd.

66,000 m2more than 2,000,000 people within 10 km.

drive

Over 2,700 parking spaces; easy

accessibility by public transportation

spring 2010Assos Capital

/investor/

Carrefour Tzarigradsko Mall project is designed to be a shopping destination for the entire region, featuring more than 200 retail shops – introducing new international brands to the market. The 14,000 m2 Carrefour hypermarket anchoring the shopping mall will be the first in Sofia and the largest in the country. Peek & Cloppenburg, Zara, Bershka, Stradivarius, Pull & Bear and Massimo Duti are amongst the major anchor tenants.

BULGARIA MALL

www.bulgariamall.bg

Sofia, intersection of Bulgaria Blvd. and Todor Kableshkov Blvd.

33,000 m2exceeds 2,000,000 people within 10 km.

drive

more than 1,100 parking places on 4 underground levels

spring 2011London Sofia Properties and

Salamanca Capital

Bulgaria Mall will be the first shopping center in Bulgaria which will be positioned as an upper scale shopping mall representing medium to premium international retail brands together with high quality Bulgarian retailers.A 900 m2 Esprit anchor and Marc O`Polo store are amongst the retail brands, featuring in Bulgaria Mall. Close to the downtown of Sofia, it has an excellent location at the intersection of two main boulevards near some of the most affluent residential quarters of the capital.Property Management Services provided by Colliers International.

GRANDMALL

www.grandmall-varna.com

Varna, intersection of Vladislav Varnenchik Blvd. and Andrei Saharov Str.

52,000 m2600,000 people

within less than an hour’s drive

more than 1,700 parking spaces – two underground levels plus deck–parking

building

spring 2010Orchid

Developments Group Ltd.

Grand Mall offers high visibility and excellent accessibility by car and public transportation. The mall is anchored by a Carrefour hypermarket, Inditex Group brands – ZARA, Bershka, Stradivarius, Pull&Bear and Arena multiplex.Property Management Services provided by Colliers International.

GRANDPLAZA ROUSSE

www.grandplaza.bg

Rousse, Lipnik Blvd. and Tzar Osvioboditel Blvd.

37,500 m22,6 million people within one hour’s

drive1,000 parking spaces spring 2011 Proekt Ruse AD

Grand Plaza is a modern international–style shopping center, enjoying an excellent downtown location at the crossroads of two major boulevards in the center of Rousse. It is designed as a unique mixed–use complex, offeing the combination of a shopping center, a sports hall, a hotel and an office facility in one single location. It will feature a Carrefour hypermarket of 9,300 m2, and more than 120 retail stores of varied tenant mix.Property Management Services provided by Colliers International.

MALL PLEVEN

www.mallpleven.bg

Pleven, Sofia Blvd.,Mindilikov Square

17,500 m2850,000 people


400 parking places on two underground

levelssecond half of 2010 Aladin EOOD

Mall Pleven is the first and largest shopping mall of this type and concept in the region, located in the downtown area of Pleven. The strong tenant mix includes both international brands, which will be introduced for the first time in Pleven, and successful Bulgarian retailers and entertainment operators The total built–up area, which will exceed 47,000 m2, will include a Carrefour supermarket, retail shops, and an entertainment section.Property Management Services provided by Colliers International.

CITY MALLSTARA ZAGORA

Stara Zagora,Nikola Petkov Blvd. 24,500 m2 640,000 people


1,300 parking places on two underground levels plus parking

on top

2010 Evrobuild Ltd.City Mall Stara Zagora will represent a shopping mall development, anchored by a Carrefour hypermarket and retail section accommodating more than 80 retail units, food court and restaurants. The Project is situated within5 minutes drive from downtown and will be serviced by an open–air parking and two underground parking levels.

SOFIA RING Sofia,South Ring Road 72,000 m2

more than2,000,000 people within 10 km drive

approximately 2,000 parking spaces 2012 South Ring Mall

Sofia EAD

The mall will be developed as part of a commercial and residential project. The project will incorporate a shopping mall, a business centre, a hotel and an adjacent IKEA store with a GLA of 28,000 m2. The other part to the northern edge of the park will include residential towers and private compounds.

exclusive retail Projects exclusive retail Projects

22

market research

colliers magazine

The office markets in Sofia and Varna were clearly affected by the contractions in the economy experienced over the past year; in both markets the increase in stock slowed down as developments were halted or delayed. Absorption fell as demand for office space decreased, driving vacancies (especially in the Suburban Areas) up while pushing rental levels down.

Developers are protecting the profitability of their projects by renegotiating construction contracts or reducing the pace of the building process. Almost no new projects entered the active pipeline, as financing is scarce and the outlook for the future is uncertain.

The demand in the market is generally driven by consolidation of businesses and the drive for optimization. The market is clearly tenant-driven, and landlords often provide quite flexible conditions; tenant improvements and step-rents on long-term contracts, and reduced rents on short-term contracts.

The outlook of the office segment is mixed. As the market starts picking up again on the back of the global, economic recovery, it is likely to enter a phase of clearer segmentation; office projects with inferior location, concept, space planning and specifications are likely to experience significant vacancies – also in the mid- and long term period. On the other hand, projects with good fundamentals are likely to be demanded both for relocations and consolidations.

The industrial market in Sofia saw another period of development at a leisurely pace. The increase in the supply of speculative space across the country has been modest, and the market is relatively unaffected by the economic downturn. Like in the other real estate segments, projects are being delayed or postponed, and especially speculative space is affected, since the requirements for preleasing, in order to release financing, are quite rigid.

Demand on the industrial market is primarily driven by fast moving consumer goods and third party logistics providers, while construction and consumer electronics have all but disappeared. But as the market generally is undersupplied, the recovery period is expected to be relatively short.

The retail market saw startling changes across all formats; the operational shopping malls experienced an increased pressure for renegotiations from current tenants while vacancies began to appear. Projects in the pipeline are finding it harder to attract tenants, as many retailers are struggling with falling turnover.After a period of no vacancies on primary high street, and retailers being pushed to secondary locations, even prime high street shops have prolonged vacancies.

The majority of the growth comes from discounters (food and non-food) – a trend that is likely to continue in the coming months.

Generally, the retail real estate segment is expected to recover relatively quickly, but shopping mall supply will continue to exceed demand in the mid-term.

The residential market in Sofia has been most severely influenced by the recession. Driven by the increasing cost of financing and the general economic insecurity, demand for residential real estate has plummeted in the first half of the year. This has lead to price decreases across all geographic sub-segments – both established and emerging neighborhoods. As in all other real estate segments, the mid–term impact of the downturn correlates directly with the quality of the project. In the short term, however, even sensible projects are severely affected.

Since the market has fundamentally been driven by healthy demand, recovery is expected but not likely until the first half of 2010.

Colliers Market Overviews are available in Bulgarian and English at www.colliers.com/bulgaria in the Market Reports sub-section.

market research findings – first half of 2009

colliers magazine

23

our people

Mrs. Bogoeva, you recently became the first female RICS member in Bulgaria. Would you tell us briefly about the role of the RICS organization and its members worldwide? RICS is the leading organisation in the world of professionals in real estate, land, construction and environmental assets. It operates in 146 countries and has more than 146,000 members. The key roles of RICS are to regulate and promote the

profession, maintain the highest educational and professional standards, protect clients and consumers through a strict code of ethics, and provide impartial advice and guidance.

With the real estate market accounting for as much as 20% of the GDP (Gross Domestic Product) in most countries, it is obviously important to ensure that the sector is properly regulated. It is in everybody's interest that ethical and professional standards are set and maintained. This is especially important for emerging markets with developing real estate industries.

How does a RICS-certificate ensure a consistently high quality?

The RICS vision is to be known as “the mark of real estate professionalism worldwide.” The organization constantly regulates and supports its existing members and the development of new ones for the general good of the public. RICS has an effective and efficient recruitment programme, which is essential to safeguard the future of the profession, ensuring that the legacy of the existing members – competent service delivery to business and society – is maintained. Through the proactive promotion of the benefits of a career in surveying, RICS aims at ensuring that there are no skill gaps. The organization requires commitment to, and demonstration of, lifelong learning and development from every single member.

What are the direct benefits to clients?

Clients in the real estate world increasingly demand greater certainty of professional standards and ethics. If we focus on

valuations, RICS ensures a consistent and reliable valuation approach, the application of the world’s best practices in the profession and the observance of strict rules and guidelines. RICS-certified specialists provide an additional degree of confidence from the world’s leading qualification for valuation professionals. This unparalleled client confidence is ensured by the highest standards of excellence and integrity upheld by RICS, as well as by the established worldwide influence and credibility.

For instance, financial institutions are increasingly demanding RICS certified valuations due to their higher credibility. The past years of crashing capital values have shown that in a world where property value is so unsure, the credibility, objectivity and consistence in valuations is even more important in the context of stability and objectivity in the real estate world.

Generally speaking, RICS members offer the very best advice in land, property and construction in a vast variety of fields/spheres. They are also competent enough to provide strategic advice in valuation, economics, law, technology, finance and management of physical assets – from major public buildings development to sea surveying, and from managing large property portfolios to auctioning antiques.

What are the benefits of being a RICS-certified professional?

RICS membership is only awarded to individuals who are prepared to maintain exemplary standards and who have successfully demonstrated adequate professional experience, and commitment to lifelong learning. This is why RICS is the mark of property professionalism worldwide.

By joining RICS you become part of an international professional community, offering invaluable networking with fellow professionals worldwide.

How long have you worked with Colliers, and what does the RICS-certification mean for your professional career?

I have been with Colliers for more than 4 years, and the RICS membership represents an important step in my career as a valuation professional. I appreciate the MRICS status not only as a substantial step in my professional development, but also as a significant competitive advantage for Colliers in the local market.

"riCs is the mark ofproperty professionalism worldwide"nevena marinova-Bogoeva, mriCs, Colliers international, Bulgaria

Project naMe Location tyPe and nuMBerof unitS Size aMenitieS key BenefitS coMPLetion

date

RESIDENTIAL PARK SOFIA

www.residentialpark-sofia.com

Malinova Dolina, above the ring road, on the opposite side of BPS

to be constructed in 3 phases with a total of 700 units to be built. Multifamily houses with apartments (1, 2 and 3 bedrooms), row houses and single houses

completed apartments88 – 159 m2

completed row houses195 – 275 m2

security and controlled access, supermarket, playgrounds, fitness and swimming pool, party hall, kinder garden, bank, café, restaurant

A project with a concept, providing safety, comfort and high standard of living for the whole family. Very communicative location, well developed infrastructure. A lot of green areas. Family environment. Nice view to the mountain and the city. High quality, energy efficient construction materials. Property management.

1st phaseis ready now

CRYSTALBELL

www.crystalbell.info

Pancharevo, in close proximity to Kambanite

a compound with 34 single family houses and 3 residential buildings with different types of apartments (studios; 1, 2 and 3 bedroom apartments)

houses281 – 466 m2

apartments37 – 137 m2

underground parking spaces, administrative building with SPA center, including tennis courts, heated swimming pool, playground for kids, basketball court and café

Close to the mountain, surrounded by nature, compound providing high quality construction, good concept, a lot of additional services. Flexible leasing and financing schemes

Autumn 2010

MOUNTAIN HOUSE

www.rashidov.com

Simeonovo, next to Sky Way hotel and Simeonovsko Shousse

four – floor residential building with 19 apartments and 2 studios

apartments and studios

68 – 135 m2

modern architecture, high quality materials, reputable investor, state–of–the–art finishing works of the common areas

In the heart of the mountain, impressive panorama view, very communicative location, experienced developer, comfortable and secure environment with beautiful landscaping

June 2010

CITY OF FOUNTAINS

www.cityoffountains.eu

Mladost 4, close to Business Park Sofia

1, 2 and 3 bedroom apartmentsapartments

53 – 147 m2

supermarket, sport and fitness center, swimming pool, kindergarten, property management and on–site security

Communicative location and easy accessibility by car and public transport; beautiful landcaped gardens with series of fountains, luxurious interior design of common areas

1st phaseAutumn 2009

VITOSHA TULIP

www.vitoshatulip.bg

Krastova Vada District, close to Cherni Vruh Blvd.

144 completed luxury apartments, located in 4 buildings

completed apartments70 – 191 m2

indoor pool, SPA centre - sauna, steam bath, hot tub and fitness

Excellent view to the mountain. Beautiful gardens, alleys and rest spots. Entertainment and sports facilities. Contemporary finishing works. Professional property management

H2 2009

LAGERATULIP

www.lageratulip.bg

Lagera Districtgated residential community, comprised of 4 modern apartment blocks


retail areas, underground parking, recreational facilities, children playgrounds, and luxuriant gardens; high-quality installations, video intercom and reinforced doors

Excellent location in proximity to the city center. Convenient access by public transport. Provided with a retail and entertainment area. Shops, schools, kindergardens in the vicinity. Modern finishing works.

end of 2009

DELTA IMOTI

www.deltaimoti.com

Pozitano street,close to Mall of Sofia and Stamboliiski Blvd.

seven floor residential building with apartment and office area. 51 parking places and garages


offices71 – 201 m2

Underground parking places. Shopping mall (Mall of Sofia) and open market in close proximity. Restaurants, cafes and many shops in the vicinity.

Within walking distance to the city center. Communicative location. Easy accessibility by car and public transportation. Many amenities in close proximity

September 2009

PRESLAV HOUSING COMPLEX

Vitosha neighbourhood, close to Vitosha mountain and Simeonovsko shouse

11 residential sections with85 apartments. Mesonettes, attic apartments and one andtwo–bedroom apartments.120 parking places

70 – 195 m224 hour security, underground parking places, park area. Many restaurants and cafes in close proximity.

Located in a fast developing area. Close to major traffic arteries (the Ring Road and Simeonovsko shosse). In proximity to Borisova Garden park and Vitosha Mountain. Splendid mountain views

October 2009

LOVEN PARKVIP COMPLEX

Dianabad District, opposite Loven Park area; in the very vicinity of Sofia downtown area

2 residential buildings with apartments; office and retail spaces

70 – 350 m224 hour security, underground parking places, medical center, supermarket, restaurants and shops in the complex, zoo in the close vicinity

Communicative location. Available parking places. The complex offers multiple amenities. In proximity to South Park.

Phase I, October 2007Phase II - Autumn 2009Phase III - June 2010

residential Projects

26

lifestyle

colliers magazine

Ecological art, thermo insulation, air refreshers or habitat for the wildlife in an urban environment – Vertical gardens combine all of the above features. How did the French scientist and botanist Patrick Blanc come up with the idea to create this worldwide phenomenon and what are these living constructions made of?

Inspired by nature

Botanist by profession, Patrick Blanc was observing nature for many years - how plants use to grow on rocks, on trees’ bark, on steep slopes without any soil, even in caves. He noticed that it was absolutely normal for plants to grow on vertical surfaces and needed little or no soil, sometimes with little light, as long as they had moisture.

Normally, when plants grow on walls, roots penetrate through the surface, easily damaging them. Patrick Blanc finds out that this can be easily prevented it plants are frequently irrigated – this is how their roots grow only on the surface, leaving the wall intact. With this observation in mind, he gets determined to create the technology to develop a dense plant wall that requires minimum maintenance and could be grown in urban environment.

In 1988, Patrick Blanc creates his first Vertical garden in La Villette, Paris. Since then, he has built more than 150 gardens throughout the world – Paris, Brussels, New York, Osaka, Bangkok, Genoa – working with major names in architecture and design. “The urban garden guru” selects his plant species according to the specific climate conditions of the place where the installation is created.

Not just another plant on the wall

Basically, the Vertical garden consists of three main parts: a metal structure, PVC slabs and felt layer.

The metal frame can be attached to the wall or a stand-alone construction. Its function is to hold the whole composition and to provide air layer, used both as a thermal and audio insulator.

The 1-centimeters waterproof PVC slabs are suspended on the metal frame, covered with a polyamide felt, into which holes are cut for the plants. A small hose, punctured every ten centimeters by tiny holes, runs the length of the top of the wall and a timing device ensures regular, light watering. Trapping a cushion of air, the ensemble can also act as insulation. Another function of the felt layer is to keep the roots from growing through the construction. It has high capillarity, ensuring plants’ even water supply, enriched with minerals and fertilizers.

Numerous flora species or different origin can be planted on the surface. The whole “garden” weight is less than 30 kg/m2. This is why the technology can be used on every wall, no matter the size. Vertical gardens can be grown on different latitude, both in interior and exterior spaces, even in places with only artificial light, such as parking spaces.

Multiple purposes

Patrick Blanc’s Vertical gardens are believed to be an ecological art – not only as vivid and expressive constructions but often as a valuable habitat of wildlife. Uniting functional and aesthetical

Vertical gardens – an ecological art in cities

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purposes, these pieces of art are an excellent way to partially restore the lost nature in cities. Depending on the plants’ choice, Vertical gardens can imitate natural wildlife or serve as decorative and graphic platforms.

It is of considerable importance that due to their insulation effect, Vertical gardens can lower to the building’s energy consumption. In winter, it protects it from the cold, and in summer it acts as a natural cooling system.

Last but not least, Vertical gardens are an effective way to refresh the air in the cities. Leaves, roots and all microorganisms there are acting as a big “purifying” surface. Once on the felt layer, the polluting particles from the air are gradually dissolved and mineralized before turning into a fertilizer themselves.

Some examples of Vertical gardens

Caixa Forum Madrid (La Caixa) – Madrid’s new cultural and social centre, is the latest vertical garden, created by Patrick Blanc. Exhibitions of ancient and contemporary art, music and poetry festivals, multimedia art, debates, social seminars, educational and family-oriented workshops – these are just some of the modern center’s activities. Unique accent in the exterior of Caixa Forum is Patrick Blanc’s Vertical garden that resembles a color picture. This is the largest implementation of this kind on a façade without gaps, as it has a planted surface are of 460 m2, densely populated with more than 15,000 plants from 250 species.

Garden of Peshing Hall is part of a private hotel in Paris and represents a small square space, surrounded by high façades. Due to the high walls, the space looks quite closed and hardly gets any sunlight. In summer, the restaurant’s tables and chairs occupy almost all space there and it was difficult to out any plants there. Patrick Blank and Andree Putman – internationally acclaimed French designer and interior architect – decided to construct a 30-meter high tropical cascade, made by 260 plants, mainly of climbing origin, on one of the surrounding walls. The garden reaches the top of the hotel and can be seen from all floors of the hotel.

Girbaud Vertical Garden is part of a boutique, made with the “human nature” concept, touching the relationship between human beings and the surrounding environment. The purpose of the indoor Vertical garden was to convert the boutique into a living system. To achieve that, the designers (Kristian Gavoille and Patrick Blanc) create a green wall, selecting 250 types of exotic plants, including orchids, moss and fern, with hints of violet, brown and yellow. It is put behind a glass wall, spreading to the boutique’s upper floors.

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700,000 m2 land plot300,000 m2 TBA

• built–to–suit solutions – spaces available for rent with specialized facility requirements • spec space – warehouse space offered for rent and split into equally sized modules of divisible space, facilitating tenants’s specific space requirements and expansion needs• zoned land plots for sale offered with a turnkey development option

• loading docks with hydraulic levelers• cross–docking–ready design• large column spacing of 24m by 18m• ample truck maneuvering space• fire detection and sprinkler system

built–in office units

natural gas heating, efficient insulation, professional property management and security services, public service facilities and convenient transport access

24/7 physical security, maintenance of common areas, access control, etc.

LOGISTICS PARK VARNA

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Varna, Vladislav Varnenchik Blvd., 10 minutes drive from Varna’s seaport, international airport, central train station and city center

132,000 m2 land plot120,000 m2 TBA allocated in 10 buildings

• spec space–dry warehouse• offices• showroom units for rent

• 10m clear height of the warehouse premises• technological docking doors• loading bays• column spacing of 12m by 25m• truck maneuvering space• fire detection and sprinkler system

office units, showrooms

electricity, water, sewage, gas, telephone cabling, public transport

24/7 physical security, video surveillance, maintenance of the rented and surrounding premises

CENTRAL DISTRIBUTION PARK PLOVDIV

Western arc of Plovdiv Ring Road, only 6 km from the city center

First phase20,000 m2 of100,000 m2 TBA

• spec space – dry warehouse and distribution units for rent• build–to–suit option

• 5 meters clear height• hydraulic loading bays• grinded concrete floors• sprinkler systems• 5 tons/m2 loading capacity• telephone lines• high–speed internet access

office units

high–power electricity supply, large volume water supplies, sewage/ waste water treatment, high–volume gas lines, HVA

24/7 physical security, access control, maintenance of common areas, etc.

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