KMB Best of Bulgaria, leading the property development in Bulgaria

1.Who is really Best of Bulgaria? Could you tell us more about your company?
KMB Best of Bulgaria Property and Services Ltd is the expansion of KBM Best of Cyprus Limited which operates in London and Cyprus. The EU offers vast opportunities for many entrepreneurs, which has lead to the expansion of our own activities in Bulgaria, not only helping the growth of our group of companies, but at the same time reducing the company risk by moving away from operating in only one specific market, Cyprus.

Simply spreading this risk and not now having all our eggs in one basket, has enabled us to offer our investors new products.

Our clients are constantly looking for new options, variety of products, locations, good prices, good returns, and safety, all these ingredients we are now able to provide through our expansion into Bulgaria.

Before this expansion, 3 years ago, we had already conducted market research, scrutinizing not only Bulgaria, but other neighbouring countries, including Romania. We concluded that “Bulgaria is the next Spain in the overseas property market”. Indeed, after 3 years of hard work in Bulgaria, we can now say that our clientele (our clients are mainly British, Irish and other North Europeans) is looking for a much bigger and longer-term investments in Bulgaria, simultaneously, dreaming of a second home in this beautiful country.

2.What are your activities in Bulgaria?
Land development in promising “key” locations, coupled with environmental protection understanding that can answer our clients’ needs of either a holiday or permanent home, and a safe investment. Today, our first development in Bulgaria is under construction, and will be delivered in the summer of 2007. This project consists of 122 units, designed to offer comfortable living and it is located about 20 km North of Varna, in the picturesque coastal village of Kranevo, between two summer resorts “Golden Sands” and “Albena”. The exact plot of Kranevo I Paradise Gardens is 900 m away from a nice sandy beach.

Additionally, this year, we expanded our activities within Bulgaria to Borovets, 70 km south of Sofia. In this area we will soon start the construction of our first skiing development Borovets Heights I,  consisting of 48 luxury apartments with a design based on traditional Bulgarian mountain  architecture. As with all the projects of the company, it offers communal amenities, including an indoor heated pool, cafe, parking, storage, etc. These are facilities all skiers appreciate.

In addition to a further four developments in the area of Varna and its provinces, we aim, by the end of 2007, to have our property portfolio including at least ten projects, covering the Varna district (for those who love the sea and the beach), Borovets area (for those who love snow and skiing), and Sofia (for investors, students, big city-lovers).

3.Could you give us more specifics about the projects you have under study and/or under construction?
Our first development in Bulgaria has a covered area of approximately 15,000 sq.m. in Kranevo, and I have to admit that this project is the pride of the Company, because due to its enormous success, in 2005 we proceeded to make more investments and to design another five projects in Varna and Borovets. It is remarkable to say that our second project in Borovets area was 70% sold within 2 months. I would like to quote what my co-partner, Mr. Alex Beeston, Director and Sales Manager, said “return in ski properties could prove to be a better investment than the coastal properties, based on the expirience of our associates, especially in the UK, like Gascoignes International, were already familiar with ski properties and had the experience with our ski destination”.

We manage a valuable land portfolio and our target has always been, purchase of land in prime locations (AAA). This is why property seekers prefer our developments, because of location, location, location… the key to success in real estate. Our strategy is to purchase land nearby resorts, such as Golden Sands, Albena, Borovets, and Balchik. In Balchik there are already three golf courses under construction and mention has already been made of the creation of a Formula 1 track. We constantly study the enrichment of our portfolio and projects and have all the means to anticipate increasing demand, however, it takes a lot of research and planning to keep the market healthy.

4.What are the benefits for an Investor to invest in property in Bulgaria?
Low price, emerging market, sociopolitical improvements, magnificent country!

UK purchasers have been investing in property overseas since the 60-ies, mainly in Spain. It is a fact that they are the biggest investor when it comes to property purchasing abroad, something that we have also experienced in Cyprus.

Bulgaria is the most rapidly developing economy in Europe and the tourist industry has been booming over the last few years. We have seen many improvements since our first days in Bulgaria, and have noticed that the country is getting the attention of big investment funds every day. Bulgaria is to enter the EU in January 2007 and considering all these plus points in addition to much more investment in property, Bulgaria could prove to be the best move any investor can presently make.

5. Can you tell us a few words about your team and organizational structure of the company?
The Directors of Best of Bulgaria (and Best of Cyprus) are the same – Mr. Andreas Kasioulis, Mr. Alex Beeston and myself Haris Menelaou (the first letters of our surnames forming the company initials KMB), and notably another 45 skillful executives at the head offices of Best of Bulgaria in Varna and Best of Cyprus in Paphos and London. We spend a lot of time and money on the architecture and facilities offered in our developments, and above all we strive to accomplish Client’s Satisfaction. We fully realize the importance of our clients investing the efforts of a lifetime into a property purchase overseas, and with this in mind the company is structured to secure our client’s purchase.
Within our company there are talented architects, experienced civil engineers, lawyers and others, all colleagues together forming a very skillful team helping the company to grow. We are very satisfied with this balance and the management’s philosophy is that our biggest asset is our people.

6.What is your view of the Bulgarian economy?
Mr. Platon Kyriakides, General Advisor of the Group (ex Ambassador of Cyprus in New York, Moscow, Damascus), noted that “the EU accession in January 2007, will in fact bring even more political stability and improve the living standards in the country”. I believe this in fact motivates investors, likewise they did in Cyprus back in 2004.

Today’s economical figures praise the political world of Bulgaria, which along with the help of the EU have changed the socio-economical conditions of the country for the better. For the year 2007 the economy is forecasted to grow by 5.8 % and inflation to decrease to 3.1 %. Everything looks positive and we believe that foreign investments will continue. It is worth noting that foreign investments for the first half of 2006 doubled.

7.What are the conditions of the land development industry in Bulgaria?
Choosing the right location is the key to success, especially in a relatively large country like Bulgaria. Good research is a must to ensure that an investment generates the wanted return within the desired timeframe. One must study the property law, something that I believe our company has mastered, and consequently has invested wisely. Perhaps one of the most important departments within the company is the team that deals with the Land Registry matters and together with our legal advisors can eliminate problematic plots of land (i.e. utilities can’t be provided everywhere etc.). I would advise any investor to have this plus other parameters in mind before they put their money in any property or land in Bulgaria. I would advise all investors before putting their money in any property or land in Bulgaria to provide themselves with experienced consultants and solicitors. 

8.What are the future plans of Best of Bulgaria?
We are planning to open new offices in Sofia within the next six months and definitely our top priority future plan is to become ‘the’ name in property in Bulgaria. Our partners and clients are asking for a bigger variety of products and locations and we plan to add at least ten new projects to our portfolio shortly.

9.Why did you expand your business in Bulgaria and not in Romania for example? Why did you choose our country?
Having the experience of property development in Cyprus and seen the way it grew over the last seven years, it was easy to distinguish it as a “hot” property market in Europe. I believe the unique opportunities will last with high growth until 2010. Bulgaria has all the ingredients to attract property seekers to purchase either a coastal or a ski property. It is actually the first option at the moment for a growing number of property buyers overseas. Over the last three years we have seen improvements in all sectors and services in the country. Three years ago it was out of the question in Bulgaria to discuss organising loans to our clients; no bank was interested in assisting us with this facility. Now, however, I am very delighted to see our clients realising their dream, buying a second home through a loan in Bulgaria. This mechanism will inevitably help the economy, and raise property prices.

10.What would you like to say at last in the end of our interview?
All markets have their ups and downs; we have seen it in Cyprus, in UK, and in the past other emerging markets with great prospects ending up in the bin because of hard speculation and greediness. We are advising prospective clients and governmental units on a daily basis how to help this industry to wisely develop into a long term and healthy market which both the local and foreign people can enjoy.         

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