Property investors GE Real Estate Central and East Europe set up a join venture with the US-based real estate fund Tishman International for the development of Sofia Airport Centre. The centre would be a multi-purpose project, comprising offices and logistics, retail and hotel space.
The 250 million euro worth project, strategically located near the Sofia Airport, marks both the advent of Tishman on the Bulgarian property market and the first project by GE Real Estate and Tishman International together in the region.
This is GE Real Estate’s third large investment in Bulgaria after the acquisition of Mall of Sofia about 18 months ago and the purchase of Plovdiv Mall about 6 months ago.
The two companies have already had successful co-operation for projects in the US.
The decision to team up with GE Real Estate for a CEE project was a logical result from their previous experiences, Allan Levi, Chairman of Tishman International Companies, said.
GE Real Estate, which owned a 50 per cent stake in the enterprise, was not looking to “do a one-off”, but had ambitions for the Bulgaria market and were honoured to be associated with such a landmark project, Karim Habra, company’s Executive Director stated.
He went on to explain that GE was not only a producer of washing machines, but was seeking for profound entry into the property sector. The company, which owns $ 62 billion assets, has worked on more than 30 residential projects in Poland and Czech republic and intended to replicate this in Bulgaria and Romania.
The company's focus would be on Sofia and other major Bulgarian cities, Habra explained. Given that the current office was under-supplied and the logistic markets almost non-existent, GE would continue to invest in these two directions, he said.
Tishman International does not exclude consultancy with GE Real Estate about other projects in Bulgaria and Romania, Allan Levi said.
Sofia Airport Centre would be an energy efficient development, following green building requirements.
Currently, the investors were working on the infrastructure of the project. The first parts to be launched would be the Marketing Suite with an adjoining restaurant area, the inauguration was expected in January 2008.
The logistic part would be fully occupied and opened in spring next year. Currently, Tishman was negotiating with a number of clients to lease 50 per cent of the logistic space.
There was an ongoing tender for a contractor for the office part, its construction was expected to start in December 2007 - January 2008 and completion was due in spring 2009.
Logistic units rent at 5 euro a sq m per month, the adjoining office parts – at 12 euro and offices from the office section would be let out at 16 euro a sq m.
Tishman International was developing a logistic centre in Rousse.
They were negotiating similar projects in Plovdiv , Varna and Bourgas, as well, but, unlike Rousse, conceived as set multi-use complexes there – with logistics and office sections. When asked about their strategy in these projects, Pepa Dimitrova, operations manager of Tishman International Ltd., said that they were more likely to purchase ready buildings and facilities in Plovdiv, Varna and Bourgas, whereas in Rousse they would buy land and carry out construction on their own.
