GE Realtor with First Investment in Bulgaria

GE Commercial Finance Real Estate has made real its first venture in Bulgaria, acquiring a 50% stake of the Mall of Sofia, an enormous trade, business and entertainment centre under construction in the heart of the capital city.

The acquisition at the cost of approximately EUR 37 M was made by a consortium of GE Commercial Finance Real Estate and Quinlan Private.

"The 50% transaction marks the first investment ever made by GE Commercial Finance Real Estate in Bulgaria. Through it, we declare our future intentions to expand to the countries in Central and Eastern Europe, where hopefully there are good prospects for economic growth," said Karim Habra, Managing Director of GE Commercial Finance Real Estate for Central Europe.

Mall of Sofia, the biggest shopping, entertainment and business center to be built in Bulgaria, had its cornerstone laid in May 2004. Construction works began two months later after Lindner Bulgaria won the tender for building Mall of Sofia.

Slated for completion next year, the project will contain an ultra-modern two-story trade center, a movie theater, a supermarket and an office building, as well as a multiplex cinema hall. The office part is expected for commissioning as early as May, but most of the office space had already been leased, Mall of Sofia's managers said. Rentals only would guarantee a minimal annual profit of EUR 8 M.

Together with Fellstone, the powerful industrial investor GE Commercial Finance Real Estate bought the 50% stake from the Israeli Ocif Investment and Development and the Austrian Aviv Holding. Ocif and Aviv held 25% of the capital in the Mall of Sofia project. The rest belongs to the Dutch IT Sofia BV, a subsidiary of Cinema City International.

Source: Sofia News Agency