Information for the project
Project – Yambol park. In search of the proper location, we saw many properties in almost all of the cities in Bulgaria. The property in Yambol in particular carried us away with its excellent location, as well as with its huge potential, due to its vicinity to the Kaufland hypermarket. In cities of the category under 100 inhabitants, Kaufland is the strongest traffic generator. Our idea is to supplement the assortment of goods and services offered by the large supermarket, so that maximum synergy is achieved between the two. The centre is located at the crossroads of two main boulevards in the city – Graf Ignatiev Blvd and Krayrechen Blvd.
The plot has a surface area of nearly 10 000 m2. It was acquired at the end of 2019 by a western company. Our partnership with Kaufland is based on the fact that we anticipate excellent collaboration on the two projects (Yambol park and Kaufland), where our goal is not to compete with them in the segment of fast moving food products. The car parks of the two projects will be connected to common access roads (entry and exit).
General parameters, total built-up area and number of establishments.
The total built-up area of the project is 7000 m2. Out of this the rentable area is approximately 5000 m2, and the remaining area to 7 000 m2 includes a car park which is open in three sides at elevation -1. The natural level difference of the terrain allows for a similar solution. The foreseen establishments are six within the 400-1400 m2 range. Due to the great interest in renting smaller areas, we are considering and investigating the opportunity to construct such establishments. A car park with 100 parking spaces is foreseen.
The renting process will be performed by an external consulting company – Regents Property Advisors EAD. By this moment, occupancy rate in the project is about 50%, and the mix of tenants shall include vendors offering fashion, household goods, electronics and services. The contracts to be signed are long-term – 10 years. Rental rates vary according to the rented area and degree of completion of the premises, on average EUR 7-8 per square metre, and the service charge is EUR 1 per square metre. Considering the times we live in and the pandemic lasting for almost a year all over the world, we have certain difficulties renting areas out, which basically consist in longer negotiations and project research by vendors. The main reason for that is the vagueness regarding the end of the COVID 19 crisis, what impact it will have and if it will change consumer habits.
The principal project contractor is a company based in Sofia, which provides engineering and project management services. The actual construction works will be performed by subcontractor companies from the city and the region.
Retail park management.
We have experience at Zestate ЕООD in this type of management, but we are still considering possible hiring of a professional property and asset management company.
The project is funded with own capital + bank loan. The expected investment is nearly BGN 6 million.
Potential of the retail park and the city of Yambol.
We believe in the potential of the city of Yambol. The city has been developing well over the last years. The standard of living of the inhabitants of the city is rising, and their purchasing power along with that. The total rentable area that we are building is approximately 5000 m2 and if we add Kaufland with their 4700 m2, we get a total area of nearly 9700 m2, which is comparable to the other establishment.