Arco Real Property Holdings, a joint venture between Arco Capital and Deutsche Asset Management's DB Private Equity and Private Markets group, has announced plans to expand Business Park Sofia (BPS) with the construction of a new building at a cost of €30 mln.
'The vacancy rate at BPS has been less than 1% for the past 18 months; it has never been so low,' commented Christo Moskov, general manager of BPS. 'The overall market has picked up through an increase in re-letting and new leasing activities.'
The construction of the class A office property, dubbed Building 15, is being directed by German construction firm Lindner Immobilien Management. The office will comprise a total leaseable space of 20,800 m2, including five levels of office space, retail units on the ground floor and two underground parking levels with a total of 260 parking spaces.
Pre-leases have already been secured with KPMG IT Service and Bulpros Consulting, bringing the occupancy to 80% at this stage. The building is aiming for LEED Gold classifcation or higher.
'These leasing transactions coupled with the construction of our newest building, demonstrates BPS’s strong position as the leading real estate player in the Sofia, Bulgaria and regional office market. They are also fully in line with our overall strategy of being opportunistic as to new investments and further improving cash flows through active asset management,' Moskov concluded.
Business Park Sofia, which is owned by Arco Real Property Holdings, is the largest office park in Central and Eastern Europe and was the first business park in Bulgaria.
