Miller Developments enters Bulgaria

Miller Developments is continuing its drive into central and Eastern Europe with the purchase of a retail and leisure development in the Bulgarian Black Sea city of Varna. The company has agreed to buy Mall Varna, a complex with a gross leasable area of 32,000 m2, from local developer Interservice Uzunovi. The transaction reflects a yield of 7.5%.

'Mall Varna will be the largest shopping centre in Varna and we are confident that we will continue to attract international retailers looking to take advantage of the thriving retail market in Bulgaria,’ said Miller Developments' ceo Phil Miller. ‘A number of leases have already been signed and the centre will have many international brands.'

Construction at the site began in September 2006 and completion is scheduled for March 2008. It will be anchored by a Piccadilly supermarket and a 1300-seat, eight-screen Arena multiplex cinema. In total there will be 150 shops, of which over 70% are pre-committed and final leases signed for 40%.

Miller has been aggressively targeting Eastern Europe for investment and development opportunities, buying the Magnolia shopping centre in Brasov, Romania in January and this month starting construction on the final phase of its Premier Outlets factory outlet centre in Budapest, Hungary.

Miller Developments represented itself, while Cushman & Wakefield, in association with Forton International, advised Interservice Uzunovi.