Lewis Charles Fund Portfolio In Bulgaria Reaches 84m Euro

Lewis Charles Sofia Property Fund Ltd has a portfolio of Bulgarian real estate developments worth 83.85 million euro, acquired at the cost of 43.1 million euro, with a total area of 567 950 sq m, the fund’s officials reported.

Average residential price in Sofia stood at 927 euro a sq m in 2007, and in Varna it was 901 euro, according to Lewis Charles.

The Sofia market will see a delivery of 1.4 million sq m of new residential units in 2008/2009, mostly offered off-plan, according to the fund’s analysts. They do not expect that new housing space will exert pressure on prices because the capital’s market is enjoying robust interest from new players. The trend will continue as infrastructure develops, according to Lewis Charles. Holiday properties in mountain resorts have seen higher increases than coastal ones, the fund's officials noted.

The company’s strategy envisages compiling a portfolio of projects, which are at a different stage of development – from a stretch of unregulated agricultural land to establishments at a more advanced phase in various parts of the country.

The fund already owns a mixture of land and residential projects. It plans to erect properties with a gross actual area of 560 000 sq m on its own plots. The company’s portfolio comprises real estate units in Govedartsi, Razlog, Plovdiv, Sofia, Veliko Turnovo, Dolna Banya and others.

In Govedartsi, the fund is developing the Crystal Vale complex, which will start selling in March. Its total built area is 14 000 sq m and the amount of the investment totals 1.5 million euro. Completion of the whole compound is due at the beginning of 2010.

Last year Lewis Charles acquired a 20 000 sq m plot, two kilometres from Govedartsi and 500m away from the ski-lift, which is planned as a part of Super Borovets project. In 2006, it bought a 100 713 sq m plot in Kambanite area price at 9.2 million euro. Currently, the company, which manages the fund, is working with different architects on planning the plot's development.
The fund thinks that Bulgarian market has not yet exhausted its investment potential.

Last year Lewis Charles acquired a 20 000 sq m plot, two kilometres from Govedartsi and 500m away from the ski-lift, which is planned as a part of Super Borovets project. In 2006, it bought a 100 713 sq m plot in Kambanite area price at 9.2 million euro.