Investment fund Engel East Europe NV is close to finalising the sale of Panorama residential complex in Sofia's Vitosha borough, investor.bg web site reported on March 12, quoting company sources. The buyer, which is expected to sign the deal soon, has remained unnamed.
Engel representatives told investor.bg negotiations for the transaction has started in 2007 and a preliminary contract has been signed in November. The value of the deal is 7.5 million euro. So far Engel has received 75 000 euro. The deal provides for Engel to get 8 per cent from the complex' rental revenues.
Engel's projects in Bulgaria are evaluated at 66 million euro. The fund manages a total of 694 residential units in several projects, 264 of them set for completion by the end of 2008. The construction of the remaining 430 should start in the second half of 2008.
In Bulgaria, Engel invested in six residential projects in Sofia and its suburbs. Among them are Panorama with 50 apartments, located next to the ring road; Vitosha Palace in Pavlovo neighbourhood and Slunchev dom (Sunny Home) in Sofia's Ovcha Kupel neighbourhood.
The fund owns a plot in the village of Pancharevo and received a permit for the construction of 20 villa houses. The project is too small for Engel and they are searching for an investor who wants to buy the plot, the fund said a year ago.
The fund purchased two neighbouring plots Gorna Banya District, 10 960 sq m and 9 300 sq m, for the construction of a complex with 1000 residential units.
Engel's projects in CEE countries total 1.4 billion euro. The fund announced it plans a number of acquisitions as a part of its strategy to focus on high-class projects and mixed-use developments. Engel plans to sell all the projects that are not in line with this strategy and those with low returns.
The fund registered a 4.02 million euro loss before taxes in 2007. In 2006, it closed the year with a 15.37 million euro profit. The fund's incomes over a year has dropped from 25 million euro to 17 million euro.
