Days after real estate investment trust Equest Balkan Properties announced that it would sell some of its assets in Bulgaria and other neighbouring countries, it announced that it had sold the former Hotel Serdika to Uniqa Real Estate, the real estate subsidiary of Austrian insurer Uniqa, Dnevnik daily reported on May 15.
Equest managing partner Georgi Kroumov confirmed the news but declined to specify the value of the transaction until the deal was finalised.
This is Equest's second asset divestiture after City Center Sofia, a key shopping and entertainment complex in Bulgaria’s capital.
Although Uniqa Real Estate made an advance payment, the transaction was to be finalised only once the project for Serdika’s revamp acquired all necessary building permits, Kroumov said.
The new concept for Serdika, located at the roundabout on Vassil Levski Boulevard, entails to transform the hotel into a modern office centre with commercial and bar facilities.
Equest and Uniqa are already in partner relations in Bulgaria, both companies being shareholders in Vitosha insurance company.
Serdika Hotel features in Equest portfolio as Forum Serdika and is one of the company’s smaller projects in the region.
In early May, the company announced 4.8 million euro in net profit for year 2007, a multifold decrease compared with its 25 million euro net profit in 2006. In a filing with the London Stock Exchange, where the company has been listed, the company said that it would dispose of some of its assets because of the financial global crisis and the worsening of conditions on the real estate market. The goal is to cut the need for foreign financing.
According to sources on the market, Equest has been on the look-out for a buyer for City Center Sofia. Consultant on the deal is international company Cushman & Wakefield.
Equest’s shift in strategy coincides with the entry of new shareholders into the company. Two months ago, Utilico Emerging Markets Limited and Carrousel Capital jointly acquired a 45 per cent stake.
