Archive for November, 2005

Kempinski Hotels expands in Latvia

Tuesday, November 29th, 2005

Kempinski has signed a management contract for a second hotel in Riga, Latvia, one of the European Union’s newest member states.

The Kempinski Hotel in Riga will be situated at the cultural and commercial heart of Latvia’s capital city. Originally built in 1878 in an eclectic architectural style with elements from the Italian renaissance, the hotel was the first hotel in Riga to feature electric lights, elevators and telephones.

The original building was destroyed during World War II and rebuilt during the 1950s. Because of its historical significance, the hotel has been listed as an architectural monument by Riga’s authorities. Now, the hotel’s interiors will be entirely renovated to recall its former life as the hotel of choice for Latvian artists and intelligentsia in Riga.

Located opposite the Opera House, overlooking the Freedom Monument and the mediaeval Old Town, the hotel is one of the best addresses in the city. From the hotel, it is just a short walk to many of the city’s museums, churches and main shopping districts. The Parliament and government buildings are close by, as is the Riga Congress Centre. The hotel is just 20 minutes’ drive from Riga International Airport, with good connections to much of Europe through such airline companies as Lufthansa, Aeroflot, British Airways, SAS, Finnair and Austrian Airways as well as Latvian Air Baltic, which offers direct flights to most of Western Europe and Russia.

The hotel is currently expected to open in 2007 with 250 luxurious rooms and suites. A variety of restaurants and bars, including a summer terrace with views over the city’s skyline, will serve both European cuisine and traditional Latvian specialities and the hotel’s leisure possibilities will be complemented by a casino and nightclub.

An extensive spa and wellness area is also planned, with an indoor swimming pool, sauna, solarium and a number of private treatment rooms. Further facilities will include a Ballroom and several smaller meeting and conference rooms, ideal for cocktail receptions to business conferences and board meetings.

The Kempinski Hotel in Riga is the second property that Kempinski will manage in Latvia, joining the Kempinski Kemeri Palace Jurmala, which was formerly a wellness destination favoured by royalty and high society seeking the curative and restorative powers of the Kemeri Sacred Springs.

Bulgarian Property valuation cheers, raising £40m

Tuesday, November 29th, 2005

Soaring property prices helped Bulgarian Property Developments edge higher today as it reported upbeat news on its property portfolio alongside plans to raise up to £40m.

The company said since its IPO in January it has assembled through 33 transactions a property portfolio in Bulgaria comprising of six main sites.

Five of these are strategically located in Sofia and suitable for commercial development and the other site is in Bansko, one of the country’s most popular ski resorts, which it intends to use for residential development.

The company said it is now seeking to raise as much as £40m through a placing by Fairfax I.S. Ltd in order to exploit the potential of these sites and to acquire and develop additional land.

Additionally, a valuation by Colliers International of the sites acquired has shown that as at 25 November, there has been a 55.2% uplift in value against the aggregate purchase price of the initial property portfolio.

All of the company’s sites are held in its accounts as trading assets and in accordance with its accounting policies the Company does not revalue these assets.

But, for illustrative purposes only, on the basis of the Collier’s valuation the directors estimate that the net asset value would be equivalent to 62p per share.

BPD also said it has exchanged contracts to sell a parcel of land located, although this is conditional on rezoning of the land from agricultural to commercial use being granted.

Assuming the sale completes at the agreed value, this would represent an uplift of around 90% on the price paid by the company about 8 months ago.

BULGARIA’S 2014 OLYMPIC BID MAKES IT ATTRACTIVE FOR INVESTORS

Monday, November 28th, 2005

Overseas property investors seeking an affordable real estate market with maximum potential for gains and yields are intensely focused on off plan property developments in Bulgaria’s ski resorts, according to property investment experts.

Real estate investors seeking emerging markets with massive potential are focused on Bulgaria and ski resorts such as Bansko, a prospect for the 2014 Winter Olympics, experts of Amberlamb Property Investment Resources said.

Bulgaria is currently receiving unprecedented levels of investment into property and infrastructure because the country is on the threshold to become a full-fledged EU member in 2007. With this prospect, the ski and sun resorts in Bulgaria have attracted much of this direct investment, analysts say.

The money is being ploughed into the improvement of facilities, the promotion of resorts and to increase visitor numbers and tourism revenue in Bulgaria.

For winter ski holidays Bulgaria is now the number one country for British tourists seeking affordable snow resorts. Meanwhile for summer sun holidays Bulgaria is the number one country for Eastern European holiday makers with Northern European interest also beginning to surge, the real estate experts say.

Because Sofia is a strong candidate city for the 2014 Winter Olympics and because Bansko will be the number one Olympic centre if Sofia’s bid is successful, investors are positioning themselves ahead of the predicted curve by buying off plan ski properties in Bulgaria’s number one ski resort.

With EUR 40 M already invested into improving Bansko, real estate investors are benefiting from the resort’s increased visitor numbers, improved infrastructure and a much more appealing holiday destination overall.

BULGARIA TIPPED REAL ESTATE MARKET LEADER IN SOUTHEASTERN EUROPE

Friday, November 25th, 2005

BULGARIA TIPPED REAL ESTATE MARKET LEADER IN SOUTHEASTERN EUROPE
Bulgaria is one of the leaders on the real estate market in Southeastern Europe, Bulgarian and foreign experts agreed at a major international forum in Vienna.

“Bulgaria, together with Romania, holds significant potential in the commercial and holiday real estate sectors, where it is joined by Croatia. These will be the most prospective sectors for the next three years,” said Deyan Kavrakov, head of Bulgaria’s leading full service real estate companies ADIS.

Deyan Kavrakov, FRICS, CRE, CLHMS, CIPS, CEO of ADIS Ltd. was a key note speaker at a real estate investment congress in Vienna, titled “The Big Deals 05″.

“In the office sector, demand is getting stable and marks an increase in the multifunctional industrial buildings, which house offices, production facilities and logistics,” Kavrakov said.

He forecasts that price growth in residential sector will slow down and will be no more than 10-15% next year.

“We believe investments in real estate property in Bulgaria are really good and secure investments,” says Gerhard Engelsberger, CEO of Immobilien Anlagen. The company is developing a business center in downtown Sofia and plans further investments in commercial areas.

The “The Big Deals 05″ investment forum was held for the first time, bringing together over 50 companies from Western and Central Europe.

BULGARIA TO COVER YOUNG HOMEOWNERS’ LOANS

Thursday, November 24th, 2005

Bulgaria’s government will vote on a law project in April 2006, suggesting that the state should cover part of the home credit loans of young families.

The law project is included in the management program approved Wednesday by the Council of Ministers.

The only provision for covering the loans would be for the families to have given birth to two children in the first five years of the marriage. If the parliament passes the law, the state would have to start covering the home credit loans in 2007.

In 2006 Bulgaria will also adopt a national strategy for demographical development that would cover the period until 2020.

New Sofia airstrip to open 2006

Thursday, November 24th, 2005

The new airstrip for Sofia airport will be operational by the middle of summer 2006, authorities announced after Transport Minister Petar Mutafchiev visited the construction site on Wednesday.

February 2006 was the deadline for the completion of the strip, but the construction would not be ready in time.

Sofia Airport’s CEO Kalin Barzov explained that the airstrip’s composition was completed and 2,500 meters of the strip have been built during the past three months. It would be 3,600 meters long and the airplanes would lift off a kilometer earlier compared to the old strip. This would decrease the sound pollution significantly, Barzov said. The lighting and connections between the new and old strip are yet to be constructed.

The new airport terminal is also almost ready and it would be operational before the airstrip, probably in the beginning of the summer.

When asked, Mutafchiev explained that all contract parties that are culpable of slowing down the construction works would be sanctioned.

Croatia: It knocks the spots off city life

Wednesday, November 23rd, 2005

Ginetta Vedrickas meets a family who ditched the the grimy city in favour of a freer life in Dalmatia

Published: 23 November 2005

Stressful city-living, working all hours and having a young family is enough to make the hardiest of us dream of a total life change. For most of us it remains just a dream but Charles, 38, and Carol Southgate, 37, have exchanged their frenetic London lives for a more peaceful existence in a small fishing village on the Dalmatian coast.

The Southgates have two small boys, Thomas, aged three and Ben, aged one, and, until March this year, were struggling to juggle family life while working in the City as portfolio managers. Charles explains what prompted their radical move. “I’d been in the City for 15 years. It got to the stage where I realised that, if I didn’t change soon, I’d be there for the rest of my life, and I didn’t fancy trotting into the City each day aged 60.”

The couple’s long hours (they frequently worked 12-hour days) were bearable pre-children but afterwards they began increasingly to question their hectic lifestyles, despite being successful and living in a desirable part of London, “We didn’t want the children to grow up without knowing us because we’re both at work all day, every day,” says Carol.

After talking to a Croatian friend at work, Charles hatched an escape plan. “He was so enthusiastic about the country and the potential of its property market that we started to think that there had to be an opportunity out here for us.” The Southgates visited and quickly fell in love with the central Dalmatian coastline and decided to move permanently – and have started up their own property agency, A Place in Dalmatia. Initially drawn to the romantic islands which line much of the coastline, practicality soon won out, says Charles. “With small children your priorities change and you have to be within easy reach of things such as hospitals.”

The couple sold their “betwixt the commons” Battersea home and rented at first. They have now bought a 200-year-old, large, stone property overlooking the sea at Kastel Novi, one of a string of villages known as “kastela” after the small castles built as country retreats by Trogir nobles. They paid €300,000 (£200,000) and are busy transforming the period building into a five-bedroomed family home complete with pool, large kitchen and office space for their business. “We hope that it will prove to be a great investment and should even be worth 60 per cent more on completion,” adds Charles.

The stressful buying process has made them determined to offer a better service. “Information was dreadful and the agent we used didn’t seem interested in helping us, which has made us keen to use our experiences to provide something better, such as floor-plans for every property.” Most buyers head further south to around Dubrovnik or to Istria in the north, both of which have greater accessibility, but central Dalmatia is growing in popularity. This year British Airways introduced more frequent flights into Split, and now that Croatia has signed the Open Skies agreement in the run-up to EU accession, low-cost airlines will soon be able to operate.

So far, the couple have no regrets, their business is firmly established and their eldest child has settled at nursery school where he is the only British child: “He is picking up Croatian far quicker than us. Both boys love the lifestyle out here where they have more freedom and we have far more of a life-balance.”

Other British families are hoping to join them. Stephen and Helen Sullivan, both 34, from Glasgow are looking for a holiday home in the same area. “We’ve two small children and we love this area. It’s just so clean and relaxing when you get there,” says Stephen, who holidayed in Croatia as a child. He visited Dubrovnik, and Porec in Istria, but prefers central Dalmatia with its islands, mountains and national parks, “When you drive from Split up to Zadar it’s the most spectacular journey, with islands and the sea on one side and the mountains on the other.”

The Sullivans have narrowed their search down to the Unesco- protected town of Trogir, about 13 miles west of Split. They are searching hard for a house near the sea, which they can use out of season and let throughout the summer. “We all have Scottish skin so it suits us. We hope it will prove a good investment. Everyone is talking about Croatia, and, when they join the EU, there will be big benefits.”

Avatar International sell property throughout Croatia but its director, Amar Sodhi, warns that finding your dream-house can prove difficult. “Croatians don’t tend to move frequently like we do in the UK so you’ll usually find houses have belonged to the same family for generations, and there will often be one old lady living in a castle all alone.” Many of Sodhi’s clients are chasing the same types of property: period houses, as Venetian architecture is common along this stretch of coastline, or lighthouses and castles that are becoming ever harder to source. Sodhi advises looking along the lesser known islands and coastline as far north as Zadar, “If you’re willing to head further north there’s a much greater chance of finding your paradise.”

A Place in Dalmatia: www.aplaceindalmatia.com, 00 385 21 246 290. Avatar International: 08707 282 827, www.avatar-international.com

Buying tips

* Choose your area according to your needs; for example, airport access, out-of-season living, rental income.

* Be realistic about your budget. Make sure that you factor in renovation costs, taxes and fees.

* Decide whether you want to make a private purchase or buy through a Croatian firm.

* If you want to buy through a company, get this set up, along with a bank account, as soon as possible, preferably before going property hunting.

* Find a reputable agent that you can trust. Be wary of agencies that are not in possession of all the relevant paperwork and facts.

* Always ask whether the property has “clean title” and full permissions for any work done. This is absolutely essential.

* Don’t be surprised if the seller invites you to sit down with them for coffee, home-made wine or liqueurs.

Buying Croatias Coast

Tuesday, November 22nd, 2005

ZAGREB, Croatia, Nov 22 (IPS) – The approaching winter brings with it the high season for the fairly new business of property sale on the picturesque Adriatic coast. Tempting for foreigners, troubling for local people.

Sale of property on the 1,000km coast and about 1,180 islands has risen rapidly over the past five years, the Croatian Chamber of Commerce says. The buyers are exclusively foreigners.

The sale is helping rebuild the economy of this nation of 4.5 million after the devastating war for independence in the 90s.

The prices of villas, and even devastated homes have risen an average 10 percent a year. The going price at present is between 2,500and 7,000 dollars per square metre of living space.

“The most wanted location remains Dubrovnik,” Dubravko Ranilovic, head of the real estate department of the Croatian Chamber of Commerce told IPS on phone. “There are wealthy people who do not ask the price, and pay whatever they are asked to. However, this is a limited market, and trends are hard to foresee, as there’s little new construction in the region.”

Dubrovnik, the mediaeval town on the far southeastern tip of the coast, is known as the ‘pearl of the Adriatic’. It has been the most popular target for tourists for decades.

The old town, with cobbled streets and ancient little houses, is bordered by a fortress protruding into the sea. The price of property within the town reaches 7,000 dollars a square metre. Outside the walls, it is about 4,000 dollars.

“Buying property here is a fantastic investment, as the prices in Dubrovnik have doubled in just two years,” Goran Pikunic from the local property agency Aedio told IPS. Almost 2,000 houses and flats were sold in Dubrovnik in 2004. Most buyers were British, Irish and Russians.

The central town Split on the Dalmatian part of the coast has also become popular with buyers. It is the point for ferry transport to faraway outlets.

Foreign real estate companies have now been allowed to open offices in Split. One of their first successful sales was an ancient villa on the tiny island of Ciovo for 800,000 dollars.

“The targets are the islands, particularly Hvar and its archipelago,” says Medenka Vidovic from the estate agency Cvjetni Dom (Flower Home).

Hvar, which also has a medieval fortress and cobbled streets, remains the second most popular vacation spot after Dubrovnik. Its group of seven Hell Islands so named after shipwrecks in the ancient past are now a treasure of the Dalmatian coast.

One of its islands, Pelegrin, was proposed to be leased to an Italian consortium on condition it invests 350 million dollars for six new hotels.

But although tourism is the strongest part of the Croatian economy, bringing up to seven billion dollars a year, the Pelegrin sale proposal brought public outrage. It is on hold for the time being.

“It seems we are now turning beauty into the beast with such sales,” Hvar resident Niko Miksic told IPS. “Who will remember we had wild, untamed nature here after giant hotels overrun the coast. Besides, it looks like we are selling to foreigners the last thing we have – our coast.”

The Croatian transition into a market economy was marked by the emergence of war profiteers under the late president Franjo Tudjman, who died in 1999.

Since then, Croatia has been slowly recovering from the shock of the ‘one kuna (local currency) privatisation’ under which people close to the regime bought profitable factories and firms for a symbolic sum of one kuna. Most of them are now business tycoons.

The growing sales on the coast, and the fantastic prices often quoted by the local media have brought property issues into focus. A survey by the Vecernji List newspaper and the real estate agency Infonekretnine showed that 74 percent of interviewees opposed further sale of coastal homes to foreigners.

Economists say the skyrocketing prices of real estate influence the price of new homes in inland Croatia as well, particularly affecting first home buyers.

“Young couples are becoming losers, because in some continental areas prices are now almost double of what they were a couple of years ago. This followed the coastal trend,” Vecernji List wrote.

Despite the public outcry and the effect on local property, real estate agents seem happy. Among their customers they name former French culture minister Jacques Lang, former top international official in Bosnia Wolfgang Petritsch, and United Nations representative in the region Carl Bildt.

They expect prices to double once Croatia joins the European Union by the end of the decade. (END/2005)

LUXURIOUS GOLF COURSE STARTED AT BULGARIA’S SEASIDE

Tuesday, November 22nd, 2005

A new, luxurious golf complex will be built near the town of Kableshkovo at Bulgaria’s seaside.

EUR 53 M will be invested in the complex that would spread on 2,000 decares. The luxurious site will also include villas, pools, a racecourse, tennis courts, a casino, a polo ground and a full 19-hole golf course.

At a Sofia forum earlier this month foreign experts said Bulgaria has the potential to turn into a major golf tourism destination, where seasonal peculiarities give golf players from seven to nine months to enjoy their favourite game.

Bulgarian experts claimed it is feasible to project the construction of up to fifty golf courses in a radius of 50-60 kilometers off Sofia.

Bulgaria plans to construct 40 golf courses up to 2020, the cost for the maintenance of each set at 40, 000 euros.

Czech Goods

Friday, November 18th, 2005

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