Archive for November, 2005

Dawnay Day buys 90 pct in Czech Republic shopping centre worth 37 mln eur

Wednesday, November 16th, 2005

Retail commercial property investment company Dawnay, Day Carpathian PLC said it has completed its third transaction, the purchase of a 90 pct interest in the Varyada Shopping Centre in the Czech Republic.

The Varyada Shopping Centre is valued at around 37 mln eur.

The purchase follows a recent acquisition of four shopping centres for 64.5 mln eur in Poland, and the Antana Warehouse Park in Hungary for 21.0 mln eur.

The Varyada Shopping Centre is located close to the centre of spa resort Karlovy Vary, with a total lettable area of approximately 18,200m2. The main tenants are the supermarket Interspar, Marks and Spencers and brands such as Tommy Hilfiger, Pierre Cardin, Benetton, New Yorker, NafNaf and Helly Hansen.

RE/MAX Adds Estonia, Latvia And Lithuania

Tuesday, November 15th, 2005

RISMEDIA, Nov. 14 — Announcing three new countries at once, Estonia, Latvia and Lithuania, RE/MAX International has now expanded its real estate franchising to a total of 61 countries.

Eythor Edvardsson, a native of Iceland is the new regional director for the three Baltic countries which formerly were part of the Soviet Union. Edvardsson finished Commercial School in Iceland and has worked in real estate for a number of years and has been part owner of an independent Lithuanian real estate investment company.

“Through the years, my holiday travels to USA more often ended up in my exploring the real estate market. There I first came in contact with RE/MAX,” commented Edvardsson. “I learned about the atmosphere of this organization and it suited my personality well. I really love the active character throughout this international network. Estonia, Latvia and Lithuania are very active and attractive markets that are growing fast with the help of foreign investments. Knowing how creative, independent, educated and hard working Baltic people are, I am sure we can build a remarkable RE/MAX team.”

Edvardsson is also an accomplished singer, author and music events organizer and has served as chairman of the Fostbraedur choir since 1994. He was instrumental in organizing events and festivals in Denmark, Finland and Russia including a seasonal concert in Philharmonic Hall of St. Petersburg.

“We are pleased to welcome Eythor Edvardsson to the RE/MAX family,” said Peter Gilmour, RE/MAX senior vice president, international franchise sales and brokerage. “His background in real estate and knowledge of his region will certainly mean operations will be off and running quickly. His energy and experience will be most valuable to building a quality organization in these three countries.”

Estonia has a population of 1.3 million. It borders the Baltic Sea and Gulf of Finland, between Latvia and Russia. After centuries of Danish, Swedish, German, and Russian rule it attained independence in 1918. Forcibly incorporated into the USSR in 1940, it regained its freedom in 1991, with the collapse of the Soviet Union. Since the last Russian troops left in 1994, Estonia has been free to promote economic and political ties with Western Europe. It joined both NATO and the EU in the spring of 2004.

Latvia, which borders the Baltic Sea between Estonia and Lithuania, was annexed by the USSR in 1940 after a brief period of independence between the two World Wars. With a population of 2.3 million Latvia’s independence was reestablished in 1991 following the breakup of the Soviet Union. Latvia joined both NATO and the EU in the spring of 2004.

Independent between the two World Wars, Lithuania borders the Baltic Sea between Latvia and Russia and was annexed by the USSR in 1940. On March 11, 1990, Lithuania became the first of the Soviet republics to declare its independence, but Moscow did not recognize this proclamation until September of 1991. Lithuania subsequently restructured its economy for integration into Western European institutions and joined both NATO and the EU in the spring of 2004. It has a population of 3.6 million.

Bulgaria & Romania Increasingly Attractive to Foreign Investors

Tuesday, November 15th, 2005

Bulgaria and Romania promise to become the most attractive countries in the South Eastern Europe region for foreign investors.

According to a latest report released this week by the analytical unit of Bank Austria Creditanstalt, investors will be attracted by the good privatisation offers in the two Balkan countries. Besides, since the early 90s the region has been turning into the fastest developing market after Asia.

With an average GDP growth of 5% annually since 2000, South East Europe surpasses the EU member states in its economic development, where the average annual GDP is 3.5%.

Structural changes, related to EU membership, would increase the positive economic developments as the two countries move forward toward EU membership. Bulgaria and Romania would develop greatly after joining the EU and were expected to become leaders in economic growth in the region, the report says.

Profiting from peace in Bosnia

Monday, November 14th, 2005

Lord Ashdown figures he has found the new property hot spot — and is selling one holiday home to buy another, reports John Arlidge of The Sunday Times

It is not every day you see a former Royal Marine, a former leader of a British political party and a member of the House of Lords stroll out of his house at 7am sporting nothing but a pair of faded beige swimming trunks and a broad grin. Stranger yet, he is being pursued by three heavily armed men. But, for Lord (Paddy) Ashdown of Norton-sub-Hamdon, former LibDem leader and the international community’s representative in Bosnia, this is a morning ritual he calls “pure heaven”.
Ashdown strides across the lawn to the bottom of his garden, carving a dark streak in the dew. He climbs on to the roof of the boathouse. Without hesitating — once a marine, always a marine — he dives 20ft, down through the smudgy mist that covers Lake Jablanica. The armed men, his bodyguards, look on anxiously as he swims through the gloom to the opposite bank before front-crawling back. Shivering, he climbs out, picks plums, pears and apricots from his orchard and then settles down to breakfast on his giant outdoor dining table. “This is wonderful,” he sighs, “and it’s the thing I’m going to miss the most. It’s heartbreaking to leave.”

Ashdown, 64, is leaving a house and a country he has grown to love. He has been the Peace Implementation Council’s high representative in Bosnia since 2002, the man charged with enforcing the Dayton peace agreement in the war-ravaged former Yugoslav republic. His posting, however, ends in January. After a round of farewell parties, he will sell his home and swap his £100,000 armoured Audi limousine (with armed outriders) for his wife Jane’s battered silver-blue Fiat Punto. The couple will pack their belongings and drive back to their farmhouse near Yeovil in Somerset.

Ashdown bought his lakeside home three years ago as a weekend retreat. During the week he lives in a small Ottoman house in Sarajevo, capital of Bosnia-Herzegovina. To him, the lakeside house is more than just a home; it holds some of his fondest memories. “This is where my grandchildren, Matthias and Lois, learned to swim, where friends have come to stay and where I’ve taken tough decisions that I hope in time will be seen to have given Bosnia the stable, prosperous future it deserves.”

As he munches fruit at the table where prime ministers and presidents of Bosnia-Herzegovina have sat — along with Chris Patten, the former governor of Hong Kong, and the actor John Cleese — Ashdown recalls the day that he and Jane first saw the house and decided to buy it on sight. “We wanted to buy a house near Sarajevo, so we went down the Croatian coast, which is what everybody does. But we were stunned by the prices. We could not afford anything. We were driving back to Sarajevo a bit depressed and came along the side of this lake, and we both said almost at the same time, ‘Why don’t we buy here? We much prefer the mountains to the coast.’”

The next day the couple rented a boat to tour the lake and found a grey-brick shell for sale. It had been built by Kadir Jusic, a general in the Bosnian army whom Ashdown knew by reputation. During Yugoslavia’s civil war, Ashdown visited Bosnia regularly in his capacity as leader of the Liberal Democrats. On one trip, he bet the then Bosnian prime minister a bottle of wine that Bosnian troops could not take the top of a high mountain occupied by Serbian forces. Jusic not only pulled off the operation but did it in a snowstorm. “That was one bet I enjoyed losing,” Ashdown recalls.

The Ashdowns paid £30,000 for the shell. They then hired local woodworkers to create solid beech floors for the house and to build its doors and furniture from local cherrywood. “Almost everything in the house has been made here in Bosnia. They are wonderful with wood,” Ashdown says. “Our builder was called Hajduk — which is the local word for a bandit. My builder was Mr Bandit, which seems to be a pretty appropriate name for builders everywhere.” Mr Bandit was paid about £70,000 for his work on the property.

The house now has five bedrooms, a large kitchen and a study, which is decorated with copies of cartoons from local newspapers depicting Ashdown as Superman repairing the iconic Old Bridge at Mostar, destroyed by Croats in 1993. The home’s most unusual feature is the attic. Up a narrow flight of stairs are two long, dormitory-style rooms bristling with walkie-talkies, bulletproof vests and emergency evacuation plans. “I have to share my house with the security guys, who are all British soldiers,” Ashdown says. “Children would love to use this attic. What fun to play soldiers in a place where real soldiers worked!”

In spite of the constant security presence, Ashdown says the house is the one place where he has been able to escape the pressure of his job — which demands his attention 24 hours a day, seven days a week — of trying to reunite a country the size of Wales in which an estimated 250,000 people were killed between 1992 and 1995.

“Early mornings and evenings on the lake are best,” says Ashdown. “In the mornings I swim, but at night we get the boat out and potter off to Lisicica, the village on the opposite bank. We go to Kod Halime restaurant, where we eat pita burek, a Bosnian pie with lamb. And, stern Muslim village though it is, we always end the meal with a bottle of slivovica, homemade plum brandy.”

Ashdown also enjoys walking in the mountains, where, he says, “it is possible to touch the past. You go up to these high mountain villages and you find people living as they lived 100 years ago. Every village has its own cheese, every village has its own dance. You find people in national costume, not because they have put it on for the tourists but because that is what they wear.”

Although he is sad to leave, Ashdown is looking forward to taking some time off. “I have found my emotions wrenched about in this place more than in any other job. Nothing prepares you for the sight of a mass grave, the decomposing bodies piled up with the pathetic remnants of people’s lives — wallets full of pictures of happy families eating around the dinner table.”

He is looking forward to working in his little cottage garden in Somerset, taking his dogs for a walk on Sunday mornings and having a few pints in the pub at lunchtime. The posting in Bosnia is his last big job, he insists. “I need to give my family some time. They have been very good to me. I want to spend some time with my kids and my grandchildren.”

But Ashdown is not leaving Bosnia for good. With the cash from his lakeside house, on the market for €200,000 (£135,000), he plans to buy a chalet in the skiing resort of Mount Bjelasnica — “the white one” — where many of 1984 Winter Olympic skiing events were held. He is a fanatical skier — several of his bodyguards have broken limbs trying to keep up with him. “We want to get a chalet up there. It is very cheap. Bosnia is where Croatia was a few years ago, and by getting in now we have a chance to catch the early part of the curve.”

He may have the confidence to invest here, but others might balk so soon after such a devastating war. As one local resident observes coolly: “The worst act of genocide on European soil since the second world war hardly encourages investors.” Ashdown concedes that when people think of Bosnia, “their minds are locked in to that grainy television footage of the siege of Sarajevo from the mid-1990s”. But he insists: “The future of this place is no longer conflict. It will not happen.”

Bosnia-Herzegovina’s high representative still has two months to help secure a stable future for the country and put it on the path of full European integration. With breakfast over, Ashdown leaps up from the table. “I’m terribly sorry,” he says, stretching out his hand. “But I’ve got to see the prime minister now.”

Lord Ashdown’s house is for sale with Bosnia & Herzegovina Property, 01202 259 155, www.bosnia-herzegovina-property.com

For sale

This 2,000sq ft, one-bed house, in a third of an acre of garden, is six miles from Sarajevo city centre. It is £27,000 with Prodaja Nekretnina, 00 38 162 209 776, www.prodaja-nekretnina.com

Half a mile from the Kupres ski slopes, 60 two-bed houses are available off-plan, from £23,500, with Bosnia & Herzegovina Property, 01202 259 155, www.bosnia-herzegovina-property.com

The Black Sea Britons

Monday, November 14th, 2005

Freindly people and low costs make Bulgaria a retirement haven, writes Jenny Knight

A SMALL BULGARIAN village where goats wander the streets guided by an elderly woman dressed in black may be an unlikely place to buy a retirement home. But a growing band of British couples are doing just that.
The choice of Kosharitsa as a retirement haven has a good explanation. Most package tourists do not make it further than Sunny Beach, Bulgaria’s huge resort by the Black Sea. But for those looking for a permanent foothold and respite from the crowds, Kosharitsa is pretty, unspoilt and just a few kilometres inland.

Yvonne and Stephen Kent, 52 and 50, pitched up in Bulgaria in 2003, having dismissed France, Italy and Spain as retirement choices. “They were too built-up and commercialised. Bulgaria was lovely, and although there are a lot more people here now we still think it’s great,” Yvonne said. The couple went house-hunting and last year sold their three-bedroom bungalow in Rock, Cornwall, and moved to Kosharitsa, buying a newly built two-bedroom house with three bathrooms for a mere £34,000; it has a walled garden big enough for a pool and a barbecue terrace is to be built. Yvonne added: “If we had been thinking of an investment, we chose the right time to buy because the house is now probably worth three times as much, but we think of it as our home and plan to stay here rather than take the profits. We are both learning Bulgarian, which must be one of the hardest languages. We can say ‘hello’ and ask simple questions.

“In this village alone, there are five retired British couples who live here full time and a lot more who spend half the year here and half back in Britain. There is talk of forming an expats’ club, but we probably won’t bother. We want to mix with the Bulgarians and become part of their community rather than stay in an English set.”

The Kents’ decision to abandon Britain — even though they lived in what many Britons would regard as a perfect retirement spot on the Cornish coast — was driven by a liking for the Bulgarian way of life. They admire the family-centred style and the Bulgarians’ warmth and moral standards, but they at first found it strange adapting to cultural differences: “When you hear people speaking, they sound gruff, abrupt and they do shout a lot, but then you find that it’s just their way and they aren’t really arguing. If you ask for directions they go out of their way to help and couldn’t be kinder,” Yvonne explains. The couple now have Bulgarian friends who help them out in emergencies: “We paid our electricity bill twice by mistake and didn’t have enough of the language to sort it out ourselves,” Yvonne says. And because rural parts of Bulgaria have so far not been invaded by coachloads of tourists, the couple still attract quite some attention when they visit remote villages.

A big attraction for Britons is the cost of living in Bulgaria. Yvonne and Stephen’s monthly water bill is only £1.50 and electricity costs between £10 and £15 a month. A good bottle of wine costs £1, a beer 20p and a slap-up meal for two, even in a tourist resort, less than £10. Groceries are also cheap — not to say free in the summer months, when Bulgarian neighbours with market gardens and orchards call to share their tomatoes, apples, pears and vegetables. All the Kents miss about Britain is bacon, friends and family. Their days are spent doing DIY — Stephen was a builder in Britain — and walking in the beautiful countryside, where a huge variety of birds can be spotted and even, occasionally, wild boar. It is also rumoured that bears still exist in remote areas.

Mike and Margaret Mellor have also retired to Kosharitsa in an attempt to stretch the small pension that Mike receives from British Steel, which he worked for as a joiner in Teesside. Rather than buy a ready-built house, they asked a Bulgarian who befriended them to put one up to their plans. Incredible though it may seem to those with less trusting natures, their faith in their new friend was amply repaid, with a fine three-storey detached four-bed house with a sun terrace on the first floor and a verandah upstairs. The deal, including central heating and a good finish — neither normally supplied as standard by Bulgarian builders — cost £60,000.

Mike said: “We could have stayed in England, but we would have had to penny-pinch. Here the same pension allows us to live very well. The people are friendly and go out of their way to help. They invite you in for drinks and arrive with trays of grapes, tomatoes and red wine after the harvest. If you’re not careful you can be tipsy by teatime every day. We were lucky with our builder, al though you do hear horror stories of people building half a house, taking the money and running.”

Like their friends, the Kents, the Mellors are learning Bulgarian and intend to stay for the long term. Margaret says that she has already picked her burial spot. To those who predict that most Bulgarian retirees will return to Britain sadder and wiser once old age sets in, Margaret replies that they have already encountered one emergency and survived. When Mike went down with food poisoning, a consultation with a doctor was arranged quickly and easily. That and the cost of medication amounted to £3.50.

Amar Sodhi, from Avatar International estate agents and consultants, said: “Probably a thousand or so Britons are now buying in Bulgaria each year, but most are investors and holiday-home owners rather than people planning to retire. The cost of living is very low. If Bulgaria joins the EU, prices will rise, but if locals are still earning the same wages it will remain comparatively cheap.

“It is a better plan to retire to a city or village rather than a resort, because at the end of October resorts become ghost towns. Prices are also cheaper in places where local people shop. In resorts there are sometimes two-tier pricing — for the locals and for tourists; because rents are high, so restaurants and bars have to do this. My tip to those thinking of retiring is to look to the new ski resorts set in beautiful scenery where it is a lot cooler in the summer months, but where there is something going on all year round.”

Poland’s Economy

Monday, November 14th, 2005

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BULGARIA TAPPED FOR GOLF TOURISM HOTSPOT

Sunday, November 13th, 2005

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, according to a Spanish expert.

Manuel Ferry Sanchez, CEO of Ferry Group, Spain, talked at the RINFOR Real Estate & Investment Forum, which is taking place in Sofia.

Sluggish administration and the parceling out of land are the heaviest difficulties that investors in golf courses face in Bulgaria, Sanchez said during the discussion “Golf tourism – exotic hobby or profitable investment?”.

Over the last twenty years golf has gradually gained popularity in Spain, which now boasts 737 golf courses on its territory.

Bulgarian experts say 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.

EU Signs Deal With Estonia, Slovenia & Lithuania

Wednesday, November 9th, 2005

BRUSSELS, Belgium (AP) – The European Commission signed an agreement with Estonia, Slovenia and Lithuania on Tuesday to help prepare the three new EU members for the introduction of the euro currency.

The EU will support educational and media campaigns in those countries to help people understand the changes that stem from switching their national currencies to the euro.

Slovenia, Estonia and Lithuania linked their currencies to the euro through the European Exchange Rate Mechanism in June 2004. Nations must be in the system for at least two years before they can join the euro zone.

The three countries, who joined the EU last year, hope to make the switch to the euro on Jan. 1, 2007, putting them first in line among the 10 newcomers for adopting the continent’s single currency.

An EU opinion poll shows that few people in the new member states feel as though they understand the euro and many fear they will have trouble converting prices or will face inflation after the changeover.

Greek tourism wave to Czech Republic increases

Wednesday, November 9th, 2005

Tourism for Czech Republic is very important because it can built the foundations to have a strong tourism wave from Czech Republic to Greece and vise versa, said Mr. Panagiotis Meletis, Director of Czech Republic’s National Tourism Organization in Greece and Vice-president of Goldair, in Exhibition `Philoxenia 2005` held in Greece.

The targeting points of the Organization according to Mr. Meletis are, that in the next five years the number of Greek visits to Czech Republic will increase from 40.000 to 75.000 yearly and their average stay to become one or two days more, and secondly to expand the destinations beyond Prague in which tourists can visit.

In the third quarter of 2005 11.300 Greeks visited Czech Republic, while in the third quarter of 2004 only the half came to the country. The development of Greek market is particular important because it is not only the increase of Greek arrivals in Czech Republic but the fact that Greece is in the 19th place among those who come to Czech Republic. In the first place are Germany, England and Italy.

Serbia-Montenegro starts talks with EU

Tuesday, November 8th, 2005

The EU opened formal talks on 7 November with Serbia and Montenegro on a Stabilisation and Association Agreement.

The opening of talks on the Stabilisation and Association Agreement (SAA) is considered a stepping stone towards membership of the Union.

The process was launched in October 2005, and during the first round of the negotiations in Belgrade the discussion points include the general principles of the agreement as well as political dialogue, regional co-operation and financial co-operation. The next – plenary – meeting is scheduled for 8 November, where the main topic will be Serbia and Montenegro’s co-operation with the international war crimes tribunal in the Hague and the rights of minorities.

A key condition to the success of the SAA process is the extradition by Belgrade of top war crimes suspects Ratko Mladic and Radovan Karadzic.

Further official rounds are scheduled for April and November 2006. There will also be five technical rounds, in December 2005 and in March, June, July and September 2006. The SAA negotiations are expected to last a year, and Belgrade hopes to qualify for EU membership by 2012.