Development Land Plot Smolan Lakes Pamporovo

Reference number:	PP010
Country:	Bulgaria
Town:	Pamporovo
Type:	Land bargain
Land:	7,000m²
Price:	€80 (£56) per m²

The following, is a current land site that has just been purchased by Pearl Property Ltd, and has been fully researched and found to be a top level development site.

Pamporovo is located in the most southern part of Rhodopi mountain, the nearest bigger town is Smolyan. Surrounded by clean and unspoiled nature, pine woods and beautiful mountainous sceneries, the place is a perfect spot for recreation and relaxation in the crystal clear air and sports activities in the ski resort. A major motorway construction is underway from Smolyan to nearby Greece (just 30 km), which is expected to boost tourist inflow from Greece. The road is expected to be completed by the end of 2006, which can ease a nice 2 hour trip to the nice Aegean Sea in Greece.

Pamporovo claims to be the sunniest mountain resort in Europe (270 days of sun per year on average). There is an efficient lift system. Currently, there are total of 20 ski slopes of a total of 25km pisted run. New ski runs and lifts are being developed.

Travelling to Pamporovo is easy in the winter using the charter flights to the city of Plovdiv, which is 80km away. Cheap charter flights are arranged in the ski season by many British and international travel agents, including Balkan Holidays and First Choice making Pamporovo the ideal place to invest in a Bulgarian ski resort property!

Recent News

10 September, 2007 (Sofia Echo)

There are plans for a grandiose tourist complex in Bulgaria's biggest Rhodopi Mountain, where the the former biggest Balkan ski resort Pamporovo can also be found. The project, called Perelik, is planned to be constructed at the foot of the highest Rhodopian peak, Perelik, and consists of 200 km ski runs and about 100 km of ski lifts, Bulgarian-language Standart reported.

On August 29, Smolyan municipal councillors voted on, and approved, the establishment of a mixed company between STC Perelik AD and the municipality, which is expected to give its share of land to the new enterprise.

The construction works under Perelik are planned to start in the autumn of 2007 and will take about six years. The councillors said only ski runs and lifts would be constructed, not huge concrete buildings and heavy infrastructure. Only four restaurants are planned, which is, however, hardly possible when setting up tourism infrastructure of such a size. The project is estimated at more than 300 million euro.

The sports complex is planned to be spread over the villages of Stoikite, Gela, Solishta, Stikul and Mugla. Gela and Mugla are traditional Bulgarian Rhodopi villages that have thousands of visitors during the annual fairs and are famous for gifted folk singers and unspoilt nature.

Private land owners, from the village of Mugla, started protesting against the Perelik project. They said the planned tourism centre had "swallowed" their lands, which had not been returned to them.

Environmental organisations also alarmed, they are worried about the future of Rhodopi Mountain. In the beginning of 2007, the Government excluded large areas of the planned ski complex from the Natura 2000 list. In addition, the environmentalists are asking what the consequences for the region's water supplies will be as 16 lake are planned to be dug as part of the artificial snow facilities. The weather over the past winters did not provide sufficient snow for skiing in the area. The environmentalists also said they worried that the mountain has been bought by Asian companies.

The idea for the Perelik complex was an old one, the Smolyan municipal councilors said. The realisation of the project was now in the hands of the Smolyan businessman Kiril Assenov, who was the first blinds producer in Bulgaria and is one of the biggest entrepreneurs in the Rhodopi region. He owns the company Areksim, which now deals in garden furniture production, blinds, machine building and CD devices. Assenov has also, reportedly, been connected to the National Movement for Stability and Progress party and to Simeon Saxe-Coburg. In addition, he was best man for the deputy minister of ecology and water affairs Lyubka Kachakova.

The Perelik project received an Investor First Class certificate from the state. An airport near Smolyan and a 100km three-lane road from Plovdiv are planned for construction, with state participation. According to Assenov, the profits could reach 300 million leva a year.

The part of the project near Gela village is planned to envelop about 40 hectares (0.4 km²), including the area near Shilestata Chuka peak (2188m).

Smolyan municipal councillors also approved a project contract with a second investor in the Perelik project - Gela Engineering (GE). The second agreement applies only to the construction in the Gela village area, for which a company between the municipality and the investor will be created. The local municipality decided to own a 25 per cent stake plus one share. This, according the contract, would guarantee the veto right on decisions concerning the more important questions. The major shares will belong to GE.

During the municipal meeting, the councillors also agreed to exchange state lands in the region of Perelik peak with municipal lands and forests in other settlements. The Smolyan municipality is planning to exchange 10.18 km² lands from the forest fund and 5.2 ha (0.052 km²) of agriculture lands for state land in the Perelik area, Bulgarian language Dir.bg reported on August 30.

The Perelik project is intended to be completed in the period 2012-2014.

7000m² of development land in prime Pamporovo location

This plot of land is situated in the Smolan Lakes area which is centrally located between Pamporovo, Smolyan, and Delvin. It is in one of the last areas designated for development in the region.

The land is already regulated and outline planning dialogue has been started with the chief area Architect.

Exit 1

If the investor decided to buy the land at todays price of 80 Euros m² plus legals, keep the land and sell in 2008 with regulation they could sell it at the market rate of 120 Euro/meter2 = €864,000.00

This would have been €288,000.00 profit.
If they decided to keep the land for another year, this may have resulted in approx the same increase again.

Exit 2

If the investors decided to sell in 2009 with regulation and full planning permission for a 150 apartment/villa complex they could sell the land for 300 Euros m² therefore the total sales value would be Euros 2,160,000.00

Full planning permission would cost approx Euros 200,000.00 (20,000 m² x 10)
This would result in a €1,960,000.00. profit.

Exit 3

If the investors decided to gain full planning permission and develop the land to its full potential with a total development area of 20,000 m² and a sales area of 15,000 m² the average market price would be Euros 1,600 per m².
Therefore Euro1,600 x 15,000 = €24,000,000.00

Construction Costs

• Build Cost €610 per m²
• Architecture and building permission €15 per m²
• Sundries €2.5 per m²
• Taxes €2.25 per m²
• Engineering Services
• Turnkey project management €50 per m²

Total Construction Cost (Based on a total built up area of 20,000m²) = €13,595,000.00

Total Construction Cost Plus Land Cost of €576,000 + full planning 200,000 euros = €14,371,000.00

Therefore yielding a total Gross profit of Euros 9,629,000.00

This would be a three year project from commencement therefore completion mid 2010.

Other costs would be sales/marketing commission at a max of 12% of sales area (1500m²) = Euros 2,880,000.00. Plus a 10% profit tax.

Total net profits would be Euros 6,749,000.00 (Less 10% profit tax which can be claimed back/offset with expenses company vehicles etc.)

The complete project would be project managed through from concept to fruition, and sales and marketing can be handled through our sales and marketing company Pearl Property Ltd. Please note all figures are based upon proven worst case estimates.

Although open to offer's we are looking for an investor/partner who is interesting in buying a 49% share in the complete Exit 3 project above for Euros 890,000.00

To request further information about this property, please click here.

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Pearl Property Ltd Bg, 37 Marshall St, London, W1F 7EZ, UK.
Tel: +44 (0)800 047 0466 (freephone), Bulgaria: 00359(0)89 548 5171, Call Me Back
Fax: +44 (0)870 0940 765 | email: info@pearlproperty.net | Skype: marykarman