Working ‘smart’ is more important than slaving for long hours, says Atanas Garov, managing director of Colliers. And his record speaks for itself…

It’s 6pm on a bitterly cold December evening in Business Park Sofia. Staff at the Holiday Inn and surrounding cafes are fiddling with their collars. The area seems strangely quiet. Perhaps it’s just the post-work exodus or pre-Christmas lull because, by all accounts, the Business Park is a resounding success.

A lift takes me up to the offices of Bulgaria’s Best Employer. Cast aside your cynicism – no cheque will be coming my way for reporting this! If not a hard fact, this is at least the finding of two consecutive annual surveys. But more on this later.

Colliers’ cavernous open-plan office is still buzzing with activity. I’m offered tea and ushered into a side room. Atanas Garov, its 31-year-old managing director, greets me warmly. He speaks with a gentle transatlantic lilt, a legacy of eight years in the United States. He’s a quietly spoken, self-possessed individual without airs. But do not be deceived – he speaks softly but he wields a big portfolio.

Garov has headed Colliers Bulgaria for three years. It seems a meteoric rise but he downplays it. “You have to be mindful of the East European market where many young professionals occupy key positions. You wouldn’t expect to see someone like me in a leadership role in the UK or US, but here it’s not that unusual. This was a feature of the transition – there was a great need for innovative thinking, so many companies invested in new people.”

Nice try, Mr Garov, but methinks him unduly modest. His CV and achievements at Colliers tell a different story. In the US, Garov acquired a BA in economics from Colorado College and an MBA in International Business from Arizona’s Thunderbird School of Global Management. With an interest in architecture and design, as well as some family-run property investments, he seemed destined for real estate. He joined Jones Lang Lasalle’s capital markets group in New York, working as an analyst in their investment advisory department.

“I was pretty young (18) when I moved to America,” Garov says. “Those are important years for everybody. But America was a great place to learn, not only academically but also on a practical level. It was a marvellous time to absorb and be curious.” He returned to Bulgaria in 2002, arriving back during an exciting period of transformation. “The last few years were truly dynamic, not only for real estate but also for the economy. Now it sounds almost banal to say ‘Bulgaria’s part of the EU’ but then it seemed far from inevitable.”

Colliers Bulgaria has gone from award to award under Garov’s stewardship. The Bulgarian branch – an affiliate of Colliers International, an employer of 10 092 people in 57 countries – opened in 1991. Colliers Bulgaria has pioneered many ambitious developments. Its large-scale commercial projects, apart from Business Park Sofia itself, include the Mall of Sofia. It’s also behind the first shopping malls in Plovdiv, Stara Zagora and Rousse. “I’m proud to bring innovative services as well as new types of leisure and shopping experiences. A couple of years ago, you could talk about a potential or future for these malls, but right now they’ve really come of age,” says Garov.

Garov believes that Mladost has gained tremendously from the construction of the Business Park five years ago. Mladost certainly has evolved from concrete “socialist” ghetto to – well, not exactly prestigious – area but perhaps within a (long awaited) Metro line’s construction of becoming one. It’s a massive maze of diverse businesses – construction, media, pharmaceutical and high tech through to leisure and travel. Mladost residents, facing a gruelling rush hour (literally one hour!) journey to the central city (although it’s a mere seven km) now cast envious glances towards people working at the Business Park. And if the Park seems strangely pristine, it’s only because of the contrast with the dilapidated streets outside.

Like many newcomers to Bulgaria, I’m struck by the dichotomy between the capital’s dire infrastructure and prestigious real estate developments. Won’t Sofia’s market hit a glass ceiling unless someone addresses the potholes and putrefying rubbish? “We all understand that without improvements in infrastructure there’s a limit to how much the economy and the property sector will grow,” Garov says. So, someone has to clean up the city’s act! Are you listening, Mayor Borissov?

Everything at Colliers, on the other hand, seems superbly streamlined. If there’s one word that seems to underpin Colliers’ success, it’s professionalism. Meticulously researched in-house market reports cover the industrial, retail, office and residential sectors. Yet Colliers has also shown that it’s not preoccupied solely with profit. It also has impeccable green credentials, staging a recent international conference on sustainable real estate development, attended by more than 100 senior figures from domestic and international companies. And although Colliers has a small Varna office, the agency has so far avoided Black Sea developments, believing them unsuitable. (A recent news item on Varna said that prices were stalling because of overcrowding and poor infrastructure). “The Government has to take steps to preserve the natural beauty of the coastline but the market will make its own (self-correcting) contribution,” Garov says.

Garov rejects the widespread misconception that to be successful in real estate you have to be “ruthless”.

“Not everyone wanting to make it in Colliers has to be a sales person. There are many different career paths,” he says. Indeed, Colliers is involved in the whole gamut of property development: investment advisory services, successful concept development, securing finance, brokerage and representation as well as residential property management.

Garov says that he never forgets that his business, perhaps like all others, is ultimately about people. This may sound like a trite mantra from a smooth-tongued salesman, but Garov is anything but cynical. And here’s the proof of the property pudding…for the second consecutive year Colliers has been voted the best employer in Bulgaria. A human resources company did the survey, ranking more than 70 leading companies from the results of a detailed questionnaire filled in by employees and managers.

So how does one account for Colliers’ success? “What distinguishes us is our energy and our team spirit. One of our core values is making a difference, not just with new clients but also with our partners. I enjoy the team dynamic, the creativity and the will to keep pushing the limits of boundaries, innovation and planning,” Garov says. Yet the award is not just about self-congratulation. He sees it as a way of raising productivity by addressing weaknesses.

Does he encourage staff to put in long hours? “I encourage staff to work smart,” Garov tells me. “Nobody’s forced to stay after 6pm. You’re in control of your own time. You need to make sure you deliver everything on time but how you do this is up to you,” he says. Garov, who lives in Lozenets, is single and yet to experience the eternal wrestling match between private and professional demands that so many previous interviewees have lamented. In some cases, as they have conceded, work has won a knock-out victory to the detriment of family life. Garov seems better able to meet the challenge than most, affirming the need for “balance” between family and work. At the time of the interview, a recent survey had just cited Bulgaria as the country with the fastest rising property prices in the world. Rich pickings are still available in today’s market, enough to make dedicated professionals linger in the office and even miss an episode of Survivor. Garov confirms that the market is changing: Scandinavian, Russian and even Romanian buyers are now buying into Bulgarian property, gradually replacing the British and Irish buyers who used to monopolise the market – indeed forecasts of the demise of the Bulgarian market seem premature. But he advises amateurs who believe they can make a financial killing to steer clear. “If you’re not a property investor stick to your own business as the market is becoming more and more professional,” he says.

This brings us to the “loaded” question, the one that makes interviewers salivate but can make real estate agents’ lips quiver – the future of prices in the sector. Garov handles it like the pro he is, forecasting increasing segmentisation. “Property prices will show different trends for different sectors. In the short or medium term you can’t say all prices will increase the way they used to. As the market has expanded there’s a big filter between well-thought out projects and ill-conceived ones. Those that aren’t well conceived may suffer losses. That doesn’t mean, however, that the market lacks further potential,” he says.

Garov believes that some of the “ill-conceived” ventures may not last long. “Someone was asking me the other day if I thought that the socialist prefab housing estates will be replaced. I said that some of the new buildings may be replaced faster because they are actually worse than the socialist era buildings!” Garov notes the current loophole in the law that excludes regulation of condominiums. Hence if the front door of a prefab estate falls down nobody has to replace it. He believes in promoting commonly managed residential services. But by this he doesn’t necessarily mean gated communities. “I hate to describe new communities as ‘gated’ as if you’re protecting yourself from the outside world. The future will certainly bring more managed communities, common infrastructure, common management and services,” he believes.

Garov is a very busy man. At the time of our interview he was about to travel to Turkey for an international Colliers conference. He’s a man who appears to work smart himself. And perhaps there’s a lesson for us all there.

Source: Propertywisebulgaria.com

RISING HIGH: The ‘new City’ on Todor Alexandrov Boulevard could feature at least three skyscrapers, but faces opposition because construction would require narrowing the boulevard, one of the busiest thoroughfares in Sofia. Photo: Zhivko Angelov
Try to imagine a colossal skyscraper in place of the statue of Sofia in the centre of the city. It would have happened too, if communist-era ambitions had been realised.

The idea of a skyscraper in Sofia goes back more than 40 years, with buildings planned near the central train station, the Solni Bazar market, on the intersection of Cherni Vruh and James Bourchier boulevards, yet circumstances always conspired against such undertakings. In recent years, dozens of projects have been put forth, every one of them claiming to be the first one.

Architects differ in their opinions as to how, where and whether to build the skyscrapers. Some of those opinions were presented at a public discussion organised by the union of architects earlier in November.

There is no consensus even on the question of what constitutes a skyscraper, apart from the fact that it is a symbol of prosperity and prestige. Some claim that a building deserves the “skyscraper” tag if it is more than 100m tall, whereas for others it should just rise significantly above its surroundings, but all agree that it should be inhabited.

“Skyscrapers are big animals who like to go around in flocks. A single skyscraper sticking out on its own is nonsense,” according to architect Pavel Popov, who sees lower buildings as more humane and skyscrapers as monsters that swallow a lot of energy, resources and people. A lonely tall building is a show of bad taste, like the 59-storey Montparnasse Tower in Paris, whose infamy is in part due to the fact that it stands out, with new building height regulations passed after it was completed.

For Popov, the ideal site for the construction of a skyscraper would be across from the central train station. “This is the gateway to the city, and behind it is Vitosha. The place is appropriate because it has enough elevation,” he said.

Asked about how one goes designing one, Popov said: “Is it worth designing high buildings if we cannot make them better than the existing ones?” Architecture has abandoned its function as a practical art and is now churning out things that no longer look like buildings, he said.

But other architects argue against the idea that skyscrapers have to stand in clusters and in favour that they should be on their own. Architect Dimitar Andreichin is one of them, and he also believes that Sofia has the potential for skyscrapers to be built in harmony with the lower-elevation buildings surrounding them.

Sofia city hall chief architect, Petar Dikov, falls in the second category, saying that skyscrapers have to define the skyline of the city, but that Sofia does not offer any opportunity to cluster too many tall buildings in one area.

A good location would be the hills of Sofia, according to Ilian Nikolov, the author of a project to build a skyscraper next to Borissovata Gradina and Tsarigradsko Chaussee, on the site of the now-demolished Ropotamo restaurant, once one of the emblematic locations of the socialist-era Sofia. The project is one of the most controversial proposed skyscrapers in the city, with numerous opponents pointing out that the 100m-tall Ropotamo Plaza would look out of place among the low buildings of the Yavorov borough. Nikolov’s insistence during the discussion that the environment would “tolerate” the tall building he envisions was met by laughter and cries of “no, it won’t!” from his peers in the public.

A matter of principle
Some architects argue that Sofia already has buildings that can pass as skyscrapers, and quite a few of them, at that. The Rodina and Kempinski hotels, the Energoproekt headquarters on James Bourchier Boulevard and Transport Ministry building on Gurko Street are all in that category, according to Andreichin. While nowhere as tall as their big brothers in New York or Tokyo, they do stand out significantly over their surroundings to qualify for the tag – a skyscraper is a matter of principle and not necessarily a question of height, Andreichin said.

Almost every single conceptual design project for the construction of a skyscraper in Sofia is greeted with contempt. Architects are unhappy because they do not like the looks, local residents are unhappy because they are not keen on having a “monster” right next door. Some architects have even argued that Sofia did not have a place for skyscrapers as they would destroy the feel and soul of the city.

“Who needs them? The people, the investors, the ones collecting the commissions?” was one question asked during the discussion.

Some countries have referendums before building a skyscraper, Popov said, giving the example of Italy, where skyscraper projects in Milan and Bologna were put up for plebiscite. The residents of Bologna have already rejected the plans to build the planned skyscraper, while the fate of the trio of skyscrapers, which according to the plans would be built in the immediate proximity of a future new museum in the city, is still up in the air.

Marketplace of ideas
A true skyscraper is unlikely to rise in Sofia any time soon because both construction and maintenance is extremely expensive, according to chief architect Dikov. The global financial crisis would put a further dent in investor plans. Until now, skyscraper designs were drafted to be sold just as that, possible projects, but with the cash squeeze tightening over the past two months, the interest has died out.

Sofia offers about a dozen appropriate sites for skyscrapers in Sofia, most prominently on Todor Alexandrov Boulevard, which the city’s urban plan envisions to become the “new City” of Sofia. The main boulevards in the large residential boroughs of Mladost and Lyulin could also sprout a few tall buildings. Construction on Evropa Tower, located where once the Balkancar Sredets factory was, has already started. There are also plans for two 277m towers to be built on Ivan Geshev Boulevard, as well as for two more high-rise buildings to go with the headquarters of the CITUB labour union in Macedonia Square. A few tall buildings are expected to rise near Sofia’s central train station, where the Bulgarian-Spanish joint venture Riofisa will invest in a trading and commercial centre. Three other companies have showed interest in building towers in the area.

More than 20 projects for tall buildings have been developed, but one or two was the most Sofia could expect to see in the near future, according to Dikov.

Dnevnik daily, issue 222

The data showed that prospective clients were generally unconcerned whether the flat was in a newly constructed building or in a relatively old one. The main factors in making their decision is whether the flat has undergone recent refurbishment and whether it has the necessary appliances. Fully-furnished apartments are generally of older construction and on average command higher prices.
Bulgaria’s four biggest cities – Sofia, Plovdiv, Varna and Bourgas – have see a significant shift in the trends of the real estate sector, in particular the growing interest in property rental, data from real estate agency Address showed on November 24.

The double digit increase on the market in 2008 has been credited to the sharp demand of property rentals, as a consequence of the global financial crisis and the subsequent decline in demand for purchase of single family homes, flats or planned unit developments.

Address Real Estate’s research showed that between January and October, the major trend in the real estate market was shifting towards rentals, observing a significant growth of 12 per cent in the market for the last three quarters.

The largest interest is aimed at two-room flats, where the demand has increased by over 14 per cent, which has come at the expense for single-room flats or studios, which have registered a cooling off with a six per cent drop in demand, mainly because rental prices were very close to those charged for two-room apartments.

Three-room flats are also on the up, recording a three per cent raise.

Nationwide, amongst the four largest cities in Bulgaria, in the port town of Varna the increase has been the steepest, followed by Sofia, Plovdiv and Bourgas, Address Real Estate said, as quoted by Focus news agency.

Rental demand in Varna was 13 per cent on the up for the first three quarters. compared to the eight per cent figure recorded in Sofia. The biggest demand in the capital is gravitating towards the Sofia centre, and the neighbourhood of Lozenetz, as well as the large residential boroughs of Mladost and Lulin.

Bourgas rated last in the table with 5.43 per cent increase, the cheapest rate of all major towns in Bulgaria.

The data showed that prospective clients were generally unconcerned whether the flat was in a newly constructed building or in a relatively old one. The main factors in making their decision is whether the flat has undergone recent refurbishment and whether it has the necessary appliances. Tenants generally are reluctant to be burdened with refurbishing the flat themselves, whereas prospective buyers are keen on making the choices themselves and having the flat built custom.

Fully-furnished apartments are generally of older construction and on average command higher prices. New construction on the other hand, is exactly that – brand-new flats with no furniture or electric appliances.

Source: Propertywisebulgaria.com

Slovenia’s largest food retailer Mercator will rent space for a hypermarket in the Mega Mall in Sofia, currently under construction, deal consultant Raiffeisen Imoti, the real estate arm fully-owned Raiffeisenbank’s Bulgarian subsidiary, said on November 17, as quoted by Dnevnik daily.

Mega Mall is developed by Austria’s Real4YOU Immobilien. Its leasable area will be 24 000 sq m, split between more than 100 shops. The area earmarked for the hypermarket is 3054 sq m.

With more than 1500 stores in Slovenia, Croatia, Bosnia and Herzegovina, Serbia and Montenegro, Mercator plans to expand on the Bulgarian market as well, targeting the bigger cities and towns in the country, Dnevnik said.

In February, before the recent downturn in the global financial markets, Mercator said that it would invest 220 to 260 million euro annually between 2008 and 2012, using both its own sources and debt capital.

On November 12, the group reported a net profit of 36.4 million euro for the first nine months of the year and a revenue of about two billion euro.

Source: Propertywisebulgaria.com

The developer had said in September in its interim results that it expected the sale of Yavor Zlatni AD, the subsidiary company taht owns the hotel, to complete in October 2008.

The completion process has been advanced and on November 12 the purchaser paid the consideration of approximately 9.87 million euro into two escrow accounts. The company anticipates that the transaction will be completed by the middle of December 2008,” Orchid said in a statement on the London Stock Exchange’s alternative investment market, where the developer is listed.

Source: Propertywisebulgaria

Tsonev was, however, firm that the practice of exchanging military real estate property would not be reinstated.

15 out of a total of 30 tenders of properties belonging to the Bulgarian Defense Ministry did not have any interested candidates and have been canceled, the Minister explained, adding that he was quite pessimistic about any possible future sale of those properties due to the effects of the global financial crisis.

Tsonev further said that he hoped that the failure of those tenders would not have a negative effect on his Ministry’s social program.

1,99% of Bulgaria’s Gross Domestic Product (GDP) are slated for the Defense Ministry. The Ministry’s planed budget, including the sale of the real estate properties is for over 2% of the GDP.

Novinite.com

Property group Miller Developments has completed its biggest property transaction in continental Europe after reaching agreement on a 120 million deal for the investment purchase of the largest new retail and leisure development in Bulgaria.

Mall Varna, which started trading in June 2008, is located in Varna, Bulgaria’s second-largest city and the country’s leading tourist destination. The city is also increasingly becoming a focal point for overseas investors.

Keith Miller, chief executive of the Miller Group, described Mall Varna as an “impressive addition” to the company’s portfolio. “The investment is part of the group’s ongoing strategy to expand its presence in Europe,” he said. “Despite the current economic climate we expect the retail market in Bulgaria to continue to grow, making this prime asset a very attractive investment opportunity.

“This latest acquisition means Bulgaria is one of eight countries in which we are now operating outside the UK.”

Funding for the deal was provided by the Austrian bank group Raiffeisen. Miller Developments represented itself, while Cushman & Wakefield, in association with Forton International, advised vendor Interservice Uzunovi.

The 33,000sqm Mall Varna comprises 150 shops plus leisure facilities, including a multi-screen cinema, bowling alley and food court. It boasts an international line-up of tenants, featuring big-name retailers such as Adidas, Esprit, L’Occitane and Swarovski.

Phil Miller, chief executive of Miller Developments, said: “Only the best deals are obtaining finance in this market so this deal underlines the capability of the Miller Developments team to source and execute the best transactions.”/ Sunday Herald

Source: Econ.bg

The news was announced during Israeli ambassador Noah Gal Gendler’s visit to the town in central Bulgaria. Veliko Tarnovo offers investment opportunities in construction, transport, tourism and trade, Gendler said.

Israeli investors are also expected to be involved in the construction of a shopping mall in the town.

Veliko Turnovo is close to the Gorna Oryahovitsa airport and could be used for charter flights between Bulgaria and Israel, but for that to happen, the road infrastructure in the area needs to be upgraded, Gendler and Israel’s honorary consul in Bulgaria, Krassimir Metodiev, said.

Propertywisebulgaria.com

23 October 2008, Thursday

The Sofia City Council allocated Thursday BGN 180 000 for the setting up of a wireless Internet system in the parks of the Bulgarian capital.

The allocated funds would be sufficient for installing wireless Internet in several downtown parks – the park before the Military Club, the garden behind the Tsar’s Palace, the square around the St. Aleksandar Nevsky Cathedral and the St. Sofia Church.

In addition, during this first phase of the project Internet connection will be provided in the Borisova Garden, and in part of the Southern Park.

In July 2008 the Oborishte Park, formerly known as the Zaimov Park, became the first park in Sofia with wireless Internet.

Source: Sofia News Agency -NOVINITE.COM