Arco Invest EOOD, а Bulgarian subsidiary of Arco Vara group, restarted last week the sale of apartments in its Madrid Blvd project in Sofia. Essentially it means that the apartments in Madrid Blvd building with gross sellable area of ca 3,800 sqm are back on the Sofia market. The marketing and sale of the apartments was temporarily suspended due to uncertainties related to extension and performance of financing agreements with the bank. The last apartment in Madrid Blvd was sold in December 2013. The first sale contract after restart was concluded on Friday, 12 December. At the beginning of December there were 34 unsold apartments left in the building, out of which 15 are being rented out on short- and long-term basis. The total number of apartments remaining for sale is 18 (after first sale that took place last week), although sale of rental apartments is also possible.
The building continues generating rental income from office and commercial spaces. The annual revenue from the office and commercial spaces exceeds 900 thousand euros and covers ongoing bank interest costs and office operating costs, with some free cash being left at the group’s disposal as well.
The principal amount of the loan from Piraeus Bank Bulgaria amounts to 11,904 thousand euros after the 250 thousand euros repayment in October. Another 950 thousand euros is scheduled for repayment at the end of January 2015. The remaining loan in amount of 10,954 thousand euros should be repaid at end-December 2017. By that time, the sale of apartments and garages (including rental apartments) should reduce the loan principal by at least 3,5 million euros. The long-term action plan of the group foresees also the bulk sale of commercial and office spaces in the Madrid Blvd building by the end of 2017. The prerequisite for successful realization is a smooth cooperation with the bank and renewing or replacing long-term rental contracts which cover over 50% of the lettable area of the building by the second half of 2015.
Evelin Kanter
Head of Legal Department
Arco Vara AS
Tel: +372 614 4594
evelin.kanter@arcovara.ee
http://www.arcorealestate.com