A new company with 58 000 sq.m. of warehouse space in the municipality of Elin Pelin.
The investment in the new Logistics Park Sofia project will be BGN 32 million on a land of 100 000 sq.m.
The first building in Logistics Park Sofia, which is about 25,000 square meters, is under construction now and is expected to be ready by the end of the year.
Nearly 58 000 sq.m. of new logistic space will come into operation with the completion of the first two phases of Sofia Logistics Park. The project is being built on the land of Ravno Pole village, Elin Pelin municipality, by “Warehouse and Logistics” Ltd. The first building, which is about 25,000 square meters, is under construction and is expected to be ready by the end of the year. The second – of 31 thousand square meters, with a start-up date until the end of 2020, is at the “first dig”. Construction of the park began in November last year. The investment in the first phase is BGN 15.3 million, and the total project over 100 000 sq.m. will be about BGN 32 million.
“Warehouse & Logistics” Ltd purchased the land in 2017 from the Traffic Safety Training Center for BGN 384,000, according to the property register. The company has a preliminary contract for another 100 000 sq.m. land. It will become final once the detailed development plan for the terrain will be done. As a whole, the park will have a total of four buildings with an area of over 115,000 square meters over an area of 200 000 sq.m. by 2021. Roads and streets occupy about 40% of the total area of the property.
Warehouse for own needs and more
“As an owner and importer of the Optonica LED trademark, with its own and distribution offices throughout Europe, I needed warehouse spaces for my own business. At present, the goods are scattered in 15 warehouses in different places at different areas tells CAPITAL Anatoly Lazarov, manager and co-owner of the project. The land in Elin Pelin is in demand. “From a 10-acre self-storage facility, the project has evolved to 60,000 square meters with the idea and expectation of serious potential for area demand,” says Lazarov. He is also the manager of the investment company “Warehouse & Logistics” Ltd, created specifically for the project. His capital is owned by the construction company Mania Build, which is owned by Lazarovi brothers – Anatoli and Vladimir . They and Magdalina Markova are partners in Prima Group 2004. It is clear from the commercial register that the project will be financed with a loan from Eurobank for BGN 15.1 million.
The business of the group
Prima Group 2004 registered Optonica LED on the Bulgarian market in 2011. Under this brand, the company manufactures LED lighting in China, using components from major global manufacturers. It sells in all EU countries, the Middle East, China and some African countries. According to Lazarov, their market share in Bulgaria is about 15%. According to the Commercial Register in 2018, the company has BGN 22.3 million in revenues from sales of goods, which is 1.2% more than a year earlier. The year ended with a profit of BGN 291 thousand. “For the last 2-3 years our turnover has been almost the same, but the prices of the products have fallen a lot,” says Lazarov. Mania Build has also built several residential buildings, including the Olives City Hotel, with 46 rooms in Sofia, and the Mania Tower Business Center in Pleven, which has an area of over 16,000 square meters.
The first building
From the first building, 9.54 thousand square meters have already been leased to Optonica LED. The other 15 000 sq.m. are being negotiated with two to three companies, including an international car filter manufacturer and a Turkish investor. The project is aimed at larger companies looking for warehouse space between 5 and 10 thousand square meters or a place for clean production, says Rosen Naumov of Logistics Park Sofia. According to him, the rental prices of warehouses are about 5-6 euros per square meter.
The rents of the new Class A warehouses in this area two years ago were 3.8-4.5 EUR per sq m and now they are about 4-5 EUR per sq m. The increase is due to the new quality of the construction sites, the fact that there are few storage areas within the Ring Road and the location, comments Simeon Mitev from “BG Warehouse”. He added that in addition to the basic price, tenants pay a service fee for landscaping, maintenance of installations, fire systems … The fee began to enter the market about five years ago, now between 0.75 and 1 euro per square meter, says Mitev. Other costs are for the individual consumption of electricity and gas, for the disposal of garbage, etc.
Published July 26-th, 2019 in CAPITAL: