Spain's Hercesa To Invest 500M Euro in Sofia, Bulgaria - Emerging Real Estate

Spain's Hercesa To Invest 500M Euro in Sofia, Bulgaria

10/8/2008

In addition to the good quality of construction and design, Hercesa Internacional says it would offer its potential clients a relieved payment plan to make its product accessible to more people.

Zelenika residential community will feature 2000 one-, two- and three-bedroom flats in number of small communal blocks. The neighbourhood will occupy an area of 103 000 sq m between Gorna Banya and Ovcha Kupel boroughs in Sofia. The plan envisions a lot of green spots as well as the building of several playgrounds, bank offices, a kindergarten, a pharmacy, hypermarkets, retail facilities, spa and sports centres.

An unusual feature appears to be the Hercesa railway station, which will be servicing trains on the route Sofia-Pernik-Sofia. According to Calvo, it would take between seven to 10 minutes to reach Sofia central railway station and just as much to get to the city's centre.

The station will be built during the first stage of construction that will start in February 2009 with the first 400 flats scheduled to be completed by the end of 2010. Hercesa offered a relieved payment plan that includes 500 euro down payment, seven per cent of the total amount are deposited when the preliminary contract is signed, a further 11 per cent are distributed for a two-year period of small monthly payments. When receiving of the title deed, another seven per cent are deposited. The remaining 75 per cent could be either financed or paid with personal funds.

Asked about the advancing global financial crisis, Calvo said that some negative side effects could be registered and began to tell the story of Hercesa Internacional, which was found 30 years ago. “My father started out as a painter,” he said. “We understand from the product itself, not microeconomics. More than one hundred architects work for Hercesa, for us is important to construct a quality building and to complete it on time.”

For the past 35 years the company had gone through other crises, Calvo said, but the quality of the products Hercesa offers is the key ingredient toward overcoming the hard times.

The owner said that from January until September 15 2008, the company has sold 1200 flats in Spain alone. In comparison, for the past seven to eight years the sales have varied between 2000 and 2500 flats a year. Hercesa is backed up by five savings banks, which allows the company to step in 10 countries.

In addition to the Zelenika project, a second development in under way in the Manastirski Livadi borough in Sofia. Called Lipite (The Linden Trees), the complex will feature 400 flats with a total investment between 80 and 100 million euro.

Sofia Echo