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Slide 2: VIP Consult Newsletter, 2008/ February I. RECENT IN-HOUSE NEWS 1. AEA MEMBERSHIP We are proud to announce our membership in AEA, the exclusive European Association of Lawyers(http://www.aeuropa.com) The European Association of Lawyers (AEA), is an international network of offices covering most of the world’s countries. The network has its origin within the European Union and with time, has been expanding to the remaining countries in the world, beginning with the countries that not yet belong to the EU,and followed by the majority of countries of America, Asia and Africa. The AEA presents the largest net of the world’s lawyers, as there is no other net of offices that cover so many countries and locations. constantly looking for expanding our cooperation with other foreign law firms. Our experience shows that we collaborate in the most efficient way with offices similar to ours in size, practice area and manner, but we are open to discuss all proposals for possible cooperation. 2. INTERNATIONAL COOPERATION Since most of our clients are foreign physical and legal persons and the protection of their interests involve observance of the Bulgarian and their native country legal frameworks we are 2
Slide 3: 3. CUTTING EDGE Vip Consult carries on a policy of service expansion. In response to our clients needs and requirements we already provide: - Full Snagging Checklist Service Renewable Energy Consultancy Insurances Through Selected Companies Mortgage Services Online services II. BULGARIAN REAL ESTATE MARKET OVERVIEW Bulgaria has been ranked third in the world in terms of property price growth in 2007. Average sale real estate prices rose by 36 per cent last year, whereas rentals posted a more modest mark-up of 6 to 7 per cent nationwide, reaching 10 per cent in Sofia. These figures were revealed by Deyan Kavrukov, a head of Bluehouse equity fund and a former partner in Equest, in an interview with Bulgarian National Television. For more information please visit the Bulgarian Statistical Portal / http://stat.bg/index.html/ 1.COMMERCIAL PROPERTIES 1.1Offices & Business Parks Office space prices will keep on growing for at least two years pushed by the lack of completed large-scale projects. Currently, the available office supply is very limited and the market does not expect significant deliveries in the months to come. For that reason the concept of the modern business parks has developed in Sofia and Varna during the last 2 years.More projects for building business parks are in the making for other large Bulgarian cities, including Stara Zagora, Plovdiv and Bourgas. 3
Slide 4: 1.2. Retail Warehouse & Mall projects No matter the great variety of new shopping mall projects in Bulgaria, total inventory in the country remains one of the lowest in Europe. Retail continues to be the most dynamic commercial real estate sector in Bulgaria. The first half of 2007 was marked by the initiation of many new shopping centres and retail warehouse developments. International developers such as ECE, Riofisa and GTC have entered the market with significant projects in Sofia, Varna and Plovdiv. Major retail chains continue their expansion throughout the country. Hiigh streets are traditionally the most desirable retail location. 1.3. Logistics & Industrial Industrial real estate is shaping up as an attractive segment in the eyes of developers. Large players from Central Europe and beyond are considering the market opportunities. Several projects are either planned for future development or have been initiated in the second nal of 2007. Bulgaria’s industrial real estate segment has started focusing on large, consolidated projects, developed according to contemporary standards. The market has started developing towards more consolidated, large-scale projects, with two industrial and logistics parks already in the pipeline (in Sofia and Varna) and more planned (in Sofia, Plovdiv and Rouse). Тhe lack of big plots and their high price in the city centres has imposed their remote location and some of the projects are already planned in 10-20 km distance away from the towns. 4
Slide 5: 2.RESIDENTIAL Prices for residential real estate in the 28 biggest cities and towns in Bulgaria grew by an average 28,9 % in 2007 over the previous year, data of the country's National Statistics Institute(NSI). The average price paid for residential properties across Bulgaria stood at EUR 737/m2 in 2007 compared to EUR 624/m2 in 2006, shows data of Address real estate company. The most popular investment for investors has so far been city centre apartments. Varna retained its lead in the price ranking and commanded the highest residential property prices - BGN 852/m2, a 19% increase over the previous year. The property market of the second-biggest town of Plovdiv is the third-biggest price riser, recording an increase of 14% in residential prices year-on-year, followed by the costal port of Bourgas (11%) and the northern town of Veliko Tarnovo (9%). 3.HOLIDAY HOMES The resort apartments market in Bulgaria continues to grow with increasing pace. In the mountain resorts supply increased by 52% during the first half of 2007, after almost 10,000 new apartment units were put on the market. The growth was most significant in the Bansko area (including Razlog), which accounts for 78% of the new supply. Supply in coastal resorts also increased substantially and recorded a 39% growth, or 13,500 apartment units, in the first half of 2007. 5
Slide 6: Although Sunny Beach continues to account for more than one third of the supply in this segment, other resorts saw accelerated development as well. Overbuilding in Bansko and Sunny beach resorts has directed the supply in the neighbouring towns and villages. In St. Vlas and in Sozopol holiday homes supply increased by 52% and 62% respectively. On the North Coastal area, Kavarna and Balchik have developed as leading holiday-homes centres. 4. LAND INVESTMENT The price of the land is still low in Bulgaria, especially for plots located in rural areas. Last year the land on the Black Sea coast, around the beach and ski resorts, around the big cities and towns has increased its price. In some areas of Bulgaria we have 100 % increase only for 1 year. The price range in wide limits depending on the region, the size of the land and its type/ agricultural land or building plot/. Many foreign investors prefer investments in agricultural land because of its lower price and the legal framework permitting its conversion to building plot or industrial plot. III. LEGAL SYSTEM REFORMS New Commercial Register As of 02.01.2008 a Trade Register starts operating on the territory of the whole country. The company registration procedure has been entirely amended as per the newly passed Trade Register Law. As per the Trade Register Law an authorized person is not allowed to sign the Application 6 for company name reservation as well as the Application for inscribing the company in the Trade Register. The Law requires the manager of the company either to sign and submit the above two Applications in person in front of the officer or to certify them in front of a Notary Public.
Slide 7: Under the new enacted law, companies bearing the same name have two months to make a change. Afterwards the Registry Agency must change the names of all such companies by adding to them the name of the town where each of them was first registed. Companies have three years to re-register. The new registration system will reduce the time needed to obtain various permits and licences. IV. EXHIBITIONS / SEMINARS / EVENTS • THREE KEYS - HOME, OFFICE, VILA Varna - Palace of sport and culture, International Specialized Exhibition for building and furnishing - 06.03.2008 - 10.03.2008 BBW (BULGARIA BUILDING WEEK), Sofia - Inter expo and congress center, 11.03.2008 - 15.03.2008 STROIKO 2000, Sofia - in the National Palace of Culture, 26.3.2008 – 1.4.2008 INTERNATIONAL EXHIBITION FOR ENERGY EFFICIENCY AND RENEWABLE ENERGY SOURCES, Sofia - in the National Palace of Culture, Exhibition on Energy Efficiency /EE/ and Renewable Energy Sources /RES/ - , 07.04.2008 - 10.04.2008 HOME EXPO, Sofia - Festivalna Hall, International building and construction exhibition, 11.04.2008 - 20.04.2008 BALPEX, Sofia - Inter expo and congress center, Balkan property exhibition 18.04.2008 - 20.04.2008 • • • • • 7
Slide 8: For more information on exhibitions & trade fairs in Bulgaria please visit the following online exhibitions catalogues: • • • • • http://www.fair.bg http://www.bulgarr eklama.com http://www.viaexpo .com http://www.ndk.bg http://www.stroiko2 000.com/ V. SOURCES OF INFORMATION Ministry of Justice - http://www.registryagency.bg/en/ National Statistical Institute - www.nsi.bg Capital Weekly - http://www.capital.bg/ Dnevnik Daily - http://www.dnevnik.bg/ BTA bulletin - http://www.bta.bg/site/bg/index.shtml VI. OUR ACTIVITIES We can assist you in all matters regarding: • • • • • • • REAL ESTATE LAW COMMERCIAL LAW INHERITANCE LAW LABOUR LAW LAW OF OBLIGATION BUSINESS CONSULTING SERVICES INVESTMENT ASSISTANCE FOR MORE DETAILED INFORMATION, PLEASE VISIT US AT : WWW.VIP-CONSULT.NET 8