airport presentation
TRANSCRIPT
Project Sofia AirportReal estate Investment Opportunity in Bulgaria
Confidential –December 2009
Executive summary
FACTS :
• “Project Sofia Airport” company owns a plot of land of 5.000 sqm at Sofia Airport boughtfor 3,4€M.
• “Project Sofia Airport” company has an opportunity to extend the current plot by buying a
1.222 sqm plot for 0,7€M.
• “Project Sofia Airport” company wants to construct a building comprisingoffices/showrooms/parking space for up to 30.000 sqm.
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• Total project acquisition & construction costs are estimated from 11,3€M up to 17,6€.
PROJECT :
• “Project Sofia Airport” company is looking for a partner to :
a) acquire 50% of its shares for 1,7€M,
b) able to fund (including bank debt) 50% of total construction costs (alongside “ProjectSofia Airport” company participating for the other 50%). Partner’s funding capacity(excluding bank debt) should be between 4€M up to 5,4€M.
B
The site : overview
A
B
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One of the most attractive plots at Sofia Airport :
• A unique location: Sofia Airport is only 8 km away from
Sofia Centrum and is linked by a highway without a
single traffic light in between.
• The Sofia Underground will connect the airport with
the Centrum by 2013.
• The plot is located 800m far from the airport boundary
A unique corner plot:
• A site of 5 000 sqm, located atthe corner of the two main
boulevards of Sofia Airport (A).
•An opportunity to buy the
neighbour's corner site of 1222
sqm (B).
• Over 130m of frontage to the
main boulevard leading to the Airport
–
The site : The immediate surroundings:
G H I
K L
M
N
O
Local Businesses:
A - Fed Ex
B – Caven & Radis
C - UPS
D - TNT
E – Porsche & Nova TV
F – Maserati show room
G – Brussels Center (hotel &
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A B
C
D
E
F
J
G Brussels Center (hotel &
offices)
H – Sofia Plazza
I – Sofia Airport Center
J – Sofia Airport City
K – Grand Hotel
L - ORBIT
M - DHL
N – Bulgaria Air
O – Air Control Center
Construction potential 17.500 sqm 21.500 sqm 30.000 sqm
Project costs assumption : 3 options
Option 1 Option 2 Option 3
Plots acquired Plot A : 5.000 sqm Plot A : 5.000 sqm Plot B : 1.222 sqm
Plot A : 5.000 sqm Plot B : 1.222 sqm
Applicable Construction Law
Intensity parameter of
3.5 with height limit of36 m.
Intensity parameter of
3.5 with height limit of36 m.
Intensity parameter
same as Option 1 & 2
+ specific law on
corner plots highest
possible density and
intensity
Construction potential 17.500 sqm 21.500 sqm 30.000 sqm
Cost of construction based on 450€/sqm
7.875.000 € 9.675.000 € 13.500.000 €
Cost of Land acquisition
Plot A : 3.400.000 € Plot A : 3.400.000 € Plot B : 700.000 €
Plot A : 3.400.000 € Plot B : 700.000 €
Cost of land /sqm of build-up area
194 €/sqm 191 €/sqm 137 €/sqm
Total Project Cost (land + construction)
11.275.000 € 13.775.000 € 17.600.000 €
Total Partner ’s commitment (excluding 5.637.500 € 6.887.500 € 8.800.000 € bank debt)
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o ces oo age
Project revenues assumption : 3 options
Option 1 Option 2 Option 3
Sqm footage available 17.500 sqm 21.500 sqm 30.000 sqm
20% showroom footage allowance (90% rentable space)
3.600 sqm 3.900 sqm 5.400 sqm
Yearly rent based on 180€/sqm
648.000 € 702.000 € 972.000 €
80% ffi f t80% offices footage allowance (80% rentable space)
11.200 sqm 13.800 sqm 19.200 sqm
Yearly rent based on 84€/sqm
940.800 € 1.159.200 € 1.612.800 €
TOTAL Yearly rent 1.588.800 € 1.861.200 € 2.584.800 €
Total Project costs 11.275.000 € 13.775.000 € 17.600.000 €
ROI 14,1% 13,5% 14,7%
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Strengths summary: the most attractive plot at Sofiaairport
• Corner plot facing the two main boulevards at Sofia Airport.
• Over 130 m of frontage to the main boulevard that links the two
terminals of Sofia Airport with the Centrum of Sofia.
• Perfect location for showrooms, as they will be situated only 5 m
away from the boulevard.
• Located directly across the road from the showrooms of Porsche,
Fiat, Lancia, Alfa Romeo, Maserati and Mazda affording a certain
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Fiat, Lancia, Alfa Romeo, Maserati and Mazda affording a certain
cachet for additional auto showrooms.
• No residential construction in the vicinity, Sofia Airport is zoned for
commercial use only.
• Conservative financial modeling approach :
� Office rent priced at 7€/sqm vs 15€/sqm for the area (Porsche
building – 16€/sqm ; Maserati building ( 15€/sqm ; Tishman
project, airport area – 13€/sqm).
� Showroom rent priced at 15€/sqm vs 30€/sqm for the area
and no current availability.
3D rendering - possible construction
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Contact
Dimitar Badjovemail : [email protected]
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email : [email protected] : +359 888 627660