News and Articles related to City of Varna
Current date: 2010-02-09 05:41

Property investment fund freezes big projects in Varna and Sofia

Property investment fund Orchid Developments will freeze the completion of Grand Mall in Black Sea Varna and Orchid Hills housing complex in Sofia, citing the global financial crisis. The construction of a new unit of Business Park Varna also hangs in the balance.

The unfavourable global economic climate and the ailing banking and capital markets have made it hard for Bulgarian entrepreneurs to raise capital for new and ongoing projects and rent out under adequate terms, the company told the Londong Stock Exchange, where it is listed.

Orchid Developments will put off the construction of Grand Mall Varna’s office towers and will focus on the project’s corpus, which will house retail outlets. The scheme has been estimated at more than EUR 140 million. Building work on the company’s upscale gated complex Orchid Hills in the Bulgarian capital will also be halted.

However, the fund will press ahead with its Orchid Hills project in the Black Sea city, whose second stage should be completed by May. The company is already renting out flats in the third unit of the complex.

Orchid Gardens, the fund’s other project in Varna, should also be completed by schedule.

In January the fund wrapped up the sale of the Yavor Hotel in Golden Sands seaside resort. The deal will fetch almost EUR 10 million.