Trio provide €133m loan for Bulgaria office complex

Hungary's OTP Bank, its Bulgarian subsidiary DSK Bank and Germany’s Postbank have provided a €133 million senior loan to refinance the Business Park Sofia (BPS) in Bulgaria.

Hungary’s OTP Bank, its Bulgarian subsidiary DSK Bank and Germany’s Postbank have provided a €133 million senior loan to refinance the Business Park Sofia (BPS) in Bulgaria.

The 65 percent loan-to-value facility has a 10-year maturity term. OTP Bank and DSK Bank acted as lead arrangers, syndication agents and underwriters for the transaction that closed on 2 August.

Business Park Sofia is claimed to be the largest office park in Central and Eastern Europe. It is owned by investment firm Arco Capital and DB Private Equity & Private Markets, part of Deutsche Bank’s asset and wealth management division.

The office complex, located in Sofia’s central business district, consists of 14 Class A buildings which are fully leased to more than 150 international tenants. Its total built-up area will exceed 210, 000 square metres upon completion of a new development, known as Building 15.

The new building, expected to be completed in Q4 2018, will offer 20,000 square metres of leasable space, with five levels designed for office and retail use, plus two underground parking levels. The building has already been 90 percent pre-let to international tenants.

“The recent refinancing of Business Park Sofia demonstrates once again, the positive scenario in Bulgaria’s real estate market and across the SEE region overall. After a quiet period within the country’s real estate market, banks have again decided to finance well-performing, dominant, income-generating products with a proven track record like BPS,” said Uros Grujic, head of capital markets for the southeast region at JLL.

“We expect to see new capital coming in from across the globe thanks to the decreasing interest rates in the banking sector, overall flexibility of debt terms such as loan/amortization schedules, fee structures and instalment,” Grujic added.

Grujic also noted that Business Process Outsourcing is becoming the largest growing business line in Bulgaria.

“Ranked third in the world, and number one in Continental Europe, Bulgaria is one of the most attractive destinations for BPOs for major corporates to facilitate their operations worldwide,” he said.

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