Proven investment opportunity – Sofia

The first build phase of Mountain View Apartments, Sofia, sold out within six months of coming onto the market last year and MHK International will be launching phase 2 in April 2007.

Investors who purchased one of these contemporary urban apartments in phase one have already seen a capital growth of over 20% and similar growth levels are expected during phase two.

The buyers of the first 90 apartments were a combination of UK and other European investors along with local business and university professionals.

The next 150 apartments on offer all have excellent views of the Vitosha Mountains or City and vary from 35m² studios to 235m² penthouse suites with roof terraces. As expected of such a luxury development, the complex will be serviced by a concierge with security on-site, along with a cleaning service, gym, sauna, coffee shop, restaurant and pharmacy. A large swimming pool complex is being built next door and there are extensive plans for further infrastructure development of the local area over the next 5 years.

Located 5km from the city centre and next to the newly emerging business district, where there is considerable inward investment from multi-nationals, the apartments have been well positioned for optimal capital growth.

“Our apartments are incredibly well located in the university zone of Sofia, situated between the already mature and prestigious areas of Lozenets, Ivan Vazov and Sofia’s business district”, says Anwar Harland-Khan, MD of MHK International, a UK property investment company who have confidently invested their capital into this growth area of Sofia. “The area has direct transport links to the new Business Park Sofia, only 4km away, which is the work place of ever increasing numbers of potential renters employed by major corporations such as Carlsberg, Google & Nestle.”

Throughout the project MHK have been working very closely with their architects to build apartments that have strong appeal within the local market in order to maximise rental appeal and reselling prospects. There is limited room for expansion so close to the city centre and demand for such apartments is high.

“By thoroughly understanding this micro-market we have been able to calculate the optimum size of apartments to ensure strong rental yields of between 5% and 7% of the investment. In other words, we are bespoke building specifically to meet the local rental and purchase demand and therefore creating robust investments for our UK clients.”

Another critical factor is the lack of rental vacancy in this area.

“We believe it is all about getting the balance right. You could invest in a more expensive apartment that would give you a higher rental return in other areas of Sofia, however, you will often not be able to achieve such high levels of occupancy and capital growth”, says Anwar.

Having secured supplier costs before Bulgaria was confirmed to be joining the EU, Mountain View Apartment prices will not be subject to the escalation that is currently being experienced in other areas of the Sofia property market.

Investments start at £29,000 with an off-plan payment schedule of 30% / 25% / 45% and the option to re-sell at any time before completion.

For further information, email invest@mhkinternational.com.