Super Borovets project for Borovets resort in Samokov, Bulgaria

SUPER BOROVETS 2

Capital weekly, Teodora Vasileva

Super Borovets 2

Glavbulgarstroy gets 75% of the projects and attracts new investments.

The mega project for a new mountain resort close to the existing Borovets, known as Super Borovets, gets out of the freezing point.

The ancestors of the late banker Emil Kulev retracted by the association with the Samokov municipal and the new majour shareholder is “Glavbulgarstroy”. The new owner will most probably search for a new investor to complete the project. The leading partner in the investment company “Equest” announced that he is interested in the project.
“Contract 99” announced on Thursday, that they have a preliminary contact signed with “Glavbulgarstroy”. Thus the construction company will get 75% in the “Rila – Samokov 2004”. The rest of the shares are owned by Samokov municipal, which participates in the company with 2 thousand decares land plots and owns 25% of the shares, which are estimated on 29.516 million BGN. (At first place, Energoproject owned 8% of the shares, but they sold them.)
“Contract 99” did not announce the price of the deal, but according to sources, closely related to the revision, it is about 25 – 30 million BGN. “Glavbulgarstroy” is in the company ever since its foundation, know the project and is the best choice.
This is the third big deal of the heirs of the late Emil Kulev. Lately they sold DZI Bank and chose a buyer for the insurance company. Kulev was the most active person for the project, which had to unite huge land plots over Samokov, Borovets and Beli Iskar. After his death, the municipal made changes in the company’s statute, according which it will approve every decision, although it is not a majority owner.
Although official information on the set up of the ownership is lacking, a new investor is expected to enter in the SUPER BOROVETS project.
The managing partner for “Equest” George Krumov said that he is interested in the project. If this happens this will be the next huge deal of the investment fund. “We are studying it, but still there are many factors, that depend on the other shareholders”, said Krumov. According to him, there should be a mutual agreement, and a good will by “Glavbulgarstroy”, to have a share and support the construction, approval by the Samokov municipal, consideration with the eco program “Natura 2000”. Just then the due diligence and negotiations for the specific deal can start, added Krumov. They think that the government should also support the project, as it has to construct the road infrastructure to the resort. Collaboration with the operator of the already existing ski equipment “Borosport” is also needed.
Samokov municipal is acquainted with the changes in the company.
“I have participated during the conversations. Vesela Kuleva officially announced that she is going to arrange the shares”, said the mayor of Samokov Mr. Angel Nikolov. According to the rules in the company, a shareholder, who made the decision to sell his shares, first has to make a proposition to the rest of the shareholders. That is why a municipal session will be held in Samokov. “The municipal does not want to be a majority owner”, said Nikolov.

Super Borovets is blocked and thus will stay if a big investor does not show up, commented the head of Equest and adds: “The project is huge – for 350 – 500 million Euro, and this is too much even for a big investor”. That is why if we enter in the company, we will look for other partners and another popular international tour operator to manage it.”
Despite of the numerous conventions, the mayor of Samokov expects the start of the project to be fact in the spring. “The construction of the ski infrastructure, and the repairment the local streets and sewerage, is expected to begin at first place”, said Nikolov. Two months ago the detailed plan was approved. It was disputed by eco organizations, but according to the mayor the decision will be in favour for the Super Borovets.

The project

The idea for Super Borovets was launched in 2004 by an initiative committee and the honourable head of the committee was the ex- prime minister of Bulgaria – Mr. Sax Coburgotski, who owns large land plots in the region. The plans are the now existing Borovets to be widened by the so called Lower Borovets (close to Samokov) and the Beli Iskar village. They will be connected by a wide range of lift system. Except for the new ski equipment and hotels, the project plans the construction of swimming pools, tennis courts, winter and summer stadium, a golf course, water and ethnographic park, which will transform the new Borovets in a year round resort. The plan foresees the development of the mountain to reach the zone over 1400 metres until 2015. This will be a luxurious segment with five star small hotels and villa zones with a total capacity of 1200 beds.

Super Equest

“Equest” is the most active foreign fund for risk investments in Bulgaria, for the moment. For two and a half years both funds of the group invested over 300 million euro – mainly in the property business, trade and services. They have invested in two complexes in Banya village in Pirin Mountain. Similar spa investment starts in Kavarna and closed vacation complex in Kavarna and Sozopol. In Sofia the fund owns parts of the ex- state cinemas, mall Sofia City Center, hotel Serdika and several residential complexes in the capital. “Equest” holds the chains “Familia”, “Tehnomarket” and the automobile importer “Auto Union”.