News

Bulgarian co Stad to build logistics center near Sofia

The contemporary facility will occupy a 0.6 ha lot facing the Sofia ring road.

The property, with a built-up area of 6,500 sq m, will also comprise an office building, retail facilities, bank office and showroom. The storage section will offer a capacity of 6,000 pallet positions.

The storage space rents start from 5-6 euro/sq m while the office space will be rented out at 10-12 euro/sq m.

The Stad logistics center will offer a comprehensive range of services: from storage, labeling, repackaging to door-to-door distribution and up-to-the-minute information on inventory levels.

The Stad company operates a forwarding fleet of 10 trucks and is also active in the import of metals and construction materials.

The Stad warehouses are in operation in Sofia and Dupnitsa.

In related news, a market survey by property consultants Cushman&Wakefield shows that Bulgaria offers the most expensive for-rent contemporary storage space in Central and Eastern Europe with rates starting at 6 euro/sq m.

The tight domestic supply is to blame for the high rent rates, said Sergei Koinov, executive director of local Cushman&Wakefield affiliate Forton.

Around 27,000 sq m of storage space were placed on the market in Hungary in the last quarter versus less than 10,000 sq m in Bulgaria, Koinov said.

Romania is also facing a shortage with rent rates in Bucharest at 4 euro/sq m.

The Polish market absorbed 345,000 sq m of new storage facilities in the last quarter, a record increase of 19% quarter-on-quarter. Rents there start at 4 euro/sq m.

Storage facilities in Budapest command rent rates of 4.5-5 euro/sq m.

Although logistics properties in Bulgaria no longer generate a double-digit yield they are still hovering around 9% annually which is three to four percentage points higher than Central Europe.

To ensure a good yield margin on a logistics property in Bulgaria, land acquisition costs should not exceed 35 euro/sq m while the resulting product should be rented out for at least 4.5 euro/sq m per month.(Dnevnik)