This is a great opportunity to become the owner of a plot of land that is unique due to its prime location and execution possibilities. The plot is located in the largest and most developed spa resort in Bulgaria – Velingrad. The working name of the project is SPA ELEGANS.

Velingrad boasts one of the richest hypothermal deposits in Bulgaria. The 80 mineral springs, the mild climate and the beautiful nature are the town’s biggest assets. Velingrad is one of the largest spa resorts in Bulgaria and is known as the Spa Capital of the Balkan Peninsula. It has many sanatoriums, health clinics, modern spa centers and hotels.

The property is located just next to the five-star spa hotel Grand Hotel Velingrad as the plot was bought years ago and its status was later changed for the construction of a luxury apartment building of the highest class.

All the necessary architectural and other technical designs have been drafted and have been preliminarily approved by the Chief Architect of the town of Velingrad. This means that the building permit can be received immediately after it is paid for and construction can begin when financing is provided.

The area of the plot is about 938 sq.m. The total built-up area of the building is 2,300 sq.m. It consists of 3 floors plus an attic floor. There are 24 apartments, mainly with one bedroom, as well as a few with two bedrooms, and areas varying between 50 and 100 sq.m. The aim is to achieve the highest possible standard by using the best construction materials and by adding many facilities like:

• Reception area
• Lobby area
• Office
• Swimming pool with mineral water, changing rooms
• Spa center with Finnish sauna, steam bath, massage room, ice room, relaxation room
• Security of the building

There will be one lift and the heating will be with air-conditioners.
The designs were drafted by one of the most successful architects in the area.
The style of the building is classical combined with Renaissance features like columns and arches. The materials that will be used for the finishing works will be of the highest quality and with a contemporary design.

All these characteristics combined with the prime location of the plot, the proximity to a mineral spring and the possibility the spring water to be used in the building make SPA ELEGANS an excellent investment opportunity.

An important fact is that this is the last remaining undeveloped plot in close proximity to one of the most successful spa hotels in Velingrad.

As well as the asking price the seller also wants to receive a one-bedroom apartment in the new building.
The price is without VAT.

Business plan for the realization of the project
• Price of the land and the draft architectural plans: 220,000 EUR (without VAT)
• Cost price of the construction and finishing works in the building as per Bulgarian State Standard: 575,000 EUR (at 250 EUR/sq.m.)
• Fees and permits: about 25,000 EUR
• Vertical planning: about 50,000 EUR
• External connections: about 30,000 EUR
• Other costs during the construction and realization of the project: about 30,000 EUR (administrative, fees, taxes, etc.)
• Remuneration for the mediator selling the separate units: 69,000 EUR
• Total cost price of the project with finishing works as per Bulgarian State Standard: 999,000 EUR
• Maximum period for building the development: about 18 months
• Maximum period for realization and sale of the separate units in the development: about 24 months
• Financing on the part of the investor: 450,000 EUR (this financing is enough for reaching the shell stage of the building and should be provided and spent by the investor in parts, for a period of 6 months, as per a specific schedule/plan, in accordance with the stages of construction and realization of the project)
• Total income from the realization of the project: 1,380,000 EUR (at average sale price of the separate units and their common areas of 600 EUR/sq.m.)

• Net income from the realization of the project: 381,000 EUR
• Profitability for the investor (%)
- for the whole period: 84.6 %
- annually (on average): 42.3 %
• Investor’s equity: 100 %

Note: all cited figures and periods are for reference only as they are valid and as accurate as possible as of the date of the drafting of this business plan (08.01.2012).
The figures and periods can vary during the actual realization of the project, in accordance with the present business conditions and the situation on the market.
This presentation and business plan should be used for information purposes only.

There are also other options for the development of the business project, for example the construction and exploitation of a luxury boutique hotel with mineral water and modern spa center. The hotel business in the town of Velingrad is booming and it is characterized by good year-round occupancy, high prices and considerable demand from Bulgarian and foreign clients. Velingrad is definitely one of the resorts in Bulgaria that boasts such a successful and profitable hotel business.

Our company and the other companies from our corporate group can offer a full range of services and solutions for the construction of the complex as well as project management, investor control, document flow and administration services. We can also offer the units in the building for sale on completion. After SPA ELEGANS is finished we can provide property management and maintenance services as an apartment hotel. In fact BULGARIAN PROPERTIES can provide the investor with everything necessary for the successful realization of the building.

Property features

• Balcony
• Off-road parking possible
• Water
• Bathroom
• Swimming pool
• Balconies
• Electrical heating
• UPVC window frames
• In residential building

Area features