This project is for the construction of a gated development of family houses (each with its own garden) on a plot of land of 8,400 sq.m. The plot is located within the limits of a beautiful village set in a hilly environment only 14 km from the Black Sea city of Varna. It is surrounded by nice villas and houses for permanent living and a church and the UNESCO protected area Pobiti Kamuni (a unique rock formation) is only a kilometer away. The access to the village is fast and easy along the main highway Varna-Sofia. The road from the highway to the village is asphalt and it is well maintained all year round. The village is one of the places where wealthier residents of Varna prefer to build their houses. What makes the area so attractive is the beautiful nature, the tranquility, the clean area and, of course, the fast access to the big city. Furthermore the plot reveals marvelous and picturesque views towards the surrounding area.

Description of the project. Features
The project is for 9 family houses with 2 different designs:
• 3 houses Type 1: massive construction on one level, with total built-up area of 191.38 sq.m. in plots of about 900 sq.m.
• 6 houses Type 2: massive construction on one level, with total built-up area of 152.62 sq.m. in plots of about 800 sq.m.
All houses in the development are connected via internal alleys and have access to the main asphalt road.

All architectural projects and projects of the installations are ready on a conceptual level and ready to be used. There will be no problem in receiving a building permit within 45 days. The price of the building permit is 500 Euro per house.
The subject of the deal is the sale of the plot and all building projects.

The project is ready on a conceptual level and all architectural plans and related special elements are included in the price but they have not been drawn up. The whole work on the project can be done fast – for about 2 months, as if the buyer/investor wishes we can assist them in receiving a building permit within 3 months at the most.
For an additional fee more types of houses can be designed within a short term, as per the specific requirements of the client.

The designs were made by a leading architectural company in Varna with experience in building luxury residential developments. The houses are to be constructed with high quality materials (mainly Bulgarian) in order to secure the most competitive price or with alternative materials from foreign companies.

Depending on the financial resources and choice on the part of the investor construction can be done in stages (construction of one or two houses at a time) or the development could be fully done in one go. The profit for the investor could come from the construction of houses for permanent living or seasonal villas with the aim of selling them to end buyers. There is demand for such houses among the working professionals from the nearby Varna and also among foreign buyers from Russia and the neighboring countries looking for a holiday home or where to retire.

The second profitable option that might be of interest to the investor is to build a holiday village for tourism. The area is suitable because the nature is lovely and there are many options for tourism there. The fast and easy access to some of the best Black Sea resorts – Golden Sands (20 km) and Albena (30 km) and the three best golf courses in Bulgaria - Lighthouse golf & spà (40 km), Black Sea Rama golf & villas (42 km) and Thracian cliffs golf & beach (45 km) guarantee the success of such a development.

Business plan for realization of the whole project
• Price of the land, all architectural plans and building projects: 150,000 EUR
• Building permit: 5,000 EUR
• Cost price of the construction and key-ready finishing works, infrastructure, fence wall: 900,000 EUR
• Other costs during the construction of the project: 20,000 EUR (administrative, fees, etc.)
• Fee for the intermediary selling the houses: 100,000 EUR
• Taxes: 50,000 EUR
• Total whole price of the whole development with key-ready finishing works: 1,225,000 EUR
• Maximum period for building: about 18 months
• Maximum period for realization and sale of the separate units in the development: about 24 months
• Minimum financing on the part of the investor: about 400,000 EUR (the financing will cover the price of the plot, the projects and the construction of the first two houses)
• Total income from the realization of the project: 1,530,000 EUR (at an average sale price of the smaller house of 160,000 EUR and of the bigger house – 195,000 EUR)
• Net profit for the investor from the realization of the project: 305,000 EUR
• Profitability for the investor (%) for the whole period of realization of the development: 76%
• Investor’s equity: 100%

Note: If the investor has a smaller budget there is an option for the construction to be carried out in stages of one or two villas at a time. After they are sold the construction of the next stage begins. This way the investor can start the project with a minimum investment, as explained above.

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 (29.11.2011).
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.

Our company and the other companies of our corporate group can offer a full range of services and overall solutions for the construction of the holiday village, the project management, investor control, document flow and administration services. We can also sell the finished villas in the gated development. In fact, BULGARIAN PROPERTIES can provide the investor with everything necessary for the successful finishing of the project and its further exploitation.

Area features