Greece's Bluehouse to Ink EUR 27 M Deal in Bulgaria

Greek investment fund Bluehouse Capital is to acquire four properties of Sofia-based ERG Capital 1 and ERG Capital 2 REITs in a EUR 27 M deal, according to media reports.

Bluehouse Capital has already signed preliminary contracts with the two companies, majority-owned by the Bulgarian-American Enterprise Fund (BAEF), Dnevnik daily reported, citing insiders to the negotiations.

The Bulgarian subsidiary of real estate consultants Colliers International has been picked as consultant on the deal.

Last year Bluehouse Capital acquired for EUR 27.3 M the building complex Auto Union Centre, which is located in the Bulgarian capital of Sofia and houses an office complex with the same name.

The fund's portfolio in Bulgaria also features a residential project in Boyana, acquired from Equest Balkan Properties, and the Greenville Hotel in Sofia.

According to the preliminary accord, ERG Capital 1 will sell a store of hypermarket chain Praktiker for EUR 10 M along with a distribution centre of the cosmetics company Oriflame, tagged at EUR 8 M. Both are located in Sofia.

ERG Capital 2 envisages the sale of a Praktiker store for EUR 8 M and a Piccadili store for EUR 6.7 M, both located in the coastal city of Varna.

The preliminary contracts have been signed on August 31, it emerges from a statement of the seller to the stock exchange.