The opening of Varna’s fourth shopping centre, which eventually took place on November 25 2010, had been repeatedly postponed. According to unofficial information, the delay was a result of tough negotiations about funding finishing works at the mall between its investor and Alpha Bank.

Just days ago one of the biggest companies in the region E.ON Bulgaria moved  to their new office at “Varna Towers”, which is located at N258 “Vladislav Varnenchik” Blvd. in Varna. The first clients visited the new office on July 11 and received presents from the company – bags, t-shirts and energy saving bulbs. The new customer service center is based at level -1 in the building and the visitors can use all services offered by E.ON Bulgaria.

The potential sale of Varna Towers will be the second acquisition of a shopping centre in the city. In 2008, local diversified company Interservice Uzunovi sold Mall Varna to UK-based Miller Developments, which was later re-sold to Austria’s Raiffeisen.

Raiffeisenbank will thus go ahead with the purchase 100% of Miller Mall Varna One EAD, headquartered in Sofia. RZB is the owner of Raiffeisenbank Bulgaria, which owns Raiffeisen Real Estate.

Raiffeisenbank Austria AG is a holding company of the Raiffeisenbank Group, which owns Raiffeisenbank Bulgaria EAD.

Miller Mall Varna One EAD manages the commercial and entertainment center known as Mall Varna. Raiffeisenbank approached the Competition Protection Commission over the deal at the beginning of October 2010.

The competition watchdog has now ruled that there is “neither horizontal, nor vertical connection between the activities of the two parties,” which will therefore generate no changes in the market situation of the participants after the deal is carried out. The Commission believes that the purchase will not affect the efficient market competition in the respective sector.

The sum that Raiffeisenbank will pay to acquire Mall Varna’s owner has not been revealed.

Mall Varna was constructed by the Bulgarian Interservice Uzunovi Jsc and opened in the summer of 2008. Shortly after it was acquired by the Scottish Miller Developments, a subsidiary of Miller Group.

The price of EUR 120 M was record-high for the purchase of a commercial center in Bulgaria at the time. This was also the second largest real estate deal in the country.

Bulgaria ranks first in the European Union in the number of new shopping malls in the first half of the 2010, according to a report by Cushman and Wakefield consultancy.

While in most EU member-states the number of malls is on the slide due to the global economic crisis, their construction has accelerated in Bulgaria, marking a nearly 90% increase over one year.

A similar trend is also witnessed in other Balkan states – Bosnia&Herzegovina, Romania, Slovenia, Serbia and Croatia – but the growth rate there is 5-10%.

The stock of contemporary shopping mall space in Bulgaria doubled in the first six months of 2010 with the opening of five new shopping malls, reaching 452 000 sqm in total, according to a recent realtor report.

Another five shopping mall projects are expected to open until the end of 2010, which will add 126 000 sqm of contemporary stock to the market, according to Colliers International’s retail market overview for the first half of 2010 in Bulgaria.

Mall Varna was the first major shopping mall to open doors in Bulgaria’s Varna. At the time of its opening it became the largest shopping mall in Bulgaria, with a total all-out build-up area of 70 000 square meters.

Two similarly giant malls opened doors in Varna subsequently – Grand Mall Varna, and Varna Towers.

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One of the greatest attractions of the complex is the only rotating restaurant in Southeast Europe named Magnito, located on the top of the Eastern Tower.

At the same time, the top of the Western Tower features a helicopter landing ground, which is the first in Bulgaria to be located on the roof of a building.

Varna Towers appears to be one of the largest malls in Varna with a total space of 83 000 square meters, including 60 000 square meters of commercial space and 23 000 square meters of office space.

EUR 50 M have been invested in the project for the construction of the “Administrative and Commercial Center Varna Towers”, with the participation of 2 000 people from over 100 firms.

Each of the two towers of Varna Towers is 70 meters in height, and the complex offers 800 underground and surface parking spaces.

Varna Towers, which was formally opened with fireworks Thursday night, presents a mix of commercial, business, and entertainment venues. Its entertainment park “The Two Towers” features a laser force, kids’ castle, party zones, dance halls, bowling, table tennis, among others. The complex is the first mall in Bulgaria to feature “an alley of crafts”.

The Varna Towers management points out that 45% of its total space have been designed as outside urban space featuring streets, squares, atria, fountains, benches, and walking space.

The Class A offices in Varna Towers have already been rented by companies such as E.ON, a power utility, and Bulgarian Posts EAD.

Ivestment in Varna Towers has been over EUR 50 M, by Varna Towers, owned by Densi-M, chaired by Martin Zgurev, and City Center, chaired by Antonio Buhtiyarov. 75% of the funds are a loan from Piraeus Bank Bulgaria.

Varna Towers at night – photo by Ivaylo Stoyanov