This proposal allows investors to participate in a project for purchase, lease for 3 years and sale of retail space of 150 square meters as a Medical Center in central Varna. An area with extreme commercial attraction, a busy human flow, near a key boulevard in the city center. The property will be acquired in the construction phase, and in the next 6 months it will be fully completed and ready for operation at 100% for 185,000 euros.

The property will be acquired 100% completed, meeting the requirements for a Medical Center - sanitary, technical and structural.

The commercial area is located on the floor - first above the ground floor in a new modern building on Baba Tonka Street 1 and Doctor Piskyuliev Street, / under the District Court / in the city of Varna. The building meets the high requirements for modern office space, combining luxury, functionality and comfort, tranquility and security and communicative location. Modern building, attractive area, busy traffic in the center of Varna, all the advantages necessary for a perfect location of an investment property.

Area of ​​the property is 150 square meters, prepared for rent as a Medical Center. Walls painted with special anti-bacterial paint, anti-bacterial flooring. Interior doors meeting all medical standards. Bathroom with faience and terracotta with faucet, shower and shower faucet, candy bar. The medical center will be equipped with normal ventilation and lighting.

Investors through Spoti Finance Place participating in the project are expected to earn a total return of over 48% over three years or an average annual return of 16.6% This percentage is expected to be achieved from annual rental income averaging about 13.0% and capital gain from sales of the property about 12.9%, or 4.0% average annual return.

The advantage of the planned investment is that the entire property will be leased in a long-term contract with a clause for subsequent purchase by the tenant. The long-term contract and its attractive purpose imply higher returns and less costs, time and empty months. The property is bought at 100% completion, which also means less costs, you will not need repairs and refreshments. The investment is only for 3.5 years (3 years of operation and 6 months until its completion), which also leads to less costs, because you will not need repairs in such a short period of time.

The operation of the project will last about 36 months and its sale after that.

The profitability of the project will be paid after the first year of its operation, every year - annually, and the entire investment will return after the sale of the project.

Summary:

Expected return for 3.5 years: 48%

Investment term 3.5 years.

Purchase of retail space with an excellent location in the center of Varna

Attractive purchase price and attractive income during the project period

Renting the property with a long-term lease, which leads to greater efficiency and return. Thus, there is no need to pay amounts for property management and empty months without rent in the year.

Location description

The property we will buy is located in the ideal center of Varna, within walking distance of key boulevards, transport arteries and commercial sites with appropriate public transport. One of the reasons for choosing this area and this location is the commercial attractiveness of the area and the large human flow, which is a prerequisite for future increase in the price of the purchased property and its rapid sale at a higher price, with an increase in price for 3 years. above the city average.

Risk identification

Investments made through Spoti Financial Place are not risk-free and include all risks typical of real estate transactions, including liquidity (the inability to sell a property at a given time). A factor reducing the risk for the participants should be that the creator of the project will also participate in it with his own capital. This means that he firmly believes in the project and its implementation. Our expectations are for a further rise in real estate prices in the next 3.5 years with an average pace in the conservative part of our forecasts by 4.2%. The main reasons for this will be: the extremely attractive region, Bulgaria's accession to the Eurozone in 2024, low interest rates, the stimulating programs of the Central Banks - higher inflation, national deficits, which will lead to more stimulating programs for the economy. and rising inflation after the Kovid era and the sale of an established Medical Center, not just retail space.

From the point of view of the sale of the project - at the moment the purchase price per square meter of retail space in this area - new construction is between 1300 and 1400 euros per sq.m. We will be able to buy the property at prices below the minimum lower limit, which increases the profitability of the project. The property will be in 100% finished form, fully prepared and compliant with the requirements for a future Medical Center, with all hygienic and design requirements. The property will not be rented out as a pure commercial area and will tolerate the restrictions of Kovit social distance and blockages, but as a specialized area for a Medical Center.

The planned investment is for a period of 3.5 years, in which period the property will be leased entirely as a Medical Center. After the third year of its operation, it will be sold to the tenant, with whom it is planned to have a contract for its sale after this period. After the expiration of the 3-year period of operation, the property will be announced for sale with a price of at least 15% above the purchase price. If the property cannot be sold at this price, a price close to it will be sought.

Investors in this investment project are expected to earn a total return of 48%. The project will last 36 months, although if a higher price is found for its sale after the second year, above the originally planned 13% above the purchase price, the property can be sold and the project realized in a shorter time, but with the same profitability. The annual return on the project is projected to be 16.2%. This percentage is expected to be achieved from annual rental income after the property is put into operation 13.0% and capital gain from the sale of the property approximately 3.17%