THE DOMINANT LIFESTYLE SHOPPING CENTER IN SOFIA
Paradise Center, a lifestyle shopping center, was developed by Bulfeld, Bulgarian company backed by experienced retail developers in Eastern Europe. The project was conceived in 2008-2009 and Forton got involved shortly after the beginning with feasibility study assignment and later on as exclusive leasing agent. The project opened successfully in March 2013 with 80 per cent occupancy and diverse international brand and services mix boosted by expansive entertainment, leisure and lifestyle offer. Soon after opening Paradise Center achieved a stabilized 95 per cent occupancy and added a number of luxury brands for many of which it still is the only shopping mall location.
In 2009, amidst a severe economic downturn, a group of investors approached the shopping center market in Sofia with a brave and innovative concept – to create lifestyle space that would cater to the needs of the whole family and different income groups. Moreover, it was planned to become the largest and dominant retail project in Bulgaria, with around 80,000 m2 of gross leasable area.
The market was already fraying, with a total of 118,000 m2 to open in two projects in 2010 as well as a number of malls throughout the country. Rental levels were already under pressure and the fate of the existing projects was unsecure.
Against such backdrop the developer had to test the viability of the project and back its business plan with market research and financial modeling. But this was by no means a simple desk exercise. The property also had to be leased out upon completion at rates that would allow the developer to repay its lenders and achieve a profit.
When applied at an early development stage, professional real estate advisory services can reap substantial rewards for the project owner. In the Paradise Center case they included the deep understanding of the marketplace and the key strengths of the concept, reputation building and active business customer relationship management. All in all, they resulted in timely opening and consistent performance of the project. In less than two years after opening, Paradise Center was in the position of one of the dominant shopping malls in Sofia and a preferred choice for consumers and retailers alike.
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