POLYGRAPHIA OFFICE CENTER
ESTABLISHES AS LEADING PROJECT IN A COMPETITIVE MARKET
Polygraphia Office Center was developed by a joint venture between Bulgaria’s AG Capital, Forton’s parent company, and Northridge Capital. The two acquired the site at the peak of the real estate market and refurbished the existing structures to high standard. As it opened in 2010 the leasing market came under pressure due to oversupply of class A properties, especially in the area around Tsarigradsko Shose Blvd.
Polygraphia Office Center is a modern office complex constructed entirely according to the international standards for contemporary class A office buildings. The concept of the project combines a modern look and preserved classic architectural elements. The reconstruction of the building was completed in December 2010. Forton was appointed for exclusive leasing agent and our office space team was given the challenge to secure prime international occupiers for GLA of 16,600 sqm and secure high occupancy within the first year of building’s operation.
In line with the instruction, Forton carried out a full market research and identified criteria to select a long list of potential tenants. Essential part of our work was to decide on the best channels to reach these potential occupiers. Our approach included presentation of the project on corporate and social events, special events aimed at member of professional organizations such as the American Chamber of Commerce in Bulgaria and the LinkedIn CEO club group.
As commercial property advisor Forton in cooperation with the landlord developed a competitive financial scheme to offer to the potential tenants. Various incentives were introduced, such as rent discounts for longer lease terms and rent free periods in the beginning of the lease in order to decrease the capital expenditures for relocation of the tenants in times of economic difficulties. Some tenants were proposed step-up rents or fit-out contribution in order to motivate their relocation. Our aim was to provide potential tenants with high degree of flexibility in office cost planning, which was essential in the difficult business environment of 2010 and 2011.
Potential tenants were treated individually according to their specific business case. Our aim was to identify the best possible solution for both their business goals and daily operational needs. The proposed models were based on target expenditure and expected cash flow, which was matched to the effective rent expected by the landlord.
Polygraphia Office Center gained a market edge and reached full occupancy just two years after opening and before any competitor in the area. Its supreme location and building quality were recognized by a number of international companies as EY, Groupama Insurance and Raiffeisenbank. It also built a position in Sofia’s the dynamic IT sector by attracting software company Melon Inc. and video games developer Ubisoft.
AG Capital confirmed its commitment to the project and the building’s quality by deciding to relocate the headquarters of all its main businesses, including Address, BLD Asset Management, Facility Optimum and Frontex. For Forton, the Cushman & Wakefield Alliance Partner in Bulgaria and Macedonia, this was also a natural choice as the company managed the property on behalf of the owners to ensure it was run to high standard and occupiers receive seamless service. The leasing process is recognized as successful achievement in view of the 30% average vacancy rate on Sofia office market in 2011. The strong tenancy line-up contributes to the capital value of the property.
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