Development portfolio valuation



Bogaris develops projects in commercial real estate, renewable energy and agriculture in Spain, Portugal, Bulgaria, Romania, Chile and the US. The portfolio in Bulgaria comprises development land located in Sofia and the surrounding areas, Stara Zagora, Northwestern and Southern Bulgaria.
In order to support Bogaris’ real estate development strategy, Forton was assigned to perform a valuation report of the property portfolio in highly illiquid market.

The Challenge

Bogaris plans large-scale developments over substantial land holdings exceeding 80,000 sqm in Ruse industrial zone, approximately 250,000 sqm of land in Elin Pelin in Sofia Region and nearly 10,000 inner city square meters in close proximity to Sofia Airport. All sites are in key locations and are designated for industrial development. Comparable data in real estate development regarding similar properties is scarce, particularly deals with large land plots, sources of information are not trustworthy and the market is illiquid.

The Solution

We performed a thorough study of the projects and crosschecked our understanding with the current market conditions in order to properly address every detail of the proposed scheme and help the investor with final decision for development. Regarding transactions and primary market information, we liaised with our colleagues from AG Capital to provide historical deals and to support our statements.

The Result

The valuation methodology and market data included in the report resulted in well sustained property market value which reflected project characteristics, current market sentiment and provided professional opinion on the projects’ financial sustainability.