Investment Project for Sport North - Sport Site in Northern Sofia

Sport North is a complex consisting of 4 minifootball fields that line up to form a large football field. One field shall be covered by a vinyl membrane, ballon type; another one- covered with a lightweight structure, making 2 fields available for all-seasons use. The complex is located between the 3rd and 4th biggest residental areas of Sofia.

Location Justification

Sofia, the capital of Bulgaria, has an official population of 1.5 million people, which is constantly growing. The city is located in the valley between the mountains of Stara Planina and Vitosha. During the last ten years the southern parts of Sofia were developed into a densely populated living area. This region has limited potential for further development and the current price of a square meter starts from 140 EUR. However, the northern part of Sofia offers the land for future development. The chief architect of Sofia has recently announced plans of large-scale infrastructure projects, such as the norther ring of Sofia, that aim at reducing the traffic that crosses the city center. These infrastructure projects will utterly change these parts of Sofia and will transform them in the future destination for industrial, commercial and residential development.

Business Justification
Sport North is project inspired by the excess demand for sport facilities in the city of Sofia. Currently there are four main sport complexes: Slavia, Mladost SLS, Sportna Sofia, Academic. Each of these complexes has 3 or 4 mini-football pitches. In addition, there are 6 single football pitches in the major residential areas. However, the demand for such facilities highly exceeds the supply not only because football is the most popular sport in Bulgaria, but also because people are more willing to pay for a good pitch in the evening or in the hours that are most convenient for them. Sport North will be a complex consisting of 4 minifootball fields that line up to form a large football field. One of the small fields will be covered by a vinyl membrane, ballon type, and another one will be only covered with a lightweight structure. This will make two of fields available for all-seasons use. It will be located in the northern part of Sofia, between the 3rd and the 4th biggest residential complexes. The mini-football pitches will be 20 × 40 m. The 1 hour renting rates for minifootball pitches are between 30 to 45 EUR and 120 EUR for large fields (80×40 combined 4 mini-football fields).

Sport North has the objective of renting on average 20 hours a week each minifootball pitch charging a rent of 30 EUR leva per hour. This figure is expected to double in the next 2 years as the complex is developed and long-term relationships with clients are established. In this neutral scenario a field is occupied only for 2 hours during the week days and 5 hours during the weekends. The balloon is rented 3 hours a day and 6 hours during the weekends for 45 EUR per hour. The complex could be utilized by sport clubs, private schools on a contractual basis. The main expense will be the monthly rent which will be 1 EUR per square meter for the first two years and 1.5 EUR for year 3,4 and 5. Other expense will be utilities 250 to 350 EUR -electricity for lighting and heating of the balloon during the winter. The artificial grass has 5 years warranty and the expected expenses for maintenance are insignificant. The investment will be depreciated over 5 year period. At the end the renting contract will have the option to be continued at the going market.

Contact us on Merar, if you are interested investor.