Platinum Investment Group is operating on the Bulgarian market for the last 3 years, which gives us a perspective of the local real estate market and how it works. During these years we saw many positive changes in the market. Our experience is mainly with the residential market in Sofia and the observations about its development are optimistic. The biggest change we have witnessed in recent years is that clients are more selective. Their preferences changed, they tend to prioritize quality construction, good location, and facilities offered over superficial signs of prestige and luxury.

Local business climate is good. Of course every place has its peculiarities and Bulgaria is no exception, but in any country that we operated in, we have always adjusted to the local demands, without bending on our guiding principles of work.

There is a general tendency in investments’ rate decline and the reasons are global. However in comparison with other countries, especially those where Platinum Investment Group operates, the Bulgarian market can be considered stable. Western world lives through a global financial crisis, whose effects are to influence the economy in general, but local market has its specifics and on our part we do not have any intention to stop investing, quite the opposite, it is our intention to increase the volume of our investment in Bulgaria. We have a plan for the following 4-5 years in which we intend to plan an accumulated investment of approximately EUR 32 million.

In the residential segment of the market, we have not witnessed a decrease of prices. As mentioned before, we consider the residential market in Sofia as stable, mostly due to the stable and even growing demand for residential units. One of the peculiarities of the Bulgarian market is that people prefer to own the place they live in. Platinum Investment Group believes that this tendency leads the market. The banks will continue to provide loans to households because this is the demand of the market and the banks, as providers of service, should continue and satisfy this need.

Among all important features a client is looking for when picking up a place to live as location, price and quality construction, last years demand points out residential unit buyer in Sofia is looking for combination of these as well as non-direct positive features as good design and green areas that add to the experience of having a home in a particular building. Along with these there is growing interest in properties where facilities and common area facility management do not additionally boost the price of their own home – clients avoid paying big property management taxes and higher prices just because there is a shop on the ground level. Apartment buyers are getting more and more practical in their approach to the building’s amenities and this turns to be an advantage for all middle-size developments in prestigious Sofia districts. And last but not on last place important are the payment scheme, security of the area and the building itself as well as the apartment execution.

We, Platinum Investment Group are in the process of completing our third project in Sofia and we expect to start, by the end of this year, a new residential complex in the district of Dragalevtsi. This is an exciting new complex type development that will include different amenities such as fitness and a swimming pool. In the first half of 2009 we will start with two additional complex type projects – one in the centre of Sofia and another in one of the Southern neighborhoods. We believe that the project developed in the Centre of Sofia will be attractive to professionals working in or near the centre. The second one will enjoy its proximity to Sofia Business Park and the proximity to Vitosha and the ring road. With these three new projects we expect to have between 550 and 650 apartments being developed, together with additional office space and retail area.. We also have under development a village type resort near Borovets.

Despite all difficulties the real estate market meets, we still believe residential homes market is always active as people’s need for food and home will always be a priority. With adequate prices and quality construction we will give our best to stay on the market as one of the solid companies people chose as their partner in their home search.