Real Estate and Construction

Our Real Estate and Construction Practice is one of thecore areas of practice since the establishment of our firm. A fervent focus on client service and responsiveness is the foundation of our success. Our goal is to be the firm of choice for construction and Real Estate clients in respect to their most complex legal issues, significant business transactions and critical disputes. Our client base ranges from small project developers and technical advisers all the way up to largest contractors and property owners. Our practice encompasses Purchase and Sale agreements; Eminent Domain/Condemnation; Title Insurance; Construction Litigation regulatory compliance, and operation of large construction and infrastructure projects developed in Bulgaria in the last twenty years.

Clients in the area of Real Estate and Construction include: Inditex S.A., Lewis Charles Sofia Property Fund Bulgaria, AT&T, Black Sea Properties, Teak EOOD, ADF and Dewavrin Group S.A., US State Department and the Embassy in Sofia, Bulgaria, Heitmannn Real Estate Investment Management, Black See Property Fund, ADF, France, US Government, Monicomp Bulgaria Ltd., Newport Properties Ltd., Australis Ltd., Anglo-American School, HSBC London, Hit Hypermarket Bulgaria Ltd., Mountain Resorts’ Ltd, METRO Cash & Carry Bulgaria Ltd. and many others.

OUR SKILLS

Land and property due diligence;

Like no other legal field, Real Estate requires stringent adherence to the “Proper Preparation-Prevents-Pretty-Poor-Performance” rule. In our wide-ranging experience this “6 Ps” principle has proved to be correct time and time again. The lawyers and real estate experts at Penev LLP together possess substantial experience in performing Site Visit Surveys and Register and Title checks, as well as, drafting Title, Zoning and Land Use Due Diligence Reports.

Project development;

Project Development involves various arrangements between the owner of the land and the developer. With over 20 years of experiencein representing both international and domestic clients, acting on either side of the complex process of Project Development we can ensure you that your property transaction proceeds smoothly..
We have advised the US Government on their USD 54 million land acquisitions and construction of new complex accommodating the needs of the Embassy, consular section, Peace Corps, USAID and other US offices.
We counselled the Anglo-American School, regarding the construction of their new facilities and school camps in Bulgaria, contracts with designers, construction companies as well as on real estate property issues and Zoning ordinances.
We acted on behalf of Lewis Charles Sofia Property Fund (AIM listed in London) in relation to a wide range of projects, including; multi million Euro acquisition of land plots, in different geographical regions of the country, Purchase and Sale of Commercial Property: establishing subsidiary companies of the Property Fund as well as court appearances in Insolvency proceedings on behalf of the fund.etc.

Construction Projects;

Penev LLP advises client on each stage of the Construction process. We draft and perform Title and/or Zoning Due Diligence Reports, Investment and Technical Design Agreements, Construction Work Agreements, Construction Supervision Agreements and etc.
WeadvisedADF, France on construction and operation of wool-processing facilities, environmental issues and licensing of activities. We assisted- Hit Hypermarket Bulgaria Ltd., in establishing their business in Bulgaria, in relation to the construction of shopping malls in 10 Bulgarian cities.
We assisted ECAM Group, one of the largest glass producers in Europe, in their USD 150 million investment in Bulgaria – the largest ever green field investment project in Bulgaria. . The project included obtaining a concession for extracting of ores and the construction of a factory for production of float glass in Bulgaria.

Real estate investments;

We provide full-scope services in the field of real estate investment, including business structuring, contract negotiations and drafting of various development and construction agreements, forms and protocols.
We advisedBlack Sea Property Fund and provided legal support to the company on various development and construction issues.
We counselled the largest UK privately held real estate developer William Pears Group in their participation in the privatization procedure of ADIS (Bulgarian State-owned company providing residential and commercial facilities to the diplomatic corps in Bulgaria). We advisedSavills on all their operations in Bulgaria with respect to various real estate matters and land acquisition.

Sales and acquisitions;

Penev LLP has been entrusted by its clients to prepare and perform complex sales or acquisition transactions.
We advised Heitmann Real Estate Investment Management in relation to a EUR 12 million commercial development project – Acquisition of two Office Buildings and land plots.
We advised HSBC London on a major real estate project regarding the acquisition and sale of real estate properties in Bulgaria.
We assisted METRO Cash & Carry Bulgaria Ltd. on the establishment and development of their retail facilities in Bulgaria.

Infrastructure projects;

We have been retained by a number of industry leaders to advise them on the infrastructure construction opportunities in Bulgaria.
Acting for EnelS.p.A. in negotiations with RAO Systems (Russia) with regard to the acquisition of energy assets in Bulgaria.
We assisted Mitsubishi on a renewable energy (wind generators) project in Bulgaria in drafting and negotiating contracts for the supply and installation of wind turbines and the service and availability agreement, representation private parties and negotiation with the Regulator.
We advised Statkraft Markets GmbH - a leading player in Europe in renewable energy, a company involved in generation of hydropower, wind power and district heating, as well as construction of gas power plants in Norway and Germany, on the starting up a business in Bulgaria.

Real estate planning;

Our lawyers know that planning is of crucial importance for a successful transaction, therefore we add value to clients’ business endeavours in the area of real estate planning in the Bulgaria.
We advised York Capital (US) with respect to various real estate matters and land acquisition.
We acted on behalf ofNewport Properties Ltd., in the acquisition of real estates at the Bulgarian Black Sea resorts.
Advice to Tishmann International Management Limited (UK) in relation in large investment projects in Bulgaria.

Real estate taxes;

At Penev LLP cost-efficiency, alongside with regulatory compliance, has always been our focus, therefore we provide specialized tax planning services on the real estate investments of our clients.
We represented Mountain Resorts Ltd. with respect to the acquisition of real estate and hotel facility.
We represented Bankya Estates Ltd. with respect to the acquisition of land plots.
We represented Australis Ltd. with respect to the acquisition of real estates at the Bulgarian Black Sea resorts.

Financial and tax structuring of real estate transactions

More than ever, arrangement of suitable financing and project structuring, is vital for successful completion of real estate development. .
We advised a largeLondon based Investment Bank on the Senior secured trenched loan facility and the Bank’s preferred equity investment Project in Bulgaria;
We negotiated on behalf ofEBRD, contractual documentation, including but not limited to: drafting a Loan Agreement, Equity Subscription Agreements and a Shareholders Agreement in relation to the “Boliari” project in Bulgaria for financing structure of shopping malls;
We drafted and registered with the Bulgarian National Bank loan agreements for “Monicomp Bulgaria” Ltd., “Black Sea Properties” Ltd., “Newport Properties” Ltd., “Australis” Ltd etc.)

Rent and lease of real estates;

Striving to act in the client’s best interests, we fully engage with a business objective, from the very beginning, by advising, drafting and registering leases.
WerepresentAT&T with respect to a complex lease dispute,, advising on all aspects of the lease, by.
Negotiation, drafting and execution of Lease Agreements for retail spaces in large shopping centres, such as: Serdika Centre, Carrefour Tzarigradsko Mall, Grand Mall Varna, Galeria Stara Zagora Mall for members of Inditex S.A. Group in Bulgaria, inter alia Zara Bulgaria, Massimo Dutti and others. We also provide assistance in Escrow transactions.

Regulatory and statutory compliance and approvals;

At Penev LLP, we acknowledge that a state-of-the-art construction is of no business use and value if the requisite rules and regulations have not been fully met. For that purpose, we assist our clients in order to complyfulfil with those statutory requirements..
We were involved in registration of Inditex S.A. contractors AncinClima, Metalyeso, Liñagar, Decorga with the Central Professional Register of Builders. We provided advice and assistance regarding compliance with construction law.
We acted for Black Sea Properties with respect to a large Greenfield-project, regarding a purchase of land plot and approval by the respective municipal and governmental authorities of the construction project documentation (infrastructure and construction project);
We represented TurkishSisecam in the acquisitionof land plots and concession-granting issues relating to the construction of a factory for the production of float glass - a USD 150 million project, considered to be the largest green filed investment project in Bulgaria to date.

Foreclosure of mortgages and pledges;

We assist our clients in protecting their interests in respective real estate projects. Our lawyers advise our clients on the process of foreclosures, represent the clients before various government and court authorities, organize and undertake the necessary legal procedures.
Penev LLP’s real estate lawyers also advise Lewis Charles Sofia Property Fund Bulgaria in drafting, execution and registration of mortgages and other collaterals.
We represented HEPP III Luxemburg Master S.a.r.l. as a sole-owner of Heitmann Bulgaria Ltd. on execution of EUR 22 million Registered Going-concern Pledge.

General contracts; FIDIC-Based;

Just like in the Roman times when “Pactasuntservanda” (Latin for "Agreements must be kept") when this principle refers to private contracts, stressing out that contractual arrangements between the parties are recognised and enforced by the law. We pay special attention and focus on drafting contracts providing for all steps and stages of the real estate acquisition and/or development process.
WerepresentADF, France ( a part of Dewavrin Group S.A) with respect to the sale of a real estate located in Parvomai, Plovdiv Municipality, advising on all aspects of the Bulgarian law including but not limited to property issues and construction law issues. .
We advised ‘Den&Nosht’ Ltd. on finance schemes for acquisition production of devices for their factory in Gorna Orjahovitza.
We currently act on behalf of TEAK Ltd. with respect to the acquisition of Real Estates located in Sofia.

Property litigation;

Protecting clients’ legitimate interests by representing them before all three levels of the Bulgarian court system, as well as, before special courts of arbitration established at various business and industry chambers.
We currently defend the interests of Black Sea Properties in civil proceedings involving Annulment of Deeds.
We represented Lewis Charles Sofia Property Fund Bulgaria EOOD with respect to insolvency of a major Bulgarian developer. The complex legal proceedings involve damages in the amount of approximately EUR 2.5 million.