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Spains Hercesa To Invest 500m Euro In Bulgaria

Spanish investor Hercesa Internacional plans to inject 500 million euro in Bulgaria, 210 million of which will be directed toward the building of an entire neighbourhood with fine infrastructure and even a train station to connect its residents to various parts of Sofia, owner Juan Jose Sercadillo-Calvo said at a news conference on October 8 2008, at the National Institute of Archaeology and Museum. In addition to fine quality construction and design, Hercesa Internacional says it would offer potential clients an accessible payment plan to make its product available to more people.Zelenika residential community will feature 2000 one-, two- and three-bedroom flats in number of small communal blocks. The neighbourhood will occupy an area of 103 000 sq m between Gorna Banya and Ovcha Kupel boroughs in Sofia. The plan envisions a lot of green spots as well as the building of several playgrounds, bank offices, a kindergarten, a pharmacy, hypermarkets, retail facilities, spa and sports centres.An unusual feature appears to be the Hercesa railway station, which will be servicing trains on the route Sofia-Pernik-Sofia. According to Calvo, it would take between seven to 10 minutes to reach Sofia central railway station and an equivalent time to reach the city's centre.The station will be built during the first stage of construction starting in February 2009 with the first 400 flats scheduled to be completed by the end of 2010. Hercesa offered a relieved payment plan that includes a 500 euro down payment. Seven per cent of the total amount is deposited when the preliminary contract is signed, a further 11 per cent are distributed for a two-year period of small monthly payments. Upon receipt of the title deed, another seven per cent is deposited. The remaining 75 per cent could be either financed or paid with personal funds.Asked about the advancing global financial crisis, Calvo said that some negative side effects could already be felt. He elaborated on the history of Hercesa Internacional, founded 30 years ago. "My father started out as a painter," he said. "We understand from the product itself, not microeconomics. More than 100 architects work for Hercesa. It's important for us to construct a quality building and to complete it on time."Over the past 35 years the company had survived other crises, Calvo said, but the quality of the products Hercesa offers is the key ingredient toward overcoming the hard times.The owner said that from January until September 15 2008, the company had sold 1200 flats in Spain alone. In comparison, over the past seven to eight years, sales have varied between 2000 and 2500 flats a year. Hercesa is backed up by five savings banks, which allows the company to step in 10 countries.In addition to the Zelenika project, a second development is under way in the Manastirski Livadi borough in Sofia. Called Lipite (The Linden Trees), the complex will feature 400 flats at a total investment of between 80 and 100 million euro.