Sofia City Hall Seals Downtown Property Swap

The Mayor of Sofia, Yordanka Fandakova, supported the deal to swap the Market Hall municipal shares for ownership of the land near the Russian Church. Photo by BGNES

The Sofia City Hall finalized Thursday the deal to swap its shares of the Central Market Hall and become the owner of the park near the Russian Church, both in the downtown of the Bulgarian capital.

The deal was sealed with the votes of municipal councilmen from the ruling center-right Citizens for European Development of Bulgaria (GERB) party and the right-wing Democrats for Strong Bulgaria (DSB).

The decision requires that Mayor, Yordanka Fandakova, transfers the 25% municipal share of the Central Market Hall. In exchange, the companies Ashtrom B.V. and Abrotea International will give the municipality the ownership of the land plot near the Russian Church.

The City Hall is to pay for the land BGN 5.6 M and will receive for its Central Market Hall shares BGN 6.2 M. The difference will be paid directly to the municipality. Until now about BGN 200 000 to 300 000 per year entered the municipal treasury as dividend for the Market Hall minority share.

The opponents of the deal, mainly from the Bulgarian Socialist Party (BSP) and the party of Former Tsar and Prime Minister, Simeon Saxe-Coburg, National Movement for Stability and Prosperity (NMSP) said the price of the Market Hall share is too low, casting doubts in the appraisal of KPMG. GERB and DSB countered the deal is a political decision that would lead to preserving the land in downtown Sofia from construction activities.

Fandakova defended the deal on several occasions in the last few days, pointing out KPMG is a globally renowned company and their price information is the most valid one. She also reminded how Sofia Chief Architect, Petar Dikov, had been fined for refusing to issue a building permit for the plot.

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