Bulgaria to Sell Diplomatic Property in Former East Germany

Bulgaria is selling diplomatic property in the German city of Schwerin. Photo by shanghai.diplo.de

The Bulgarian government has approved the sale of one more diplomatic property in Germany, a villa used by former Bulgarian diplomats located in the city of Schwerin.

The starting price of the real estate property with an area of 10 686 square meters is EUR 130 000, the Cabinet's press office said in a statement.

According to the document, the sale of the property is part of the implementation of the strategy for optimized governance and maintenance of Bulgarian real estates abroad. At present, the Embassy of Bulgaria in Germany does not need to use the plot.

The estimate of the property's current market value, drawn up by a licensed real estate appraiser in compliance with German legislation, is EUR 125 000. This estimate and the bids submitted so far truly reflect the objective characteristics of the site.

A total of 9910 square meters of the plot is agricultural and forest land with very limited opportunities for construction . The level of underground water under the villa is very high, causing occasional swamping and rendering a major portion of the building unusable.

The terrain requires frequent and expensive draining procedures. What is more, the building, which dates back to the1920s, is currently in a very poor condition. There is tall grass in the yard, which makes the perfect hideout for snakes.

Due to the above-mentioned characteristics of the property, it has failed to attract great interest, Bulgaria's Council of Ministers explained.

In November 2010, Bulgaria's government decided to put up for sale state-owned property in the German town of Bonn, saying it has gone out of use after the relocation of the embassy in Berlin.The starting sale price for the 3099-square-meter slot was set at EUR 2.4 M.

Bulgaria's state-owned real estates abroad have been making headlines for years due to the scandals surrounding their governance. According to data of the Foreign Ministry, Bulgaria owns 220 real estates in 72 countries, bought mainly in the 1970s and the 1980s.

At the end of last year a ruling of a German court, which obliged Bulgaria to pay EUR 10,5 M to the heirs of a property in Berlin, put at odds the country's former ambassador there Meglena Plugchieva and the then foreign minister Rumiana Jeleva.

According to Plugchieva, the property in question was used by the Bulgarian state and its trade representatives in Berlin up to 1990, when it was rented out to Dresdner Bank.

Despite ownership claims by the property heirs, the bank continued to use it up to 2000 at a rent of EUR 90,000 per month.

The former ambassador said it was her decision to transfer all Dresdner Bank payments to a separate bank account so that the money can be used in case of an unfavorable for the Bulgarian state ruling of the court.

A check of Mediapool showed that Bulgaria owes a total of BGN 5 M in taxes and fees for real estates abroad. The biggest debts have been incurred for property in Germany, France, Canada and the U.S. in the period 1982-present.

The issue of Bulgaria's state-owned real estates abroad drew public attention after Prime Minister Boyko Borisov declared that the country owes USD 30 M in penalties for unmowed grass for property located in the U.S.

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