Israeli Retail Giant BIG Acquires Seven Shopping Centers in Bulgaria
Translated & summarized from Maariv by baba
Israeli retail group BIG is entering Bulgaria by acquiring seven shopping centers for approximately 223 million euros. The deal includes three operational centers and four under development, totaling 140,000 square meters of leasable space. BIG expects the centers to generate about 16.8 million euros in annual net operating income. The move is part of BIG's expansion strategy in Eastern Europe.
The story in 5 lines · by baba
- BIG Group acquired seven Bulgarian shopping centers for approximately 223 million euros.
- The deal includes three operational centers and four under development, totaling 140,000 sqm.
- BIG expects the acquisition to yield about 16.8 million euros annually.
- Bulgaria is BIG's fourth international market after Poland, Serbia, and Montenegro.
- The acquisition is part of BIG's expansion strategy in Eastern Europe.
Israeli retail group BIG has announced its entry into the Bulgarian market with the acquisition of seven shopping centers for approximately 223 million euros. The deal, conducted through its European subsidiary CEE-BIG, marks Bulgaria as BIG's fourth country of operation outside Israel, following Poland, Serbia, and Montenegro.
Three operational centers, totaling around 75,600 square meters of leasable space, will be transferred immediately. The remaining four centers are currently under development and will be acquired by BIG as they open, with the first expected in early 2027 and the last by early 2028. In total, the seven centers will offer approximately 140,000 square meters of leasable area. Two of the acquired centers are located in the capital, Sofia, with the others situated in major Bulgarian cities.
BIG projects that these centers will generate an annual net operating income (NOI) of about 16.8 million euros, representing a yield of approximately 7.5% on the purchase price. The initial three centers are expected to contribute about 9.1 million euros to this income immediately.
The company cited Bulgaria's recent adoption of the Euro, its growing economy, low unemployment rate of around 3.7%, and a significant gap in modern retail space per capita as key factors for the investment. According to BIG, the Bulgarian market has fewer institutional competitors for such assets compared to Western Europe, leading to higher yields. Many major retail chains already operating in BIG's other European centers are also present in Bulgaria.
This acquisition is part of BIG's broader strategy to expand its presence in the Balkans and Eastern Europe. The company's existing European operations in Poland, Serbia, and Montenegro boast a 99% occupancy rate and contributed approximately 233 million shekels in revenue with an EBITDA of 154.6 million shekels in the first half of the year. BIG also has interests in office and industrial real estate through its subsidiary AFI Properties.
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