ACROSS: TRINITY CAPITAL HAS QUICKLY BECOME AN IMPORTANT PLAYER IN THE BULGARIAN RETAIL REAL ESTATE MARKET. PLEASE PROVIDE US WITH AN OVERVIEW OF YOUR COMPANY’S ACTIVITIES.
STOYAN KOLEV: We are a relatively young company that was established to invest in commercial real estate in strategic locations in Bulgaria. In 2020, we had the opportunity to acquire the most extensive retail park in the country, Jumbo Plaza (today XOPark Sofia). This asset was, at that time, a typical retail park that was highly underdeveloped. Therefore, we added another 25,000 sq m to enrich the existing tenant mix – and to add food and services. Today, XOPark Sofia offers a comprehensive solution for its clients – shopping, dining areas, and future supplementary functions. After the first upgrade, the park experienced significant growth, which influenced the general development of our company. We currently own a national chain of retail parks and operate four assets, and another five are in project phases. Furthermore, we own two shopping centers and small residential and vacation recreational projects. Within the next 18 months, we will have more than 200,000 sq m of leasable area, consisting of 10 retail parks, two shopping malls, and one outlet village.
ACROSS: THAT MAKES YOU ONE OF THE BIGGEST PLAYERS IN YOUR COUNTRY.
KOLEV: Yes, we are one of Bulgaria’s biggest commercial real estate players – perhaps the biggest one. More importantly, the company continues to develop and operate its assets and build new ones. And, we do all of this with fully independent in-house teams and project managers.
ACROSS: UNTIL RECENTLY, YOU FOCUSED ON FULL-PRICE LOCATIONS. YOU HAVE ENTERED THE OUTLET MARKET WITH YOUR MOST SIGNIFICANT PROJECT, THE OUTLET VILLAGE SOFIA. WHAT IS YOUR MOTIVATION BEHIND THIS STRATEGIC STEP?
KOLEV: There are powerful market signals for this investment. However, the idea was born two years ago when the competition within Sofia increased significantly, and we discussed how the existing concept of the Jumbo Plaza retail park could be strengthened, which we recently rebranded to XOPark Sofia. Back then, we discussed new features, new brands as part of the tenant mix of an expansion, and new formats, including the idea of an outlet center. Retailers immediately validated this idea by expressing strong interest in entering an outlet concept, and we started to explore the outlet idea. We conducted extensive research with Ecostra and contacted Michael Haslinger to serve as the consultant of this new endeavor for us. While our core focus has been on full-price retail locations, namely retail parks and shopping malls, we recognize the market’s evolving needs and changing consumer behavior. Our decision to build an outlet center has followed the fundamental retail principle: First, understand the market, and then offer the right product.
ACROSS: BULGARIA IS RELATIVELY LATE WHEN IT COMES TO OUTLETS. WHAT IS THE REASON FOR THAT?
KOLEV: It’s true that the retail landscape in Bulgaria has traditionally focused on full-priced retail formats within the limited offering of a discount-driven shopping experience. Historically, there was a lack of sufficient demand for the outlet concept. Bulgarian consumers, who are more accustomed to traditional retail models, have only recently begun shifting towards a value-oriented mindset. A project in the outskirts of Sofia opened approximately 15 years ago, following a Western European outlet model. However, the owners had difficulties enforcing the policies of consistent discounts for all stores. Therefore, some of the retailers have moved out over time.
ACROSS. WHAT IS THE DIFFERENCE TODAY?
KOLEV: The economic environment and the population’s purchasing power were not favorable to the outlet model in the past. Outlets tend to thrive in markets with a certain level of consumer affluence and a robust middle class that has an appetite for premium brands. Bulgaria was still in the phase of developing its retail infrastructure and consumer behavior. In addition, the retail sector was dominated by traditional shopping centers and full-price stores, which made introducing a new retail model that would appeal to local and international consumers a complex task. The outlet concept does not require significant investments in a large-scale retail environment. The right location, accessibility, and complementary services ensure many visitors and long-term success. However, the lack of experience with successful outlet developments and the limited number of international retailers opening stores in Bulgaria meant fewer proven success stories to inspire the confidence of developers and investors. However, as the Bulgarian market has matured, the demand for outlet shopping has also grown. We firmly believe and are confident that the market is ready to embrace this new retail format.
ACROSS: SO, THE TIMING IS RIGHT, AND YOU HAVE AN OPEN WINDOW OF OPPORTUNITIES.
KOLEV: The market signals are the most important. We can see the added value of these concepts in the European retail market. Finally, the market research indicates that the national market is ready for this concept.
ACROSS: THE LOCATION OF YOUR OUTLET IS ALREADY A PROVEN SHOPPING DESTINATION.
KOLEV: The location itself is the biggest argument for the project. As mentioned, Outlet Village Sofia will be close to XOPark. As you’ve said, this is an established and essential shopping destination in Bulgaria. With 30,000 sq m operating since 2011 and another 25,000 sq m just introduced to the public, this retail park is the largest one in the Balkans. The destination attracts an annual footfall of more than six million people. This number is expected to increase to eight million when the outlet village opens. The project will be at the northern entrance of Sofia, the capital city of Bulgaria. It is a 10-minute drive from the airport and a 20-minute drive from the city center. It is exceptionally well-connected to one of the main highways in the country and the ring road of Sofia, with more than 26 million cars passing by the location each year.
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ACROSS: DO YOU ALSO EXPECT VISITORS FROM NEIGHBORING COUNTRIES?
KOLEV: We expect guests, mainly from Serbia, Macedonia, and Romania. Next to our retail park, there is excellent transit traffic from Central Europe to Turkey and from Romania to Greece. Those travelers love to stop at our place, and that is what we call the cherry on top when it comes to footfall.
ACROSS: WHAT IS YOUR TIMELINE FOR THE PROJECT?
KOLEV: We already have a building permit for the outlet. Initial construction work is scheduled to begin in the first quarter of 2025, and we plan to open in Q4 of 2026. We have already leased out about 70% of the leasable area. I firmly believe that in the next three to four years, we will start phase two of the development, creating an additional 5000 – 6000 sq m. We already have the land banking for it.
ACROSS: WHAT FEEDBACK HAVE YOU RECEIVED FROM INTERNATIONAL BRANDS REGARDING YOUR PROJECT?
KOLEV: The Bulgarian market is generally run by local brand distributors (franchising companies). They are very willing to invest and partner with us in this outlet shopping concept, with the help of international consultants. Our strategy was to start with the parent company driving the local franchisors. Our project has been well received by the parent companies. As recently as December, we had very good discussions and received motivating feedback at MAPIC, where we presented our project for the second year in a row.
OUTLET VILLAGE SOFIA AT A GLANCE
In 2026, the first Outlet Village in Bulgaria will be inaugurated within the precincts of the XOPark Sofia retail park. Although the outlet village concept is a novelty in the local market, it has been a tried-and-true model across Europe for many years. The village will house 40 stores across a 7,000-square-meter leasable area, providing the park’s patrons with international fashion brands at attractive prices.
Developer/Operator: Trinity Capital
Retail Consultant: Haslinger Retail Real Estate Company
Location: Located at the northern entrance of Sofia, in the immediate vicinity of XOPark Sofia (formerly Jumbo Plaza Retail Park) and at the intersection of the A1 and A2 motorways on Sofia’s Ring Road, which, with 24 million vehicles per year, is the busiest junction in Bulgaria.
Accessibility: In addition to its highway connections, two public bus lines run every 15 minutes, and a new subway line, which will go to Outlet Village Sofia, is planned to open by 2026.
Catchment Area: 30-minute drive – 1.3 million residents; 60-minute drive – 1.6 million residents; 90-minute drive – 2.5 million residents.
Size: 7,000 sq m of great fashion deals; regular shop sizes between 80 and 170 sq m; anchor shop sizes up to 400 sq m.
ACROSS: THE PROJECT’S UNIQUE FEATURE IS THE COMBINATION OF AN EXISTING RETAIL PARK AND AN OUTLET. ALTHOUGH THIS COMBINATION IS WELL ESTABLISHED IN THE EUROPEAN OUTLET INDUSTRY, THE SAME COMPANY RARELY DEVELOPS AND MANAGES BOTH ASSETS. WHERE DO YOU SEE THE GREATEST SYNERGIES BETWEEN A FULL-PRICE AND AN OUTLET CONCEPT?
KOLEV: I firmly believe combining retail parks and outlet villages is an effective strategy. This integration naturally leverages the strengths of both formats and results in a dynamic retail ecosystem that appeals to a diverse customer base. Retail parks offer convenience and accessibility and cater to essential and practical shopping needs, while outlet villages attract price-conscious shoppers looking for branded items at discounted prices. Combining these two elements creates a true power-shopping destination that offers variety, value, and accessible customer experience. The most crucial synergy is obvious: increased footfall. Both retail parks and outlet villages drive footfall, significantly increasing overall traffic and improving the customer experience. Operational efficiencies, shared infrastructure, parking, and services are added to this. We will reduce costs and improve sustainability. The combined format is also highly attractive to brands and retailers. The tenant mix is strengthened.
ACROSS: WILL THE MANAGEMENT OF BOTH – OUTLET AND RETAIL PARK – BE HANDLED IN-HOUSE?
KOLEV: We plan to implement everything with our in-house teams. Of course, they will specifically devote themselves to the individual assets and target marketing, retail management, property management, letting, etc., for the outlet village and the retail park. Additionally, we have also examined the market and have international operators in mind – just in case. But the current plan is to handle everything in-house.
ACROSS: DO YOU HAVE ANOTHER EUROPEAN PROJECT IN MIND WHEN IT COMES TO ROLE MODELS FOR YOUR PROJECT?
KOLEV: One of my favorite European destinations is Outlet Center Parndorf. I visit the asset regularly and am always amazed by its development. This shows the advantages of this great outlet for consumers, which is managed by McArthurGlen, as well as the neighboring shopping center and retail park.
ACROSS: YOU HAVE ALREADY MENTIONED THE EXPECTED INCREASE IN DWELL TIME. WHAT ROLES DO GASTRONOMY AND ENTERTAINMENT PLAY IN THAT REGARD?
KOLEV: Significant roles. We are developing a feature within the retail park called Agora. It is a 2000-square-meter leasable area that serves as a central place between the outlet and the retail park. There will be cafes, restaurants, and gourmet shops serving national and international food. It will be built in the style of an amphitheater, offering ample space and opportunities to rest and spend social time. Furthermore, we have bought an adjacent plot of 10,000 sq m to create one of the most prominent entertainment concepts in Sofia – likely in a joint venture with an international operator.
ACROSS: ASIDE FROM THE OUTLET AND THE EXPANSION OF THE XOPARK RETAIL PARK CHAIN, WHAT ARE YOUR OTHER PRIORITIES IN 2025?
KOLEV: We are developing five more retail parks in Bulgaria’s major cities. We already have the plots and permits and will open these five locations in the next 18 to 24 months. We also have some projects near the Black Sea coast, including recreational and vacation homes. Of course, we are focusing on our two shopping centers and will continue to upgrade them.
ACROSS: SO FAR, YOU HAVE FOCUSED ON BULGARIA. IS A STEP TOWARDS THE INTERNATIONAL MARKET EXPECTED?
KOLEV: We’re looking south and west, but we will see what happens. Macedonia and Greece might be options because of their historical paths and connections. Nothing is concrete, and we are very relaxed about this since we currently have many big, ongoing projects in Bulgaria.
Stoyan Kolev
Stoyan Kolev is CEO of Trinity Capital,
