[IMGCAP(2)]The new company is called Federal BulgariaManagement. Its headquarters will be in Sophia, with regionaloffices in key cities such as Varna, the country's second largestcity, and Burgas, on the Black Sea coast.

Initial plans focus on converting and redeveloping approximately50 sites, owned by different entities within the Petrol Holdinggroup of companies. These sites will be converted from oilservicing facilities to mixed-use developments that will likelyinclude office, retail, and residential components.

"Bulgaria is new territory for developers," Gary Helminski,director of development for Federal Development tells GlobeSt.com."It just recently joined the European Union in January, so we'repioneering here." He compares where Bulgaria is today with wherePoland was four or five years ago. Poland is now booming in termsof real estate development, and Helminski believes Bulgaria willfollow suit. "We're on the front edge of that," Helminski says.