10th May 2006 11:00
Black Sea Property Fund Limited10 May 2006 For immediate release 10 May 2006 The Black Sea Property Fund Investment in new site at the Riviera Resort on the northern Black Sea coast The Black Sea Property Fund Limited (the "Fund"), which specialises in thefinancing and sale "off-plan" of holiday apartments in Bulgaria, is pleased toannounce a new investment in the "Nikea Park" apartment complex currently underconstruction at the Riviera resort, near Varna on the northern Bulgarian BlackSea coast. The Fund is managed by Development Capital Management (Jersey) Limited. Highlights • Agreement has been reached to provide development finance for a coastal development at the Riviera resort, just 18kms from Varna and 25 minutes from its international airport. • The Fund will finance 118 out of a total development of 154 apartments currently under construction at a fixed price of Eu500 per square metre, a total financing of Eu4.23 million. • ELTA Consult (an associate of CB Richard Ellis) have valued the apartments on an "as if built" current market basis at Eu900 per square metre (excluding VAT) indicating an entry price discount of 44%. • The first Eu100 per square metre of any net proceeds on the sale of apartments will be paid to the Fund, with the balance shared in the ratio 70% to the developer and 30% to the Fund. • The developer and the construction company are part of the Bulmix Group, which is one of the largest and best-known companies in Bulgaria. The company has a reputation for good construction, timing and quality of the services provided. Chairman of the Fund, Melville Trimble said "The Board are pleased to beinvolved in a project alongside such a well known and highly regarded developerand with whom the Manager believes it would be beneficial to work in the future.We anticipate that the advanced stage of completion of the project will assistin securing early sales and potentially strong returns." Petar Konstantinov, Chairman of Bulmix said "The Fund's financing model providesan attractive alternative to traditional development finance. We look forward tothe Nikea Park project signalling the start of a successful partnership with theFund and its Manager in Bulgaria." Details Located in a picturesque bay on the northern Black Sea coast, the Riviera resortis only 18kms from Varna. Riviera is a part of the broad Golden Sands resort,being one of the best-developed and well-known parts of the Black Sea coastline.Riviera benefits from its proximity to the tourist attractions of Varna andGolden Sands yet the resort itself is part of a quiet national park. The area isonly 25 minutes from Varna international airport by road. The Nikea Park complex will provide a high quality, modern apartment block just250 meters from the beach via a short walk through the Riviera resort. Itbenefits from panoramic views across the bay. The complex will have 154apartments, a swimming pool, pool-bar, restaurant, shop and spa centre. The developer, Bulmix Group Ltd, is the investment company of Bulmix 97 Ltd.Bulmix 97 is one of the largest construction companies in Bulgaria. It employsover 1200 permanent staff. Bulmix as main contractor has built over 250developments and 35 are under construction at present. Their annual constructionprogram is 200,000m2 as main contractor or developer. The company has areputation for good construction, timing and quality of the services provided. The Fund has agreed to provide development finance for 118 of a total of 154apartments in a complex currently under construction, committing the Fund to atotal financing of Eu4.23 million. The development is expected to be completedby Autumn 2006. Under the terms of the contract, the Fund has agreed finance at a level of Eu500per square metre and will take the first Eu100 per square metre of any net salesproceeds on the sale of apartments, sharing the balance with the developer inthe ratio of 70% developer/30% the Fund. The Fund will provide initial financing of 20% of the total funding. A further60% will be financed when construction is complete and the balance of 20%financed 60 days post completion. ELTA Consult (an associate of CB Richard Ellis) have valued the apartments on an"as if built" current market basis at Eu900 per square metre (excluding VAT)indicating an entry price discount of 44%. Sales to date of the units retainedby the developer would indicate that this valuation is attainable. The Fundexpects to commence sales of its units in the next two months. For further details please contact:- Development Capital ManagementRoger HornettTom Pridmore020 7399 4270 Buchanan CommunicationsCharles RylandIsabel Podda020 7466 5000 Numis SecuritiesCharles FarquharIain McDonald020 7776 1500 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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