28th Mar 2006 07:00
Black Sea Property Fund Limited28 March 2006 For immediate release 28 March 2006 The Black Sea Property Fund Investment in new site at Tsarevo on the southern 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 an apartment complex currently under constructionat Tsarevo along the southern Bulgarian Black Sea coast. The Fund is managed by Development Capital Management (Jersey) Limited. Highlights • Agreement has been reached to provide development finance for a beach-front development at Tsarevo, 73kms from Bourgas airport. • The Fund will finance 70 of the 140 apartments currently under construction at a fixed price of Eu540 per square metre, a total financing of Eu3.78 million. • Colliers International have valued the apartments on an "as if built" current market basis at Eu1,000 per square metre (including VAT) indicating an entry price discount of 35%. • The first Eu90 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% the developer/30% the Fund. Chairman of the Fund, Melville Trimble said "Although this is a relatively smallproject for the Fund, its stage of construction suggests it should acceleratethe Fund's cash flow, further diversify any risk and provide potentially strongreturns. The Fund will also gain exposure to the southern part of the Black Seacoast where rental yields are more attractive to purchasers due to the longerseason." Details Tsarevo is situated towards the Southern end of the Bulgarian Black Sea coastand accordingly enjoys a warmer climate and extended holiday season. The town isa 40 minute drive from Bourgas International airport and has good road accessand public transport links. A major international tour operator is building afamily complex nearby. The Fund has agreed to provide development finance for 50% of a total 140apartment complex currently under construction. The development is beach-frontand is expected to be completed by mid 2007. The project will commit the Fund to a total financing of Eu3.78 million for its50% share (70 apartments). Under the terms of the contract, the Fund has agreed finance at a level of Eu540per square metre and will take the first Eu90 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 30% of the total funding. A further20% will be financed when external insulation is complete and the balance of 50%upon final completion. Provision of the finance is subject to completion of theFund's security package. Colliers International have valued the apartments on an "as if built" currentmarket basis at Eu1,000 per square metre indicating an entry price discount of35%. For further details please contact:- Development Capital ManagementRoger HornettTom Pridmore020 7399 4270 Buchanan CommunicationsCharles RylandIsabel Podda020 7466 5000 Numis SecuritiesCharles Farquhar0207776 1500 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
BKSA.L