4th Apr 2007 07:01
Black Sea Property Fund Limited04 April 2007 For Immediate Release 4 April 2007 The Black Sea Property Fund Limited Land purchase in Sofia The Black Sea Property Fund, which invests in the development of housing andholiday homes in Bulgaria, is pleased to announce the acquisition of developmentland in the Malinova Dolina district of the capital, Sofia. The Fund, which is quoted on AIM, is managed by Development Capital Management(Jersey) Limited. Highlights • The Fund has purchased 24,599 square metres of development land in the Malinova Dolina district of Sofia, one of the capital's suburbs in the foothills of the Vitosha mountain. • The total purchase price is €4 million, equivalent to €162 per square metre of land. The site has been independently valued at €169 per square metre. • The Fund expects to commit total equity of around €4.7 million (including the land purchase). The development cost is expected to be between €7 and €8 million. Current "as-built" sale prices, based on comparable properties selling in the region, are estimated by the Manager at €1,150 per square metre including VAT, giving a gross development value of €20 million. • The Fund will develop the land into a residential complex. Construction will be financed primarily through a debt finance facility with a local bank, together with deposits from off-plan sales. • Planning permission is already in place and construction is expected to commence towards the end of 2007 with completion anticipated to occur in spring 2009. Sales are expected to commence during the second half of 2007. The Chairman of the Fund, Melville Trimble said: "The Board is pleased toannounce the acquisition of this attractive and well located site. Whilst theFund's primary focus remains on tourist resorts, exposure to the Sofia marketgives the Fund additional diversification as well as the potential for goodreturns. The capital's residential market is strong and growing and it providespurchasers with year round rental opportunities. We look forward to creating anappealing and profitable development aimed at both owner occupiers and overseasbuy to let investors." Further Details The Black Sea Property Fund Limited (the "Fund") has (through a localsubsidiary) acquired 24,599 square metres of prime development land in theMalinova Dolina district of Sofia, one of the capital's popular suburbs. The site is 15 minutes drive from the city centre and its neighbours include theBusiness Park Sofia, as well as the Residential Park Sofia. Properties in thisarea appeal to the wealthier residents of Sofia and there has been an increasein the number of gated residential complexes to cater for this market. The siteis located close to one of the stations for the proposed Sofia metro. The Fund will pay a price of €4 million, equivalent to €162 per square metre ofland. The site has been independently valued by Yavlena Real Estate at €169 persquare metre. Local taxes, commissions and agent fees total an additional€147,000. The Fund expects to commit total equity of around €4.7 million(including the land purchase). The development cost is expected to be between €7and €8 million. Sales are expected to commence during the second half of 2007. Current"as-built" sale prices, based on comparable properties selling in the region,are estimated by the Manager at €1,150 per square metre, giving a grossdevelopment value of €20 million. The Fund intends to develop the land into a residential complex and is currentlytendering for a project manager, who will assist in the selection andappointment of architects, a construction company and other professionals forthe project. Work is expected to commence towards the end of 2007, withcompletion anticipated in the spring of 2009. The Board expects to announce a full trading update shortly as part of thepublication of the audited accounts for the year ended 31 December 2006. List of contacts Development Capital Management 020 7355 7600Roger HornettTom Pridmore Buchanan Communications 020 7466 5000Charles RylandIsabel Podda Numis Securities Ltd 020 7776 1500Andrew DawberIain McDonald This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
BKSA.L