31st May 2005 13:30
Black Sea Property Fund Limited31 May 2005 FOR IMMEDIATE RELEASE 31 May 2005 The Black Sea Property Fund Limited (AIM:BKSA) Option secured over Byala beachfront properties The Black Sea Property Fund (the "Fund"), managed by Development CapitalManagement (Jersey) Limited, has acquired an option (the "Option") to purchaseapproximately 1,200 upmarket holiday apartments to be built as part of a beachfront scheme near the Bulgarian town of Byala (the "Scheme"). The Scheme will comprise approximately 2,400 properties to be built on a virgin130,000 square metre site near Byala. Byala is 50km, 30 minutes' drive south ofVarna International Airport. With its long sandy beaches, proximity to theairport and leisure facilities, the Byala area is likely to become one ofBulgaria's most popular tourist destinations. The Scheme has obtained outline planning permission and conceptual designapproval, incorporating swimming pools, restaurants and other leisure facilitiestypical of an upmarket Bulgarian holiday resort. The first phase is scheduledfor completion in September 2006. Upon exercise of the Option, expected in the next 4-6 months, the Fund will paya deposit of €15 million, 35% of the total purchase price, to be released to thedeveloper at different stages during the construction process. The balance of€28 million will be payable in phases 3 months following completion of therelevant properties, although the Fund intends to sell the portfolio prior tosuch dates. The purchase price of €43 million is equivalent to €450 per square metre(excluding VAT), representing a c55% discount to the estimated as-if-built openmarket value of the relevant properties (€1,000 per square metre excluding VAT)as determined by Colliers International. The Fund is entitled to the firstslice of profit on the sale of the portfolio of an amount equivalent to theinitial deposit paid (i.e. €15m). Any profit over and above this amount will besplit 60:40 (developer: Fund). Chairman of the Fund, Melville Trimble said, "The Fund is delighted to be ableto announce the first substantial investment since its launch. The site is anexcellent location with great potential. This deal represents a significant steptowards us achieving our objectives". The Board intends to announce the Fund's first net asset value as at 30 Junetowards the end of July with a further update at that time. For further information, please contact: Development Capital Management (Bulgaria)(Investment Adviser) Roger HornettTom Pridmore020 7399 4270 Collins StewartAlan Geeves020 7523 8800 Buchanan CommunicationsCharles Ryland/Isabel Podda020 7466 5000 Note: the Fund is an investment company, launched on 14 March 2005 raising £50million, which specialises in part-financing residential property schemes inBulgaria's developing tourist destinations through early stage, bulk propertyacquisitions. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
BKSA.L