28th Oct 2005 12:00
Black Sea Property Fund Limited28 October 2005 For immediate release 28 October 2005 The Black Sea Property Fund Valuation as at 30th September 2005 The Black Sea Property Fund Limited (the "Fund"), which specialises in thefinancing and sale of "off-plan" luxury holiday apartments in Bulgaria ispleased to announce a successful quarter to 30th September 2005. • Net present value of the Fund as at the 30th September 2005 is estimated at £68.7m (27.4p per share) • The investment announced on 21st October 2005 in the Pamporovo ski-region (Magnolia) has an estimated net present value of £3.6m (1.4p per share) List of ContactsDevelopment Capital ManagementRoger HornettTom Pridmore020 7399 4270 Numis SecuritiesBruce GarrowCharles Farquhar020 7776 1500 Buchanan CommunicationsCharles RylandIsabel Podda020 7466 5000 European Union The Brussels Commission has now issued its "Roadmap" for EU accession on 1stJanuary 2007. Despite the enactment of a new penal code, the report highlightsthe work still to be done to tackle high level corruption, the national accountsand agriculture, however it made no reference to the safety clause, which woulddelay entry by a year. Valuation The valuation of the Fund's property investments as at the 30th September 2005,is based on the 30th June 2005 valuation carried out by Colliers Internationalin accordance with the Royal Institute of Chartered Surveyors valuationmethodology on an "as if built condition, open market comparative" basis,assuming no increases from current average price levels in the specificlocations in which the Fund is invested. Using these valuations in a standard discounted cash-flow model and discountingthe existing projects back by 11% (a figure representing the cost of capitalplus an assumed risk premium) over their expected lifetime, produces a netpresent value for the projects of £24.8m (before tax) equivalent to 9.9p pershare. The net asset value of the Fund as calculated under IFRS at the 30thSeptember 2005 is £44.1m (17.6p per share). When combining these two andadjusting for the appropriate accounting treatment, this results in a netpresent value for the Fund of £68.7m (27.4p per share), an increase of 0.4%since the interim financial statements. The Manager considers this to be a fair reflection of the value of the Fund andit's potential at this early stage. The Fund's property investments are valued on a half yearly basis at the end ofJune and December each year. The total estimated value of the existing projects, including the Pamporovodevelopment, on a non-discounted basis (before tax) and using the exchange rateas at 26th October, is £81.7m (32.6p per share). The Pamporovo development has been valued by Colliers International on the 19thOctober 2005 using the basis described above. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
BKSA.L