5th May 2006 07:00
Black Sea Property Fund Limited05 May 2006 For immediate release 5 May 2006 The Black Sea Property Fund Limited Quarterly valuation as at 31 March 2006 Introduction The Black Sea Property Fund Limited (the "Fund"), which specialises in thefinancing and sale of luxury holiday apartments in Bulgaria, is pleased toannounce its valuation of the Fund as at 31 March 2006. The Fund is managed by Development Capital Management (Jersey) Limited. • Net present value of the Fund (pre-tax) as at 31 March 2006 ("NPV") estimated at £72.9m (29.1p per share) excluding potential development gains on the two recent land purchases (31 December 2005: 29.2p per share) • Indicative net present values of developing the land at Borovetz and Byala £10.8m (4.3p per share) Valuation Colliers International have valued the projects to which Fund financing hasbeen committed and those under option, as at the year end 31 December 2005,in accordance with the Royal Institute of Chartered Surveyors' valuationmethodology on an "as built condition, open market comparative" basis. Taking these valuations and discounting back the expected cash flows from theprojects at 11%, together with the land investments held at cost by the Fund,produces a net present value for the investments of £36.1m (before tax),equivalent to 14.4p per share, as at 31 March 2006. The unaudited net assets of the Fund as at 31 March 2006 were £44.4m (17.7p pershare), of which cash and near cash assets comprised £36.8m (14.7p per share).When the net present value for the above projects is added, this results in anet present value for the Fund (pre-tax) of £72.9m (29.1p per share). The NPV has been calculated excluding the potential gains from developing thetwo plots of land recently announced at Byala and Borovetz. Based upon theManager's cost and valuation estimates and discounting back at a higher rate of15% produces a pre-tax net present value for these two projects of £10.8m or4.3p per share. These will be added to future net present value calculationsonce 3rd party estimates for construction costs and an "as if built" valuationhave been finalised. These valuations are not a profit forecast but they aim to provide a measure ofthe progress of the Fund. List of Contacts Development Capital ManagementRoger HornettTom Pridmore020 7399 4270 Buchanan CommunicationsCharles Ryland020 7466 5000 Numis SecuritiesIain McDonaldAndrew Dawber020 7776 1500 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
BKSA.L