2nd Mar 2006 11:11
Black Sea Property Fund Limited02 March 2006 The Black Sea Property Fund Limited 2 March 2006 For immediate release The Black Sea Property Fund Limited Quarterly valuation as at 31 December 2005 Retirement of Director Investment Update Introduction The Black Sea Property Fund Limited (the "Fund"), which specialises in thefinancing and sale "off-plan" of luxury holiday apartments in Bulgaria, ispleased to announce its valuation of the Fund as at 31 December 2005. The Fundis managed by Development Capital Management (Jersey) Limited. • Net present value of the Fund (pre-tax) as at 31 December 2005 estimated at £73.1m (29.2p per share). (30 September 2005: 27.4p per share) Valuation Colliers International have valued the projects to which Fund financing has beencommitted and those under option, as at 31 December 2005, in accordance with theRoyal Institute of Chartered Surveyors' valuation methodology on an "as builtcondition, open market comparative" basis, assuming no increase from current"average" price levels in the specific locations in which the Fund has investedor has an existing option to do so. Using these valuations in a standard discounted cash flow model and discountingthe existing projects back at 11% per annum (a figure representing the cost ofcapital plus an assumed risk premium) over their expected lifetime, produces anet present value for the year-end projects of £29.6m (before tax), equivalentto 11.9p per share, as at 31 December 2005. The unaudited net assets of the Fund as at 31 December 2005 were £43.7m (17.3pper share), of which cash and near cash assets comprised £43.6m (17.3p pershare). When the net present value for the year-end projects is added, thisresults in a net present value for the Fund (pre-tax) of £73.1m (29.2p pershare). This compares with a net present value for the Fund as at 30 September 2005 of£68.7m (27.4p per share). Although these valuations should not be seen as a profit forecast they provide ameasure of the progress of the Fund. Retirement of Director It is with regret that the Board also announces the retirement of The Hon JamesOgilvy, as non-executive director, due to health considerations. Following anillustrious 44 year career in the City of London, Mr Ogilvy was instrumental insupporting the Fund's manager, Development Capital Management (Jersey) Limited,in the establishment and launch of the Fund in 2005 and continued to play anactive role in the Fund. The Board and the manager wish to record theirgratitude for all that Mr Ogilvy has done on behalf of the Fund since its launchand wish him well in his retirement. Borovetz update As announced in January, the Fund has signed an agreement for, and paid adeposit in respect of, the acquisition of development land in Borovetz (skiregion). As contemplated in that announcement, the Fund has since signed anagreement for the project management and design of the site with the intentionof developing a gated residential/holiday apartment complex of around 900 units. List of Contacts Development Capital ManagementRoger HornettTom Pridmore020 7399 4270 Buchanan CommunicationsCharles Ryland020 7466 5000 Numis SecuritiesCharles Farquhar020 7776 1500 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
BKSA.L