25th Sep 2006 07:01
Black Sea Property Fund Limited25 September 2006 For Immediate Release Monday 25 September 2006 The Black Sea Property Fund Limited Quarterly valuation as at 30 June 2006 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 30 June 2006. • Net present value of the Fund (pre-tax) as at 30 June 2006 ("NPV") estimated at £71.6m (28.6p per share) excluding potential development gains on the two recent land purchases (31 March 2006: £72.9m, 29.1p per share) • Indicative net present values of developing the land at Borovetz and Byala £10.2m (4.1p per share) (31 March 2006: £10.8m, 4.3p per share) Valuation Colliers International have valued the projects to which Fund financing has been committed and those under option, as at the interim period (30 June 2006), in accordance with the Royal Institute of Chartered Surveyors' valuation methodology 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 net current assets and the land investmentsheld at cost by the Fund, produces a net present value for the investments of£71.6m (before tax), equivalent to 28.6p per share, as at 30 June 2006. Thechange in the NPV of the existing options reflects a more conservative viewtaken by the Manager of the sales profile for these investments and a delay inmarketing the Magnolia development. The two plots of land at Byala and Borovetz have been valued using the Manager'scost and valuation estimates and discounting back at a rate of 15%. Thisproduces a pre-tax net present value for these two projects of £10.2m or 4.1pper share. These projects 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. Net Assets The unaudited net assets of the Fund as at 30 June 2006 were £43.9m (17.5p pershare), of which cash and near cash assets comprised £33.1m (13.2p per share). The Fund is managed by Development Capital Management (Jersey) Limited. List of Contacts Development Capital ManagementRoger HornettTom Pridmore020 7399 4270 Buchanan CommunicationsCharles RylandIsabel Podda020 7466 5000 Numis SecuritiesIain McDonaldAndrew Dawber020 7776 1500 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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