Black Sea Property Fund Limited, which specialises in the financing and sale of luxury holiday properties in Bulgaria, was quoted as saying Tuesday by news agency Dow Jones that it has acquired development land in Bulgaria's Borovets ski region. The total initial purchase price is approximately 3.6 mln euro, equivalent to 68 euro per sq m. Two further instalments of 10 euro per sq m are payable on commencement and the completion of planned construction works, bringing the total purchase price to 4.7 mln euro, said Dow Jones.
The company said that the agreement has been signed to purchase 53,047 sq m in Borovets, one of Bulgaria's most popular ski resorts only 45 min drive from Sofia. The site, valued independently at 118 euro per sq m, is located approximately 500 metres from the location of a planned new gondola lift, said Dow Jones.
On completion of the purchase, Dow Jones said the fund intends to develop the land, in joint venture with a local project manager, into a gated residential/holiday apartment complex of around 900 units. Total development costs are expected to be in the region of 530 euro (incl. VAT) per sq m, including land acquisition, construction and infrastructure costs. Current "as-built" sale prices of comparable properties are estimated by the manager at 1,200 euro (incl VAT) per sq m, said the news agency.
The fund's contribution towards construction costs is expected to be in the region of 11 mln euro. The chairman of the fund, Melville Trimble told Dow Jones: 'The purchase of land in Borovets coupled with the fund's development plans represents an important step in the continued diversification of the fund. Borovets is undergoing considerable improvement and extension as part of Bulgaria's bid to host the 2014 winter Olympics.' Roger Hornett from Development Capital Management, the company overseeing the fund's investments in Bulgaria, said construction will get underway within the ensuing 3-4 months and will be completed by 2007. The press office of the Bulgarian regional development ministry said on Tuesday it had not been asked to issue construction permits for the Borovets area.