Real estate investment company FairPlay International will invest 50 mln levs in a vacation complex in ski resort Panichishte, in Bulgaria's Rila mountain, the company said in a filing with the local stock exchange. Construction is scheduled to get underway in 2008 and wrap by 2010. The scheme will deliver a luxury hotel with more than 100 rooms and over 300 apartments with a total built-up area of 31,796.
The hotel will be leased while the apartments will be sold with prices expected to start from 1,000 euro/sq m. The fund estimates a return of 40-60% from the apartment inventory. FairPlay considers Panichishte to be an underdeveloped tourism destination with great potential due to its proximity to the Rila national park.
FairPlay Properties posted a profit of 5 mln levs in the first half of 2007 off of 20.4 mln levs in revenue, shows the unconsolidated financial report. Sales of apartments in coastal resort Santa Marina and St Ivan Rilski in ski resort Bansko generated over 80% of H1 income. The assets of the company are booked at 80.35 mln levs. Sales and rent income is projected at 53.2 mln levs for 2007 and at 60.6 mln levs for 2008. Earnings are forecast at 11.8 mln levs for 2007 and 16.5 mln levs for 2008.