The 57 million pound company is financing the construction of 350 holiday apartments in the Bulgarian ski resort of Pamporovo. New Star's Mark Harris bought 7.725 million shares or 3.1 percent of the company at Black Sea's launch in March and has held on to them since. His stake is worth 1.75 million pounds at current prices.
The properties will be complete in time for the 2007/2008 ski season but Black Sea Property intends to sell them off the plan in the coming months. It believes if it can sell all the apartments at their current estimated value within the next two years its initial rate of return on the investment will be 54 percent.
Once final building permits are in place, Black Sea will issue 4.6 million euros (3.1 million pounds) to the developer at agreed stages during the building process with the balance of 6.9 million euros to be paid a month after the development is completed.
This latest investment means 40 percent of the funds Black Sea raised at launch have now been committed to development projects totalling 2,850 apartments. Black Sea chairman Melville Trimble: "Diversification into the ski and mountain resort market is in line with the fund's stated strategy."
Bulgaria has attracted a great deal of attention from UK investors recently with a myriad property schemes tempting Brits into buying overseas second homes. However this is not without risk and investment funds such as Black Sea and Bulgarian Property provide a more diversified option for investors. c)2005 citywire.co.uk. November 2005
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