Bulgarian Land Development Buys 1.7m Euro Plot Near Sofia

London-listed Bulgarian Land Development (BLD) fund acquired a 38 146 sq m plot near Sofia for 1.7 million euro, company officials said, as reported by investor.bg. BLD’s representatives refused to provide details on the exact location.

The company plans to buy several neighbouring plots in the area, looking to expand its holdings to 60 000 sq m, which would then be used to develop a residential complex. BLD executives think that the region is very promising and would attract many Sofia residents, particularly with view to the general trend of relocation from the centre to the suburban areas, which offer better opportunities for improving living standard. BLD will use its own resources for financing the transactions.

The purchase is in line with the fund’s strategy of portfolio diversification. Apart from the residential scheme, the fund also plans to acquire a business property project in Sofia. If all these investment intentions come into fruition, the company will have invested or allocated for investment almost 100 per cent of its capital only 12 months after it raised additional 15 million pounds last year.

Overall, the group's pre-tax position in 2007 was a loss of 187 000 pounds, as compared to the 1.03 million pound loss in 2006. The actual net value of the fund’s assets grew by 26 per cent to 130p a share. The company has a nine-project portfolio, comprising vacation complexes in different seaside and mountain resorts, as well as business buildings in Sofia.

The total value of the completed projects is estimated at 241 million euro. BLD’s analysts expect a 15 per cent price growth on Bulgarian property market, down from 29 per cent, posted last year. Varna and Sofia’s markets are the best performers, according to the fund.

Demand for second homes, generated by Russian and Middle East buyers, has managed to offset the declining interest of British and Irish investors, the company’s experts said. BLD’s Bulgarian projects were presented at different exhibitions in Moscow, Dubai, Denmark and Bucharest.propertywisebulgaria.com