DJ Black Sea Property PLC Letter of Intent Signed
RNS Number : 5767R
Black Sea Property PLC
12 December 2016
BLACK SEA PROPERTY PLC
("Black Sea Property" or the "Company")
Letter of Interest Signed
Black Sea Property PLC, the Bulgarian property investment company, is pleased to announce that it has signed a non-binding letter of interest to acquire 100% of the equity interest in Varna Project Investment OOD, a Bulgarian company that owns six apartments nearing completion and a separate plot of development land, both in a residential complex just outside Varna on the Black Sea coast in Bulgaria ("Acquisition"). The proposed consideration for the Acquisition will be EUR 130,000 in cash, to be financed from the Company's existing resources, and the assumption of a bank loan of EUR 1,018,500 (the "Loan").
The construction of the apartments is due to complete by 31(st) December 2016. It is envisaged that the Company will commence marketing the apartments in or around May 2017, and that it will sell the plot of land on to a developer within a timescale of about eighteen months.
The interest payable on the Loan is Central Cooperative Bank AD's current interest rate plus a fixed margin of 2% percentage points. At the time of grant and as of today's date, the interest rate is 5%. The principal repayment date is 1(st) July 2020.
Chairman of Black Sea Property PLC, Alex Borrelli said, "We are delighted to have identified this compact and attractive proposition through AG Asset Management, our property investment adviser, as the first investment proposal for the Company with expected short-term realisable gains."
The Company intends to sign a definitive, binding agreement by the end of March 2017, subject to satisfactory completion of due diligence which is currently being undertaken.
The Directors of the issuer accept responsibility for the contents of this announcement.
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For further information, please visit www.blackseapropertyplc.com or contact the following:
BLACK SEA PROPERTY PLC Alex Borrelli, Chairman +44(0) 774 702 0600 PETERHOUSE CORPORATE FINANCE LIMITED ISDX Corporate Adviser Heena Karani and Fungai Ndoro +44 (0) 207 469 0930
This information is provided by RNS
The company news service from the London Stock Exchange
(END) Dow Jones Newswires
December 12, 2016 05:49 ET (10:49 GMT)