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Bulgarian Property Developments places shares on the Stock Exchange

1st December 2005 | back to article listings BACK    print this article PRINT

As Bulgaria begins to attract the concerted interest of property experts worldwide on the back of the decision to bid for the 2014 Winter Olympics, Bulgarian Property Developments (BDP)has announced that it will attempt to raise £40 million on the London Stock Exchange.

Since January 2005, BDP has been able to acquire six main sites. The five sites in Sofia are to be used in a commercial capacity, while the remaining land in Bansko has been reserved for residential development and will be of particular interest to investors in view of its position in one of the country's leading ski resorts.

If Bulgaria is successful in its bid for the Winter Olympics, Bansko will become the Olympic centre, and so the acquisition of this site has attracted particular attention in the property investment sector.

A valuation by Colliers International has indicated that by November 25th, there had been a 55.2 per cent uplift in value against the aggregate purchase price of the initial property portfolio.

In further good news for BDP, it was announced that it has exchanged contracts to sell land that will represent an uplift of 90 per cent on the price paid earlier this year. This transaction, however, is dependent on the land being rezoned from agricultural to commercial use.

Less encouraging for property investors in Bulgaria is the news that property tax valuations will rise by five up to 50 per cent in 2006 because of amendments to the local taxes and fees act. The Bulgarian government has cited the increase in market prices over the last five years as the primary reason for the decision.

According to the Sofia News Agency, property in villa zones located ten kilometres from the seacoasts and national resorts will face an increase in tax valuation of 50 per cent. This compares to a figure of 20 per cent for property in areas of local significance.

With Bulgaria's growing economy and the prospect of increased publicity with the possibility of the Winter Olympics, interest in property investment in Bulgaria remains high and BPD has moved to stay ahead of opposition.

It has revealed that it will be using the £40 million raised on the Stock Exchange to finance the development of all six of the current sites and to develop additional land in the country.

This is a press release by Assetz also available at http://press.assetz.co.uk/articles/2362.html. Alternatively, please see our full press release archive.

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