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Bulgarian Property & Real Estate News

Equest Balkan acquires stake in Super Borovets

Equest Balkan (EIB), the Bulgarian property investment company targeting retail and financial services, infrastructure and property development in South East Europe, today announced the purchase of a 33.5% indirect equity holding in Rila Samokov 2004 AD, which is the company that owns the land and development rights for a large property development project in the Borovets ski resort in Bulgaria.

EIB has signed contracts to acquire a 33.5% interest in Rila Samokov, which owns almost 2,000,000 m2 of land for development in Borovets. EIB is paying 25.9 million euros for the property investment, made up of a payment for the equity shares and also a capital injection into Rila Samokov.

EIB owns 50% of Borovets Invest NV, which in turn owns 67% of Rila Samokov. EIB’s partner in Borovets Invest NV is an international institution. The other shareholders in Rila Samokov are the Municipality of Samokov (with 25% shareholding) and one of Bulgaria’s top construction companies Glavbolgarstroy (with 8% shareholding).

The Rila Samokov development plan for its Borovets property is one of the largest property investment projects currently planned in Bulgaria. The project expects, over the next 5 years, to complete the construction of a over 650,000 m2 of ski property including luxury ski apartments and ski chalets, hotels and retail space, as well as ski infrastructure, including an additional 36 km of ski pistes to extend the current ski resort.

Borovets is Bulgaria’s oldest mountain resort, located 70 km from the Bulgarian capital, Sofia, and offers all year round mountain activities. The ski resort currently has 52 km of ski pistes with the highest run located at a height of 2,400m. Rila Samokov’s main development plots are located in four areas; Borovets 1100 m, Banderata 1460 m, Gvardeiska poliana 1620 m and Bialata poliana 1310 m.

The project is partitioned into two development phases, with the project expect to start in Sept 2007 and complete in 2012.  Total development estimates for the investment is around 566 M euros.  Rila Samokov expects to fund the project through a mixture of credit financing and advance sellingof ski properties. The project has received all the required permits to start the first phase of construction.

The Managing Director of Equest Partners Limited, EIB’s main Investment Adviser, commented:

“We are delighted to have concluding our investment into this ambitious project for building modern facilities for both winter and summer tourism in Borovets. The project is of local and national importance.  We understand the major advantages that the Borovets and Samokov region have for growth in leisure, both for domestic and international visitors, based on the proximity to Sofia and the international airports as well as the unique quality of the nature and the mountains. We look forward to working with our international and domestic partners in the project and to jointly making the Borovets property development a landmark resort in the South East European region”.

Source: Equest press release

If you are looking for Bulgarian real estate or off plan property in Borovets look no further than Concept Bulgaria.
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