Black Sea Property - Agreement
RNS Number : 1693Y
Black Sea Property PLC
27 December 2019


("Black Sea Property" or the "Company")


Settlement Agreement


Black Sea Property PLC, the Bulgarian real estate investment company, is pleased to announce that its subsidiary BSPF Project 1 EAD, has signed a settlement agreement (the "Agreement") for the cancellation of the sale of 23 plots of land in Byala ("Plots of Land"). Byala is located near Varna on the Black Sea Coast.


The former management of the Company had previously agreed to the sale of the Plots of Land in 2014 at a consideration of EUR 1,020,000 VAT included, being a price level significantly under the then market valuation.  As a result, the Company has negotiated with the purchaser under the terms of the settlement agreement that the transfer agreement for the ownership of the Plots of Land is rescinded and is restored to the Company. In addition, the Company will pay the purchaser EUR 1,146,916 plus VAT, for the return of the initial consideration and to cover expenses and improvements related to the Plots of Land.


There will be a material positive adjustment in the Company's accounts to reflect the current market value of the Plots of Land.



The Chairman of Black Sea Property, Alex Borrelli stated, "We are pleased to have recovered this significant asset for the Company which fits well within the property development strategy under the new management team and is complementary to our current development activities at Camping South Beach.   "


To enable Black Sea Property to fund this Agreement, Mamferay Holdings Limited (the "Lender") has agreed to provide an unsecured loan of EUR 1,214,318.22 ("Unsecured Loan") in addition to its current loan of EUR 180,000 to BSPF Project 1 EAD. The Unsecured Loan shall attract an interest rate of 2.75% per annum and should be repaid no later than 16 December 2022.


As previously announced, the Lender is a wholly owned subsidiary of Phoenix Capital Holding JSC which owns 99.99% of the shares of Phoenix Capital Management JSC, the Company's investment adviser. Ventsislava Blagoeva Altanova and Miroslav Rosenov Georgiev are both directors of Black Sea Property and Phoenix Capital Holding JSC. The Lender also owns 28.19% of the shares of Black Sea Property.


The Directors of the issuer accept responsibility for the contents of this announcement.


For further information, please visit or contact the following:




Alex Borrelli -  Chairman


+44(0) 774 702 0600


NEX Corporate Adviser

Heena Karani and Duncan Vasey

+44 (0) 207 469 0930



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