|
Equest Investments Balkans Ltd (‘EIB’ or the ‘Company’), the specialist investment company focused on retail and financial services, infrastructure and property development in South Eastern Europe, today announces the acquisition of a strategic 33.5% indirect equity holding in Rila Samokov 2004 AD (“Rila Samokov”), the company which is the land owner and principal developer of a large scale development project in the Borovets mountain resort area in Bulgaria. Following this announcement, the Company now has investments in 9 companies in South Eastern Europe. EIB has signed binding agreements to acquire an effective 33.5% interest in Rila Samokov, which owns 1,977,131 sq m of land for development in Borovets. EIB is investing EUR 25.9 million in cash, comprising a payment for the equity purchase and a capital contribution into Rila Samokov. EIB owns 50% of Borovets Invest NV, a holding company, 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 (25% shareholding) and Bulgaria’s leading construction company Glavbolgarstroy (8% shareholding). Rila Samokov’s development project in Borovets is one of the largest property development projects in Bulgaria currently in progress. The project involves, over the next five years, the construction of a total 653,815 square metres of residential apartments, hotels and retail space as well as associated infrastructure, including the creation of an additional 36.5 km of ski runs to complement the existing skiing area. Borovets is Bulgaria’s oldest mountain resort and is located 73km from the capital, Sofia, and caters both for winter and summer recreation. The area currently has some 42 km of ski runs and a high point in the mountains of 2,400 metres. Rila Samokov principal development sites are located in four areas; Borovets 1100 m, Banderata 1460 m, Gvardeiska poliana 1620 m and Bialata poliana 1310 m.The project is divided into two main phases, with commencement scheduled for September 2007 and completion in 2012. Total development cost for the project is approximately EUR 566 million. Rila Samokov plans to finance the project through debt and the pre-sales of properties. The project has obtained all necessary approvals for commencing the first phase of building work.Commenting on this announcement, Petri Karjalainen, Managing Partner of Equest Partners Limited, EIB's Investment Adviser, said:“We are delighted to have completed the acquisition into this large scale project for building modern facilities for both winter and summer tourism in Borovets. This project is of regional and national importance. We recognize the substantial potential 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 development a landmark resort in the South East European region”.
|
Abu Dhabi
