News

Property funds post dimmer 9-month earnings

Gloom and glee were equally mixed in the nine-month financial results reported by Bulgarian property funds, with many real estate investment trusts (REITs) worse off at the end of September compared to a year earlier.

Intercapital Property Development swung to a profit of 6.5 million leva and pocketed about 24 million leva from selling 13 000 sq m of flats in its St Marina holiday village near the Black Sea town of Sozopol.

In July, the company completed the rough construction stage of new apartments, a conference centre and a restaurant in the village.

The fund’s residential and commercial complex in the ski resort of Borovets should open doors in 2009.

Prime Property BGB sunk to a 1.74 million leva loss in the first nine months of 2008 from a profit of over 4.6 million leva in the same period of 2007.

The company is developing a business park in Bulgaria’s second largest city of Plovdiv, an office centre and a residential building in Sofia, and holiday villages on the Black Sea in Tsarevo and St Vlas.

Bulgaria’s farmland funds also posted both profits and losses, with leased properties ratios hovering from one third and 60 per cent of all.

Advance Terrafund is eyeing rent and lease revenues of about two million leva for the agricultural year 2008/09 at an average price of 165 leva a ha.

Agricultural Land Fund Mel Invest said it had a leased portfolio of 2100 ha, but did not disclose the price at which it leased the land.

Source: Dnevnik.bg