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Bulgarian Land Development Fund To Attract Second Home Buyers From Russia And The Middle East

Bulgarian Land Development real estate investment trust (BLD), specialists in residential and commercial properties development, said a significant demand for second homes in Bulgaria from Russian and Middle Eastern buyers has replaced the slackening demand from the UK and Ireland caused by the lending crisis.

The company made the announcement as part of its filing of preliminary unaudited results for 2007 with the AIM, Dnevnik daily reported on March 7.

At the end of 2007, the company and its subsidiaries had a portfolio of developments valued at 241 million euro.

BLD said its diverse portfolio ranges from holiday homes on the Bulgarian Black Sea coast to ski lodges in leading ski resorts and apartments in Sofia.

For the first time since its launch, BLD said it has generated income from property activities: a modest 115 000 British pounds, arising largely from the underwriting of off-plan units.

Overall, the group's pre-tax position was a loss of 187 000 pounds.

The company said more substantial income is expected this year when it completes its own first residential development at Harmony Hills, near the Black Sea.

Residential property prices in Bulgaria rose by 28.9 per cent in 2007 and it is expected that prices will continue to increase in 2008 by a rate of 15 per cent, said BLD.

Last year's best performing locations were the capital, Sofia, and Varna, on the Black Sea coast.

Harmony Hills in Rogachevo is due to be completed in the summer of 2008, say Bulgarian Land Development.

Located 38 km from Varna and its international airport, the site, comprising 180 apartments and 22 villas, has panoramic views over the Black Sea.

BLD said it is now close to the final stages of securing a prime commercial property site in Sofia with a joint venture partner.

In addition, two separate areas of agriculture land are being assembled for purchase outside a major city where BLD believes a change in permission from agricultural to residential use is likely.

Other BLD projects under development include the July Morning Seaside Resort in Kavarna which will have an area of 80 000 sq m and Riverland in ski resort Borovets.

The company is also investing in projects in Sozopol, Bansko and Pamporovo.