Business
Acquisition, Payment & Results update
Acquisition, Payment & Results update.
About this update from Black Sea Property Plc
[{"type":"text","content":"\n\n21 July 2023\nBLACK SEA PROPERTY PLC\n(\"Black Sea Property\" or the \"Company\")\n \nProposed acquisition of a majority stake in Grand Hotel Varna AD\n \nReceived final payment for the sale of ECDC Group\n \nAcquisition of a majority stake in Grand Hotel Varna AD\n \nBlack Sea Property PLC, the Bulgarian real estate investment company, is pleased to announce that it has signed an agreement to acquire 98.27% of Grand Hotel Varna AD (the \"Acquisition\").\n \nGrand Hotel Varna AD wholly owns GHV-Dolphins EAD, a Bulgarian company which holds the title to real estate comprising three hotels and a beach marina resort (together, the \"Resort\"), situated in a prime location on the Black Sea Coast, with excellent accessibility. The assets being acquired also include a mutual fund portfolio, comprising readily realisable investments.\n \nThe primary purpose of the Acquisition is to strengthen Black Sea Property's hospitality investments, adding desirable hotels to its existing investment in Camping South Beach. Periodic disposals from the mutual fund portfolio will be utilised to renovate the Resort, transforming it into an all-year round luxury facility, which aligns with the Company's business strategy and existing assets.\n \nThe consideration payable for the Acquisition is EUR 28 million in cash, of which an initial non-refundable deposit of EUR 1.6 million was paid upon signing of the agreement. The property assets being acquired have been independently valued at EUR 19 million, and the mutual fund portfolio is currently valued at EUR 12 million.\n \nTo satisfy the balance of the consideration, the Company will need to raise additional funds. Subject to securing the required funding, which the Directors are confident of achieving, the Acquisition is expected to be completed by 30 October 2023. Further information about the funding will be announced in due course.\n \nSimon Hudd, Chairman of Black Sea Property, stated, \"We are delighted to have secured this major investment in an iconic resort on the Black Sea Coast. We believe that the hotels of GHV-Dolphins EAD can be effectively renovated and transformed into high-quality luxury developments which will enhance shareholder value.\"\n \nReceived final payment for the sale of ECDC Group\n \nBlack Sea Property has rec...