Stopped work for 1 billion near Byala

Investment fund Madara Bulgarian Property Fund Limited, which is traded on the London exchange announced that it has stopped work on the big holiday project in the area surrounding White in the Black Sea.

Provided for investment in the project, called the Black Sea Gardens, it was 1 billion euros, and the architectural project was prepared by the famous architect Norman Foster.

Due to current economic conditions the project is currently suspended and waiting for appropriate funding, explain the fund by adding that the work is expected to be resumed when conditions improve.

„This year (2008) was a difficult period for all participants in the international real estate market due to deteriorating global economic conditions,“ commented Timothy Chaduok, chairman of the board of directors of the company.

At the end of last year by the Fund announced that seek additional funding for its projects in Bulgaria.

Currently the fund has a land area of 408 341 sq. m to White, which has already prepared a project for construction of 200 thousand square meters vacation rentals. This is part of a larger project which envisages construction of a total of 1.2 million sq. m luxury apartments, houses, villas, hotels, commercial and entertainment areas. Partner of the Fund is undertaking the project company BBT Projects.

In addition, the Fund has an agreement for the acquisition of an area of 124 thousand square meters around Borovets. Acquisition of land took much longer than expected due to delays in changing the destination of the world in the name of the fund, explained the company.

By Madara Bulgarian Property intend to seek partners for the creation of a joint venture for the completion of investments, and consider the option of selling some assets at a reasonable cost „to provide additional funding for its investment activity or as operating capital.

Meanwhile the company and examine the potential for investment in new projects as „infrastructure and commercial transactions, which are at an early stage, but have potential.

The company has taken measures to limit costs, which include the release of several employees, closure of offices and the suspension of payment of some of the managers. Thanks to this fund hopes that it will reduce costs by 800 thousand euros a year, who come and deferred payments.
For 2008 the company reported a loss before taxes of 1.6 million compared with a loss of 740 thousand euros for 2007

Finance