Equest Investments Balkans (EIB), an investment company focusing on Southeast Europe, said it has acquired a 33.5% indirect stake in Rila Samokov, owner and developer of a large-scale development project in the Borovets mountain resort area in Bulgaria. The transaction price comes to EUR 30 mln, the company said.
Equest Investments Balkans (EIB), an investment company focusing on Southeast Europe, said it has acquired a 33.5% indirect stake in Rila Samokov, owner and developer of a large-scale development project in the Borovets mountain resort area in Bulgaria. The transaction price comes to EUR 30 mln, the company said.
The project, to be developed on a 1,977,131 m2 site, is owned by a consortium including the municipality of Samokov (with a 25% stake) and Bulgaria's leading construction company Glavbolgarstroy (8% shareholding). Rila Samokov's development project will involve the construction of some 653,815 m2 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. The project is divided into two main phases, with the first scheduled to start in September 2007 and the second due for completion in 2012. Total development costs for the project are put at EUR 566 mln.
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.
