Two funds listed on the alternative investment market (AIM) of the London Stock Exchange said they would slash real estate investments in Bulgaria because of the ongoing financial crisis.
Black Sea Property Fund gave up its Evergreen gated complex that it planned to build in the country, while Bulgarian Land Development (BLD) has slashed the number of apartments it agreed last year to buy in the Paradiso Verde 2 complex in the Bansko mountain resort.
Sofia’s housing segment has not yielded to the crisis yet, but credit is tight and some other segments are saturated, Black Sea Property Fund said in a statement.
The fund said that it had steady cash resources and would revise its Sofia project to pick the most efficient time and the way to use them.
BLD cut the number of flats it bough off-plan at a discout of 30 per cent in the Paradiso Verde 2 project to 55 from 100. When agreed, the deal was worth 3.7 million euro.
A large portion of the fund’s portfolio is focused on the holiday segment, which is feeling the full force of the financial crisis with supply much bigger than demand, analysts have said.
Meanwhile, the Sunday Independent reported Irish homeowners are trying to shed Black Sea properties even at a loss.
