The Black Sea Property Fund, which invests in the development of housing and holiday homes in Bulgaria, has acquired development land in the Malinova Dolina district of the capital Sofia for 4 mln euro, Regulatory News Service, the news outlet of the London Stock Exchange, reported on Wednesday.

The development cost for the 24,599 sq m site is expected to be between 7 and 8 mln euro. Current ‘as-built’ sale prices, based on comparable properties selling in the region, are estimated at 1,150 euro/sq m including VAT, giving a gross development value of 20 mln euro, Black Sea Property Fund said in a press release.

The AIM-listed fund will develop the land into a residential complex. Construction will be financed primarily through a debt finance facility with a local bank, together with deposits from off-plan sales.

Planning permission is already in place and construction is expected to commence towards the end of 2007 with completion anticipated to occur in spring 2009. Sales are expected to commence during the second half of 2007.

The site is 15 minutes drive from the city centre and its neighbours include the Business Park Sofia, as well as the Residential Park Sofia.

Properties in this area appeal to the wealthier residents of Sofia and there has been an increase in the number of gated residential complexes to cater for this market. The site is located close to one of the stations for the proposed Sofia subway.