Sale of interest in Sofia projects
May 16 2008 - 3:00AM
UK Regulatory
Lewis Charles Sofia Property Fund
("Lewis Charles" or "the Fund" or "the Company")
Sale of interest in Sofia projects
Highlights -
Sale of 61 apartments, 10 offices, 6 shops and 31 underground car parking spaces
in the suburbs of Sofia
Gross revenue on sale of EUR 10,486,660
Gross proceeds to the Company of EUR 1,891,966
IRR of 24.3% on properties sold
Further sales expected
Lewis Charles Sofia Property Fund Ltd (AIM: LCSS) announces the sale of the
economic interest in 10.3% of the total build area of the Company's project in
the Sofia suburbs of Vitosha Vets Simeonovo and Krustova Vada (the "Project").
The Project has been developed by BuySell Real Estate Agent OOD ("BuySell").
The area sold is equal to 11,272 square metres out of the Project's total build
area of 109,744 square metres. The sold properties comprise 61 apartments, 10
offices, 6 shops and 31 underground parking spaces (the "Sale Properties").
The carrying value of the Sale Properties on the Balance Sheet is EUR 1,038,961
(at cost) in accordance with IAS2 "Inventories" which states that inventory must
be carried at the lesser of cost and market value.
The Sale Properties are part of the original options that were exercised in
November 2005 after Admission of the Company's shares to trading on AIM. The
sale price achieved represents an average of EUR 930 per square metre (excluding
VAT) for the total build area sold. In accordance with the Company's AIM
admission document, the Company is required to pay BuySell the balance of the
total cost of development outstanding upon completion. The Directors are
therefore pleased to be able to reduce this liability ahead of completion which
is scheduled to take place in December 2008.
The gross revenue from the Sale Properties will be EUR 10,486,660 of which the
Fund will receive gross proceeds of EUR 1,891,966 (after development costs and
in accordance with the agreed developer profit share disclosed in the Company's
AIM admission document) in consideration for the Sale Properties of which EUR
1,038,961 (representing the proportional initial deposit on the Sale Properties)
will be repaid to the Fund immediately. The balance of EUR 853,005 will be
offset against the Fund's outstanding liability to acquire the total Project
from BuySell upon completion.
Assuming completion of this property on schedule in December 2008, this
represents an IRR (before tax) for the Fund of 24.3%.
The Sale Properties are being purchased by a Greek Insurance Company based in
Athens.
There remains strong interest in the Project's remaining properties from other
potential institutional buyers and the Directors expect to see further sales in
the near future.
The Chairman of the Company, Mr Charles Burton, said: "This sale, being the
first disposal made by the Fund, represents an important milestone in the Fund's
evolution. We look forward to announcing the realisation of further value in
the future"
Enquiries:
Lewis Charles Securities
Stav Loizou, CEO /
Loraine Pinel, Fund Manager /
Mark Anderson, Fund Manager
Tel: +44 20 7456 9118
Panmure Gordon, Nominated Adviser and Broker
Dominic Morley/ Stuart Gledhill
Tel: +44 20 7459 3600
Conduit PR Ltd
Ed Portman/ Leesa Peters
Tel: +44 20 7429 6607
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