Statement re Update on Option Agreements with BuySell
March 18 2009 - 2:14PM
UK Regulatory
TIDMLCSS
Lewis Charles Sofia Property Fund Limited (the "Company")
Update on Option Agreements with BuySell
On 21 November 2005 the Company announced that it had exercised seven options to
purchase properties in Sofia situated in the Vitoshavets Simeonovo, Krustovat
and Dragalevtsi areas of Sofia. These properties comprised residential villas
and apartment developments, together with shops, some small offices and parking
to be developed by BuySell Real Estate Agent Limited ("BuySell"), a Bulgarian
incorporated property development company. On exercise of these options the
Company paid a deposit to BuySell of EUR 9,150,471 plus an indexation allowance,
retaining the liability to pay the outstanding balance of the purchase price
(being 400 per cent. of the deposit) on final completion of construction if the
properties had not previously been sold to third parties. The audited financial
statements of the Company for the year ended 31 December 2005 recorded this
contingent liability at EUR 36,601,885.
In February 2008 the Company completed the purchase of one of the properties and
in May 2008, 11,272 square metres of build area were sold by BuySell to a Greek
insurance company. Following these transactions and further reductions of
outstanding liabilities, the contingent liability was estimated to stand at
around EUR 28.9 million as at 28 February 2009.
The Company has received legal advice that BuySell is in default under all of
the option agreements in place and announces that it has today served notices
giving BuySell until 17 April 2009 to perform its obligations under each of the
option agreements. If BuySell fails to perform its obligations by this date, the
Company will rescind the relevant option agreement due to non-performance. Once
rescission is effective, the Company will be entitled to claim from BuySell all
payments made under each option agreement, including all deposits, and in
addition to receive a sum equivalent to the deposit by way of penalty.
Further announcements will be made as appropriate.
For further information contact:
Lewis Charles Sofia Property Fund
Charles Burton
Tel: +44 (0) 20 7936 9910
Panmure Gordon (UK) Limited
Dominic Morley
Stuart Gledhill
Tel: +44 (0) 20 7459 3600
Conduit PR Ltd
Ed Portman
Leesa Peters
Tel: +44 (0) 20 7429 6607 / +44 (0) 77 3336 3501
Lewis Charles Sofia Prop Fund (LSE:LCSS)
Historical Stock Chart
From Aug 2024 to Sep 2024
Lewis Charles Sofia Prop Fund (LSE:LCSS)
Historical Stock Chart
From Sep 2023 to Sep 2024