Black Sea Property to acquire Bulgaria's Grand Hotel Varna

The deal, expected to be completed by October 30, aims to strengthen Black Sea Property's hospitality investments and complement its existing investment in Bulgaria's Camping South Beach, the company said in a filing to the London Stock Exchange.

Grand Hotel Varna is the sole owner of local company GHV-Dolphins, which operates three hotels and a beach marina resort. The transaction also includes a mutual fund portfolio.

The target company's property assets are valued at 19 million euro, while the mutual fund portfolio is valued at 12 million euro. Upon signing the agreement, Black Sea Property paid a non-refundable deposit of 1.6 million euro.

Black Sea Property plans to use proceeds from the mutual fund portfolio to renovate the hotels and resort, turning them into year-round facilities that align with its strategic goals and existing assets, it said.

"We believe that the hotels of GHV-Dolphins can be effectively renovated and transformed into high-quality luxury developments which will enhance shareholder value," Black Sea Property chairman Simon Hudd said.

($ = 0.8931 euro)