September 30 (SeeNews) - London-listed real estate developer Madara Bulgarian Property Fund said on Wednesday its pre-tax loss fell 28% on the year to 623,000 euro ($910,000) in the first half of 2009.
"Conditions in the Bulgarian property sector remain depressed with little tangible sign of an imminent recovery. Until conditions improve the Fund is focused on cash preservation, and the unwinding of the Borovets deal should add value to existing shareholders," the fund said in a statement.
Madara plans either to seek joint venture partners for its existing investments or to negotiate the sale of certain assets at an acceptable price to provide for any additional investment activity or for working capital purposes, it added.
Its current portfolio comprises 408,341 square metres of land located near Byala, on the central Bulgarian Black Sea coast, where it plans to build luxury residential apartments, townhouses and villas along with a hotel, retail space and leisure facilities. A detailed master plan for 200,000 square metres of buildable space in Byala as part of a 1.2 million square metre total project has been already drafted.
"Due to the current economic conditions, this project is currently on hold pending the availability of satisfactory financing," it said.
Madara has also entered into a conditional agreement to acquire 124,000 square metres of land close to the centre of the ski resort of Borovets, 60 kilometres south of the capital Sofia.
"There have been several delays and complications with regard to the completion of this deal. Given market conditions, therefore it has been agreed in principle to unwind this agreement which will involve the vendor agreeing to return the shares in the Fund, which were issued in exchange for the acquisition of the land," it added.
Madara Bulgarian Property Fund (www.madarafund.com) is a Jersey incorporated, limited liability, closed ended investment fund established in April 2006 to invest in Bulgarian land and its development. The company was listed on the Alternative Investment market (AIM) of the London Stock exchange in June 2007.
($ = 0.6848 euro)