Madara Bulgarian Property Fund H1 Net Loss Rises 16.2% Y/Y, Seeks To Raise 2.5 Mln Euro

The company said in a statement it plans to raise some 2.5 million euro with the issue of 3,676,471 new shares at a price of 0.68 euro each to secure working capital for its development projects in Bulgaria.

The company's portfolio as of June 30 comprised 408,341 square metres of land in the coastal area of Byala, on Black Sea, and included also 124,000 square metres of land in the ski resort of Borovets, committed for buying. The fund is currently developing the land in Byala and is in talks with several partners regarding co-investment in the project, called the Black Sea Gardens and comprising residential apartments, townhouses, and villas along with a hotel, retail space and leisure facilities.

"Although the progress of these projects has been steady, it has been slower than anticipated, leading to a position whereby the company requires further working capital to fund the company's ongoing operations until completion of a satisfactory deal on the Black Sea Gardens project," it said.

"I remain confident regarding the second half of 2008 as I believe that we have the right blend of skills and experience required to take advantage of identified opportunities to expand the Fund's assets and to generate returns which match or exceed the 20% minimum [internal rate of return] IRR target," the company's chairman Timothy Chadwick said in the statement.

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.

($ = 0.7187 euro)