UK-based Lewis Charles Sofia Property Fund Widens H1 Cons Net Loss to 9.87 Mln Euro

“The Fund has faced a difficult external context over the past twelve months, with negative corrections both in Bulgarian economy in general and residential property markets,” the company’s chairman Charles Burton said in a statement.

Preliminary GDP data for the first six months show a 4.8% year-on-year contraction in Bulgaria, the worst performance since the 1996-97 crisis, the Fund said.

“The de-leveraging of the real estate sector and the difficulty of obtaining mortgage finance for individual buyers caused a general fall in demand, supply and prices,” it elaborated.

The company also said that it faces a tight cash position due to the strained trading conditions and difficulties with providing loans in Bulgaria and is seeking to raise additional funds through either the sale of assets or through raising equity or debt financing, Burton added.

Lewis Charles Sofia Property Fund, registered in the British Crown dependency of Guernsey, is listed on the AIM, the junior market of the London Stock Exchange. It has nine key property developments across Bulgaria.

($ = 0.6982 euro)