UK-Listed Bulgarian Land Development Says To Generate Higher-Than-Planned Profit on Bulgarian Project

"Agreement in principle has been reached with the vendors for settlement of the liability by the immediate cash payment of 0.3 million pounds and the transfer of the economic benefit of the 54 remaining, unsold units at the company's Harmony Hills development at a value of 2.0 million pounds," the company said in a statement.

Following the agreement and expected savings in selling costs for the 54 units, the company expects to post a profit on the development of approximately 0.9 million pounds, which is 0.2 million pounds higher than previously estimated. BLD will provide the transferee with marketing and sales support at Harmony Hills for a further 12 months after the transfer and will also repay the outstanding bank loan of 2.0 million pounds on the Harmony Hills development, it said.

The Harmony Hills project, located close to the Albena resort, on the northern coasts of the Black Sea, offers 180 apartments in 22 semi-detached houses.

BLD (www.bld.bg), which focuses on residential and resort developments in Bulgarian Black Sea and ski resorts and in the capital Sofia, reported a 1.56 million pounds pre-tax loss for the first half of 2008, down 9.9% on the year.

The company is listed on the Alternative Investment Market of the London Stock Exchange.

(1 euro = 0.7931 British pounds)