Black Sea Property Fund Share Discussion Threads

[mikeriley] 21/10/2005 08:30

another positive RNS this morning I see. Wish i had more funds to buy some more.

[phil2003] 20/10/2005 00:19

(FTSE worse slide for 18 months today) it's at stop loss frenzy times / fortnights like this I need to read up on trader physcology again whilst I find myself looking whistfuly at the HSBC 8% interest ads on TV, before snapping out of it and reminding myself I've made more than that in a day previously.

be lucky all BKSAers, another 30%+ upside still to go before March 06.

[tryone2] 18/10/2005 16:40

Wait and see with this boy it can only get bigger

[snaptastic] 06/10/2005 13:23

nice to see us recover a small tick down in such a dire day for the FTSE... someones accumulating imho..

[m.t.glass] 30/9/2005 12:44

"..Since the formation of the coalition government a new Bill on penal code reform has passed its first reading and a visit by EU accession ministers have
confirmed that, in their view, Bulgaria was on schedule for accession to the
Union in January 2007 as planned..."

Taken from BKSA Results statement at noon today. Nil effect so far but a couple of buys gone through.

[mitzis] 28/9/2005 13:20

Still holding tightly awaiting a big push to 30p.

[m.t.glass] 28/9/2005 12:35

Current capitalisations by size OCH £76m, BKSA £61m, LCSS £38m, BPD £4.7m

I opened a thread on the newcomer (LCSS) but BKSA is the only one of these Bulgaria property stocks in which I have a position. The results which came out on Monday from Orchid (OCH) shed some useful light on how the market is shaping up:

[snaptastic] 28/9/2005 11:52

tick up.. maybe the start of our next leg up... solid medium term hold these with the potential for some huge upside...

[m.t.glass] 27/9/2005 15:25

This from Dnevnik a fortnight ago (only just spotted it) appears to bring a third London-listed player:



Lewis Charles fund to raise capital for investment in Bulgarian properties

Lewis Charles Sofia Property Fund, an investment company focused on investment in the Bulgarian residential property market and, particularly, apartments and villas to be built in and around Sofia, said Tuesday that it plans to float on the AIM segment of the London Stock Exchange, said news agency Dow Jones.
The company was quoted as saying by Dow Jones that it will have the flexibility to invest in residential property elsewhere in Bulgaria if suitable opportunities arise. The fund will also have the ability to invest in land, and in property-backed and joint venture projects (which could include ski resort and golf course projects) with local and other partners (including banks).
The fund will have a maximum life of seven years expiring on September 27, 2012. The fund has secured purchase options over 954 properties (out of which 63 represent luxury villas, and 891 represent luxury apartments) to be built over 12 separate sites in central Sofia and its southern suburbs, said Dow Jones.
The fund's directors offer an array of expertise in respect of evaluating proposed investments including that gained in careers in portfolio management, banking for the Bulgarian National Bank and Banking Risk Management, said Dow Jones.
The company plans to issue shares at 80 pence per share and raise up to 50 mln pounds.
Bulgarian Property Developments and Black Sea Property Fund are the other 2 AIM-listed funds created for investment in Bulgaria's property market.(Dnevnik)


Edit: The Dow Jones Newswire version of this same press release ends with "trading is expected to commence on September 27"

Edit: It did so. See

[phil2003] 25/9/2005 22:58

Interesting... (rns 23rd)
Numis Securities now BKSA's Nominated Adviser, in my experience these guys seem to know a thing or two about trumpet blowing, should gain bksa more exposure to the institutions (imho)..

[snaptastic] 22/9/2005 23:21

Market makers happy to take on board some big sells today without dropping the price... looks to me like they are confident they can offload them higher fairly soon... think we will move up again next week...

[phil2003] 13/9/2005 20:15

Joined AIM 14th March 2005
Bksa is 6 months old tomorrow, interims ??

[mitzis] 02/9/2005 09:33

Possibility of an updat in Scsw due out tomorrow..

[phil2003] 24/8/2005 23:50

great post shiny,
With you on that one mitzis, a conservative 20%+ return over next 2 to 3 months (imvho) vs talking to solicitors and weilding a paintbrush.

[mitzis] 23/8/2005 13:58

More buying late morning could it be that buying the shares is far less hassle than buying property..?

[mitzis] 23/8/2005 08:22

Thanks for that shiny....

And theres more

[shiny000] 23/8/2005 02:05

mitzis

This probably explains last week..

Bulgaria Looms as the Next Real-Estate Hotspot: Matthew Lynn
Aug. 17 (Bloomberg) -- A villa overlooking the Black Sea? Or a flat in the Bulgarian capital, Sofia? If you happened to be vacationing in the area this year, you might have noticed just how temptingly cheap all those properties for sale are.

Now you can take a chance on the market without going to the trouble of dealing with real-estate agents and lawyers. Several recent initial public offerings in London have been designed to raise money for the booming property market of Bulgaria. Some other share sales were aimed at the Russian market.

The catch-up between property values in Western and Eastern Europe isn't finished yet. Even as house-price bubbles burst in Western Europe, emerging markets such as Bulgaria may be immune.

Rapidly modernizing economies, rising investment and asset prices, and booming tourism, will keep property values climbing for years. In the long term, Eastern Europe's real-estate boom may stall as population growth wanes. Still, that's a long way off.

There is certainly no shortage of vehicles to put your money into. In London, several new companies have come to the market in the past few months raising funds to invest in Bulgaria.

Black Sea Property Fund Ltd. staged an IPO on London's Alternative Investment Market in March, raising 50 million pounds ($90.6 million) to invest in luxury holiday apartments in Bulgaria. It joined Bulgarian Property Developments Plc, which has been acquiring land for development in the country, which listed on the same market two months earlier.

Orchid Developments Group Ltd., a hotel and property development company operating in Bulgaria, listed its shares in London last month. Meanwhile, the Lewis Charles Sofia Property Fund, specializing in developments in and around Sofia, also plans a London share sale. It aims to raise 50 million pounds.

`Not Many Avenues'

Russia has also been attracting interest from investors wanting to take a punt on Eastern European property.

This month, Raven Russia Ltd. raised 153 million pounds in an IPO in London to invest in the Russian property market. That followed the listing of Eastern Property Holdings Ltd. in Switzerland in 2003. That company's share sale produced 50 million Swiss francs ($39.9 million) to put into Russian real estate.

``There's been a lot of interest in this sector this year,'' said Terry Olin, a spokesman for Eastern Property Holdings, in a telephone interview. ``There are not many avenues for private investors to get into this market.''

If the Bulgarian and Russian vehicles work, don't be surprised to see more companies specializing in the rest of emerging Europe.

Each enterprise is tapping slightly different markets, yet all of them are trying to take advantage of the same combination of cheap prices and booming economies.

European Demand

Black Sea Property, for example, is serving the growing trend for Europeans to buy real estate in other countries. ``Last year, 146,000 British people bought properties outside the U.K.,'' said Roger Hornett, London-based manager of the fund's property holdings, in a telephone interview.

``You can buy a two-bedroom luxury flat by the sea in Bulgaria for 40,000 pounds, which is less than the average British house has gone up in value by during the past two years. So we think there is going to be big demand from foreigners for holiday properties in the country.''

Still, just because something is cheap doesn't make it a sure bet. The issue is whether the Russian and Eastern European property markets can keep expanding.

Reliable figures on trends in property prices are hard to compile, the U.K.'s Royal Institution of Chartered Surveyors said in its latest review of the market. There is little historical data and not enough information comparing properties over time.

Communist Buildings

Moreover, much of the housing built under Communist central planning was of such poor quality that it is practically worthless. Most of it will have to be rebuilt.

``Despite little change in rents, investor demand in emerging Europe is surging across the board,'' the institution said. ``The primary driver is expectations for convergence in incomes over the medium to longer term to Western European levels, which will facilitate growth in rents.''

What kind of returns you might expect will vary. Hornett says the Bulgarian market has risen about 40 percent in the past two years. He predicts gains of at least 10 percent annually for the next three years.

That may be too optimistic. Still, equity markets across Eastern Europe remain strong. The Bulgarian stock market, for example, is up 32 percent this year. Asset prices are rising fast, and property is unlikely to be left out.

Economic Expansion

Growth is strong as well. This year, the Bulgarian economy may expand 5 percent, according to a Bloomberg News survey of five economists in August. Inflation is subdued and the government aims to join the European Union by 2007 and to sign up for the euro by 2010. There is little to make investors feel nervous.

In parts of Western Europe and the U.K., property prices have surged because of historically low interest rates and rising incomes. It looks like a bubble has developed. In Eastern Europe, real-estate prices are being driven by rapid economic growth and the need to replace low-quality housing. As people get richer, they spend more money on living somewhere nicer. It may be decades before that process is complete.

The boom in companies investing in markets such as Bulgaria isn't just a passing fad. Money is there to be made over the next few years -- and buying shares in a listed company is a lot less work than buying a property yourself.

[ronmikeh] 22/8/2005 19:53

Invest in the company with an up ward trend. Let the market be your advisor.

[traderabc] 22/8/2005 14:09

Hi
What do you guys think of Bulgarian property developments (BPD). I bought these at the same time as BKSA and they have gone nowhere,I would have thought BPD would have better potential as their market cap is so tiny in comparison to BKSA. Is it unrealistic to expect the two to track each other in general? As far as I'm aware these two are the only way to get exposure to the Bulgarian property market via AIM. Any comment would be appreciated. Cheers
ABC

[fossildog] 22/8/2005 09:58

Having trouble buying these online

[mitzis] 22/8/2005 09:01

Another ggod day in prospect..

[m.t.glass] 22/8/2005 08:22

Looking firm

[mitzis] 19/8/2005 18:47

Managed to buy a fair quantity @24.25p this afternoon just before the last moveup..30p seems about right to me.
Chart looks great with a break-out on the Pennant .

[phil2003] 19/8/2005 17:16

the word is spreading that we're still 5p undervalued.
fair value (even pre next rns) is 28-29-30p (imho)

[mitzis] 19/8/2005 10:41

Tick-up on que....