Bulgarian Property Developments Share Discussion Threads

[mmc71] 25/2/2006 10:31

BPD is actually up 15% since it launched just over a year ago at 50p. Ignore the floatation bubble. It was never worth 100p. Look through the trading statements etc, and you will see the company stating what they think their NAV is, and its around the 55-60p mark, just like todays shareprice.

My expectation is for 10-20% growth annual growth from here.

[goooba769] 13/2/2006 23:38

Theres another company coming on the AIM later this month called bulgarian venture which looks interesting from what I have read but this share seems to have fallen from the start any views?

[exdivvy] 18/1/2006 18:45

J, Inst. accumulation continues WGP (world gaming).
Doji B signal to be conf 9-10am 19/01, our seller relieved 20/01 latest.
DYOR mate.

[biswell] 18/12/2005 14:27

biswell - 25 Jan'05 - 15:06 - 153 of 263 edit


18.44% dilution

Will they issue more shares?.......watch this space

In the meantime the shares should fall -18.44 % extra, or -12.11p on todays price
65.5-12.11=53.39p

Plus the worry that more will be issued causing further dilution + the negative sentiment running in the stock so

40p

B

[energyi] 02/12/2005 10:35

AMBITIOUS PLANS

Bulgarian Property seeks to raise up to 40 mln stg via placing

LONDON (AFX) - Bulgarian Property Developments PLC said it is proposing to raise up to 40 mln stg through the placing of new shares.
In a statement, the company said the funds raised will be used to exploit
the potential of six main property sites in Bulgaria.
Five of the sites are in Sofia and are suitable for commercial development
while the sixth in Bansko has been targeted for residential development.

[energyi] 05/11/2005 08:51

They are in the path of that. & will be part of it.

The eschewed the "easy money" in touting Bulgaria BTL investment to risk-hungry
UK punters, to go for a real business. When those others hit the wall, BPD will
be around to pick up the pieces

[peterstilgoe] 05/11/2005 08:37

Theres a shortage of commercial property in Sofia so theres going to be alot of business parks cropping up, near the airport will be top, a US company is ploughing 50 odd million in building a business park near the airport aswell.

[energyi] 05/11/2005 08:34

They have land near the airport & ringroad, suitable for warehouses,
and distribution centres near term, and something more interesting long term

[energyi] 05/11/2005 08:33

Eur.67 per sq.meter = Eur 67 , 67 Euros

[peterstilgoe] 05/11/2005 07:53

Super Borovets:

[peterstilgoe] 05/11/2005 07:17

FYI: I bought a plot of land 12 - 15 months ago, it has now increased 200%, not sure what these guys have bought & where but if they bought anything with anticipation of Super Borovets like I did theyve made some serious cash. Anything with 5km of Samakov or Belle Iskar has trippled maybe more.

I didnt quite belive it but I checked with a friend in Sofia whos a propety developer and he confirmed it along with numerous agents.

For what its worth the only thing I would buy in Bulgaria nowadays is commerical property in Sofia, Plovidiv Varna & within the borders of super borovets with long term investing in my mind.

[fft] 05/11/2005 06:40

energyi,

i havnt really looked at the company, but your opening paragraph doesnt seem to add up.
"They have a MktCap of about £4.5million, and own over 100,000 sq.meters of land near Sofia etc. At Eur.1.48 per pound, that's less than Eur.67 per sq.meter"

If 100,000 sq.m is worth 4.5m then each sq.m. is valued at 45 pounds or about 65 Euros. Have i missed something or I assume they must have other assets, but then how do you get to the 67cents per sq.m. ?

[energyi] 05/11/2005 05:18

The fast summary on BGP is this:

They have a MktCap of about £4.5million, and own over 100,000 sq.meters of land near Sofia etc. At Eur.1.48 per pound, that's less than Eur.67 per sq.meter.

They can make money three ways:

1) The price of land can rise, and I would expect maybe 20%+ per annum on average, as Bulgaria slowly catches up with the rest of Europe. BGP's land is well-located on the ring road around Sofia,

2) They can get planning permission, to build on the land, and resell, to someone who wants to build,

3) They can build themselves, and get future cash flow, as well as benefitting from land appreciation

Buy at 45p, which was below the recently-estimated NAV of 56p seemed a no-brainer

[energyi] 01/11/2005 05:48

EXCERPT for latest PR:

If the increased value of the portfolio is taken into account then the
NAV of the Company would be in the region of 55-56 pence per share.

Your board believes that this is an ideal time to invest in the Bulgarian
property market. Bulgaria joined NATO in April 2005 and is scheduled to join the
European Union in January 2007. This approaching accession and harmonization
should see current domestic annual interest rates of 8-9% decline towards
Euro-zone rates, which should provide a stimulus for the property market.

Your board intends to build up a property portfolio and will add value through:

* The consolidation of agricultural land with substantial development sites
* Gaining zoning and planning permission to immediately enhance the value and
to enable the development of sites held
* Maintaining a portfolio for trading to generate regular profits
* Undertaking the development of commercial and residential property on a
predominantly pre-let basis

@:

[energyi] 28/10/2005 13:42

I am planning to get an update next week- anyone interested?

[energyi] 28/10/2005 13:41

(a little dated- but still relevant, I think):

Bulgarian Property Developments ("BPD")
--------------------------------------------

BPD is a new fund with a mission to invest in Bulgaria. Established recently with £1.2 million plus of seed capital from a handful of wealthy private investors, the company is now seeking to round out its capital to £3-5 million as part of an exercise which should lead to it taking an Ofex quote before year end.

Ivo Hesmondhalgh is one of two of the founders. He has a background in property, mostly in the UK where he has managed small scale property investment schemes for EIS and BES companies. Some months ago, he was asked by one of his friends, the head of a large global hedge fund, to travel to Bulgaria to investigate property related opportunities in that country. The visitors were encouraged by what they saw.

During the trip, they met Philip Pashov, a Bulgaria who had worked in various governmental departments, dealing with Tourism and attracting foreign investments. The two hit it off, and with the prinicipal backing of their hedge fund friend, decided to launch a new company focussed on property opportunities in Bulgaria. Ivo will be involved in the fundraising, the strategy, and the final selection process. And Philp Pashov, will use his Bulgarian contacts and knowledge of the local scene to source opportunities. There are also two high profile Brits, as non-executive directors to assure smooth corporate governance.

I found Ivo's views on prospective growth were somewhat less bullish than others I have interviewed. He said that the days of 30% per annum growth in property values were ending. He remains upbeat, citing a collection of reasons: low prices, location within the EU, a motivated and educated workforce, and the likely stream of future development aid, why Bulgarian property values should continue to rise in the medium to long term. A "double or triple over 6-7 years" would not surprise him, but the rate of increase, he thought, was slowing down to a more sustainable 10-15 percent per annum. Signs of a slowdown were already evident in the commercial sector, where rents have stagnated over the past 12 months, due to an excess supply of new properties around the ring road.

BPD's approach is to focus on a niche: warehouses and distribution, which has not been overbuilt, and which is expected to show promising returns in the years ahead. As to location, they intend to focus on Sofia, and possibly the ski areas. The large number of new developments on the Black Sea, and uncertainties of locking in rental returns on seasonal resort investments, makes the coastal area less attractive. Varna has good potential, but more in its central city, not its resort areas. (More about the company's focus in the Prospectus, see below.)

The biggest challenge for the company at this stage is raising capital. They are fortunate, in that they already have sufficient commitments to move forward and get the Ofex quote, but their economies of scale will improve dramatically if they hit their £3 million target. The company charges a management fee of 3%, so at the £2 million level, it pays only £60,000 annually. It also pays out a share of profits of 20%, but this will only be paid when realised, and so may be years away. Fortunately, in case the growth is slower than they anticipate, his other UK property activities should provide sufficient income for Ivo to keep his overall management business healthy.

Not surprisingly, Ivo believes that an ideal first investment for someone interested in Bulgaria investments would be to take shares in a fund like BPD. If someone buys property by himself he has the problem of finding good value in an unfamiliar market with a different language and alphabet, the need to rent and manage the investment, and the hassle of setting up a Bulgarian vehicle, since non-Bulgarians are not allowed to own land directly. The Fund structure solves these problems and gives economies of scale.

The experience and contacts of management will also help reduce the risks. Apparently, it is not unusual for Bulgarians to bump up their asking prices by a factor of 50% or more, when they discover that a foreigner wants to buy. There may also be some capital gains advantages when a UK resident buys BPD shares, and holds them, and then sells them as an Ofex or AIM quoted shares. Incidentally, an AIM quote is something that will be seriously entertained, when company NAV approaches £10 million, says Hesmondhalgh.

Best capital gains, Ivo reckons, will come from land investments. And this is where the local expertise will be critical, since many Bulgarians are wary of selling to foreigners. BPD expects to announce a significant land acquisition soon, and this would boost its immediate prospects, since the land will be suitable for almost immediate development. Further out, they want to achieve a healthy balance between land and income generating properties. While land may generate stronger gains, it costs money to carry it, and the yields on a warehouse oor distribution centre could carry the land investments through the months needed to assemble attractive land packages, and/or through to development.

It will be interesting to see how the stock market rates the BPD opportunity, since Bulgaria is certainly a hotspot for direct property investments. Those who seek to invest should know that there is a £5,000 minimum subscription, and the price is being held at 50P a share, the same level as management and founder investors have paid. And they will not need to wait forever to see a dividend. The company plans to payout 1/3rd of their distributable profits after year three.

@:

[energyi] 28/10/2005 09:36

I'm in.
Bought a few shares today, in the mid-40s

[m.t.glass] 30/9/2005 12:58

BKSA results came out at noon triggering a couple of buys there but no other reaction so far. Worth reading the statement for points that have a bearing on the other Bulgaria stocks.

[traderabc] 29/9/2005 13:03

I hold BKSA and BPD would like to buy another. Out of OCH and LCSS I'm more inclined to go for LCSS, my reason being Hoodless Brennon have told me they are 'involved' in OCH in some manner. Bitter experience tells me that where they go small investors like me must 'bleed'. Hence LCSS may be a better route for me to take. If anyone can offer any imput regarding these two, it would be appreciated,or should I just ignore them and increase my holding in BKSA as (so far)it is a 'winner' for me. I like this 'sector' ,to me it is a kind of 'hedge' against holding normal stocks. Having been to Bulgaria and having a few Bulgarian friends in the UK, I have increasing faith in that country,regardless of it obtaining EU membership.

[jimboy99] 01/9/2005 14:21

Now is the worst time to invest if you ask me - massive over supply of off plans & everyone who has bought will be selling as soon as they join the EU anyway ( if they do )

[slapdash] 02/8/2005 11:28

more speculative isn't it with some options on property by the sea.... lots of leverage and Bulgaria only has a short season doesn't it - four months or so... I'd rather go to Greece or Croatia to be on the beach.

Any views?

[peterstilgoe] 02/8/2005 11:26

imo BKSA looks best bet

[slapdash] 02/8/2005 11:16

Anyone any views on whether BPD is better than BKSA and all the other bulgarian listed property vehicles...

Slap