FOUR PROPERTY ACQUISITIONS

RNS Number:4147K
Bulgarian Property DevelopmentsPLC
13 October 2006



FOR RELEASE

7.00am

13 October 2006



                      BULGARIAN PROPERTY DEVELOPMENTS PLC
                                        
                                        
                             ("BDP" or "the Group")
                                        
                                        
 (The Group is primarily focussed on the development of commercial property and
      in particular building distribution centres and offices in Bulgaria)
                                        
                                        

BULGARIAN PROPERTY DEVELOPMENTS MAKES FOUR NEW PROPERTY ACQUISITIONS IN BULGARIA


Highlights


   *BPD and Fairplay International AD ("Fairplay") have formed a 50/50 joint
    venture and acquired Varna Logistics AD, whose only asset is a 130,000
    square metre commercial site in Varna, BPD's share of the purchase price was
    Euro 6.41 million (#4.33 million)


   *Purchase of a 22,000 square metre site in Plovdiv (the second largest
    city in Bulgaria) in a 50/50 joint venture with Fairplay for Euro 4.50
    million (#3.04m). BPD's share of the purchase price was Euro 2.25 million
    (#1.52 million)


   *Contracts exchanged for the purchase of a commercial site of
    approximately 87,000 square metres in Sofia at a price of Euro 21.54m
    (#14.56m)


   *Purchase of a 36,500 square metre site in Pleven (north Bulgaria) as part
    of a consortium consisting of BPD (38%), Fairplay (38%) and Sofia Estates
    (24%). BPD's share of the purchase price was Euro 620,000 (#420,000)


Acquisition of site in Varna - Business Park


BPD and Fairplay have entered into a 50/50 joint venture and acquired Varna
Logistics AD, whose only asset is a 130,000 square metre site in Varna. BPD's
50% share of the purchase price was Euro 6.41 million (#4.33 million).


Fairplay, which is a successful Bulgarian property developer, has developed a
number of residential blocks, hotels and offices. Both companies have strong
local connections which should ensure a successful development of the site.


The site has full planning permission for commercial development. Approximately
65% of the site is occupied and let to 130 companies and is currently producing
a net yield of 5.3%.


BDP and Fairplay intend to develop the site for warehousing, offices and
wholesale trade shops. Initially, the vacant part of the site will be developed,
once the new buildings are let, the existing buildings will be demolished and
redeveloped.


Varna is the largest city on Bulgaria's Black Sea coast. It is the commercial
hub of the northern part of the Bulgarian Black Sea. The site is on the west of
Varna in the industrial area where the location has good infrastructure. It is
located a short distance from the airport and the docks and adjacent to a main
road that leads to one of the main highways out of Varna.


BPD and Fairplay are in discussions with UK architects to master plan the
redevelopment of the site. It is proposed that the UK architects will work in
conjunction with local architects. The reason behind using UK architects is to
ensure that the business park is built to western investment standards.

It is too early to predict exact costs and rents but BPD anticipated being able
to achieve a net yield in excess of 15% once the development is completed.



Acquisition of site in Plovdiv - Retail Park


BPD has acquired a 22,000 square metre site ("the site") in Plovdiv, also in a
joint venture with Fairplay, of which BPD's share of the purchase price was Euro
2.25 million (#1.52m).


Plovdiv is Bulgaria's second largest city and is about one and a half hour's
drive east of Sofia. The site is in the Trakia area of Plovdiv, which is one of
the most densely populated residential areas of the city.


The site has been purchased through a special purpose vehicle, owned 50/50 by
each party. It has full planning permission for retail and office development
which BPD and Fairplay intend to develop as a combination of big box retail
together with a shopping and leisure centre.


It is too early to provide an accurate estimate of costs but BPD anticipates
being able to achieve a yield from the developed site not less than 15%.


Exchange of contracts for a site in Sofia - Office and Retail Park


BPD has exchanged contracts for the purchase of a site of approximately 87,000
("the site") in Sofia at a price of Euro 21.54m (#14.56m).


The site is in the south of Sofia close to the upmarket residential area of
Lozentz. It has full planning permission for commercial development. 80
companies currently rent space on the site, giving a yield on purchase costs of
approximately 3%. Part of the site is vacant and can be developed without
demolishing any of the existing buildings.


BPD intends to develop the site as a business and retail park. Initially, the
vacant part of the site will be developed. Once the new buildings on the vacant
part of the site are let, the existing buildings on the site will be demolished
and redeveloped.


It is too early to predict exact costs and rents but BPD is targeting a net
yield in excess of 15% once the development is completed.


Completion of the purchase was due on the 6th October. The vendors have failed
to complete on the due date because of inability to provide full documentation.
BPD is taking legal advice.


Acquisition of a site in Pleven - Retail Park


BPD was part of a consortium that purchased a 36,500 square metre site in Pleven
(north Bulgaria) on 11th October 2006. The consortium consisted of BPD (38%),
Fairplay (38%) and Sofia Estates (24%). BPD's share of the purchase price was
Euro 620,000 (#420,000).


Pleven is a busy town of approximately 100,000 inhabitants and is a regional
shopping hub. The site is on the outskirts of town and is suitable for the
creation of a moderate sized retail park. It has consent for commercial
development and the consortium has started to look for potential tenants.





Enquiries:

Bulgarian Property Developments
Ivo Hesmondhalgh (Joint Chief Executive)                  [phone]

Bulgarian Property Developments
Philip Pashov (Joint Chief Executive)                       [phone]

Cubitt Consulting
Brian Coleman-Smith / Nia Thomas / Allison Reid           [phone]

Notes to Editor:

Bulgarian Property Developments:

Bulgarian Property Developments floated on AIM in January 2005, raising #4.2
million net. A further #32.9 million net was raised in January 2006. BPD is
primarily focused on commercial property development as opposed to residential.

Inheritance Laws in Bulgaria have given rise to fragmented land ownership. There
are therefore considerable difficulties in assembling commercially viable sites
exist. BPD has taken advantage of this opportunity to consolidate small land
plots into larger ones for commercial development and had previously acquired 33
plots in the Sofia area the majority of which have been consolidated into four
sites for commercial development.

Following the fund raising in January 2006, BPD has been seeking to acquire
larger sites for commercial development.

A strong management team with cultural knowledge and connections in Bulgaria has
facilitated has been requited.


Background on the Bulgaria and the Property Market:


Bulgaria is in a transitional period, moving from a command to a market economy.
Bulgaria is joining the European Union in 2007, which should be favourable for
the Bulgarian property market. Bulgaria joined NATO in 2004. The Bulgarian
economy is growing strongly and Bulgaria is a politically stable country. It
continues to develop with GDP growth estimated for 2005 of 5.4%. The Lev has
been pegged to the Deutsche Mark since 1997 and the Euro since the Euros
introduction as Euro 1: Lev 1.9558.


Exchange rate used to convert: #1.00 = Euro 1.48




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