Notice of EGM

RNS Number:9664V
Bulgarian Property DevelopmentsPLC
20 December 2005



For Immediate Release



Bulgarian Property Developments plc



Placing of new Ordinary Shares and notice of Extraordinary General Meeting

Further to the Company's announcement dated 29 November 2005, the Company today
announces proposals to raise #35 million, before expenses, through a placing of
63,636,363 new Ordinary Shares at 55 pence per share which have been
conditionally placed with institutional and other investors (the "Placing").

In order to complete the Placing, the Board is seeking Shareholders' approval to
increase the Company's authorised share capital and to allow the Board to allot
the Placing Shares for cash on a non-pre-emptive basis.



Background to the Placing

Since the Company's admission to AIM in January 2005, it has successfully
assembled, through 33 transactions, a property portfolio in Bulgaria comprising
six main sites. Five of these sites are strategically located in Sofia and
suitable for commercial development.  The remaining site is in Bansko, one of
the country's most popular ski resorts, which the Company intends to use for
residential development. Following the acquisition of these properties, the
Company is now effectively fully invested.



Details of the Placing and Use of Proceeds

The Company has sought additional investment to enable the Company to finance
its existing development projects as well as to finance and develop additional
land in Bulgaria. The Company is proposing to raise #35 million, before
expenses, by the issue of 63,636,363 new Ordinary Shares which have been
conditionally placed with institutional and other investors, pursuant to the
Placing, at 55 pence per Placing Share (the "Placing Price").  Fairfax I.S.
Limited ("Fairfax"), as agent for the Company, has procured subscribers for the
Placing Shares pursuant to and conditionally upon the terms of a placing
agreement.  The Placing is conditional, inter alia, upon shareholder approval at
the Company's extraordinary general meeting to be held on 16 January 2006 
("EGM").  The Placing Shares will represent approximately 87 per cent of the
Company's enlarged issued share capital immediately following the Placing.

Subject to the Placing becoming unconditional, it is anticipated that dealings
in the Placing Shares will commence on or around 17 January 2006.



Amendment of Management Agreement

On 15 September 2004 the Company and Bulgarian Property Management LLP (the 
"Management Company") entered into an agreement pursuant to which the Management
Company agreed to provide the Company with various property-related services
(the "Management Agreement").  Under the Management Agreement the Management
Company is entitled to a performance fee of 20 per cent. of the amount by which
annual audited realised profits before tax exceed an amount representing a
cumulative annual return on the Company's issued share capital (including the
share premium account), equal to an annual interest rate based on the three
month Euribor rates for the relevant period (the "Annual Return").  On 19
December 2005 the Company and the Management Company entered into a deed of
amendment pursuant to which the Annual Return was replaced with an amount equal
to an annual interest rate of eight per cent. of the Company's outstanding
issued share capital (including share premium account).



Circular and notice of EGM

A Circular setting out details of the Placing has been posted to Shareholders
today.  The Circular contains a notice convening an extraordinary general
meeting of the Company to be held as the offices of Matrix Securities Limited,
One Jermyn Street, London SW1Y 4UH on 16 January 2005 at 10.00 a.m.

Copies of the Circular will be available free of charge during normal business
hours on week days (excluding public holidays) from the date hereof until 20
January 2006 from the offices of Field Fisher Waterhouse, 35 Vine Street, London
EC3N 2AA.



Enquiries:

Stephen Mischler                                     020 7925 3300

Matrix Corporate Finance



James King                                           020 7598 5368

Fairfax I.S. Limited



Ivo Hesmondhalgh                                     020 7243 1336

Bulgarian Property Developments plc




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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