Purchase of Commercial Site

RNS Number:2149R
Bulgarian Property DevelopmentsPLC
14 February 2007



FOR RELEASE                        7.00AM                       14 FEBRUARY 2007

                      BULGARIAN PROPERTY DEVELOPMENTS PLC
              ("Bulgarian Property Developments" or "the Company")

BULGARIAN PROPERTY DEVELOPMENTS COMPLETES PURCHASE OF 21.5 ACRE COMMERCIAL SITE
                                    IN SOFIA

The Directors of Bulgarian Property Developments PLC are pleased to announce
completion of the purchase of a site of approximately 87,000 square metres (21.5
acres) in Sofia, the capital of Bulgaria, for which contracts were exchanged on
7 July 2006. The site is close to Lozenets (an upmarket residential district in
Sofia) and is half way between the southern section of the outer ring road and
the centre of Sofia. It is adjacent to the proposed inner city ring road and is
well located for a business and retail development.

Part of the site is currently occupied and producing a yield in the region of
3%. Bulgarian Property Developments intends initially to develop the vacant part
of the site. Once these new buildings are let, the existing buildings 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.

The Directors believe that the acquisition of the site is consistent with the
Company's strategy of achieving geographical diversity across Bulgaria and will
produce significant synergy with the Company's other sites in terms of tenant
flow and mix.

The purchase of this site means that the Company is effectively fully invested.


Enquiries:

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

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

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

Matrix Corporate Capital Limited
Ken Vere Nicoll                                             [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.
Bulgarian Property Developments has taken advantage of this opportunity to
consolidate small land plots into larger ones for commercial development.

Following the fund raising in January 2006, Bulgarian Property Developments has
expanded its strategy and has acquired larger sites for commercial development
that already have planning permission for commercial development.

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


Background on the Bulgaria and the Property Market:

Bulgaria is in a transitional period, moving from a command to a market economy.
Bulgaria joined the European Union on 1st January 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.




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

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