Restructuring of Property Portfolio

    RNS Number : 9586X
  Bulgarian Property DevelopmentsPLC
  01 July 2008
   

    FOR RELEASE                07.00            01 July 2008


    BULGARIAN PROPERTY DEVELOPMENTS PLC
    ("BPD")

    Recent valuation reinforced by restructuring of property portfolio


    BPD is pleased to announce the following sales and acquisitions, the net effect of which will be to generate cash of EUR17.1million
(£13.6 million). The Board believes that these sales provide evidence to reinforce the valuation carried out by Colliers CRE in November
2007.

    Varna Logistics ("VL")

    BPD has exchanged contracts for the sale of its 50% stake in VL to Fairplay for EUR15,000,000. Completion of the purchase is due on 7th
November 2008. All loans to VL from Unicredit Bulbank remain the responsibility of VL.

    This investment is carried in the audited accounts as at 31st December 2007 at EUR6,792,000 and Colliers CRE valued BPD's share of the
land held by VL in November 2007 at EUR14,150,000.

    Trakia Retail Centre ("TRC") situated in Plovdiv

    BPD has purchased Fairplay's 50% stake in TRC for EUR3,000,000. The consideration for this has not been paid in cash but will be offset
against the amount that Fairplay will pay to BPD on completion of its purchase of VL. 

    BPD simultaneously exchanged contracts to sell the whole site to Prostroy 2000 EOOD at a price of EUR6,000,000. Completion of the
purchase is due on or before 1st November 2008.

    This investment is carried in the audited accounts as at 31st December 2007 at EUR2,317,000 and Colliers CRE valued BPD's share of the
land held by TRC in November 2007 at EUR3,740,000.

    Sandanski Retail Centre ("SRC")

    BPD purchased Fairplay's 50% stake in SRC for a price of EUR900,000. The consideration for this has not been paid in cash but will be
offset against the amount that Fairplay will pay to BPD on completion of its purchase of VL. 

    This investment is carried in the audited accounts as at 31st December 2007 at EUR484,000 and Colliers CRE valued BPD's share of the
land held by SRC in November 2007 at EUR450,000. Since that time, the site has been rezoned and access problems resolved with the Department
of Transport. BPD intends to commence work on this project before the end of the year.

    These sales constitute a realignment of the joint venture arrangements with Fairplay.


    Ivo Hesmondhalgh, Joint Chief Executive, commented:

    "BPD is pleased that the combined sale price for Varna and Trakia so closely reflects the Colliers valuation carried out in November
2007. This should give our investors confidence in the values shown in Colliers valuation and firm evidence to support the Board's view that
BPD shares are trading at an excessive discount to NAV."




    Enquiries:

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

    Cubitt Consulting
    Brian Coleman-Smith/James Verstringhe                         [phone]

    Matrix Corporate Capital LLP (Nominated Adviser)
    Stephen Mischler                                                       [phone]

    Background Note:
    Since BPD was incorporated in May 2004 and floated on AIM in January 2005, it has raised a total of £62.22 million in equity. This has
been used to acquire and develop land for commercial property use across Bulgaria, in particular for building distribution centres, retail
centres and offices.

    BPD's portfolio currently includes properties in Sofia, Varna, Plovdiv, Vidin, Ruse, Bansko, Pleven and Sandanski.

    http://www.bpdplc.com 


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