Reference is made to earlier stock exchange notices from Black Sea Property AS
(the "Company", and together with its consolidated subsidiaries, the "Group"),
including the stock exchange notice dated 28 January 2022, regarding the work to
complete an opening of the Sunrise Gardens Resort (the "Resort") with limited
activities for the 2022 summer season.
The ongoing war in Ukraina implies various challenges for the Company and the
Resort, both in terms of building costs and anticipated market situation.
Therefore it must be expected that the cost to complete the Resort will be
somewhat higher than previously anticipated. It must also be expected that the
total tourism market in Bulgaria will decrease somewhat due to the ongoing war.
Despite these challenges, the Company is still working according to its plan for
a limited opening of the Resort for the summer season of 2022, in order to
achieve a sufficient number of bed nights to satisfy an important condition
prior to disbursement of new loan financing. However, the Company expect that
completion of the Resort will be slightly delayed compared to the plans
announced earlier and opening of the Resort is now estimated for the middle of
In light of the war in Ukraina and the consequences this has for the tourism in
Bulgaria, the Company and its local partner, Boyan Bonev, is assessing various
strategies for the opening of the Resort, including facilitating for
accommodating Ukrainian refugees at the Resort. It is currently approximately
50,000 refugees in the vicinity of the Resort, where a material number of these
are temporarily accommodated in hotels that will want to free up capacity
towards the summer in order to welcome ordinary guests.
To complete the Resort, as well as various running costs and interest payments,
Boyan Bonev will contribute with up to EUR 1 million in financing. It is
expected that this will be sufficient until the opening of the Resort, but the
Company will still require some additional capital in connection with operations
both in Norway and Bulgaria in the period following the opening of the Resort.
The Board will assess various sources of financing in respect of this.
For further information, please contact:
Egil Melkevik, Chairman
Tel: +47 90 77 09 76
About Black Sea Property AS:
Black Sea Property AS is a real estate company with holdings in a real estate
project on the Black Sea
coast called Sunrise Gardens. Sunrise Gardens Resort is a partially completed
project and will upon completion comprise approximately 950 apartments as well
as significant commercial space. Black Sea Property AS owns indirectly 75% of
the project. Black Sea Property AS will work to finalize Sunrise Gardens Resort,
to realize the project's added value through the sale of residential units and