Construction commencement1 Jun 2009 08:16
AIM listed Bulgarian residential and commercial development company, announces that it has received sufficient initial deposits from purchasers for units at July Morning, Seaside Resort, Kavarna to allow the Company to commence building a smaller Phase 1 at the site. As indicated in the Chief Executive Officer's Review in the Company's 2008 Report & Accounts. The initial development will comprise a single block of approximately 3,600 square metres including 55 apartments. 41 preliminary contracts have, at today's date, been signed for the apartments. The sales value of the contracted units is approximately €2.5m, the remaining 14 units will have a sales value of approximately €0.7m. Building costs for this block and associated infrastructure costs are estimated to amount to €2.2m. The Company will be utilising approximately €1.3m of its own cash resources for Phase 1, had it been cancelled the Company would have been required to return approximately €0.7m of deposits to purchasers. Construction is due to commence in June 2009, with completion expected in June 2010 at which time the income will be recognised.