Bulgarian textile co Decotex to set up realty units

Bulgarian textile co Decotex to set up realty units

Bulgarian textile company Decotex will seek shareholder approval for the launch of two real estate divisions and one division that will be in charge of retail and manufacturing operations.

The capital of the new divisions, to be voted at a December 18 general meeting, will be shaped with the contribution of assets on the part of the parent company.

Decotex will transfer to the balance sheet of the first new division the 5.176 mln lev hospital complex that it bought several months ago. The property has a footprint of 77,612 sq m.

The second realty division will take over a production site in Sliven and land plots in the village of Kremen. The book value of the assets is 6.9 mln levs.

The company said it decided to branch out into real estate as this market is more profitable than its current core business.

The third division will assume possession of 23.5 mln levs in machinery, equipment, transportation vehicles and input material inventories.

Decotex reported a 4.7% decline in sales to 14.428 mln levs in January-September with profits down to 97,000 levs versus 1.102 mln levs a year ago.