InterCapital in talks to sell Borovets holiday complex
Bulgarian real estate investment trust (REIT) InterCapital Property Development is holding negotiations with prospect buyers for its holiday complex in the upscale winter resort of Borovets.
The move comes after the REIT came much short of its capital rise target, thus failing to raise the amount it needed to complete the project.
The Grand Borovets complex, which will accommodate apartments and retail space, has been finished at rough constructions, with the roof as well as door and window framing completed.
InterCapital consultant Nikolay Meister said the company expects to turn a profit from the forthcoming sale but cannot pinpoint an amount as talks are still afoot. He added that no proceeds from the capital hike will be ploughed into completion of the development.
The REIT, which became the first Bulgarian company to list for trading on the Warsaw Stock Exchange (WSE), secured BGN 3.6 million from domestic and Polish investors, which accounts for slightly less than 6% of its target. At the moment, its shares trade on the New Connect of the WSE but plans call for applying for moving to the main segment within 12 months.
InterCapital has another holiday project, the Marina Cape located near Aheloy, on the southern Black Sea coast, which it plans to expand through the purchase of adjacent land. Meister said that the REIT will only buy plots if the prices are reasonable.
The company plans to carry out another capital increase but not before market conditions have improved.