Prime Property to invest EUR 40m in sea resort
19 December 2007
Real estate investment trust Prime Property BG said it will begin the construction of a gated resort north of the Lozenets area, in coastal municipality Tsarevo, the project estimated to cost EUR 40 million. The Coral Residence Resort will have a 40,407sqm footprint and a built-up area of over 40,000sqm. Asking sale prices are expected to be in the range of 1,200-2,000 EUR/sqm, ensuring a rate of return of 34%.
The resort, due to open in 2010, will comprise a five-storey hotel, VIP guesthouses and apartment blocks with a top height of no more than four floors. The compound will deliver around 230 apartments and total residential area of around 35,000sqm. The resort will have three outdoor and one indoor swimming pool, sports facilities and underground parking.
The Prime Property BG portfolio consists of eight projects with a combined value of around 180 million EUR. Coral Residence is the REIT's second resort development after a 7,200sqm scheme in St.Vlas, a sea resort north of Burgas. Immoeast AG, an Austrian real-estate developer that focuses on Eastern Europe, local pension insurer Doverie, insurance company Bulstrad and US pension funds are among the strategic shareholders in Prime Property BG.