REIT Prime Property sells Coral Residence resort site
05 February 2008
Local real estate investment trust Prime Property BG said it has sold the site for a vacation village near coastal municipality Tsarevo to Coral Residence, a wholly-owned unit of Immoeast AG, an Austrian real-estate developer that focuses on eastern Europe.
Immoeast is also a majority shareholder in Prime Property. The 40,000sqm land plot changed hands at nearly 1 million Euro without taxes. The REIT retains a 50% stake in the 40million Euro project.
The development costs and the future proceeds will be evenly split between Prime Property and Immoeast, said Borislav Stoyanov, executive director of Prime Property.
Construction works should kick off soon as the relevant permit has been secured, said Stoyanov, adding that the resort - with a built-up area of 45,000sqm, should be completed by 2010-2011.
The resort will comprise a five-story hotel, villas and apartment buildings. Prices are expected to be around 1,200-2,000 Euro/sqm.