THE BLACK SEA PROPERTY FUND LIMITED

For immediate release

Sales Progress Report

The Black Sea Property Fund (the “Fund”), which specialises in the financing and sale of holiday apartments in Bulgaria, is pleased to announce good progress on the sale of apartments in both Pamporovo (in the Rhodope mountains) and Obzor (on the Black Sea coast).

Obzor

The Knight Frank marketing campaign of the entire first phase (257 apartments) is global, with the agent seeing considerable interest from Moscow. Encouragingly, demand extends to apartments both large and small in this premium priced development. Sales prices exceed those in the Manager’s model and the first contracts are expected to be exchanged during January.

Pamporovo

Global Spaces and co-agent Avatar have witnessed strong UK demand for the second phase (105 apartments) on this mountain complex, which boasts the largest spa in Bulgaria’s ski region. Again prices are above expectations and the first contracts are expected to be exchanged during January

Since the marketing campaign began the Manager has received three separate approaches from Danish, Icelandic and Swedish investment groups seeking premium apartment stock in the ski regions. There is a shortage of appropriate property to satisfy Scandinavian tastes and early stage negotiations are on-going with a view to releasing blocks in this and subsequent phases to meet this demand.

Contacts

Development Capital Management     020 7355 7600
Roger Hornett
Tom Pridmore

Buchanan Communications     020 7466 5000
Charles Ryland
Isabel Podda

Numis Securities      020 7776 1500
Bruce Garrow
Iain McDonald