THE BLACK SEA PROPERTY FUND LIMITED

For immediate release

Land purchase in Sofia

The Black Sea Property Fund, which invests in the development of housing and holiday homes in Bulgaria, is pleased to announce the acquisition of development land in the Malinova Dolina district of the capital, Sofia.

The Fund, which is quoted on AIM, is managed by Development Capital Management (Jersey) Limited.

Highlights

The Chairman of the Fund, Melville Trimble said: “The Board is pleased to announce the acquisition of this attractive and well located site. Whilst the Fund’s primary focus remains on tourist resorts, exposure to the Sofia market gives the Fund additional diversification as well as the potential for good returns. The capital’s residential market is strong and growing and it provides purchasers with year round rental opportunities. We look forward to creating an appealing and profitable development aimed at both owner occupiers and overseas buy to let investors.”

Further Details

The Black Sea Property Fund Limited (the “Fund”) has (through a local subsidiary) acquired 24,599 square metres of prime development land in the Malinova Dolina district of Sofia, one of the capital’s popular suburbs.

The site is 15 minutes drive from the city centre and its neighbours include the Business Park Sofia, as well as the Residential Park Sofia. Properties in this area appeal to the wealthier residents of Sofia and there has been an increase in the number of gated residential complexes to cater for this market. The site is located close to one of the stations for the proposed Sofia metro.

The Fund will pay a price of €4 million, equivalent to €162 per square metre of land. The site has been independently valued by Yavlena Real Estate at €169 per square metre. Local taxes, commissions and agent fees total an additional €147,000. The Fund expects to commit total equity of around €4.7 million (including the land purchase). The development cost is expected to be between €7 and €8 million.

Sales are expected to commence during the second half of 2007. Current “as-built” sale prices, based on comparable properties selling in the region, are estimated by the Manager at €1,150 per square metre, giving a gross development value of €20 million.

The Fund intends to develop the land into a residential complex and is currently tendering for a project manager, who will assist in the selection and appointment of architects, a construction company and other professionals for the project. Work is expected to commence towards the end of 2007, with completion anticipated in the spring of 2009.

The Board expects to announce a full trading update shortly as part of the publication of the audited accounts for the year ended 31 December 2006.

Contacts

Development Capital Management     020 7355 7600
Roger Hornett
Tom Pridmore

Buchanan Communications     020 7466 5000
Charles Ryland
Isabel Podda

Numis Securities Ltd      020 7776 1500
Andrew Dawber
Iain McDonald