For immediate release
11 November 2008

Portfolio Update

The Black Sea Property Fund announces that its board of directors has decided to delay commencing Evergreen, the planned residential development in the Mladost region of Sofia. Any termination fees or penalties from this delay will not have a material impact on the Company. The property will be retained by the Company in its land bank and the Board will decide what to do with it in due course.

The Company has strong cash balances and will look to deploy them at the appropriate time to take advantage of current market conditions.

The Fund‘s Chairman, John D. Chapman noted: “Although residential property in Sofia has so far been spared from the effects of the global property downturn, we have recently witnessed a tightening of credit in Bulgaria as well as over supply in certain market segments and overextended developers. Given these facts we have decided that it is prudent to re-evaluate the Evergreen project and determine how best to deploy our large cash position”.


Company Secretary     01534 709108
Jeremy Hamon

Numis Securities      020 7260 1500
Nominated Advisor
Nick Westlake
Hugh Jonathan
Corporate Broking - Charlie Farquhar