Two funds listed on the alternative segment of the London Stock Exchange said they would slash real estate investments in Bulgaria as the ongoing financial crisis is having its toll on the market.
Black Sea Property Fund gave up its Evergreen gated complex due to sprout in the Bulgarian capital Sofia, while Bulgarian Land Development dashed out of flats in the Paradiso Verde 2 complex (Bansko).
Sofia’s housing segment has not yielded to the crisis yet but credit is tight and some other segments are saturated, Black Sea Property Fund said in a statement.
The fund pointed out it had steady cash resources and would revise its Sofia project to pick the most efficient time and the way to use them.
BLD cut to 55 from 100 the flats it bough off-plan 30% cheaper than market price in the Paradiso Verde 2 project worth EUR 3.7 million.
A large portion of the fund’s portfolio is focused on the holiday segment, which is feeling the full force of the financial crisis with supply much bigger than demand, analysts say.
Meanwhile, the Sunday Independent reported Irish homeowners are trying to shed Black Sea properties even at a lower price.