Prime Property BG REIT has started construction of Coral Residence - a new holiday village located north of the village of Lozenets in Tsarevo Municipality, the fund`s officials reported.

The complex will cover a 40 407 sq m plot. Its built-up area will total 40 000 sq m. The amount of the investment is estimated to be 40 million euro.

The project comprises a five-storey hotel, VIP houses and several apartment blocks, the highest of them consisting of four levels.

The total number of flats is about 230, including studios as well as one-, two- and three-room apartments. The compound will provide central heating and air-conditioning, 24-hour security, underground parking, three outdoor and one indoor swimming pool, sauna, fitness, tennis courts and a basketball court, wireless Internet, cable TV and telephone. Completion is scheduled for 2010.

The strategic investors in Prime Property BG REIT are IMMOEAST Immobilien Anlagen AG, a subsidiary of IMMOFINANZ Immobilien Anlagen AG - Austria, Diverie pension insurance company, Bulstrad Jsc and American pension funds.

The price of the fund`s shares fell by 0.65 per cent to 1.53 leva on the Bulgarian Stock Exchange on December 18.