Disposal Disposal and Option to Repurchase
January 21 2009 - 7:52AM
UK Regulatory
TIDMLCSS
LEWIS CHARLES SOFIA PROPERTY FUND LIMITED
DISPOSAL AND OPTION TO REPURCHASE
Lewis Charles Sofia Property Fund Limited (the "Company") announces that its
wholly-owned subsidiary, Splendid Investment S.A. ("Splendid"), has entered into
an agreement with Enderton Company Assets Inc ("ECA"), a company registered in
the British Virgin Islands, under which ECA will acquire the share capital of
Black Sea Properties EOOD ("BSP") from Splendid for a nominal consideration in
cash. The sole asset of BSP (referred to as Sofia Kambanite Bistritsa in the
Company's accounts) is 100,713 sq meters of land close to the Sofia Business
Park and near the bottom of the Vitosha mountain.
As part of these arrangements, Splendid has undertaken to transfer aggregate
indebtedness of EUR2,360,000 due to it from BSP to ECA for a consideration of
EUR1,720,000 in cash and ECA has undertaken to procure the repayment by BSP of
indebtedness of EUR135,000 due to the Company. These transactions will provide
the Company with cash for general corporate purposes.
Also as part of these arrangements, ECA has granted Splendid an option which
entitles Splendid to acquire back from ECA control of BSP and the loans
originally held by Splendid for an aggregate exercise price of EUR4,000,000. The
option must be exercised by 15 December 2009.
The land held by BSP has outline permission for residential development and was
valued by Forton International at 30 June 2008 at EUR26,900,000.
Charles Burton, Chairman of the Company, said "These are exceptionally difficult
conditions in which to raise cash, and the transaction was arranged against the
backdrop of the continuing severe shortage of bank finance. The Directors,
whilst mindful of their responsibility to ensure that the Company has sufficient
cash to continue its operations, were determined to preserve as much of the
value of the Company's portfolio as possible. We were especially anxious to
avoid a `fire sale' which would have permanently damaged the value of the
Company's excellent property portfolio. This transaction has enabled the Company
to raise cash whilst preserving as much of the value of the portfolio as
possible."
Lewis Charles Sofia Property Fund
Loraine Pinel, Fund Manager
Mark Anderson, Fund Manager
Tel: +44 20 7456 9114
Panmure Gordon, Nominated Adviser and Broker
Dominic Morley
Stuart Gledhill
Tel: +44 20 7459 3600
Conduit PR Ltd
Ed Portman
Ben Way
Tel: +44 20 7429 6607/Mob: +44 7733 363 501
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