CLS is pleased to report that it has invested in Bulgarian Land Development plc (BLD), a residential and commercial property developer whose founders have considerable experience in the Bulgarian property market. CLS has invested £4 million in the Company and will own 16% of the share capital of BLD on BLDs admission to AIM on 28 March 2006. BLD has raised £23 million through a placing by Seymour Pierce Ltd. Henry Klotz, who is responsible for CLS Swedish property business, will serve as a non-executive director of BLD.
Bulgarian Land Development plc offers CLS the opportunity to invest in Bulgarias rapidly developing property sector with the benefit of considerable experience within BLDs management team. BLD will focus initially on residential and tourist developments in Bulgarias Black Sea area whilst maintaining the flexibility to invest in other residential property development projects elsewhere in Bulgaria, particularly in Sofia, the capital, and also in commercial property opportunities in Bulgaria.
This investment establishes a modest foothold for CLS in the fast growing Bulgarian property sector and provides CLS with important access to a strong local network and an experienced team of highly respected individuals to assess the potential for further opportunities in the future.
Executive Chairman, Sten Mortstedt, commented:
I am excited at the opportunity that BLD represents for CLS to enter into the Bulgarian property sector with people experienced in the area.