Housebuilder and Property Developer For Sale

Business description

A Bulgarian housebuilder and property development business is for sale.
It has recently established itself as the largest housebuilder in the country. It has a freehold landbank of 144 plots with full planning permission which are part-built and is well advanced in finalising purchase of several hundred more plots. Current market valuation of the 144 plots is 7M Euro. The buildout cost to complete is 9M Euro, and the sale value at current prices is 32M, giving a development profit uplift on these alone of 16M Euro. The product is detached private housing in the Sofia suburbs and the market is the Bulgarian corporate and private market plus some UK buy-to-let investors. Demand exceeds supply and the sales allocation queue is full with strong prospects for more sales. Due to illness the business is without a managing director and the UK shareholders have not been able to suitably replace him. They also want to realise some value from the development which until now has been financed only by their private funds. Commercial financing is available locally but now the shareholders want to invite new investors and management. The assets of the business, which has a booked value of 4.6M Euro, are offered for sale either in whole or in part or on a property-only basis. Alternatively, a joint venture is sought along with management and finance. The vendors are willing to share the accumulated gain and goodwill in order to motivate a sound deal, and they are flexible about its nature and phasing.
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Property information

Real Estate:

Lease

Location:

Administration offices in commercial centre in capital, construction offices in purpose-built premises near airport

Other information

Expansion potential:

With a strong landbank, and a big housebuilding capacity now in place, the business is set to grow quickly. Financing is the only potential constraint.

Competition / Market:

The company has a better consturction organisation than most and this gives it competitive advantage. it also has a strong landbank.

Support & training:

as required

Reasons for selling:

illness of one of the main shareholders and directors

Trading hours:

standard

Related documents:

• 
• summary2.13

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