Black Sea Property to buy UniCredit's Bulgaria office building

London-listed investor Black Sea Property is to buy the UniCredit Bulbank building in Bulgaria for €10.52m, subject to approval from the Italian bank’s management and supervisory board.

The company’s subsidiary, BSPF Bulgaria, was successful in its tender offer to buy from UniCredit Bulbank an office building in Ivan Vazov Street in the capital Sofia.

The purchase of the office building, which is expected to be completed by the end of May, will be financed by a €7.6m bank loan and the remainder from equity.

The company has paid a deposit of €1.04m from its cash resources.

The office building is expected to generate "significant return" for the company, assuming a hold period of four years with the office space substantially let.

UniCredit Bulbank will have the option to remain in the building for up to six months rent-free after completion of the acquisition.

Chairman Alex Borrelli said: "We are delighted to have identified this compact and attractive proposition through AG Asset Management, our property investment adviser, as the first investment proposal for the company with expected short-term realisable gains."