Losses have increased at Orchid Developments, a property and hotel operator specialising in Bulgaria, but the group says it exceeded expectations in its first set of results since it floated on AIM last July.
Orchid (OCH) operates in commercial, residential and retail markets, and since the float has paid €21 million (£14.5 million) for three new development plots in Varna totalling around 38,000 square metres. It is continuing to develop its land bank and says land values are increasing rapidly.
Five of Orchid’s projects are co-financed by the European Bank of Reconstruction and Development which has agreed a €30 million debt facility. This breaks new ground for the financing of real estate developments in Bulgaria, providing long-term funding that was not previously available, says chairman David Holland.
‘The real estate market in Bulgaria remains buoyant and is expected to experience further growth’ he said.
Group revenue rose from €1.1 million in 2004 to €3.4 million in the year to 31 December. The net loss before tax was €1.175 million against €953,000 in 2004.
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