Black Sea Property AS: Rental agreement signed for Sunrise River Beach Resort

30 Jan 2025 08:00 CET

Black Sea Property AS's ("BSP" or the "Company") partly owned real estate
company in Bulgaria, EPO Aheloy OOD, owning the Sunrise River Beach Resort (the
"Resort”) on the Black Sea Coast, has entered into a rental agreement with local
management company Sunrise River Management EOOD, for a 5-year rental period.
The tenant has operated the Resort for the previous 3 years under a management
contract and intends to continue to operate the Resort based on a family/kids
camp concept during the rental period. The lease agreement provides the Company
with predictable income per season and annual termination rights, as further
described below.

The structure of the contract is a barehouse rental contract, ie. where the
tenant shall be responsible for all costs relating to the operation and
maintenance of the Resort during the rental period. The fixed agreed rent for
the first year is EUR 750.000, based on a certain capacity being made available
for operation and all required licenses for operation being in place. In the
event the required licenses are not in place before the start of the season, a
reduced fixed rent has been agreed reflecting a reduced number of operated
apartments. For 2025, an advance rent of EUR 300.000 has been agreed to be paid
by the tenant before 1st May 2025, and the remaining rent within 31st August
2025.

EPO Aheloy holds a unilateral right to terminate the rental contract during the
rental period, by giving one month notice to the tenant. This will allow EPO
Aheloy to operate the Resort on its own, to enter into management or rental
contract with other managers/tenants or to sell the Resort tenant-free.

The owners of the Resort are continuing their efforts in order to obtain a full
sale of the Resort, and thereby a complete exit for the shareholders of BSP.
While these efforts are ongoing, it is important to note that there is no
guarantee of a successful transaction at this stage. Further information will be
given in due course.


For further information, please contact:

Egil Melkevik, Chairman
Tel: +47 90 77 09 76
E-mail: em@ms-solutions.no


About Black Sea Property AS:

Black Sea Property AS is a real estate company with holdings in a real estate
project on the Black Sea coast called Sunrise River Beach Resort. Sunrise River
Beach Resort is a partially completed project and will upon completion comprise
approximately 950 apartments as well as significant commercial space.

More information:
Access the news on Oslo Bors NewsWeb site