Black Sea Property AS

Investor Presentation • Jun 18, 2019

Black Sea Property AS

Org. No. NO 914 892 902

Sunrise Gardens

June 2019

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Disclaimer

• Black Sea Property AS ("Black Sea Property" or "BSP") has produced this presentation, which speaks as of 18 June 2019. The information contained in this presentation may be subject to change, and Black Sea Property assumes no obligation to update the contents of this presentation. Black Sea Property has made no enquires as to the correctness of the information provided to us by the developers of the Sunrise Gardens Resort (the "Developers"), and we have not requested or taken part in any due diligence reviews for any of the projects discussed in this report:
  • Black Sea Property has relied primarily on information provided by the board and management of the Developers in written or oral form;
  • This presentation includes forward-looking statements which intrinsically are subjective and based on "best judgment".
• Accuracy and completeness of information:
  • Although Black Sea Property believes the information to be correct as the time of the issuance of this presentation, there is no certainty that the information is correct or that it is complete. It is fully possible that had Black Sea Property had access to other or more extensive information, the conclusion and information of the report could have been materially different;
  • The conclusions in this report are made on the basis of a number of important assumptions. Whereas these are made to the best of our ability, based on discussions with management and access to relevant information, there is no certainty with regard to the correctness of these assumptions. Even relatively moderate changes to our assumptions may lead to material changes in the conclusion of this report and the valuation of the developers and developments.
  • Whereas the information provided to us has been the basis for the valuation and analysis, Black Sea Property has, as far as possible, evaluated the substance of the information independently and made its own opinion with regard to the implication of the information on the value of the developments.
• Liability
  • Black Sea Property expressly disclaim any representation and warranty with regard to the content and conclusions of this presentation;
  • Black Sea Property will not accept any responsibility for the use of or reliance up on the information contained in this presentation whatsoever, nor will it accept any responsibility to update this presentation.

The Development

Achievements and Progress Update

• BSP finalized a share issue in December 2018/ January 2019 to finance EPO Aheloy's 2018 UniCredit Bulbank loan annual principal and interest payment of EUR 1.2 million. The initial EUR 10m loan repaid down to EUR 6 m
• EPO Aheloy started utilization of the newly provided EUR 3m construction loan by UniCredit Bulbank the 22 March 2019.
• Sewage pumping station construction and onsite sewage piping have progressed well and stand almost complete. The pipes for the W&S connection to the village have been delivered and works are to commence in very near future, with connection to the village expected to be in place within August 2019
• Following the signed agreement with the EVN power distribution company, electrical power has been delivered to the Resort
• EPO Aheloy has won in its favor the court cases for the commercial areas and also the appeals connected to assets distribution. BSP expects a favorable outcome in the Supreme Court decision regarding Aheloy Commercial
• Test based opening August on risk still much remaining building work to be completed. Final decision 15th of July
  • Shareholders will anyway be invited to the site as planned

Status Building Works

• The late utilization of the loan has caused delayed startup of the construction works at the Resort
• The landscaping works are carried out as planned. Onsite rain, sewage and fresh piping digging works are complete. Construction of Amphitheater, onsite ring road and pathways concrete works underway. Sewage pumping station building is in place. Planning for plants, trees and lights positioning underway
• Currently focusing on completing the "K" building outside, with concrete fundament works complete and windows frames, outside walls brick works and roofing underway. The outside appearance of the connected "L" building with facade, windows, roofing and terraces tiling and drainage stands almost 100% completed
• Structural construction of second swimming pool is done, with concrete sunbeds area works planned next and the tiling of the pool itself

Status Building Works (continued)

• The new Reception building has reached with concrete plate at level 0, with roof support columns and roof structure execution planned as next
• The planning of the commercial areas is complete (restaurants and kitchens), however the construction works for the Resort's commercial areas are currently on hold. The scope of the works and equipment installation will be executed last, upon completion of the Resort's outside areas including the restaurant outside seating space
• The Resort (building P, N and M with a total of 602 units) and the respective commercial areas and landscape, new reception building, second pool, amphitheater, pleasant outside appearance of L&K is expected for full operational opening next coming 2020 summer season

BSP's Forward Focus

• Organizing and support of the management company activities, assuring the placement of competent management with record proof reputation and recognizable resort branding in order to secure next season's pre-bookings.
• Operating the resort with income generated from hotel activity and tourist accommodation services alone – not focus on selling apartments.
• Secure financing and exploring debt refinancing options. In addition to refinancing, BSP also look at obtaining additional financing to complete also K and L building.
  • Focus on finding solution before downpayment of 1,5MEUR plus interest December 2019
• Complete construction works in accordance to the approved budget and timeline
• Acquiring permits for use of the buildings, categorization of the rooms and commercial licenses

VISIT SUNRISE GARDEN

• All shareholders to be invited to the site
  • 05 of September, 1100 1400 Visit at the site
  • 06 of September, 1200 1700 Roundtrip in the district
  • 06 of September, 2000, invitation for Dinner
• Price for accomodation/food, EUR 200 for 3 nights.
• Flight ticket to be ordered separately
• Shareholders may invite partner
• Deadline for booking 15th of July, please send to em@ms-solutions.no