Black Sea Property AS

Regulatory Filings • Jan 23, 2018

BLACK SEA PROPERTY AS: SIGNS AGREEMENT WITH THOMAS COOK - INFORMATION UPDATE

BLACK SEA PROPERTY AS: SIGNS AGREEMENT WITH THOMAS COOK - INFORMATION UPDATE

Black Sea Property AS (the "Company" or "BSP") is pleased to announce that an agreement with the tour-operator Thomas Cook has been entered into for Aheloy Beach Resort (the "Resort"). The agreement has been entered into between Thomas Cook and the management company for the Resort (the management company is wholly owned by EPO Aheloy, a subsidiary of the Company and the holding company for the Resort). Through the agreement, the Resort will be open for bookings by the customers of Thomas Cook. The agreement applies for the summer season of 2018, and is subject to opening of the Resort. Thomas Cook is one of the oldest and best-known names in leisure travel and serves millions of customers each year.

The construction works at the Resort have made significant progress and is in progressing in line with the outlined schedule. All 358 apartment units in buildings "N" and "M" have been completed, with furniture and appliance installations nearly finished. Expectations are for these units to be handed over to the management company in early March 2018. Due to the mild winter weather, works on the landscaping and facade of building "L" are progressing fast and have completely transformed the appearance of the Resort. The final touches on the landscaping work is an ongoing process with finishing date projected at the end of May 2018. BSP is greatly satisfied with the construction works performed and is currently preparing and evaluating to commence works on the commercial spaces.

Due to recent repair works, building "P" now has a well conserved exterior with recently repaired roof, drainage lines, terraces and insulation, and is ready for starting interior construction works. This building is owned by EPO Aheloy together with certain other investors, and the Company intends to reach an agreement with the external investors in Q1 2018 with respect to funding of upcoming construction works.

As previously announced, there has been several legal disputes connected with Aheloy Commercial AD. A new courtcase is coming up the 24th of January 2018. The Company is working in close coorperation with our Bulgarian legal counsel to handle all such matters and believes that a satisfactory solution will be found.

BSP have recently been in positive dialogue with UniCredit Bulbank regarding a possible refinancing (in the form of a construction loan) of EPO Aheloy's current bank loan with UniCredit Bulbank. The Company believes that a successful rrefinancing may be achieved in Q1 2018. As part of this dialogoue, UniCredit Bulbank requires that EPO Aheloy is further capitalized, and the Company therefore intends to convert the currently outstanding shareholder loans into equity.

Regarding water/sewage and electrical supply, we are in continuous dialog with the relevant personal in the utility companies and local administration and aims to reach a solution in mid-February 2018. Planning of the technical parameters of the infrastructure, zoning, approvals and passage parcel plan execution are underway.

For further information, please contact:

Egil Melkevik, Chairman

Tel: +47 90 77 09 76

E-mail: egil.melkevik@imenco.com

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 Aheloy Beach Resort. Aheloy Beach Resort is a partially-completed project and will upon

completion comprise over 1,000 apartments as well as significant commercial space. Black Sea Property AS owns indirectly 75% of the project. Black Sea Property AS will work to finalize Aheloy Beach Resort, to realize the project's added value through the sale of residential units and hotel operations.