Black Sea Property AS

M&A Activity • Jan 30, 2025

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

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

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.