Black Sea Property AS (the "Company" or "BSP", and together with its consolidated subsidiaries, the "Group") is now able to report preliminary operational and financial results for the summer season 2024, which is now completed.
The first guests for the season arrived June 6th and the last guests left the Sunrise River Beach Resort (the "Resort") on September 9th. Average occupancy during the season was 1,100 guests per day and peak occupancy was 2,100 guests per day.
The total number of paid bed nights for the season came out at 90.320, which is about 20 % below the internal target of 112.000. The main reason for the shortfall was the delayed completion of 500 beds/ 113 apartments in the P building, as well as lower than expected occupancy after the peak weeks in July and August. The 90.000 paid bed nights is 50 % higher than the 60.000 paid bed nights achieved in 2023.
Total gross income for summer 2024 was EUR 2,632 million vs. EUR 1,420 million in 2023. The gross EBITDA for the summer season is estimated to reach EUR 975.000. From this, the management company for the Resort incurs winter costs and certain other expenses, allowing for an estimated net rent payment to EPO Aheloy (the owning company for the Resort) of EUR 620.000 for the full year 2024. For next summer, the internal target will be to further increase the number of bed nights from 90,000 to 125,000 bed nights.
The extent of and delays in the construction works for completing the P apartments for rent, as well as further extended outdoor facilities, implied a higher investment cost than planned during the first half of 2024, with incurred investment costs of approx. EUR 1,0 million above budget.
For completion before the next summer season, the Group anticipates limited investments in the Resort, to be mainly allocated for further improvements, as well as activities to obtain outstanding approvals for various facilities at the Resort and to optimize the management and operations at the Resort. Further, the Group is working on acquiring apartments from external owners in the P building at an offered price of EUR 200 per square meter.
For 2025, EPO Aheloy therefore has a financing need of approximately EUR 2.0 million, where up to EUR 0.65 mill will be earmarked towards purchase of the externally owned apartments. The financing need of EUR 2.0 million is planned to be fully financed by an increase in the bridge loan provided by Penchev Consult. A formal agreement with the lender is expected to be reached following the completion of the rights issue expected to be approved by the extraordinary general meeting to be held on 16 September 2024.
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. Black Sea Property AS has indirect ownership to the project and will work to finalize Sunrise River Beach Resort, to realize the project's added value through the sale of residential units and hotel operations.