UK-registered Black Sea Property Fund, which invests in real estate development in Bulgaria, said on Wednesday it bought a land plot on the outskirts of capital Sofia and planned to build a residential complex.

The fund, listed on the alternative investment market segment of London Stock Exchange, said it paid EUR 4 M for the 24,599 square meters plot in the Malinova Dolina district.

It also estimated development costs at EUR 7-8 M and a final value of the project of EUR 20 M at current prices.

Construction will be financed primarily through a loan drawn from a local bank, as well as deposits from off-plan sales, the fund said in a statement sent to the London Stock Exchange.

Black Sea Property Fund said it has already received a planning permission.

Construction will start in the second half of the year and will be completed in spring 2009. The fund will start selling property from the complex later this year.