Dolphin Capital Investors, an independent private equity firm, is set to invest €45m in exchange for an 85% stake in a Greek development, located in Kilada Hills, which is situated in the eastern Peloponnese.
The initial proposal for Kilada Hills includes the construction of a five-star hotel, up to 500 villas, a spa, club house, private beach and restaurants. The state-of-the-art sporting facilities will encompass an 18-hole golf course, stables and tennis courts.
Miltos Kambourides of Dolphin comments: “On our initial offering on AIM in December 2005 we raised over £70m. We truly believe that South East Europe is an emerging market and a perfect alternative destination to the increasingly expensive and overbuilt shorelines of Spain and Portugal.”
EBRD to loan $20m to launch Russia’s first budget airline
The European Bank of Re-development (EBRD) is to lend $20m to help launch Sky Express, which will be the first low cost airline in the Russian Federation, focusing on domestic services only.
As a result, new patterns in the air transport sector will be introduced (for example, e-tickets), and it should lead to increased modernisation and improved competitiveness in the Russian airline industry.
Sky Express is expected to commence operations before the end of 2006 and the total cost of starting the airline is just under $50m.
Dell to invest $250m in new factory in Poland
Dell Inc. and the Polish Government have signed a preliminary deal for the construction of a $250m plant to produce computers, in order to meet the growing demand in Central and Eastern Europe.
Polish Economy Minister Piotr Wozniak and Dell vice-president for Europe Sean Corkery, signed the letter of intent in the central city of Lodz, where the factory will be located.
The new factory would create about 1,000 jobs in Poland.
Dell estimates demand in the Central and Eastern European computer market will rise at a 14% annual rate over the next five years. It also said the Lodz plant would cut delivery time of its computers to consumers in Scandinavia and Central Europe by two days.
Dell aims to open the Polish factory in the autumn of 2007.
Up to 200 dangerous buildings in central Sofia
Nearly 200 potentially dangerous constructions are located in the central part of Sofia, according to former regional development minister Evgeni Chachev.
A building collapsed in Sofia on 19 September, killing two young women, and officials have already launched inspections of other sites that could endanger the lives of Sofia residents.
Head of the State Agency for Civil Protection, Andrei Ivanov, has warned members of Parliament that other buildings in Sofia are unsafe and could lead to further tragic incidents.
MPs demanded the demolition of all potentially dangerous constructions throughout the country, beginning next year. Expense analysis would be carried out before a decision on the proposal was taken.
A five-member expert committee will examine the causes of the building collapse on 19 September and a report will be filed by 29 September. This will lead to a final evaluation, which will be presented on 3 October.
New plant in Wroclaw creates 1,000 new jobs
Spanish owned Fagor Mastercook has opened a new washing machine plant in Wrocław. Fagor is one of five main manufacturers of white goods in Europe and the company plans to export around 80% of total production. The investment outlays will amount to €31m and will create 1,000 new jobs. On an area of 35,000sqm, 30,000 washing machines in 57 different models will be produced monthly.
New €100m holiday village to be built close to Varna
A new holiday village is to be constructed close to Kavarna, commencing early next year, according to the town’s Mayor Tsonko Tsonev. He added that Bulgarian Land Development has signed an agreement for the purchase of a plot worth €2.1m. The project is estimated to cost nearly €100m.
The company is now in the process of obtaining all permits needed for the construction of the village including a hotel complex with sports facilities that will create 120 jobs for local residents.
The terrain where the village is to be constructed is located between Balchik and Kavarna, and a golf course and spa facility are already in operation nearby.
Worldwide News
USA house prices to continue falling
Residential property prices in the USA are expected to continue falling throughout the rest of 2006, but only fractionally, according to the National Association of Realtors (NAR).
In addition, NAR noted that the sellers’ market is transitioning to a buyers’ market, which can be healthy for some local economies.
When addressing the Senate Subcommittee on Housing and Transportation and the Senate Subcommittee on Economic Policy last week, Thomas M. Stevens, president of NAR, said: "For the past five years, the housing market has been a steadfast leader in the U.S. economy.
"After five years of outstanding growth, the housing market is undergoing a period of adjustment and becoming more and more of a balanced market between buyers and sellers.
"Contrary to many reports, there is not a national housing bubble. We were seeing home prices and mortgage debt servicing cost-to-income ratios increase to unhealthy levels in some housing markets, which precipitate an adjustment."
NAR forecasts a drop in home sales of around 8% in 2006, followed by another 2% fall in 2007. While NAR also predicts that house price growth in the USA will be less than 3% in 2006 and 2007.
Dubai International City nearer to completion
UAE property developer, Nakheel has announced that it will start delivering completed units in its iconic International City project in Dubai by the end of 2006. In fact the developer expects to deliver 75% of the project by the end of the year.
International City general manager, Rashid Al Helli, reportedly said: “Nakheel is on schedule with the construction and development of its International City project. We have already finished work on the project’s infrastructure, such as roads, internal routes, lighting installation, electricity and water.”
Property prices falling in Shanghai
The Chinese government's decision to impose restrictions on China's housing market now appears to be having an effect, especially at the luxury end of the market, according to a new survey.
Average property prices in Shanghai fell by 5.4% in June, 3.5% in July, and 2.2% in August, according to a joint survey by National Development and Reform Commission (NDRC) and the National Bureau of Statistics (NBS).
However, Beijing seemed to buck the trend with increases of more than 11% over the three months.
Canadian property prices to rise 4% annually
Average Canadian property prices will rise annually by 4% over the next 25 years, according to a recent report by TD Economics.
“There is no question that the recent dramatic price growth in Vancouver, Calgary and Edmonton is unsustainable, and this poses risks in the near-term,” says Craig Alexander of TD Bank Financial Group. “Nevertheless, over the long haul, property values in these urban centres should do well, but the average annual price increase should be at a mid-single digit rate.”
Alexander adds: “Given how important home ownership is to Canada's financial well-being, the future value of a home should be included in the financial plans of Canadians. The assumption for future price growth should be conservative to ensure that a plan’s goals are realistic and achievable.”
