Effective October 9, 2009, EuroHold sold 100% of its fully owned subsidiary Avto Union Center EOOD to Blue House LP, a private equity investment management firm with a focus and presence in the property and infrastructure markets of South East Europe. Bluehouse manages around Euro 320 million through 3 funds and to date has invested in over 20 property transactions in the office, residential, retail and industrial sectors.
AvtoUnion Center EOOD is the sole owner of a large office complex, which since October 1, 2009 became the new headquarters of EuroHold. AvtoUnion Center was part of AvtoUnion AD, which EuroHold bought for a total consideration of Euro 10.0 million earlier this year. As part of the deal, EuroHold which currently occupies around 95% of the building also has signed a long-term rental agreement with BlueHouse. The building complex will house the first Car-Mall in Bulgaria with 9 car brands and 47 different car models on display.
The aggregate value of the deal is Euro 27.3 million, as part of the proceeds will be used by EuroHold to fully repay back a construction loan of Euro 16.8 million to Piraeus Bank Bulgaria. The deal is part of the consistent continuing efforts of EuroHold to divest non-core assets. The accounting gain from the sale is Euro 7.0 million. The net cash proceeds of Euro 10.5 million will further solidify the financial position of EuroHold and will allow it to explore further growth opportunities in its core activities.