The Black Sea Property Fund has delayed the start of its residential development Evergreen in the Mladost region of Sofia because of adverse market conditions in the country.

The AIM-listed company said that any termination fees or penalties from this delay will not have a material impact on the company. It said that the property will be retained by the company in its land bank and the board will decide what to do with it in due course.

In a Stock Exchange announcement the company said it has ‘strong cash balances and will look to deploy them at the appropriate time to take advantage of current market conditions’.

The fund's chairman John D Chapman, said: 'Although residential property in Sofia has so far been spared from the effects of the global property downturn, we have recently witnessed a tightening of credit in Bulgaria as well as over supply in certain market segments and overextended developers.

'Given these facts we have decided that it is prudent to re-evaluate the Evergreen project and determine how best to deploy our large cash position.’

In September it said it planned to internalise its management contract in order to improve performance.

The move was part of a trend for AIM-listed property companies, often managed by external management companies, to internalise their management structures to make sure the interests of shareholders and management are aligned.