Manx-based Bulgarian Land Development has raised £15 million to pursue residential development in Bulgaria.

Swedish property veteran Sten Mortstedt's £545 million fully-listed CLS Holdings group is contributing £7.2 million to AIM-quoted Bulgarian's hefty £1-a-share placing. That will lift CLS's stake from 17 to 28.65 per cent after the placing, which is significantly diluting existing holdings in a company valued at £25 million beforehand.

CLS and other investors, including Bulgarian Land's chief executive Christo Iliev and two colleagues, have also agreed to contribute to the placing, handled by the company's broker and nominated adviser Seymour Pierce. The deal, which requires shareholders' approval, will enable the company, whose shares now trade at £1, to make further investments in the Bulgarian market.