Albena, the operator of the eponymous resort, turned the first sod to Rila Estate, a gated residential community in the Byalata Lagouna (White Lagoon) resort, the company’s spokesperson Yovka Strashilova told Dnevnik daily.

Byalata Lagouna, a resort adjoining Balchik, on the northern Black Sea, is known for its mineral thermal springs and curative mud.

The complex, to be located on the front beach line, would occupy 21 000 sq m. The first phase alone is estimated to cost 15 million leva. Part of the dwellings have already been marketed to Russian and Romanian investors.

Albena is currently conducting fortification works at the site.

The start of the project represents a reversal of Albena’s 2007 plans. The resort operator intended to sell Byalata Lagouna last summer, however, it failed to reach an agreement on the price with prospective buyers.

Byalata Lagouna ended with a 0.594 million leva loss last year. The financial result was due to the higher buildings tax and write-offs related to the re-valuation of assets after the resort went public.

In 2007, Albena reported net profit of 17.7 million leva, a 13.7 per cent year-on-year increase. Revenues, however, were down 3.7 per cent over a 12 per cent decrease in overnight stays. The number of German and British tourists reported the largest declines.