The Ministry of Defence has earned over five million leva from the sale of four properties across the country. The deals were closed at the beginning of October, and were conducted by secret auction, according to a ministry statement October 13 2009.

The decision came following a decision by defence minister Nikola Conev for the gradual release of 243 army properties because they are considered obsolete. The installations will be sold mainly to private investors, but some of will be reserved for acquisition by the state.

On October 8 two auctions took place in Burgas, one for an installation at Sarafovo and the other for a site in Tvardica. Sarafovo attracted six bidders, with starting price of 990 000 leva, with the property ultimately selling for 4.1 million. The second property went for 680 000 leva, with 16 bidders participating. A further two properties were sold in Karlovo for 303 000, and 118 000 leva respectively. The opening price for each site is based on valuations in the Guidelines for National Property Law, says the Defence Ministry.

Army properties now considered redundant will be offered for sale, and the list will include plots of land, buildings, shops, warehouses and community centres in Sofia, Plovdiv, Varna, Burgas and other places. The list will be published on the Defence Ministry's website later this month.

The disposal method will depend on the location of the plots earmarked for privatisation. Some will be sold, while the ministry itself will develop others. A third option is to sell the building rights but retain ownership of the land.

In the latter option, the installatons will be handled by a newly-created department, the military infrastructure, asset management and investment directorate general.

The proceeds from sales will go towards the modernisation of the armed forces and the purchase of housing for personnel.