Market Profile: Loraine Pinel,bulgaria Fund

Loraine Pinel, 57, is a joint fund manager of Lewis Charles Sofia Property Fund, a closed ended fund focused on investing in Bulgaria. She has been managing funds since 1977 when she joined L'Abeille (Group Victoire) as a fixed income fund manager before spending 15 years at Canadian company Manufacturers Life Insurance, where she managed its global fixed income funds.

Aim market
Mrs Pinel later moved to Royal Bank of Canada to head up the private client department in London and also worked at Theodoor Gilissen. She talks about Bulgaria and gin and tonics.

How has the Bulgaria property market changed since it joined the European Union in January ?

The changes have been generally positive. Building standards have improved and now have to adhere to EU regulations. Property prices have risen strongly over past years in anticipation of EU accession. Although prices have continued to rise in 2007, the pace has been slower.

What attractions does Bulgaria offer to tourists?

Sofia is deceptively close, being only a three-hour flight from London, and offers both winter and summer activities. Ski resorts such as Bansko and Borovets led to it becoming a bid city for the forthcoming 2014 Winter Olympics. Bulgaria is also well placed to take a commanding share of the emerging spa tourist business because of its extraordinarily large number of both hot and cold mineral water springs.

What are the main differences between the property market in the UK and in Bulgaria?

Unlike the UK market, there is not yet a domestic buy-to-let market as home ownership in Bulgaria is at a high level. However, in the tourist resorts there is a strong buy-to-let market coming from international investors. In Sofia we are seeing an expanding expatriate buy-to-let market.

Will the issues of the credit crunch affect property in the former Eastern Bloc?

Clearly there has been a widening of credit spreads but this has not been accompanied by a real domestic crunch or a dislocation in onshore markets as has been the case in the US. Interestingly, equity markets in Bulgaria, Romania and Slovenia ended the month of August up by 2.3pc, 0.6pc and 7pc respectively. The property markets have been somewhat insulated from the problems elsewhere as emerging countries are undervalued compared to Western Europe.

What's the best piece of advice you've ever had?

An excellent piece of advice which has served me well over the years is never to buy anything one doesn't fully understand.

What has been your most amusing career moment?

It was one of the first meetings of my career, and I had been invited to lunch at the Ritz by a broker. I was anxious to appear mature and confidently asked for a gin and tonic – the first of my life. When the waiter placed it on the table I downed it in one, disguising my disgust. The broker was astonished and proclaimed he had never seen anyone drink their gin neat. It was only then that I noticed the bottle of tonic that was partially obscured behind some flowers. I don't think I ever told him the truth!eurosilex.com