The money will be used for construction of the hotel “Saint Ivan Rilski” in Bansko.
Sofia, 4th of August, 2006
On 3th of August the Board of directors of FairPlay Properties REIT (FPP) has decided to issue bonds to the total value of 4 millions euro. The date of payment of the securities is 5 years,
At its meeting, the Board of Directors of the company has decided to issue corporate secured bonds. The total nominal value of the issue shall be EUR 4,000,000 and the term, respectively maturity, shall be 60 months following the date of issuing. The issue shall be backed with the highest priority mortgage on the right to build a hotel in Bansko and insurance of the financial risk. The interest rate shall be floating on amount of 6-month EURIBOR + 4.00% per annum, but not less than 6.75% p.a., payable through 6-month coupon installments.
The money from the loan will be used in order to construction of a hotel in holiday village “Saint Ivan Rilski” in Bansko for which FPP acquired the rights for construction at the end of July. The total area of the hotel is 13 237 sq. m.
There where further four vacation blocks in the complex “Saint Ivan Rilski, Hotel, Spa & Apartments” with commonly 162 apartments for sale, beside the luxury 4-star hotel. After the completion of the hotel, which is FPP’s property, it will be rented of a company, specialized in managing hotels. The total value of investment in the luxury hotel is 14 millions BGN. Deadline for the completion is 30th of May 2007.
“The issue of bonds will be placed through private investment and it will be provided for as well a construction until now, as an insurance of a financial risk, which will be valid until the price of the hotel become sufficient for the total amount of the issue”, said Manu Moravenov, executive director of FairPlay Properties REIT.
On 19th of July 2006, the increase in the capital of FairPlay Properties REIT to 25.350 millions BGN was registered. On the next day, a decision about new increase to 50.700 millions BGN was taken. The transaction for baying the hotel “St. Ivan Rilski” is a part from the investment plan of the Real Estate Investment Trust about this year. Another of its project is the holiday village “Santa Marina”, near Sozopol. There the company is among the general investors and is owner of 10 828 sq.m. of apartments and studios.