The purpose of the warrant issue is to ensure fast and effective financing of future projects of the Company
At the non-scheduled General Assembly of "FairPlay Properties" REIT’s general shareholders, on 18 August 2016, a decision was made. The Company is issuing through IPO noncash, freely transferable securities – warrants. The size of the issue is going to be 232,017,800 (two hundred thirty-two million seventeen thousand eight hundred) units warrants with par and issue value of BGN 0.001 (one tenth of a penny) each. Each warrant entitles its holder within the period of issue to subscribe one (1) common share (of the same class) of the Company’s capital as the issued so far with nominal and issue price up to BGN 1 (one).
The purpose of this issue of warrants is to ensure fast and effective financing of the Company’s future projects. The increase of share capital through the exercise of warrants will significantly shorten the period from deciding on the need for additional equity finance by FairPlay Properties’ management to securing these funds from the capital market in the next 5 years. Meanwhile warrants as a derivative instrument will increase the attractiveness of the issuer through their secondary trading price, which is going to be formed from the premium over their operating price and the subscription of new shares. In the next 5 years the company will be investing in the following three prioritized areas:
• Development and sale of residential projects in Sofia city;
• Acquisition of office buildings and other commercial properties with a rental purpose;
• Development and sale of apartments in the holiday village "Santa Maria", Sozopol – after the implementation of the general plan of Sozopol municipality in July 2016, there are no obstacles for the company to continue the development.
of the next stage of Santa Marina Holiday Village.
The strategy of FairPlay’s management is to gradually invest the profit from sale of property along with the revenues from the raising of new capital through the exercise of warrants in new investment properties and renting. Thus the Company will become a classic Real Estate Investment Trust oriented towards attaining dividend profitability for shareholders similar to market profitability from investments in office buildings or alternative commercial properties. The existence of entrepreneurial projects such as development of residential complexes in the meantime will provide a further increase in profitability for shareholders, combining with reasonable financial leverage aims to achieve returns higher than the average for the market. In the event that in the future the law allows property investment by REITs outside the country, the company will seek additional diversification through investment in Eastern and Central Europe.
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"FairPlay Properties” REIT is listed on the BSE – Sofia on 17th of February, 2006. Major shareholder in the company is “FairPlay International” with 30,4% share in the capital, the rest of the shareholders are institutional investors (10 pension, 16 mutual funds and 1 investment company) and over 290 individuals and legal entities, retail investors.
The Company is a holder of plenty of prestigious awards such as:
• „Investor of the Year” in the Tourism sector for 2013 for the investment of the Company in the Holiday village “Santa Marina”, Sozopol;
• Second place in the Annual rating of Dnevnik newspaper – “Top 100 best companies on the stock exchange in Bulgaria in 2009” in the category “Best REIT”.
• „Best IR Website”, the Bulgarian Association of Investor Relations Directors for 2008;
• „Company with best Corporate governance for Special investment purpose Companies, 2006”, Investors Association in Bulgaria;
The projects of the Company have also received many prestigious awards, including:
• The Holiday Complex “Santa Marina” is the first Bulgarian holder of the prestigious award Prix d’Excellance Golden Winner, May 2014;
• The holiday village “Santa Marina” holds the great reward in the competition FIABCI Prix D’ Excellance Awards, April 2013;
• The Holiday complex „Santa Marina” was distinguished with the prize “Best Holiday Village 2010” from the Bulgarian Hotel and Restaurant Association;
• The holiday village “Santa Marina”, Sozopol owns the Golden prize “Best Project in Bulgaria” from the Russian magazine „Homes Overseas”;
• The holiday village “Santa Marina”, Sozopol is the holder of the award “Best Marina Project” from the international competition “Best project 2009”, organized in the frame of the year of Bulgaria in Russia;
• The project of the Company Hotel, SPA and Apartments “Saint Ivan Rilski”, Bansko was distinguished with an award from the Bulgarian Hotel and Restaurant Association for “Best holiday 4-star hotel in Bulgaria 2009”;
• The webpage of the holiday village “Santa Marina”, Sozopol was awarded as “Best website in the Real Estates category” from the international web festival “Albena 2008”;
• The largest project of the Fund – the holiday complex “Santa Marina”, Sozopol holds the prize “Holiday complex of the Year” from the competition “Building of the year 2006”.
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More information:
Miglena Dimitrova, Investor Relations Director
Tel.: 02/ 8 199 103; e-mail: m.dimitrova@fpp.bg
