The Company will enlarge its Investment Portfolio with development of Retail properties and Offices.
Sofia, January 17 2008
FairPlay Properties REIT will develop two new projects for residential, retail and office areas. The Company is going to invest for the first time in the limits of the city of Sofia.
The Fund has signed a preliminary contract and till the end of the first quarter the Company expects to acquire 11 000 sq. m. next to the National Sports Academy in the Studentski grad quarter. The amount of the properties is EUR 5,7 mln. And on them will be constructed residential, retail and office areas with total unfolded built-up area 30 000 sq. m. The construction works will start after the notary acquirement of the properties and the forecast for the end of March 2008.
On an attractive place in the southeastern outskirts of Sofia, FairPlay Properties REIT is planning to build a new Residential Complex. The Company is in a procedure of acquirement of 50 000 sq. m. close to the ring road and is planning to ensure min 100 000 sq. m. lands, before the real start of the Second Sofia Project.
“We expect the green field investments in the Students’ town to begin through this spring season. FairPlay is a well known trade-mark for high quality and style in the field of residential construction in the Bulgarian capital. Within this tradition will be involved and our projects. This will facilitate the realizations. With the development of offices and retail areas in Sofia, FairPlay Properties REIT forecasts increase of the share of the investment properties in its portfolio.” said Mr. Moravenov, CEO of FairPlay Properties REIT. “The investments will be financed with amounts from the capital increase and the following development of the projects – with combination of debt financing, revenues from sales and if necessary – additional issue of shares”, added Mr. Moravenov.
These are the next two new projects of the Fund from the beginning of
2008,after the investment in the town of Sapareva Banya, where will be developed a new balneological division in its investments. The Fund is right to offer 10.140 mln new shares with nominal value BGN 1.00 and issuing value BGN 2.25 per share within the limits of an initial public offering for capital increase from BGN 50.700 mln. to BGN 60.840 mln.
FairPlay Properties REIT is the biggest in assets Company for securitization of real estate (without agricultural lands) with 14,59% market share and had fourth place towards this index from all the REITs invested in the real estates, listed on the BSE ( according the statistics of Financial Supervision Commission for the third quarter of 2007). According the information from the last Prospectus of the Company the market value of its assets as at November 2007 exceeds BGN 170 mln.
FairPlay Properties has an award from the Investor‘s Association for “The Best Corporate Governance of REITs 2006”.
FairPlay Properties REIT is listed on the Bulgarian Stock Exchange – Sofia on 17 February 2006. The main shareholder in the Company is FairPlay International JSC with 65,5 % quota in the capital. The other shareholders are Institutional Investors (9 Pension Funds, 15 Mutual Funds, and Investment Companies) and 220 physical persons and Legal Entities, small investors.