The Fund bought 60 000 sq. m. new land properties in Sapareva Banya
Sofia, January 15, 2008
FairPlay Properties REIT acquired 62 743 sq. m. in the land area of Sapareva Banya. The amount of the real estates (land) is BGN 4.5 million. On the newly acquired lands will be developed new projects in two directions – Holiday complexes and balneo- rehabilitative centers.
The investment in Balneology is from a new type for the portfolio of the Company.
The Fund will continue to acquire lands in the region of Sapareva Banya, as the total area most probably will exceed 100 000 sq. m. The first projects are expected to start in the end of the current year. The investments will be financed with the resources from the impending capital increase.
“We have forecasted the balneology as a possibility for investments still in the Commencement Strategy for Development of the Fund as Bulgaria has a great potential for a development in this direction. The complexes of this type have very good future and give possibility for long-term partnership with the major pension and health insurance companies.”, said Mr. Manu Moravenov, CEO of FairPlay Properties REIT. “The realized acquirements are a respond of the announced in November 2007 intentions of the Company to buy about 50 000 sq. m. in the land area of Sapareva Banya. Our investments in this area – the rehabilitative centers in Sapareva Banya and the Holiday complex in Panichishte, will be constructed in interrelations in a specific symbiosis,” added Mr. Moravenov.
The demand for balneological services grows rapidly in upward trends because of the policy for increasing of the labor age that is conducted by many of the major pension and health insurance funds about the insured entities. In this policy are included rehabilitative services, for which as a rule the insured are waiting for months because there are not enough proposals. The daily cost for the clients for this kind of services is very expensive and combined with the great demand are the reasons for the large constructions of rehabilitative centers with a great capacity in Greece.
Sapareva Banya is famous with the hottest spring on the Balkan Peninsular. Its temperature is 103C. The town is also famous for the healthy waters of the two mineral springs, which contains lots of sulphur and cures illnesses of the foothold and motional apparatus, peripheral nervous system, rheumatism and skin illnesses. In the region, there are many cultural and historical landmarks. Also here is the beginning of the most attractive mountain routes to the seven Rila Lakes, Maliovitza, Skakavitza, the Borovetz Resort. The municipality is famous also with the resort of Panichishte – 7, 5 km from the town, with the tendency to become the fourth winter ski center in Bulgaria.
At present FairPlay Properties REIT develops holiday, residential and retail complexes. With the new investments in balneology and rehabilitation, the Company will diversify and enrich extra its portfolio.
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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).
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.
