FairPlay Properties REIT begins 2008 with sale of 27 apartments for BGN 4.6 million

The Company has signed Contracts for a construction of 31 313 sq. m. total unfolded built-up area from Stage III of the Holiday Village “Santa Marina”

Sofia, January 10, 2008

FairPlay Properties REIT sold 25 apartments from the Holiday village “Santa Marina”, Sozopol with an Agreement from 07.01.2007. As a result, the Company records the realization of 27 apartments for totally BGN 4.6 million in the first days of the New Year. The average profit from the deals is 62% and the expectations are that they will be notary finalized until the first six months of the year.

In the end of 2007, the Fund has also signed new contracts for a construction of 9 new villas with total value BGN 16.8 million excluding VAT and 14 750 sq. m. expected total unfolded built-up area. All these villas are from Stage III of the Holiday village “Santa Marina”, where FairPlay Properties REIT has the engagement for a construction of totally 21 villas with 31 313 sq. m. total unfolded built-up area at the amount of BGN 35, 8 million, BGN 6, 3 of which are already invested.

 “We have already ensured profit from BGN 4 million from sales for 2008. This profit includes the profit from sales from 2007, that will be finalized and recorded in 2008 and profit from the new deals from the first days of January. The construction works of Stage III from the Holiday village “Santa Marina” are developing in accordance with the plans and already 3 villas (4 263 sq. m. ) are ready to the roofs.” said Mr. Manu Moravenov, CEO of FairPlay Properties REIT.

FairPlay Properties REIT has started a procedure for the fourth capital increase of its capital from BGN 50.700 million to BGN 60.840 million by issuing of 10.140 million new shares with nominal value BGN 1.00 and issue value BGN 2.25 per share. The market price of the Company exceeds BGN 140 million as at 30 September 2007 according to the market valuation, that “Yavlena Impact” gave to the owned by the Company properties.

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% 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.