The Financial Supervision Commission approved the prospectus of the Company for the impending capital increase
Sofia, January 7, 2008
The net value of the assets of FairPlay Properties REIT amounts to BGN 149 024 728, calculated in accordance with the market values of “Yavlena Impact” OOD, one of the leading appraisals and expert companies in the sector of the Real Estates in Bulgaria. The document was approved from The Financial Supervision Commission and it is already published for the investors on the internet page of the Company www.fpp.bg
This market value means that on the side of one share of the Fund there are assets with net value BGN 2, 94. On market prices, the Company owns real estates for more than BGN 161 million, which is close 2.3 times over the accounting value at the amount of BGN 71, 5 million from the Financial statements as at 30 September 2007. The experts from “Yavlena Impact” have used four methods for the valuation – Method of the market analogs, Method of the actual value, Incomes Method and Remaining Method.
“The market value of the assets allows the calculation of the minimal real value of one company; this means that value is based on the method “Net value of the assets”. The net value of the assets, altogether with the Stock Exchange value of the assets, are the two factors that defined the issuing value of the shares from the new issue.” Said Mr. Manu Moravenov, CEO of FairPlay Properties REIT.
Forthcoming is a publication of a press release in State Gazette for the impending capital increase, after which most probably in February 2008 will start the trade with the rights. The whole procedure of the increase is expected to finish in the beginning of March 2008 and the trade of the new shares to start in tge middle of the same month.
FairPlay Properties REIT will increase its capital from BGN 50.700 million to BGN 60.840 million if the completely new issue of 10.140 million shares will be listed. When this happens, the Company will become the biggest REIT in Bulgaria in amount of the registered capital. The new shares will be with nominal value BGN 1.00 and with issue value BGN 2.25 per share. For each of the old shares one right will be issued and with five rights will be written one new security.
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.