The Company will use the investment credit for financing the new project in Chernomoretz
Sofia, December 2007
Contracts for two new credits, signed FairPlay Properties REIT. The first one is for an investment credit at the amount of EUR 2 580 000. The time limit for utilizing and repayment of the credit is up to 5 years following the first disbursement of the funds. Until 30 August 2009, the Company will have the possibility to use and a Revolving Credit line at the amount of EUR 1 500 000, according the second contract.
“With the investment credit will be financed 86% from the investment (without furniture and equipment) in the construction of a residential building in Chernomoretz,” said Manu Moravenov, CEO of FairPlay Properties REIT. “As we announced at November 18, through the present year, this will be a building with total unfolded built-up area 5 400 sq. and 60 double rooms, which can be reorganized into 30 apartments for sale.”
FairPlay Properties REIT is among the few Bulgarian REITs, benefiting from the advantages of the financial leverage in order to increase the profit of the shares. According to the financial statement of the Company as at the third quarter of 2007, the liabilities for bonds are at the amount of BGN7 779 thousand and the liabilities under received loans from banks at the amount of BGN 8 694 thousand.
After the two new credits the fourth capital increase up to BGN 60.840 million follows. The expectations are that the Financial Supervision Commission will pronounce about the approval of the prospect about it till the end of December. Through January, the Fund will offer to the investors 10.140 million new shares with nominal value BGN 1.00 and issue value BGN 2.25 per share.
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.