The Company announced the beginning of two new projects
Sofia, 18 November, 2007
FPP expects to realize BGN 8.2 mln. profit for distribution for 2007 – it is the result of the Company’s latest forecasts. This means that during the last quater of 2007 the Fund will add new BGN 4.3 mln. to the result for distribution from BGN 5.9 mln. that was announced as at 30 September 2007.
BGN 0.14 dividend per share will be received by the investors of FPP REIT if the profit would be distributed before the planned for January 2008, capital increase. In other case, the dividend would be BGN 0.12.Recently the company announced its planes to issue BGN 10.140 mln. new shares with which the shareholders’ equity will reached a record for Bulgarian REITs – BGN 60.840 mln. The securities will be with nominal value BGN 1 .00 and issue value BGN 2.25 per share.
The Company will start 2008 with BGN 1 205 622 net profit, which will be realized after the notary deals for apartments from Stage 2 of the Holiday village "Santa Marina". The cash flows from these sales will be realized during the 2007, but whole sales value from 3 076 079 will be booked as an income during 2008, because of the present Bulgarian accounting standards.
Till the end of 2007 the expectations are that the purchases of 50 thousands sq. m. will be completed for the new project in Sapareva Banya. Details about this will be reported in a short period. The Fund announced as well the beginning of a construction of an Apartment hotel in Chernomoretz with total value of the investment about BGN 7 mln. and total unfolted build-up area 5 400 sq.m. The hotel will consist of 60 double rooms, which will be rented. There is an option these rooms to be reconstructed into 30 apartments in order to be offered for sale.
“FairPlay Properties” REIT has reached 100% the forecasted value for 2007 for the sales of apartments from Stage I of “Santa Marina” in advance as of 15 November 2007. For Stage II this index is 73%. The slight abandon here is a result of the significant raise of the average cost per square meter from EUR 1100 to EUR 1500. This gives a slight effect to the sales , but at the same time guarantees higher profit.” Said Mr. Manu Moravenov, CEO of “FairPlay Properties” REIT “The unsuccessful winter season the previous year, caused a temporary crisis on the Real Estate market in Bansko. As a result of it the Company records about 30% performance from the forecasted value of the sales of apartments from the Holiday Village “Ivan Rilski” appended Mr. Moravenov.
”FairPlay Properties” REIT is the biggest in assets Company for securitization of real estate (without agricultural lands) with 15,39% market share and had third place towards this index from all the REITs listed on the BSE ( according the statistics of Financial Supervision Commission for the second quarter of 2007).
“FairPlay Properties” has an award from the Investor‘s Association for “The Best Corporate Governance of REIT`s 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.