Fairplay Properties Buys Land Plot For 5.7m Euro

FairPlay Properties real estate investment trust (REIT), part of FairPlay International Jsc, has sealed the deal to buy a 8700 sq m land plot in Sofia's Studentski Grad neighbourhood for 5.7 million euro, value-added tax excluded, Dnevnik daily reported on April 14.

The land will be used to build an apartment building and an office building, the daily said. The REIt plans to invest 22 million leva in the apartment building, starting construction within months and completing it by end-2009. The office building will cost 35 million leva to build.

The acquisition was funded with bank loans.

News of the deal pushed the REIT's share price 1.58 per cent up to 1.93 leva in trading on April 14, Dnevnik said.

It will be the first Sofia-based investment of the fund. In January, when FairPlay properties announced its plans for the development, it said that the total residential, retail and office space of the project would have a gross actual area of around 30 000 sq m.propertywisebulgaria.com