Reit Fairplay Properties Right Issue Fails To Spark Interest

About 41 per cent of the rights issued as part of the capital raise of local real estate investment trust FairPlay Properties, a unit of property developer FairPlay International, have not been picked up by investors and will be invalidated.

Only 61 100 of the 20 830 880 unexercised rights were transacted at the February bourse auction.

This means that if the residual rights are exercised and investors subscribe and then pay up the shares to which they are entitled, the company will hike its capital by around 60 per cent of the target amount.

The REIT is currently performing its fifth capital increase from 50.7 million to 60.84 million leva.

For the purposes of the hike, FairPlay Properties is offering 10.14 million new shares with an issue price of 2.25 leva per lot. The company placed 50.7 million rights.

The minimum subscription target is 50 per cent. How the capital raise fared would become clear after March 6, the subscription deadline.

The company's business plans are based on a 50 per cent capital raise in light of the current market environment, said board chairman Manyu Moravenov.

The REIT has already issued debt and the project pipeline would require bank financing rather than the placement of more bonds, said the company official.

The fund's investment plans include the third phase of the Santa Marina vacation village near Sozopol, the Rila Lake Resort development near Panichishte and a handful of other projects in the Sandanski, Chernomorets and Bansko areas.

The fund's investment plans include the third phase of the Santa Marina vacation village near Sozopol, the Rila Lake Resort development near Panichishte and a handful of other projects in the Sandanski, Chernomorets and Bansko areas.