Fairplay Properties Reit

FairPlay Properties REIT is the local market leader for securitization of real estates with a share of 14.59 per cent in assets, excluding investments in agricultural land.  The company's main activities are construction, renting and the sale of holiday properties. According to market evaluations prepared by Yavlena Impact ltd., the net value of FairPlay Properties' total assets was 149 million leva as of the end of November 2007 and net assets per share amounted to 2.94 leva.

FairPlay Properties has won the award for "The company with the best corporate management" among REITs, awarded by the local investors' association. The company has since the beginning of September 2007 been included in the BG REIT stock index.

General Information
FairPlay Properties (FPP) was established in July 2005 by FairPlay International JSC, a major Bulgarian investment and development company. In February 2006, FPP received its licence from the Financial Supervision Commission and was listed for trading on the BSE.

Since its establishment, FairPlay Properties has successfully carried out three capital increases and one bond issue. As of September 30 2007, the share capital of the company is 50.7 million leva.  

Investment Policy
FPP invests in the purchase of real estates (plots and buildings) and construction of new buildings on Bulgarian territory. FPP's strategy is to build a dynamic and well-diversified portfolio of assets, made up of different types of real estate properties in various regions of the country. FPP's priority medium-term market segments are residential buildings in holiday resorts, hotels and apartment houses (residential buildings, which offer apartments for rent combined with hotel services) in the country.

Investment Portfolio
FairPlay Properties' portfolio is very diverse in terms of location. Its total value was about 161 million leva (82.3 million euro) on November 30 2007, based on market value.   
As of September 2007, about 68 per cent of the company's secured assets were at Black Sea summer resorts, 31 per cent in ski resorts and two per cent in spa centres. About 60 per cent of current investments are concentrated in hotels and leisure apartments and the remaining 40 per cent in land and commercial properties. The company's future plans include the construction of commercial and residential properties in Sofia.
The 2006 investments programme was concentrated in two large holiday village projects. The first one, Santa Marina, is on the Bulgarian seaside near Sozopol. The second, Saint Ivan Rilski, is in the top skiing resort of Bansko. Another small-scale project was the construction of a holiday resort, Chernomoretz, (Chernomoretz I) in the Black Sea village of Chernomoretz.

Projects launched in 2007 were:
·A holiday resort in Sozopol;
·The Rila Lake Resort - a holiday complex in the mountain resort of Panichishte;
·Residential buildings in the town of Sandanski
·Chernomoretz II - a residential building for sale or rent in the village of Chernomoretz.

Santa Marina is the first holiday project of FPI Properties, located close to Sozopol.