News

REIT FairPlay Properties plans div for '07

Local real estate investment trust FairPlay Properties has forecast a gross dividend on profit of 0.12 levs per share after a capital raise to 60.84 mln levs.

Prior to the capital hike, the gross dividend would have been 0.14 levs per share.

Earnings were reported at 5.9 mln levs y end-September and should increase by 4.285 mln levs by the end of the year on proceeds from resort apartment sales.

The REIT is developing the Santa Marina vacation village near Sozopol, on the Black Sea. The bulk of the apartment stock is expected to be sold in 2007. A total of 285 units have been sold to date.

The company has began work on the third section of the development which should be completed in 2011. It will comprise for-sale residential units and for-rent retail outlets.

Sales at the REIT's Ivan Rilski apartment complex near ski resort Bansko have been slow - 13 deals so far, due to overconstruction in the area.

The FairPlay Properties pipeline also includes a second vacation village near Sozopol, an apartment complex in Sandanski and two hotels in Chernomorets.

The company plans to buy 5.0 ha of land near Sapareva Banya for the construction of a vacation village.

Rila Lake Resort, a residential and hotel complex near Panichishte, will be launched in 2008 and completed in 2010. The project is expected to yield an annual return of 8.2%. The development cost is 23.82 mln levs. The resort is expected to generate 34.4 mln levs in apartment sales in 2009-2011.(Dnevnik)