The rights to participate in the capital hike of Bulgarian real estate investment trust (REIT) Advance Terrafund will trade on the local stock exchange from August 14 till 27, 2008, said the manager of the issue, local brokerage Karoll.
The unused rights will be auctioned off on September 5 and trade in new shares will start in early November.
The REIT seeks to raise over 125 mln Bulgarian levs ($101.7 mln/63.9 mln euro) through the capital hike. Every existing stockholder can subscribe for 1.5 new shares with a face value of 1.0 lev ($0.81/0.51 euro) and an issue value of 1.9 levs ($1.54/0.97 euro).
The capital hike will be considered successful if at least 25 million shares are subscribed for and paid in.
The company will use the proceeds to expand and consolidate its farmlands as well as to repay a 15 mln euro ($23.8 mln) loan and boost its liquidity.
The REIT plans to own 45,000 hectares by end-2009, said its executive director Rdoslav Manolov. It currently owns 23,800 ha of farmland and 13 ha of urban land worth a combined 99 mln levs ($80.6 mln/50.6 mln euro). Advance Terrafund expects an annual 30 pct rise in Bulgarian arable land prices over the next couple of years.
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