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Bulgaria's Bravo Property Fund agrees to buy 36.5 mln euro office building

Author Mario Tanev
Bulgaria's Bravo Property Fund agrees to buy 36.5 mln euro office building Photo: Bravo Property Fund REIT / All rights reserved.

SOFIA (Bulgaria), February 13 (SeeNews) - Bulgaria's Bravo Property Fund REIT [BUL:BPY] said on Wednesday that it has agreed to acquire an office building in Sofia for 71.4 million levs ($41.2 million/36.5 million euro) from local real estate company Office A.

The office building, located near The Mall shopping centre, has a total built-up area of 14,479 sq m, Bravo Property Fund REIT said in a capital increase prospectus.

The building offers six storeys of office space, a ground floor, and two underground levels with 240 parking spots.

The operation of the building is expected to generate annual revenue of at least 4.6 million levs.

Bravo Property Fund REIT will go through with the deal if it successfully attracts financing of 42 million levs.

On Tuesday, the Financial Supervision Commission approved the company's prospectus for a capital increase, aimed at raising up to 36.4 million levs via the issuance of the same number of shares at a price of 1 lev each. The capital increase will be considered successful if at least 36 million shares are subscribed for and paid for.

In addition, the company is planning to issue a five-year 30 million levs bond. The non-convertible issue will carry an annual coupon of up to 4%. The financial regulator has not yet approved the company's prospectus.

Bravo Property Fund REIT will also seek a one-year 12 million levs bank loan, it said.

Office A is owned by two private investors - Asen Lisev and Pavel Kshonzhek, with stakes of 50% each. Pavel Kshonzhek controls his stake in Office A through his fully owned unit Black Sea Development.

Lisev is also the CEO and majority owner of Bravo Property Fund REIT, controlling a 72.23% stake in the company.

Bravo Property Fund REIT shareholders are due to vote on the proposed deal at a meeting scheduled for February 15.

(1 euro = 1.95583 levs)