April 24 (SeeNews) - Real estate investment trust (REIT) Bulgarian Real Estate Fund (BREF) [BUL:5BU] said that it intends to use the proceeds of its planned capital increase to finance the construction of an office building in Sofia Tech Park.
The REIT plans to raise up to 38.3 million levs ($23.9 million/19.6 million euro) via the issuance of 20.15 million shares at a price of 1.9 levs apiece, BREF said in a bourse filing last week.
The capital hike will be considered successful if at least 10.075 million shares are subscribed for and fully paid for.
The office building will have a total floor area of 35,000 sq m, BREF said.
Earlier this year, BREF decreased its capital to 20.15 million levs from 60.45 million levs by cutting the nominal value of its shares to 1 lev from 3 levs. The 40.3 million levs, which were freed up as a result of the capital decrease, were used to form a reserve fund, the company said at the time.
Last year, BREF signed a 9.65 million levs contract for the right to build and operate an office building on the territory of state-owned Sofia Tech Park.
Under the deal, the company acquired the right to build an office building with a total floorage of 35,000 sq m and an underground parking space on two levels with a total built-up area of 16,000 sq. m.
(1 euro = 1.95583 levs)