Strategy

The principal investment objective of the Fund is to provide its shareholders with a combination of current income and long-term appreciation in the common stock value. Its strategy is to acquire, develop, manage and lease properties that have superb potential for cash-flow growth and capital appreciation.

The Fund’s management aims to invest primarily in the following market segments:

• Prime location, class A office and quality retail projects in Sofia and in other major Bulgarian cities;
• Gated communities on the Black Sea coast and in the largest ski resorts;
• Investments in agricultural land;
• Mid and high-end residential developments in Sofia and Varna;
• Retail premises in and around the major cities, facilitating the entrance of international retail chains;
• Industrial/warehousing projects in and around the capital of Bulgaria – Sofia and other major cities.

The priorities of the Fund’s management are:

• “Sale and Leaseback” projects;
• Land Banking – key focus on locking in highly potential locations, suitable for new developments, in all property sectors;
• “Build-to-Suit” projects;
• Create long-term relationships with large users of real estate;
• Maximize value through on-going, aggressive management of assets.

Financial objectives and Funding

The key financial objective of “Bulgarian Real Estate Fund” is stable increase of its revenue, resulting from active management of its real estate portfolio. An additional source of funding would be the external financing like bond issuance and bank loans.