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Expat Beta REIT is planning to issue a bond

10.10.2011 / Press releases

On 21 November 2011, Expat Beta REIT shall convene an extraordinary General Meeting of Shareholders. The main topic in the agenda will be a proposal of the company for issuing a bond.
The issue will be of ordinary, freely transferable bonds, non-convertible into shares. The nominal and the issue price will be EUR 1,000 per bond. The whole amount of the issue will be up to EUR 1,000,000. It will be considered successful if at least 150 bonds totaling EUR 150,000 are subscribed.
The maturity of the bond will be 42 months from the issue date. The bond will have non-compounding interest at the rate of 42% of the nominal value for the entire period of the issue (i.e. 1% per month). The interest and principal will be paid at maturity, which means that after 42 months Expat Beta REIT will pay EUR 1,420 per bond.
The bonds will be secured with the properties purchased by Expat Beta REIT using the funds raised from the issue.
1 year after the issuance of the bonds, the issuer will have a call (buy-back) option at a price equal to the issue price plus the accrued interest for the period (pro rata, 1% per month).
So far, the capital of Expat Beta REIT of BGN 5.14 mln has been almost entirely invested in real estate projects. The company has concluded 5 transactions. A common feature of all of them is the attractive purchase price – 2 to 5 times below the market prices, which enables the company to achieve good profits in the medium term, even if there are no big changes in the real estate market.