Bulgarian real estate investment trust (REIT) Agricultural Land Opportunity Fund Mel Invest expects to buy 8 000 ha of arable land at an average cost of 2 500 leva a hectare in 2008, according to the prospectus for the upcoming equity hike of the company, submitted to the Bulgarian Stock Exchange.
Late in 2007, the REIT had a land bank of 3 700 ha, primarily in Varna, Bourgas, Sliven, Yambol, Pleven, Vidin and Silistra regions. The average acquisition cost was 2 227.1 leva a ha.
The REIT plans to double its capital to 28 million leva, launching the rights issue for new shares in the capital increase for trade on March 27. The rights will trade until April 9.
The minimum subscription target is two million out of 14.044 million shares, which will have an issue price of 1.10 leva.
