April 22 (SeeNews) - Bulgaria's Bravo Property Fund REIT [BUL:BPY] said on Monday that it has signed a final agreement 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.
Bravo Property Fund REIT is financing the deal through the proceeds of a capital increase and a bond issue, as well as borrowed funds, the real estate investment trust said in a statement.
Earlier this month, Bravo Property Fund raised 36.05 million levs via the issuance of the same number of shares, and placed a five-year 30 million levs bond. The company announced previously that it will also seek a one-year bank loan of up to 12 million levs.
The office building, located near The Mall shopping centre, has a total built-up area of 14,479 sq m with 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, according to Bravo Property Fund REIT.
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 company Black Sea Development.
Lisev is also CEO of Bravo Property Fund REIT and was the company's majority owner before the capital increase.
(1 euro = 1.95583 levs)