The capital of Expat Beta REIT reached over BGN 5 mln.
800 300 new shares have been bought from the capital increase of Expat Beta REIT. Thus the number of shareholders has almost doubled, and the fund capital reached BGN 5,143,190. This is an increase of the assets of over 18.4% – very few Bulgarian companies may achieve this today.
As the number of the subscribed shares is far above the minimum amount of 100,000, the capital increase is considered successful. However, the results are lower than expected. Expat Capital points a few key reasons for that:
- The unfavourable market conditions on the Bulgarian Stock Exchange and other stock exchanges around the world. During the period of our issue, most of the markets around the world were declining
- The shares of other REITs in Bulgaria declined by an average of 25% during the last 9 months, and the stock index SOFIX declined by over 30%
- The trading volume on the Bulgarian Stock Exchange – Sofia is very low
- Many institutional investors have already invested heavily in other REITs and were unwilling to increase their positions
- Expat Beta is relatively small on the world scene to attract big investors
The Expat Beta team expects to conclude some small scale deals with very attractive valuations in the next couple of months. The ultimate goal is to achieve the highest possible Return on Equity and increase the price of our shares on the stock exchange.