Bulgaria: Land

Bulgaria Fund: Invest in Land

I haveÊbeen investing successfully in Bulgaria for the last 2 years, mainly in land but also in flats and houses. Now I want to open up the same opportunities that I had to investors who don't have the luxury of spending considerable time in the country learning by trial and error. There is still huge potential in Bulgarian land. I think this is a really exciting opportunity.

The fund will invest in land,Êand thenÊseed development in order to add value. This includes regulating and obtaining planning permission, with building development on a small percentage of the land to increase market value and entice developers who we will then sell on to.

We are now setting up the holding company that will own and controlÊthe landÊportfolio. Investors will receive shares in the holding company. This shareholding guarantees the investor's share of ownership in the portfolio. In this way each investor's capital is distributed over more than one property and fixed costs become relatively smaller.

The holding company will operate in an offshore jurisdictionÊfor obviousÊtaxÊmitigation reasons. Current plans are for the management to get 2% of the NAV per year, and is taken simply to cover the basic operation of the company; we really are trying to provide an exceptionally low costÊoperating strucure, where the management is motivated by the final performance fee which will be at 25% of the profits only. Therefore investors get their initial investment back plus 75% of profits.

The fundÊis not going be regulated by the FSA since the costs and time involved to do this are prohibitive. We are looking for 'sophisticated investors' and HNWIs who understand the nature of the risk involved with these emerging markets. We cannot provide a guarantee in terms of performance, but we do guarantee thatÊinvestors have legal and proper ownership of the assets (shares in this case) reflectingÊtheir investment.

Duration of the fund will be a minimum of 2 years - max 4. We are looking to raiseÊmin 3 millionÊeuros in total.

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