Bulgarian Galaxy Property sells stake in Agro Finance for BGN 7.1m

Bulgarian Galaxy Property sells stake in Agro Finance for BGN 7.1m

Bulgarian property investment company Galaxy Property Group has disposed of its 21.6% in local real estate investment trust (REIT) Agro Finance in a BGN 7.11 million deal, Dnevnik said today, citing stock exchange data.


The Plovdiv-based company sold 6,969,431 shares at a price of BGN 1.02 a
piece, with the buyer of the interest to be announced within several days. No data of the price Galaxy paid for buying shares in Agro Finance was found in the records of the property company, but according to insiders, the returns were slim.


Galaxy was not reached for comment when contacted by the business daily, but representatives of other shareholders in Agro Finance confirmed the information. According to Dnevnik, the divesture was prompted by Galaxy's unsuccessful attempts to have a say in the running of the REIT.


As at end-September, Agro Finance's investment portfolio comprised 130,000 hectares of agricultural land, which were purchased for a total BGN 37 million. The REIT is also 21.17% owned by German Caceis Bank Deutschland and 20.9% by the funds of pension insurer Doverie. Among the REIT's minority shareholders are also Allianz Bulgariа, pension insurer Saglasiе and insurers Bulstrad and Bulstrad Life.