Elana Agricultural Land Opportunity Fund REIT-Sofia aims to invest its disposable capital by December 2007, the company’s annual report field in BSE shows.

In order to achieve this, the company is expanding its regional representations network in Bulgaria with the idea of managing to by 15– 18 mln sq.m of land monthly by the end of 2007.

The fund also plans to collect rent from about 60% of its lands in 2006/2007, aiming to increase this share to 90% in the next business year 2007/2008.

A favourable factor in this process is Bulgaria’s EU membership and the expected subsidies (direct payments) for the owners and leaseholders of agricultural land. The fund does not cultivate its lands, which means it is not allowed to receive direct payments, but these direct payments are expected to contribute greatly to the settlement of land relationships in Bulgaria and to increase the value of agricultural land and income (rents) it brings.

As of 31 December 2006 Elana Agricultural Land Opportunity Fund REIT’s net assets were worth 82.53 mln leva. These assets include sale disposable investments (mortgage bonds) worth 7.036 mln leva, cash and equivalents in the amount of 18.349 mln leva, commercial and other receivables worth 1.078 mln leva. Non-current assets (purchased land) are valued at 57.201 mln leva.

Elana Agricultural Land Opportunity Fund REIT’s operating revenue reached 12.297 mln leva in 2006, while total revenues for the period stood at 3.321 mln leva. Profit amounted to some 10 mln leva. Operating results were boosted by the ever more active development of the market of agricultural lands, which resulted in stable increase of the value of agricultural lands.

This trend is expected to continue in 2007. According to an independent expert evaluation of the value of properties acquired as of 31 December 2006, the average price per 1000 sq.m. is 240 leva, and the average purchase price is 183.57 leva/1000 sq.m.

Over the review period the fund purchased about 180 000 sq.m. of agricultural land in the southern part of Sofia. The purchased agricultural land consists of around 60 plots, commissioned in one big plot. The land is suitable for the building of a luxurious residential complex. Currently Elana Agricultural Land Opportunity Fund REIT is negotiating with a number of big investors on the sale of the integrated lot. The profit from its sale will be allocated for dividends.

Last year Elana Agricultural Land Opportunity Fund REIT bought 123,1 mln sq.m of land. Since its establishment the fund has purchased a total of 143,8 mln sq.m of land.