Issue of 140 million British liras of the British property fund Equest Balkan Properties was registered on the alternative segment of the London Stock Exchange. Funds raised will be invested in office, commercial and industrial areas in Southeast Europe, primarily in Bulgaria and Romania. According to the management of the fund between 30 and 35% of the funds will be targeted at real estate in Bulgaria. -- Mr. Haataya to what projects to target the Balkans? -- Investments of our fund will be directed to the already established business areas in which there are tenants, rent leak and can generate income immediately. Would not we do projects in development, ie with the construction of such objects, and will invest in existing ones. Interest to us are commercial centers, industrial and logistical facilities and office areas. Residential properties and holiday-type "second home" outside our sight. The main focus of the fund is aimed at Bulgaria and Romania - already have offices in Sofia and Bucharest. Second priority is Serbia and the former Yugoslavian republics, in the longer term and are looking to Turkey. -- Why did you select the pattern of investment in finished buildings, provided that the development of a project would bring a higher yield? -- This is, but development projects are more risky. And we obeshtahme our shareholders to izplashtame annual dividend of existing rents. The market has a different type of investors - some are oriented in the longer term, are willing to wait 3-4 years for the development of a project, but to obtain a higher return - such as 200-300%, at greater risk. Another type of investors, such as those in Equest Balkan Properties, prefer to buy existing assets, which already bear profitability. They seek lower risk investment, which also aims not only to Bulgaria, and in general to the Southeastern Europe, ie the risk is diversified. Many of these investors already have positive experiences in countries such as Czech Republic, Poland and Hungary. And since these countries in a sense, have already exhausted their ability to generate higher returns, our fund becomes a tool for investments in perspective in this regard Balkans. -- Words in your scheme of investments, owners of shares in Equest Balkan Properties will receive a dividend even after the first year of its existence? -- Yes, exactly so. -- What kind of investors have bought shares in the fund? -- I can say that 99% of our shareholders are institutional investors. These are mainly institutions that invest in so-called new markets with potential for higher returns. These were the biggest banks, pension and investment funds as from continental Europe, and the UK, Scandinavia. -- What are their expectations for the development of property market in Bulgaria in the coming years? -- What attracts them to the Balkans and in particular to Bulgaria is that they have already seen a similar development of the property market in countries such as Czech Republic, Poland and Hungary. They reported progress in the judiciary, security in terms of ownership and rental contracts. In the countries of Southeast Europe, above all, they see a stable and high economic growth and expect it to maintain and after the accession of Bulgaria and Romania to the EU. Their expectations are gradually prices of properties in those countries to countervail and closer to those in the new EU members from Eastern Europe. It is foreseeable time that the European perspective open to both sides, attract investors. The development of the market in Bulgaria is still a few years ago to the new EU member states, so investors expected a higher return, both in terms of rent, as well as the potential for increase in prices of property. -- What is expected in return segment of business properties in our country? -- If you speak such as office areas, each institutional investor is looking at this market and over 10% return. Our expectations are the price of such properties to continue to rise but at a slower pace. Our forecast for the coming years is to increase rent, which far from lagging sales prices. Must, however, razgranichim market area office in Sofia from that in Bucharest. In Sofia supply is still greater than demand, while in Bucharest the percentage of unfilled office areas is extremely low. In fact, our bigger bet are industrial and commercial area. Good logistics centers in Bulgaria hardly exist, and demand is really great. The same is the situation and in retail establishments. At the same time, the purchasing power of people is increasing due to bank lending and economic growth, so that will grow and demand for such areas. -- Planirate to invest about 35% of nabraniya capital in Bulgaria. Are there enough in our major ready sites on which to target such a large investment? -- Yes. In practice, these funds are raised on the basis of existing projects in Bulgaria, Romania and Serbia to fully cover our momentum amount. If we talk about Bulgaria will concentrate mainly in Sofia but we have a project for other areas of the country. -- Where example? -- Plans are to a chain of logistics centers throughout the country - it comes as for Bulgaria, and Romania. Largely familiar and customers of such logistics centres, so we are confident in the success of this investment. -- When planning to stapite in former Yugoslav republics? -- Already identified some opportunities in Belgrade and at the end of the first quarter of 2006 already planning to have an office there. Our first investment in this market is likely to be in the second quarter of the year.