Dinu Patriciu”s real estate fund nears full ownership of British Fabian

BSGL's offer was to pay EUR 1 per Fabian Romania share. Mid last week, the British fund was being traded on the AIM market of the London
Stock Exchange at EUR 0.99 per share. When the offer was made, the closing share price was EUR 0.51 per share.
“The independent directors believe that the certainty which the offer provides, being entirely in cash […] represents an attractive outcome for Fabian Romania shareholders in the current economic environment and in light of falling property values,” the fund told its shareholders.
If the offer is successful, Rompetrol Holding will want to retain Fabian Romania's AIM and Bermuda Stock Exchange listings and may also consider a future listing on the main market of the London Stock Exchange, according to the offer documents.
The other significant shareholders in the fund are JCK Holdings Limited, with 17.56 percent of the shares, Invesco Perpetual European Smaller Companies Fund, with 4.92 percent and LM Moore LP with 3.93 percent. Mark Holdsworth, a director of Fabian Romania, has sold his 1 percent in the fund.
Fabian, with several office blocks in Romania and which previously had development plans for residential properties, has changed its strategy for residential development projects in western Romania to reduce operational and financial risk, as a result of the credit and liquidity crunch. Rather than launch residential schemes in Timisoara, Oradea and Satu Mare in the current market, Fabian Romania has decided to delay start of the projects until market conditions are more favourable. The fund's ongoing residential project in Bucharest, New Town, is nearing build completion of its first phase, anticipated in March, with over 85 percent of the first 315 apartments already sold.
In Bucharest, Fabian owns Cascade office building, Baneasa Center, Evocenter offices, as well as Romana and Cubic offices, both of which are underway.
Corina Saceanu