Marin Galabov
Abstract: This report presents and analyses the characteristics of special purpose vehicles securitizing real estates,
i.e. selling their own securities and investing the proceeds from such sales in real estates. These vehicles are relatively
new economic entities in Bulgaria. They are the only companies obligated to make investments in real estates by law.
Similar companies operate in USA, Great Britain and other countries. The purpose is to ensure inflow of free cash of
individuals and legal entities to the economic turnover and its investment in real estates. On the other hand, real estates
may be provided for use under rental or lease conditions or lease or management contracts, which enables their owners
to generate revenues. The Law on Special Purpose Vehicles requires from these companies to allocate at least 90% of
their profits for the particular financial year that are formed in a specific manner.
Key words: Special purpose vehicles, securitization, rent, lease, real estate management contract
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