Eastern Europe is fast becoming the place to invest in property if Fabian Romania Ltd.'s share value is anything to go by.

The company, which is listed on the Bermuda Stock Exchange (BSX), saw its net asset value (NAV) per share increase by a whopping 11.4 percent from 1.39 euros in the first quarter to 1.55 euros for the second quarter.

And director Mark Mark Holdsworth believes the Romanian property market is particularly ripe for investment at the moment due to its fast growing economy, a backlog in real estate development and the growth in gross earnings.

"I think there are three reasons why Romania is the place to be in terms of investing in the property market," he said.

"First of all it is the fastest growing economy in the European Union ¿ it has been growing at a rate of six percent last year and this year.

"Secondly there is a large backlog of real estate development that needs to be done. And thirdly gross earnings are growing strongly."

Fabian first listed on the BSX in April 2005 when the company was formed and it has been going from strength to strength ever since. Allied to this they are predicting a potential future NAV of 1.92 euros per share after adjusting the current NAV for the estimated future development profits of 37 euro cents per share.

In total Fabian has executed in or committed to nine investments with 61,300 square metres (sqm) of lettable office space in Bucharest secured together with 443 residential apartments and at post quarter end a fixed price construction contract was agreed for the company's new town residential scheme, which is already up for sale.

Meanwhile their investment manager has calculated that office market rents in Bucharest have increased by approximately 2 euros per sqm per month by quarter end.

The second quarter has been a very active period in terms of due diligence, acquisitions, negotiating leasing contracts and arranging financing. This included the completion of the acquisition of both the Baneasa Business Centre and a 50 percent stake in a residential land plot in the city of Timisoara.

The Baneasa Business Centre office building is now valued at 27.6m euros, less than a month after Fabian entered into agreement to buy it for 23.9m euros from Austrian developer Immoconsult Leasinggesellschaft m.b.H. This represents a 15 percent gain over the purchase price agreed in late 2006.

The centre, which is located in the rapidly emerging office district of Bucharest, is a class A office comprising 9,600 sqm of net lettable area and hosts a range of multinational tenants including Wrigley, Colgate, Cargill and Volksbank.

With a rising demand for space by both multinational tenants looking to expand and new tenants entering the country, the investment manager is confident that as leases come up for renewal, increases in rents per sqm per month are achievable.

Fabian believes the property market in Romania is booming at the moment, with an upturn in office rents, a predicted increase in the supply of new office space and a rise in residential sales prices.

With the way things are going on the stock market, it could be the right time to invest in some eastern promise.

• Fabian Romania Ltd. has announced that non-executive director Antony Royston Gardner-Hillman has stood down from the board with immediate effect for personal reasons.