Mirror | 25 July 2013
Bulgaria land sold for five times market value by 'farm' investment cowboys InProCom
By Andrew Penman
The first rule of any investment is: if you don't understand it, don't touch it.
So it's probably best to avoid the spate of companies that would love you to put your savings into farmland in Bulgaria.
Among them is InProCom, which urges potential investors: "For as little as £5,000 you too could be enjoying 12% guaranteed per annum, payable either monthly, quarterly or yearly directly into the bank account of your choice."
The 12%, it says, is the income you'll get when InProCom rents the land to Bulgarian farmers.
The land itself will meanwhile be rocketing in value - one of its charts shows a £5,000 plot appreciating to £6,655 in one year.
"In modern history no other investment class has made more millionaires and billionaires than real estate," it spouts.
InProCom - which is short for International Property Company - reassures that it's "a family run business, we take care and pride in everything we do".
There's even a "meet the team" section with pictures of manager Deyan Margushev and sales director Petya Stoynova.
Petya told me, when I posed as a potential investor, of another reason I could be sure this was a safe bet.
I would not be paying them directly. Rather, my money would go into an account held by a firm of third party agents "recommended by the Metropolitan police".
Thinking that I had £15,000 to invest, Petya sent me details of two plots I could buy at a price that worked out at £1.70 per square metre.
At which point the first investment rule kicks in: if you don't know whether this is a good price, don't buy it.
But someone who does know is the British-based international agricultural land and property firm Brown & Co.
It says the best farmland in Bulgaria is worth barely 34p a square metre and much is worth nearer 10p.
Its expert Adam Oliver warned: "There are a number of entities with less than perfect track records who will try to take advantage of unsuspecting, unknowing members of the public to sell them overpriced, inappropriate land.
"We have come across this several times before which is why members of the public, without experience or professional advice, should not invest in this type of thing.
"We do see potential uplift to land prices in a number of countries in Central and Eastern Europe but only in specific circumstances where land has been acquired at the right price, in the right region, and is managed properly and consolidated."
Meanwhile, a search of Companies House in Bulgaria reveals an alarming anomaly.
InProCom might be, as it claims, a family-run business, but not by Petya, Deyan or anyone else in the "meet the team" section.
The owner and sole director is listed as АНТЬНИ ДЕЙВИС - that translates as the very British sounding name Anthony Davis.
InPromCom wouldn't say who he is or why he's absent from the website of his business.
Nor has the company explained why it is selling land at five times or more of its market value.
But I did get an answer from Scotland Yard when I asked whether they recommended escrow agents.
"The Met doesn't recommend private companies," answered a spokeswoman.
"We are not allowed to."
Petya Stoynova and Deyan Margushev are pictured on the InProCom website
Bulgaria land sold for five times market value by 'farm' investment cowboys InProCom
By Andrew Penman
The first rule of any investment is: if you don't understand it, don't touch it.
So it's probably best to avoid the spate of companies that would love you to put your savings into farmland in Bulgaria.
Among them is InProCom, which urges potential investors: "For as little as £5,000 you too could be enjoying 12% guaranteed per annum, payable either monthly, quarterly or yearly directly into the bank account of your choice."
The 12%, it says, is the income you'll get when InProCom rents the land to Bulgarian farmers.
The land itself will meanwhile be rocketing in value - one of its charts shows a £5,000 plot appreciating to £6,655 in one year.
"In modern history no other investment class has made more millionaires and billionaires than real estate," it spouts.
InProCom - which is short for International Property Company - reassures that it's "a family run business, we take care and pride in everything we do".
There's even a "meet the team" section with pictures of manager Deyan Margushev and sales director Petya Stoynova.
Petya told me, when I posed as a potential investor, of another reason I could be sure this was a safe bet.
I would not be paying them directly. Rather, my money would go into an account held by a firm of third party agents "recommended by the Metropolitan police".
Thinking that I had £15,000 to invest, Petya sent me details of two plots I could buy at a price that worked out at £1.70 per square metre.
At which point the first investment rule kicks in: if you don't know whether this is a good price, don't buy it.
But someone who does know is the British-based international agricultural land and property firm Brown & Co.
It says the best farmland in Bulgaria is worth barely 34p a square metre and much is worth nearer 10p.
Its expert Adam Oliver warned: "There are a number of entities with less than perfect track records who will try to take advantage of unsuspecting, unknowing members of the public to sell them overpriced, inappropriate land.
"We have come across this several times before which is why members of the public, without experience or professional advice, should not invest in this type of thing.
"We do see potential uplift to land prices in a number of countries in Central and Eastern Europe but only in specific circumstances where land has been acquired at the right price, in the right region, and is managed properly and consolidated."
Meanwhile, a search of Companies House in Bulgaria reveals an alarming anomaly.
InProCom might be, as it claims, a family-run business, but not by Petya, Deyan or anyone else in the "meet the team" section.
The owner and sole director is listed as АНТЬНИ ДЕЙВИС - that translates as the very British sounding name Anthony Davis.
InPromCom wouldn't say who he is or why he's absent from the website of his business.
Nor has the company explained why it is selling land at five times or more of its market value.
But I did get an answer from Scotland Yard when I asked whether they recommended escrow agents.
"The Met doesn't recommend private companies," answered a spokeswoman.
"We are not allowed to."
