Run by two former acolytes of George Soros, south-east Mediterranean residential property investor Dolphin Capital Investors (DCI) has put more than half of its considerable funds to good use already and extended net assets by more than 50% over the last year.

Managed by Dolphin Capital Partners, whose founders Miltos Kambourides and Pierre Charalambides are graduates of Soros’ real estate empire, DCI focuses on large, sea-fronted residential resorts in Greece, Cyprus and Croatia. The strategy is to develop mixed-use sites, mixing golf and other leisure facilities in and around apartments in order to attract foreign buyers looking for holiday or retirement homes. The apartments will probably be cheaper than those on offer in saturated Spain and Portugal.

The €104m (�71m) raised at 68p for its IPO in December 2005 was followed by a €300m (�203m) secondary fundraising in October at 93p. As at the end of February, €272m (�185m) has been committed to nine projects: seven in Greece and one each in Cyprus and Croatia. There is €127m (�86m) left in the coffers.

Regional governments have started to lend their support to developers and a recent change in Greek legislature could well prove a substantial boon to the company. Part of the Greek New Development Law relates to the provision of grants for as much as 50% of hotel and other leisure product construction costs. No impact has been calculated for Dolphin yet.

Declared NAV per share of 110p before deferred income tax liabilities is up 69% from the 65p value in December 2005. DCI suggests that its ‘actual’ pace of growth suggests NAV should be 137p per share. Broker Panmure ‘extrapolates’, rather than forecasts, a value of ‘over 200p’ per share on the company’s assets. Buy.

Dolphin Capital Investors	AIM	�474.4m	139.75p	0.00p
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