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SPDI Secure Property Development & Investment Plc

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Share Name Share Symbol Market Type Share ISIN Share Description
Secure Property Development & Investment Plc LSE:SPDI London Ordinary Share CY0102102213 ORD EUR0.01 (DI)
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 4.00 3.50 4.50 4.00 4.00 4.00 0.00 08:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Secure Property Dev & Inv PLC Final Results (3360J)

28/06/2017 7:00am

UK Regulatory


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RNS Number : 3360J

Secure Property Dev & Inv PLC

28 June 2017

Secure Property Development & Invest PLC/ Index: AIM / Epic: SPDI / Sector: Real Estate

28 June 2017

Secure Property Development & Investment PLC ('SPDI' or 'the Company')

2016 Audited Annual Results

Secure Property Development & Investment PLC, the AIM quoted South Eastern European focused property company, is pleased to announce its full year audited financial results for the year ended 31 December 2016.

Financial Highlights

Diversified portfolio of South Eastern European prime income producing properties; the majority of which are let to blue chip tenants and continue to provide a cash flow generative platform:

-- 8% increase in operating income to EUR6.4 million (2015: EUR5.9 million) thanks to active portfolio management

-- EBITDA from operations sustained at the same positive level as 2015 at EUR2.5 million in 2016, due to Nestle break fee and reduced corporate and property costs

Significant asset backing behind the Company:

-- Net Equity of EUR38.9 million as at 31 December 2016 (31 December 2016: EUR42.5 million) - reduction due to sale of non-core assets

-- In GBP / share terms, 6% increase in net asset value per share to 37p (2015: 35p) (mostly due to Sterling depreciation) - circa 100% premium to current share price

Successful management of portfolio costs:

-- 13% reduction in administrative expenses to EUR2.6 million (2015: EUR3 million) - in line with strategy to reduce corporate costs by 30% by 2017 vis a vis 2015

-- 16% reduction in interest costs EUR3.2 million (2015: EUR3.7m) - expected to decrease further in 2017 towards EUR2.5m following Terminal Brovary sale and repayment of the EBRD EUR12 million debt

   --     12% reduction in operational gearing to 46% (2015: 52%) 

Operational Highlights

Active management of portfolio to maximise income and capital appreciation of each asset:

-- Secured 100% occupancy for the Brovary Terminal in Ukraine following signing of fixed four-year lease agreement generating US$150,000 of Net Operating Income per month -sale of the asset was completed post period end (see below)

-- Sale of the Linda residential portfolio in Bucharest for EUR660,000 gross - successfully negotiated settlement of associated debt at a 26% haircut

-- Successful refinancing of retail property in Romania which included an extension of the lease to Praktiker, the blue chip regional DIY retailer, for an additional 5 years until 2025

-- EUR1.4 million cash settlement reached with Nestle on the early termination of its lease on the Innovations Logistics Terminal in Romania - equivalent to eighteen months of rent, and up to two years when other gains are taken into account

Post Period End Highlights

-- Completion of the sale of Brovary Terminal at a Gross Asset Value of over EUR16 million generating a profit for SPDI of EUR2.7 million and a cash inflow of more than EUR3 million

-- Signing of lease agreement with Aquila srl, a large Romanian logistics operator, for 5,740 sqm of space in the Innovations Logistics Park in Bucharest, with an annual rent of EUR300,000

-- Received over EUR100,000 net of VAT for the provision of asset management services to a third party in Romania

-- Issue of new ordinary shares to the Non-Executive Directors of the Company who were in office in 2015 in lieu of fees accrued in 2015 at GBP0.35 per share, a 100% premium to the previous closing share price on 12 May 2017 - demonstrating strong support

Lambros G. Anagnostopoulos, Chief Executive Officer, said, "SPDI's strategy to acquire prime real estate at attractive prices in selected South Eastern European countries we favour, is underpinned by strong asset management that allows us to extract income and generate value from all our assets. Following a series of acquisitions in 2014 and 2015, the year under review was a period during which the active management of our properties would come to the fore, by consolidating our property portfolio, streamlining our operating structure and costs and focusing on generating value of core and non-core assets alike.

"An 8% increase in full year net operating income to EUR6.4 million demonstrates the progress we have made, even during a consolidation period. Today our core portfolio of prime real estate in selected South Eastern European countries not only provides exposure to a region that is enjoying rapid growth thanks to its growing economies and the standards of living of their residents, its strategic importance in terms of continental trade flows and the ongoing yield compression play, but also a highly cash generative and asset backed platform. We intend to take full advantage of this to not only continue our corporate and cost consolidation but also to acquire additional properties that match our criteria in the year ahead and beyond, as we look to transform SPDI into a leading London listed property company focused on selected Emerging European countries."

* *S * *

Copies of the Annual report and Accounts are being posted to Shareholders today and are available on the Company's website at www.secure-property.eu

For further information please visit www.secure-property.eu or contact:

 
 Lambros Anagnostopoulos   SPDI                  Tel: +357 22 
  Constantinos Bitros                             030783 
------------------------  --------------------  -------------- 
 
 Andrew Emmott             Strand Hanson         Tel: +44 (0) 
  Ritchie Balmer            Limited               20 7409 3494 
------------------------  --------------------  -------------- 
 
 Jon Belliss               Beaufort Securities   Tel: +44 (0) 
  Elliot Hance              Limited               20 7382 8300 
------------------------  --------------------  -------------- 
 
 Lottie Brocklehurst       St Brides Partners    Tel: +44 (0) 
  Frank Buhagiar            Ltd                   20 7236 1177 
------------------------  --------------------  -------------- 
 

Notes to Editors

Secure Property Development and Investment plc is an AIM listed property development and investment company focused on the South East European markets. The Company's strategy is focused on generating healthy investment returns principally derived from: the operation of income generating commercial properties and capital appreciation through investment in high yield real estate assets. The Company is focused primarily on commercial and industrial property in populous locations with blue chip tenants on long term rental contracts. The Company's senior management consists of a team of executives that possess extensive experience in managing real estate companies both in the private and the publicly listed sector, in various European countries.

   1.    Chairman's Statement 

While 2016 was in many respects a year of consolidation, we are hopeful that 2017 will be a year of growth. SPDI's strategy for the past few years has been to capitalise on favorable market dynamics of Romania, Bulgaria and selectively Greece while reducing exposure to Ukraine. In 2016 with the agreed profitable sale of the Group's principal Ukrainian asset, Terminal Brovary, we achieved a major goal consistent with this allocation strategy, generating cash for new investments planned in target countries in 2017.

During the year the favorable fundamentals of our target markets continued to prevail, and as economic growth picked up across the Eurozone in the latter part of 2016 and early 2017, we remain convinced that will continue to lead to even faster economic growth in Romania and Bulgaria, with a more stable outlook for Greece.

Property markets in our region have continued to experience a steady yield compression as the global search for yield has forced funds to deploy new allocations of cash to these markets as the more established CEE (Poland, Czech, Hungary) property markets have become increasingly crowded with foreign buyers.

The Board remains confident that SPDI is in the right place, at the right time. We are grateful to our shareholders for their continued support in 2016, and look forward capitalising upon the significant opportunities that we can see for the Group in 2017.

Paul Ensor

Chairman of the Board

   2.      Letter to the Shareholders 

27 June 2017

Dear Shareholders,

2016 has been a year of active portfolio management, as we continue with our strategy to transform SPDI into a leading London listed property company focused on selected South East European countries. In early 2017, our Company secured both a profitable exit from its main Ukraine income producing asset (Terminal Brovary) and a cash generating agreement based on the departure of the main tenant in its Romanian logistics terminal (the Innovations Park). The result of the two deals was to generate substantial cash and profits, albeit with a reduction of the income producing capacity of the Company at the same time. Finalising these deals took up most of 2016 and, as a result, the Company not only had to wait both for the cash inflow to be realised, but, more importantly, to roll out the next steps of our growth strategy that were to follow completion of the two deals. With the two deals completed, we are now ready for 2017 and beyond and look forward to the remainder of the year with optimism.

Underpinning our confidence is the continuing progress being made by the markets in which the Company is active. In 2016, Romania maintained its position as the fastest growing economy of the European Union and saw property prices rise across all sectors. While property development picked up for the first time since the crisis that hit Europe in 2008/9, the Company managed to sell an increased number of non-core residential assets as the South Eastern European property market improved markedly.

Greece experienced a normalisation of its economic indices along with its relations with its lenders (the EU, the ECB and the IMF) hinting to a possible pick up of the economic cycle that has been lacking in recent years. Meanwhile, Ukraine's economy proved resilient despite relations with Russia remaining tense. The local residential market in particular saw a substantial pick-up in development activity.

In addition to an increased pace of sales of non-core residential units in both Romania and Bulgaria, the Company fully let the Brovary terminal, the occupancy of which had been impacted by the war and the resulting 70% + depreciation of the local currency (UAH) in Ukraine, and eventually succeeded in selling it for a substantial profit. On the other hand, it was unable to market the space vacated by Nestle in the Terminal Innovations Logistics Park in Bucharest due to complications with the lease termination deal linked with the lending bank. Ultimately, the Company agreed with Nestle to effect their departure in August 2016, at a fee equal to eighteen months' rent. However, the extended period it took for the lending bank to sign off on the deal meant marketing the Innovation's empty space was not possible during the year. In parallel, a bigger deal with Blue House, the property private equity group from whom SPDI acquired two buildings in 2015, was shelved. Although SPDI had also secured an option to buy the remaining stake of the property bought in 2015 in Bulgaria, the Company decided not to exercise that option and to return the 20% stake in the Sofia office building Autounion, choosing to consolidate its assets in the faster growing Romania instead.

Finally, the Company continued generating value from its existing assets via refinancings, including the Praktiker let property in Romania. Here the tenant agreed to extend its lease by five additional years to 2025, while the lending bank agreed to a refinancing scheme that extends the maturity of the loan, and reduces the annual amortisation by 70%.

2016 saw SPDI consolidate and prepare for the next phase of growth in 2017 and beyond. Despite the impressive results of the last three years, there is much more to go for, particularly in growing our net operating income to where we want it to be. SPDI's Directors and Management remain focussed on achieving this so that 2017 can be yet another trend setting year for SPDI.

Best regards,

Lambros G. Anagnostopoulos

Chief Executive Officer

   3.    Management Report 
   3.1.         Corporate Overview & Financial Performance 

In 2016 the Company's management focused on executing a) the profitable sale of its logistics Terminal Brovary in Ukraine and b) the cash generating termination of Nestle's lease agreement for its logistics Innovations Terminal. In parallel, the Company picked up the pace of disposing of non-core assets to take advantage of rising market prices; restructured the operations and financing of core assets to generate further value; and prepared the ground for the next phase of growth by creating a strong pipeline of potential acquisitions.

The political instability in Ukraine appears to have tapered off, even though the country still experiences some war like conditions on its border with Russia in the East. As the economy demonstrated signs of improvement, the Company not only managed to fully let its main logistics asset in the country (which it later sold) but also entertained sale proposals with a view to reducing its presence in this region of South East Europe which has been in constant turmoil since 2014.

Greece continues to be in an adverse economic situation of austerity and debt. As the current staff review (1) has been successfully completed in mid-June 2017, the ensuing agreement with the EU, the IMF and the ESM will facilitate the country's return to economic normality that will allow GDP growth. Should the current debt be reduced in terms of the Net Present Value sometime in the near future, this will further enhance the potential for growth and will stimulate the country's productive force after 10 years of recession during which 30% of the GDP has been lost.

During 2016, the Company proceeded with capitalizing various shareholder loans that have been provided by itself and its minority partners to Green Lake in the past.

At the same time, the Company devoted significant time and effort in restructuring its debt to long term, an effort that is expected to bear fruits within 2017, while the sale of Terminal Brovary will result in further deleveraging of the Company. At the same time, the said sale will bring the annual average cost of servicing the debt down to 4.7% as the EBRD loan was the most expensive loan for the Company.

Going forward, the said transaction will also facilitate the simplification of the annual financial reporting as the Ukrainian foreign exchange variation (and to a far lesser degree the EUR/USD one) that has been having a considerable effect on the annual results will practically be taken out of the equation.

In 2016, the Company continued optimizing its corporate structure by merging or closing down low activity SPV corporate entities, an effort that will continue in 2017.

Taking advantage of its recently installed new ERP system, based on Microsoft Dynamics (Navision), the Company expects 2017 to show both the real-time monitoring of income and expenses across all countries as well as a reduction in operating expenses related to such tasks.

As management was focused on executing the two main deals, the sale of Terminal Brovary and closing the Nestle departure from the Innovations Park, and in view of the pending reduction in Net Operating Income as a result of the former, it allocated time to plan for a more efficient cost structure. Being active in four countries, registered in a fifth (Cyprus) and listed in a sixth one (UK), the Company has a cost base that can be deemed to be misaligned with the size of its property asset portfolio. As such Management, together with the Board, planned and commissioned a restructuring plan that would see the corporate costs of the Company drop in 2017 by 30% vis a vis 2015 to no more than EUR2m. A number of senior executives decided to contribute to such effort by deferring part of their salary, while the directors decided to relinquish their own. Consequently, the Company continues to benefit from high quality human assets despite its income pool shrinking following the sale of its key income generating asset.

The Company enjoys the support of a large number of active experienced directors who have been guiding the Company without receiving any monetary remuneration.

SPDI increased operating income by 10% in 2016, even though its primary Ukrainian asset, Terminal Brovary, was partially empty in the first quarter of the year. An increase in non-core asset sales as well as the settlement with Nestle for breaking its contract at Innovations warehouse, more than compensated for such lost income, while EoS Business Park in Romania and GED warehouse in Greece recorded stable income. The Company also managed to extend the Praktiker lease for another 5 years, stabilising the asset, albeit at a lower annual rental income. As a result, the Company's annual operating income(2) (including non-core asset sales) increased by 8% to EUR6.4m in 2016 compared with EUR5.9m in 2015.

In terms of the income stemming from SPDI's core income producing assets, the Company recorded EUR6m including the Nestle break fee (of an aggregate EUR1.7 or 18 months of rental income plus 3 months guarantee) vs EUR5.2m in 2015.

EBITDA from operations remained at the same levels with 2015 to EUR2.5m in 2016, mainly as a result of the Nestle break fee as well as of the reduced corporate and property costs and even though the Company has lost its income from Autounion.

Interest costs were reduced by 16% to EUR3.2m vs EUR3.7m in 2015 and are expected to further decrease towards EUR2.5m following completion of the Terminal Brovary sale and the ensuing repayment of the EBRD EUR12m debt which will bring the average debt servicing cost to 4.7% in 2017.

[1]Current staff review is the official designation of the paper prepared by the staff of the 3 institutions that is submitted to Eurogroup for approval.

2 The operating income does not include the % participation by the Company of the operating income of the properties that the Company maintains a minority participation in, which is reported as income from associates, but includes net income resulting from on-going sales of residential assets (sales income minus the cost of the asset sold).

 
 EUR                                              2016            2015 
 
 Rental, Utilities, Management               6.070.940       5.448.960 
  & Sale of electricity Income 
 Income from Sale of Asset less 
  Cost of properties sold                      283.934         537.560 
 Income from Operations of Investments       6.354.874       5.986.520 
 Asset operating expenses                    (992.441)     (1.124.583) 
 Net Operating Income from Investments       5.362.433       4.861.937 
 Share of profits from associates 
  (ex revaluation)                             247.720         166.863 
 Net Income from Available for 
  Sale assets (ex revaluation)               (485.529)         485.529 
 Total Income                                5.124.624       5.514.329 
 
 Administration expenses                   (2.614.188)     (3.013.942) 
 
 Operating Result (EBITDA)                   2.510.436       2.500.387 
 
 Finance costs, net                        (3.181.625)     (3.771.100) 
 Income tax expense                          (174.315)        (80.188) 
 
 Operating Result after finance 
  and tax expenses for the year              (845.504)     (1.350.901) 
 
 Other income / (expenses), net            (1.304.304)         653.856 
 Other finance (costs) / income 
  and interest write off                       595.917       (603.495) 
 Gain realized on acquisition                        -       2.181.834 
  of subsidiaries 
 Fair Value (Losses) from investments         (36.549)     (6.935.306) 
 Disposal of Autounion                       (206.491) 
 Foreign exchange losses, net              (1.700.333)    (10.659.602) 
 
 Result for the year                       (3.497.264)    (16.713.614) 
 

Excluding a) the revaluation losses attributable mostly to the situation in Ukraine, b) the foreign exchange losses (related to the EBRD Terminal Brovary loan or the intercompany loans that have been affected on paper by the devaluation of the UAH) and c) any one off gains/losses, costs or impairments/provisions related to the properties acquired during the previous period the table above compares the performance of the last 2 operating periods with operating result after finance expenses and tax being improved by 37% from minus EUR1.3m to a negative EUR850k.

   3.2.         Property Holdings 

The Company's portfolio at year end consists of commercial income producing and residential properties in Romania, Greece, Bulgaria and Ukraine as well as land plots in Ukraine, Bulgaria and Romania.

 
     Commercial                                  Key Features 
       Property         Location 
                                     Gross 
 GED Logistics         Athens,        Leasable 
  Terminal              Greece        Area:       17,756 sqm 
                                     Anchor       Kuehne + Nagel and 
                                      Tenant:      GE Dimitriou SA 
   Occupancy 
    Rate:                                         100% 
 
                                     Gross 
 EOS Business          Bucharest,     Leasable 
  Park                  Romania       Area:       3,386 sqm 
                                     Anchor       Danone Romania lease 
                                      Tenant:      runs to 2026 
   Occupancy 
    Rate:                                         100% 
 
                                     Gross 
                       Craiova,       Leasable 
 Praktiker Craiova      Romania       Area:       9,385 sqm 
                                     Anchor       Praktiker lease runs 
                                      Tenant:      to 2025 
   Occupancy 
    Rate:                                         100% 
 
 Delenco (SPDI                       Gross 
  has a 24.35%         Bucharest,     Leasable 
  interest)             Romania       Area:       10,280 sqm 
                                     Anchor       ANCOM (Romanian telecoms 
                                      Tenant:      regulator) 
   Occupancy 
    Rate:                                         100% 
 
 Innovations                         Gross 
  Terminal Logistic    Bucharest,     Leasable 
  Park                  Romania       Area:       16,570 sqm 
                                                  Aquila srl (large 
                                     Anchor        Romanian logistics 
                                      Tenant:      operator) 
                                     Occupancy    60% (25% at year 
                                      Rate:        end) 
 
                                     Gross 
                       Kiev,          Leasable 
 Terminal Brovary       Ukraine       Area:       49,180 sqm 
 (Sale completed                                  Rozetka UA (leading 
  in January                         Anchor        Ukrainian internet 
  2017)                               Tenant:      retailer) 
   Occupancy 
    Rate:                                         100% 
 
 
     Land & Residential 
           Assets                 Location           Key Features 
 Bela Logistic                                   Plot of land 
  Centre                      Odessa, Ukraine     ( th. sqm):    224 
 Kiyanovskiy                                     Plot of land 
  Lane                        Kiev, Ukraine       ( th. sqm):      6 
 Tsymlyanskiy                                    Plot of land 
  Lane                        Kiev, Ukraine       ( th. sqm):      4 
                              Zaporozhye,        Plot of land 
 Balabino project              Ukraine            ( th. sqm):    264 
                                                 Plot of land 
 Rozny Lane                   Kiev, Ukraine       ( th. sqm):    420 
 Pantelimon                   Bucharest,         Plot of land 
  Lake                         Romania            ( th. sqm):     40 
                                                 Plot of land 
 Boyana Land                  Sofia, Bulgaria     ( th. sqm):     20 
 Green Lake 
  land (SPDI 
  has a 44%                  Bucharest,         Plot of land 
  interest)                    Romania            ( th. sqm):     40 
 
 Romfelt, Linda, 
  Monaco, Blooming, 
  Green Lake,                 Romania &          Sold units 
  Boyana                       Bulgaria           during 2016:     62 
 Romfelt, Monaco,Blooming,                       Available 
  Green Lake,                 Romania &           units (end 
  Boyana                       Bulgaria           2016):          166 
 

Autounion consists of 19,476 sqm of gross leasable office area, situated in a prime business area near the International Airport of Sofia. The BREEAM-certified building was completed in 2008 and is fully leased to Eurohold, one of the largest Bulgarian insurance companies, until 2027. The Company has returned its 20% holding to the seller Bluehouse Capital as part of settling the amounts owning under the redeemable convertible shares issued to Bluehouse Capital following the acquisition of Praktiker in 2015. The Company is still in negotiation with Bluehouse Capital as to whether any further amount is payable and the method of payment.

Linda Residence is a residential complex located in Bucharest, Sector 3, close to subway transportation which connects the project to all areas in Bucharest in less than 30 minutes, where the Company owned 22 apartments (2,165 sqm) at the end of 2015. During 2016, the Company sold all of the apartments with the proceeds from the sale being EUR660,000 and repaid the associated debt at a 26% discount which generated a net cash flow for the Company of EUR450,000.

In 2016, the Company's accredited valuers, namely CBRE Ukraine for the Ukrainian Assets, and Real Act for the Romanian, Bulgarian and Greek Assets remained appointed. The valuations have been carried out by the appraisers on the basis of Market Value in accordance with the current Practice Statements contained within the Royal Institution of Chartered Surveyors ("RICS") Valuation - Professional Standards (2014) (the "Red Book") and is also compliant with the International Valuation Standards (IVS).

At the year-end, and following the increase in the pace of selling non-core assets, the Company's participation in property assets was valued at EUR100m. Excluding Terminal Brovary which was successfully sold early 2017, the remaining assets are valued at EUR85m. It should be noted that in most cases the fair value of the Company's properties has increased as a result of improving market conditions while the decrease of the Innovations valuation due to its high vacancy at year end was countered by the recognition of Terminal Brovary at its agreed sale value.

In recent years, following the successful implementation of the Company's strategy, SPDI's portfolio became even more diversified in terms of geography as well as asset class. At the end of the reporting period, taking into account the % participation in the properties that the Company holds directly, Romania is the prime country of operations (47%) in terms of Gross Asset Value, which following the sale of Terminal Brovary has increased further to 55% of the Company's GAV with the exposure to Ukraine being reduced to 14%.

 
             Gross Asset Value 
                2016 (ex 
 EURm/%         Brovary)         2016 
 Ukraine        12      14%     27    27% 
 Greece         17      19%     17    17% 
 Romania        46      55%     46    47% 
 Bulgaria       10      12%     10    10% 
 Total          85     100%    100   100% 
 

In respect of the Company's rental income generation capacity, Romania is the prime source with 51%. Excluding Terminal Brovary in the Ukraine, NOI sources are split between Greece (34%) and Romania (66%).

 
                              Annualised Net Operating Income** 
            --------------------------------------------------------------------- 
 EURm        2016*          2016          2015          2014          2013 
 Ukraine       0,0     0%    1,3    23%    1,8    25%    2,4    40%    2,7   100% 
 Greece        1,5    34%    1,5    26%    1,5    21%    1,5    25% 
 Romania       2,8    66%    2,8    51%    3,2    45%    2,1    35% 
 Bulgaria      0,0     0%    0,0     0%    0,6     8%            0% 
 Total         4,3   100%    5,5   100%    7,0   100%    6,0   100%    2,7   100% 
            ------  -----  -----  -----  -----  -----  -----  -----  -----  ----- 
 

2016* figure excludes Terminal Brovary

**Annualised Net Operating Income includes NOI from Terminal Brovary logistics, Innovations logistics, GED logistics park, EOS office building, Praktiker retail center, Residential units as well as Delenco office building (in which the Company has 24.35% participation)

The table below summarises the main financial position of each of the Company's assets (representing the Company's participation in each asset) at the end of the reporting period.

 
                                              2016 
                                              EURm 
 Property           Country     GAV*    Debt (principal)*   NAV 
 Innovations       Rom          11,0           7,3          3,7 
 Eos               Rom           6,9           4,8          2,1 
 Delenco           Rom           6,1           0,8          5,2 
 Praktiker         Rom           7,5           4,5          3,0 
 GED logistics     Gr           16,5          11,7          4,8 
 Terminal 
  Brovary          Ukr          14,9          11,6          3,3 
 Residential 
  units            Rom & Bul    11,4           7,1          4,3 
                   Rom & Ukr 
 Land banking       & Bul       25,9           6,2          19,7 
 Total Value                    100,1          54            46 
 Other balance 
  sheet items, 
  net **                                                    -7,3 
 Net Asset 
  Value total                                               38,9 
 Mcap 31/12/2016 (Share 
  price at GBP0,15)                                         15,8 
 Mcap 26/6/2017 (Share 
  price at GBP0,20)                                         21,4 
 Discount as of the 
  reporting date vs 
  NAV 31/12/2016                                            -59% 
 * Reflects the Company's 
  participation at each 
  asset 
 **Refer to balance 
  sheet and related 
  notes of the financial 
  statements 
 

The Net Equity attributable to the shareholders as at 31 December 2016 stood at EUR38.9m vs EUR42.5m in 2015, with the decrease attributed mostly to one off items for the Company. Following the sale of Terminal Brovary, the highest income generating property asset, the Company has now fewer income producing assets than in 2016 generating less income than in 2016. The Company has an operational structure capable of managing many more assets and needs to grow its property base accordingly.

The NAV per share as at 31 December 2016 stood at GBP 0.37 and the discount of the Market Value vis a vis the Company's NAV increased to 59% at year end.

   3.3.         Financial and Risk Management 

The Group's overall bank principal debt exposure at the end of the reporting period was EUR53m (including only property assets fully owned by the Company) and comprised the following:

a) EUR11.6m construction debt due to EBRD in respect of Terminal Brovary. This loan is denominated in US$ and stands at $12m at the end of the reporting period. This debt was taken out of the Company's balance sheet as the sale of Terminal Brovary was effected in January 2017.

b) EUR3.8m finance lease of the EOS business park with Alpha Bank Leasing Romania and a EUR1m facility received by First Phase from Alpha Bank Romania.

   c)    EUR7.3m finance lease of the Innovations park with Bank of Piraeus Romania. 
   d)   EUR11.7m debt financing of the GED Logistics park and photovoltaic with Eurobank. 
   e)    EUR4.5m debt financing of the Praktiker Craiova with Marfin Bank Romania. 
   f)    EUR7.1m being the Company's portion on the residential portfolio debt financing. 

g) EUR6.2m being the Company's portion on land plot related debt financing in Romania and Bulgaria.

Overall, the Group's Loan to Value ratio at the end of 2016 stood at 46%.

Throughout 2016 the Company focused on managing and preserving liquidity through cash flow optimisation so as to secure the Company's future. With the sale of Terminal Brovary and the closure of the Nestle / Bank of Piraeus negotiation for the break of the former's contract at Innovation, the Company is to focus more on expanding its asset base so as to establish growth.

   3.4.         2017 and beyond 

At the start of 2017, SPDI effected the closing of the two major deals it pursued last year. As a result, it has less involvement in Ukraine and generates less operating income overall. Consequently 2017 is the year that SPDI will focus on picking up its growth pace, as was evident in 2014/15, in order to pursue the shareholders' and directors' vision to become a large institutional and professionally managed regional property company. With the directors and management committed to succeeding, in an environment that shows signs of substantial improvement, 2017, promises to be the year of breakthrough, during which SPDI will manage to realise the opportunities it has identified.

   4.    Regional Economic Developments (1) 
   4.1.         Romania 

Economic growth in Romania accelerated further, from 3.8% in 2015 to 4.8% in 2016, amongst the highest in the European Union (EU), on the back of domestic demand. The contribution of private consumption to growth was higher than expected, on the back of improved income prospects driven by low inflation and wage hikes, as well as fiscal easing. Consumption will be pushed further up by the wage hike for the entire health sector and cut in employees' social security contribution by mid-2017. Private investments had a positive contribution to growth, on the back of historically low cost of funding and improved industrial confidence and this continues into 2017. Government spending is likely to remain subdued due to the end of the previous EU-funding period, despite higher staff costs. Meanwhile, slightly improved economic prospects of Romania's trade partners should support further net exports. Overall, growth is forecasted to reach 3.8% in 2017.

In terms of risks the focus has now shifted to the budget execution, which may put the government on a collision course with EU institutions. The consolidated government balance in cash terms switched to a marginal deficit in February down from a marginal surplus in January 2017 with total revenues down by -1.4% yoy in Jan-Feb compared to the full year target of +13.9% a trend which may continue as further tax cuts have come into force since the beginning of the year. At the same time, total expenditures have started expanding as the budget implementation incorporated the ruling coalition's electoral program for further generous hikes. According to the latest IMF forecast, the fiscal deficit is expected to increase to 3.7% of GDP in 2017 and further up to 3.9% in 2018.

The National Bank of Romania stands out in the region for proactively encouraging NPL sales and write-offs. Also, previous threats to financial stability from potentially damaging laws have lessened after recent decisions of the constitutional court. While overall credit growth has been sluggish, mortgage lending has grown primarily due to the government's Prima Casa guarantee program.

Romania has made considerable gains in the fight against corruption. Lower corruption and strong institutions are associated with multiple economic benefits: it helps raise tax collections, improve the allocation of scarce public resources, and attract both domestic and foreign investment. Maintaining the momentum will require effective implementation of the national anti-corruption strategy, preventing conflict of interest in public procurement, and strengthening the management of seized assets.

1 Sources: World Bank Group, Eurostat, EBRD, National Bank of Greece, Elstat, Eurobank Research, and Economic Research Division, National Institute of Statistics- Romania, National Statistical Institute -Republic of Bulgaria, National Institute of Statistics - Ukraine, SigmaBleyzer.

 
 Macroeconomic data and 
  forecasts 
-------------------------  ------  ------  ------  -----  ------ 
                             2012    2013    2014   2015   2016e 
-------------------------  ------  ------  ------  -----  ------ 
 GDP (EUR bn)               131,8   142,2   149,3    160     170 
-------------------------  ------  ------  ------  -----  ------ 
 Population (mn)               20    19,9    19,9   19,9    19,9 
-------------------------  ------  ------  ------  -----  ------ 
 Real GDP (y-o-y %)           0,7     3,4     2,9    3,8     4,8 
-------------------------  ------  ------  ------  -----  ------ 
 CPI (average, y-o-y %)       3,4       4     1,1   -0,7    -1,6 
-------------------------  ------  ------  ------  -----  ------ 
 Unemployment rate (%)          7     7,1     6,8    6,7     5,9 
-------------------------  ------  ------  ------  -----  ------ 
 Net FDI (EUR bn)             2,2     2,6     2,5    3,0     3,9 
-------------------------  ------  ------  ------  -----  ------ 
 Sources : IMF, National 
  Sources, Eurobank EFG, 
  Eurostat, EBRD 
-------------------------  ------  ------  ------  -----  ------ 
 
   4.2.         Bulgaria 

Following a 3.6% nominal growth in 2015, driven by net exports, the Bulgarian economy grew by 3.4% in 2016, with a shift of growth drivers towards domestic demand. While private consumption grew on the back of 10.5% in minimum wage increase as of January 2016 and better labour market conditions, government spending remained subdued due to transition to the new EU funds programming period. In 2017, domestic demand will remain as the driver of growth, supported by improved income prospects, on the back of almost 9.5% hike in minimum wages and wage improvement for teachers as of 2017, as well as lower cost of funding, on the back of financial sector stabilization. However, the contribution of net exports to growth will remain limited due to strong domestic demand. Overall, growth is expected to stand above 3.0% in 2017.

Bulgaria's external and fiscal position is strong, the banking sector capital position is solid and the buffers (fiscal and foreign exchange reserves) are sizeable. Budget execution outperformed the target by a wide margin in 2016 (+1.6% of GDP surplus vs. a target of a - 2.0% deficit). The current account balance is in surplus for the fourth consecutive year. Sustained labor market improvement coupled with positive real wage growth supported final consumption recovery throughout 2016. The unemployment rate declined further to 7.1% in 2016 as the economy adds new jobs in the areas of specialized services. Eurobank's GDP growth forecast for 2017 stands currently at 3.3%, above the recently released BNB quarterly economic review forecast of 2.8%.

 
 Macroeconomic data and 
  forecasts 
-------------------------  -----  -----  -----  -----  ------ 
                            2012   2013   2014   2015   2016e 
-------------------------  -----  -----  -----  -----  ------ 
 GDP (EUR bn)               39,7     41     42     44    46,5 
-------------------------  -----  -----  -----  -----  ------ 
 Population (mn)             7,3    7,3    7,2    7,3     7,3 
-------------------------  -----  -----  -----  -----  ------ 
 Real GDP (y-o-y %)          0,8    0,9    1,7    2,9     3,4 
-------------------------  -----  -----  -----  -----  ------ 
 CPI (average, y-o-y %)        3    1,4   -1,6   -1,1    -0,8 
-------------------------  -----  -----  -----  -----  ------ 
 Unemployment rate (%)      12,3   12,9   11,5     10     7,1 
-------------------------  -----  -----  -----  -----  ------ 
 Net FDI (EUR bn)            1,2    1,1    1,2    1,6     0,7 
-------------------------  -----  -----  -----  -----  ------ 
 Sources : IMF, National 
  Sources, Eurobank EFG, 
  Eurostat 
-------------------------  -----  -----  -----  -----  ------ 
 
   4.3.         Greece 

The Greek economy experienced a marginal nominal GDP drop in 2016, partly as a result of base effects from the upturn in consumer spending in the first half of 2015. The only positive signs in 2016 have been the contribution of gross fixed capital formation to growth and the yet record year for tourism with tourist arrivals growing 7.6% yoy but other parts of the national accounts, including private consumption, government consumption and net exports, turned downwards again.

Regarding Greece's 2017 growth outlook, it is surrounded by a very high degree of uncertainty, not least because of the delays encountered in reaching a staff level agreement on the 2nd programme review. In any case, the markets are growing increasingly concerned about the future and the uncertainty has already started to take its toll on the domestic economy. Therefore, a swift agreement with official creditors is key for averting a renewed deterioration in domestic economic conditions, amid heightening market jitters ahead of the heavy debt service payments falling due in July 2017. Against this backdrop, current forecasts for real GDP growth this year fall within the 1.5%-2.0% range, contingent on the assumed timeline for securing an agreement on the pending programme review.

 
 Macroeconomic data and forecasts 
-------------------------------------  ------  ------  ------  -----  ------ 
                                         2012    2013    2014   2015   2016e 
-------------------------------------  ------  ------  ------  -----  ------ 
 GDP (EUR bn)                           193,4   182,1   179,1    176     177 
-------------------------------------  ------  ------  ------  -----  ------ 
 Population (mn)                         11,1      11      11   10,9    10,9 
-------------------------------------  ------  ------  ------  -----  ------ 
 Real GDP (y-o-y %)                      -6,6    -3,9     0,7   -0,2    -0,1 
-------------------------------------  ------  ------  ------  -----  ------ 
 CPI (average, y-o-y %)                     3    -0,9    -1,4   -1,7       0 
-------------------------------------  ------  ------  ------  -----  ------ 
 Unemployment rate (%)                   24,5    27,5    26,6   24,6    23,4 
-------------------------------------  ------  ------  ------  -----  ------ 
 Net FDI (EUR bn)                        1,35     1,6       1      0       0 
-------------------------------------  ------  ------  ------  -----  ------ 
 Sources : IMF, National Sources, 
  Eurobank EFG, European Commission, 
  EBRD 
-------------------------------------  ------  ------  ------  -----  ------ 
 
   4.4.         Ukraine 

Ukraine's economy experienced growth in 2016 after around 16% cumulative real GDP contraction in the past two years. However, the pace of recovery was slower than anticipated amid weak reform momentum in the aftermath of a government reshuffle as well as lack of foreign investment. Helped by a low comparison base of the previous year, GDP grew by an estimated 0.8% yoy in the first half of 2016. Inflation declined (from 48.7% yoy in 2015 to 7.9% yoy in September 2016) on the back of exchange rate stabilisation, subdued domestic demand and prudent fiscal and monetary policies.

After a year-long delay, the IMF completed the second programme review on 14 September 2016 and released a US$ 1 billion tranche. This helped to restore calm in the foreign exchange market and cleared the way for international assistance from other donors. Tight capital controls introduced in 2014-2015 remain mostly in place, although the National Bank of Ukraine continued their gradual relaxation. EBRD forecasts GDP growth for 2017 at 2.0%.

 
 Macroeconomic data and forecasts 
-----------------------------------------  ------  ------  ------  -----  ----- 
                                             2012    2013    2014   2015   2016 
-----------------------------------------  ------  ------  ------  -----  ----- 
 GDP (USD bn)                               176,2   177,4   127,6     98   93,3 
-----------------------------------------  ------  ------  ------  -----  ----- 
 Population (mn)                             45,6    45,5    42,7   42,5   42,5 
-----------------------------------------  ------  ------  ------  -----  ----- 
 Real GDP (y-o-y %)                           0,2       0      -6   -9,9    2,3 
-----------------------------------------  ------  ------  ------  -----  ----- 
 CPI (average, y-o-y %)                       0,6    -0,2    24,9   43,3   12,4 
-----------------------------------------  ------  ------  ------  -----  ----- 
 Unemployment rate (%)                        7,5     7,4    10,5    9,4    9,7 
-----------------------------------------  ------  ------  ------  -----  ----- 
 Net FDI (USD bn)                             6,6     3,3     0,2    2,3    3,2 
-----------------------------------------  ------  ------  ------  -----  ----- 
 Sources : IMF, National Sources, 
  European Commission, Oxford Economics, 
  SigmaBleyzer, EBRD 
-----------------------------------------  ------  ------  ------  -----  ----- 
 
   5.    Real Estate Market Developments (1) 
   5.1.         Romania 

2016 maintained a comfortable market liquidity, marking a total investment volume of EUR910m, up from EUR820m in 2015. Although the growing investment activity has already put pressure on pricing, the risk-return yield that Romania offers remains very attractive both by Eurozone and CEE standards. The current yield levels are 7.5% for office, 7% for retail and slightly below 9% for industrial.

New deliveries of industrial spaces during 2015 stood at 150,000 sqm, and the market remained very bullish in 2016 as well. During 2016, new deliveries stood at 350,000 sqm, of which 60% were in Bucharest. By early 2017, the total stock of industrial space stood at 3,000,000 sqm.

Total take-up of industrial spaces during 2016 stood at 350,000 sqm, of which approximately 60,000 sqm were geared towards speculative developments. The largest generator of demand is the FMCG (Fast Moving Consumer Goods) sector (in the past 2 years, their demand reached approx. 200,000 sqm in the main cities of Romania), followed by e-commerce, electro-IT companies, and logistics companies. The vacancy rate in Bucharest has decreased to 2% by the end of 2016 (down from 5% in the previous year), while the vacancy rate for the rest of the country stood at 5%. This decline in the vacancy rate is remarkable when taking into account the large volume of new deliveries. Market rates for logistics remained broadly unchanged during 2016, ranging between 3.8 EUR/sqm and 4.25 EUR/sqm.

The stock of modern office spaces in Bucharest reached 2.1m sqm, after registering new deliveries of 230,000 sqm during 2016. In fact, the volume of new deliveries marks the fastest pace of expansion since 2009 and is 112% more than the yearly average of deliveries in the post-crisis period.

1 Sources : Danos Research, Eurobank, Jones Lang LaSalle, DTZ Research, CBRE Research, Colliers International, Cushman & Wakefield, MBL Research.

In terms of geographical distribution, the highest contributors to the stock are Floreasca-Barbu Vacarescu (42% of total deliveries), Dimitrie Pompeiu (26% of total deliveries) and the Central West Area (24% of total deliveries). In total, these zones accounted for 92% of the total deliveries in the market.

Total take-up in the market for 2016 reached 369,000 sqm, up by 52% from the previous year. IT and BPO/SSC (Business Process Outsourcing and Shared Service Center) were the main drivers behind this expansion and accounted for a total of 50% of the transactions. It is clear that tenants continue to have the upper-hand. Net take-up during 2016 reached 166,600 sqm, which covers 73% of the area delivered to the market in the same period. We expect supply to continue outpacing demand during 2017 as well, which will invariably increase competition in the market.

Rental rates for Class A office space are ranging from EUR10/sqm/month in North Pipera to EUR18/sqm/month in a prime CBD like Piata Victoriei.

2016 saw the delivery of a series of new retail projects, with Bucharest acting as the main point of attention for developers. Total deliveries of new stock stood at 240,000 sqm of GLA, out of which Bucharest accounted for more than 40%.

There are no new projects announced for delivery in Bucharest during 2017 - 2018. Within this period, we expect the existing shopping centers to focus on consolidating their market position in order to maximize the centers' attraction. Several shopping centers already announced extensions aimed at creating additional space for anchor tenants and/or entertainment areas.

Overall, Bucharest's ratio of retail stock increased from 573 sqm per 1,000 capita in 2015 and currently stands at 626 sqm per 1,000 capita, however still behind the CEE markets.

Rent levels remained broadly unchanged (EUR55-65/sqm/month) in 2016, as the market was able to absorb organically the newly released supply in retail centers. Although the performance of the retailers continued to increase in 2016, they were rather conservative during the negotiation process and signed contracts for constant base rent levels, compensating with turnover rents in the case of very successful locations.

2016 was the best year in terms of residential market performance in the past 10 years, continuing a trend that began in 2015, when the market showed clear signs of revival. The apartment supply in Bucharest has decreased to 7,000-8,000 units, 35% lower than in 2015, and most of this is represented by projects finalized before 2015. There was a 20% increase in deliveries in 2016.

Most demand is still generated through the Prima Casa program, for mass market dwellings, however due to economic improvements and wage growth, there is also increased demand in the mid-market segment. In addition, in 2016 there was a clear switch of preferences towards new apartments rather than older ones. Second-hand apartments still account for the majority of transactions, as their locations and general infrastructure are often preferable to new apartments and they are generally more affordable.

Prices started to pick up in Bucharest, especially for old apartments, although prices for new apartments were relatively stable at EUR800-1,000/usable sqm for mass market apartments and EUR1,000-1,700/usable sqm for mid-market apartments.

   5.2.         Bulgaria 

The total value of completed investment deals in 2016 was slightly above EUR262m. The biggest share of investment volume involved hotels (27%), followed by industrial and logistics space (20%), the third position is split between office and retail properties (18%).

Total stock of class A and B office space in nearing the 2,000,000 sqm mark, expected to be surpassed in 2017. Vacancy rate is 10-12% as the take up rate has increased in 2016, due to demand from IT and the services sectors. Rental levels remain stable at EUR12-13/sqm from class A buildings and EUR7-8 for class B. As another 115-150,000 sqm of class A building are coming to the market, rents may phase a downward pressure throughout 2017, but as demand is strong, such reduction will be temporary.

In 2016 Sofia residential market experienced a 5% increase in the number of completed residential projects. Total supply reached 7,048 units (apartments, row or single houses), concentrated in 57 projects. The neighborhoods in the southern parts of Sofia and at the foot of the Vitosha Mountain remained the most popular.

The trend towards pre-sales continued over the year. The share of these transactions grew significantly from 37% in 2015 to 57% in 2016. Insufficient supply of completed quality residential product saw this pre-sale proportion grow. The higher level of comfort that buyers now have when buying real estate from experienced developers added to the momentum.

Asking prices for mid-plus and high-end residential units registered a 9% yoy growth in 2016. These were in the range of EUR 900 - 1,550 per sqm including VAT, depending on the characteristics of the compound and the specific negotiated terms.

   5.3.         Greece 

The markets are under strain due to the ongoing uncertainty in which they operate, as a result of the protracted negotiations for the completion of the 2nd review of the bailout programme as well as the sharp increase in the tax burden in 2017. This is reflected in the weakening of the economic climate and the sharp drop in consumer confidence, in February 2017.

The industrial market in Greece had a relatively good year in spite of the weak economic climate. According to the latest study of National Bank of Greece, the logistics sector proved resilient in the crisis bringing its contribution to GDP to 2.9% in 2016 from 2.5% in 2008 and showing signs of convergence with European standards.

Prime rents were stable in Q1 2017 at EUR4.0/sqm/month with significant increase in demand for high quality space which is in major shortage especially of large warehouses that meet the requirements of occupiers in terms of quality.

Focusing on the future outlook of the industry, the momentum would be maintained and demand for industry services is expected to grow over the next five years (based on increased trend of outsourcing). At the same time, expected favorable impact of a series of external factors that would act as accelerators for the industry over the next five years - mainly participation in wider networks 4PL and the upscale presence of COSCO.

   5.4.         Ukraine 

2016 was characterised by an increase in the number of office lease transactions in Grade and business centers. Due to a steady increase in the demand for high quality office spaces vacancy levels dropped by 3,1% compared to the previous year.

Some of the main trends for the warehouse market in Kyiv region in 2016 were: a mild growth in demand among tenants, a slight increase in the number of large purchase deals, as well as a moderate reduction in vacancy rates and their stabilization.

   6.    Property Assets 
   6.1.         GED Logistics center, Athens Greece 

The 17,756 sqm complex that consists of industrial and office space is situated on a 44,268 sqm land plot in the West Attica Industrial Area (Aspropyrgos). It is located at exit 4 of Attiki Odos (the Athens ring road) and is 20 minutes from the port of Piraeus (where COSCO runs a container port handling 4m containers a year) and the National Road connecting Athens to the north of the country. The roof of the warehouse buildings house a photovoltaic park of 1,000KWp.

The buildings are characterized by high construction quality and state-of-the-art security measures. The complex includes 100 car parking spaces, as well as two central gateways (south and west).

The complex at the end of 2016 is 100% occupied, with the major tenant (approximately 70%) being the German transportation and logistics company Kuehne + Nagel.

   6.2.         EOS Business Park - Danone headquarters, Romania 

The park consists of 5,000 sqm of land including a class "A" office building of 3,386 sqm GLA and 90 parking places. It is located next to the Danone factory, in the North-Eastern part of Bucharest with access to the Colentina Road and the Fundeni Road. The Park is very close to Bucharest's ring road and the DN 2 national road (E60 and E85) and is also served by public transportation. The park is highly energy efficient.

The Company acquired the office building in November 2014. The complex is fully let to Danone Romania, the French multinational food company, until 2026.

   6.3.         Praktiker Retail Center, Romania 

The retail park consists of 21,860 sqm of land including a retail BigBox of 9,385 sqm GLA and 280 parking places. It is located in Craiova, on one of the main arteries of the city, along with most of the DIY companies. Craiova is an important city for the Romanian automotive industry as Ford bought the Daewoo facilities in 2007 and produces two of its models from there. Ford is committed to continue investing and it is completing a brand new engine production facility.

As at year-end, the complex is fully let to Praktiker Romania, a regional DIY retailer, until 2020 and the Company negotiated the extension of the Praktiker lease agreement until December 2025 for an annual rent of EUR600,000, which was effected in July 2016. SPDI renegotiated the outstanding debt facility in H1 2016 and managed the outflows to match the timing and magnitude of the inflows.

   6.4.         Delenco office building, Romania 

The property is a 10,280 sqm office building, which consists of two underground levels, a ground floor and ten above-ground floors. The building is strategically located in the very centre of Bucharest, close to three main squares of the city: Unirii, Alba Iulia and Muncii, only 300m from the metro station.

The Company acquired 24.35% of the property in May 2015. At the end of 2016, the building is 100% let, with ANCOM (the Romanian Telecommunications Regulator) being the anchor tenant (70% of GLA).

   6.5.         Innovations Logistics Park, Romania 

The Park incorporates approximately 8,470 sqm of multipurpose warehousing space, 6,395 sqm of cold storage and 1,705 sqm of office space. It is located in the area of Clinceni, south west of Bucharest centre, 200m from the city's ring road and 6km from Bucharest-Pitesti (A1) highway. Its construction was completed in 2008 and was tenant specific. It comprises four separate warehouses, two of which offer cold storage.

The Company signed with Nestle Ice Cream an agreement vacating the premises, in July 2016. Such agreement was effected in August 2016 for a EUR1.4m cash settlement payable by Nestle, which represents approximately 18 months of rent plus the three months' rental guarantee deposits and certain fixed assets that Nestle had installed in the premises. At the same time, the Company was in extensive discussions through 2016 with the lender of the property, Piraeus Bank Leasing, in order to review the sale and leaseback agreement following the settlement with Nestle finally managing to strike an agreement in February 2017. Based on the amended agreement the Innovations Park is subject to a sale and lease Back for a period of nine years and during this period SPDI is free to lease out spaces of the Innovations Park at its own discretion. In April 2017, the Company signed a lease agreement with Aquila srl, a large Romanian logistics operator, for 5,740 sqm of ambient space in the warehouse, which produces an annual rent payable by Aquila ofEUR300,000. As at the issuance date of this report the terminal is 60% leased.

   6.6.         Terminal Brovary Logistic Park, Ukraine 

The Brovary Logistic Park consists of a 49,180 sqm GLA Class A warehouse and associated office space. The building has large facades to the Brovary ring road, at the intersection of the Brovary ( -95/ -01 highway) and Borispol ring roads. It is located 10 km from the Kiev city border and 5 km from Borispol international airport.

The building is divided into six independent sections (each at least 6,400 sqm), with internal clear ceiling of 12m height and industrial flooring constructed with an anti-dust overlay quartz finish. The terminal accommodates 90 parking spaces for cars and trucks, as well as 24 hour security.

In May 2016 the Company fully leased the warehouse space to Rozetka UA, the leading Ukrainian internet retailer. In September 2016, the Company signed a sale and purchase agreement with Temania Enterprises Ltd (company related to Rozetka UA) for the sale of its Terminal Brovary warehouse at a gross asset value of over US$16 million (before the deduction of the outstanding EBRD). The sale was completed successfully at the end of January 2017, generating for the Company a net cash inflow of over US$3m.

   6.7.         Residential portfolio 
   --     Romfelt Plaza (Doamna Ghica), Bucharest, Romania 

Romfelt Plaza is a residential complex located in Bucharest, Sector 2, relatively close to the city center, easily accessible by public transport and nearby supporting facilities and green areas.

During 2016 two units were sold and at the end of 2016, 18 apartments were available while 13 of them were rented, indicating an occupancy rate of 72%.

   --     Monaco Towers, Bucharest, Romania 

Monaco Towers is a residential complex located in South Bucharest, Sector 4, enjoying good car access due to the large boulevards, public transportation, and a shopping mall (Sun Plaza) reachable within a short driving distance or easily accessible by subway.

During 2016 four units were sold and at the end of 2016, 22 apartments were available while 9 of them were rented, indicating an occupancy rate of 41%.

   --     Blooming House, Bucharest, Romania 

Blooming House is a residential development project located in Bucharest, Sector 3, a residential area with the biggest development and property value growth in Bucharest, offering a number of supporting facilities such as access to Vitan Mall, kindergartens, café, schools and public transportation (both bus and tram).

During 2016 seven units were sold and at the end of 2016, 15 apartments were available while 6 of them were rented, indicating an occupancy rate of 40%.

   --     Green Lake, Bucharest, Romania 

A residential compound of 40,500 sqm GBA, which consists of apartments and villas, situated on the banks of Grivita Lake, in the northern part of the Romanian capital - the only residential property in Bucharest with a 200 meter frontage to a lake. The compound also includes facilities such as one of Bucharest's leading private schools (International School for Primary Education), outdoor sports courts and a mini-market. Additionally Green Lake includes land plots totaling 40,360 sqm. SPDI owns 43% of this property asset portfolio.

At the end of 2015 the portfolio consisted of 40 unsold apartments plus 37 unsold villas. During 2016, six apartments and villas were sold while at the end of 2016, of the 71 units that were unsold 26 of them were let (occupancy rate of 37%).

   --     Boyana Residence, Sofia, Bulgaria 

A residential compound, which consisted at acquisition date (May 2015) of 67 apartments plus 83 underground parking slots developed on a land surface of 5,700 sqm, situated in the Boyana high end suburb of Sofia, at the foot of Vitosha mountain with Gross Buildable Area ("GBA") totaling to 11,400 sqm. The complex includes adjacent land plots with building permits under renewal to develop GBA of 21,851 sqm.

During 2016, twenty one apartments were sold, with 40 units remaining unsold at the end of 2016.

   6.8.         Land Assets 
   --     Aisi Bela - Bela Logistic Center, Odessa, Ukraine 

The site consists of a 22.4 Ha plot of land with zoning allowance to construct up to 103,000 sqm GBA industrial properties and is situated on the main Kiev - Odessa highway, 20km from Odessa port, in an area of high demand for logistics and distribution warehousing.

The Company does not intend to recommence construction in the near future.

   --     Kiyanovskiy Lane - Kiev, Ukraine 

The property consists of 0.55 Ha of land located at Kiyanovskiy Lane, near Kiev city centre. It is destined for the development of business to luxury residences with beautiful protected views overlooking the scenic Dnipro River, St. Michaels' Spires and historic Podil.

Discussions with local developers who approached the Company in order to explore possibilities of value generation are in progress.

   --     Tsymlyanskiy Lane - Kiev, Ukraine 

The 0.36 Ha plot is located in the historic and rapidly developing Podil District in Kiev. The Company owns 55% of the plot, with one local co-investor owning the remaining 45%.

Discussions are on-going with interested parties with a view to partnering in the development of this property.

   --     Balabino- Zaporozhye, Ukraine 

The 26.38 Ha site is situated on the south entrance of Zaporozhye city, 3km away from the administrative border of Zaporozhye. It borders the Kharkov-Simferopol Highway (which connects eastern Ukraine and Crimea and runs through the two largest residential districts of the city) as well as another major artery accessing the city centre.

The site is zoned for retail and entertainment. Development has been put on hold.

   --     Rozny Lane - Kiev Oblast, Kiev, Ukraine 

The 42 Ha land plot located in Kiev Oblast is destined to be developed as a residential complex. Following protracted legal battle, it has been registered under the Company pursuant to a legal decision in July 2015.

The Company is evaluating potential commercialization options to maximize the property's value.

   --     Delia Lebada, Romania 

The site consists of a 40,000 sqm plot of land in east Bucharest situated on the shore of Pantelimon Lake, opposite a famous Romanian hotel, the Lebada Hotel. The lake itself, having a 360 Ha surface, is the largest lake of Bucharest and accommodates many leisure activities such as fishing, cycling, walking, etc. At the back of the property there is a forest which transforms the area into a very attractive habitat for families and adds value to the residential units to be developed.

The construction permit, which allows for 54,000 sqm to be built, was renewed in April 2014 but the property has been on hold. Following the SPV owning the plot entering into an insolvency status the lending bank (Bank of Cyprus) entered into discussions with the Company and its partners in respect to the future of the defaulted loan. Such discussions are expected to be concluded within Q3-2017 and result into an amicable solution for all involved parties.

   7.    CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 

For the year ended 31 December 2016

 
                                       Note       2016             2015 
                                                   EUR             EUR 
 Income                                 2         6.070.940        5.448.960 
 Asset operating expenses               3         (992.441)      (1.124.583) 
                                             --------------  --------------- 
 Net Operating Income                             5.078.499        4.324.377 
 
 Administration expenses                4       (2.614.188)      (3.013.942) 
 Share of profits/(losses) 
  from associates                       14          469.248      (1.244.572) 
 Valuation gains/(losses) from 
  Investment Property                   5           896.793      (2.335.247) 
 Net loss on disposal of inventory      6         (368.907)         (51.359) 
 Net loss on disposal of investment 
  property                              6         (438.516)        (266.964) 
 Result on disposal of available 
  for sale financial assets             18        (206.491)                - 
 Impairment allowance for inventory 
  and provisions                        7          (63.513)      (1.675.659) 
 Gain realized on acquisition          13a                -        2.181.834 
  of subsidiaries 
 Other operating income/(expenses), 
  net                                   8       (1.304.304)          653.856 
 Goodwill impairment                   13b                -        (657.082) 
 
 Operating profit / (loss)                        1.448.621      (2.084.758) 
 
 Finance income                         9         1.153.243           63.596 
 Finance costs                          9       (3.738.951)      (4.438.191) 
 Foreign exchange (loss), net          10a      (1.041.239)      (5.071.048) 
 
 Loss before tax                                (2.178.326)     (11.530.401) 
 
 Income tax expense                     11        (174.315)         (80.188) 
 
   Loss for the year                            (2.352.641)     (11.610.589) 
 
 
 Other comprehensive income 
 
 Exchange difference on I/C            10b      (4.167.542)     (13.653.402) 
  loans to foreign holdings 
 Exchange difference on translation     22        3.508.448        8.064.848 
  of foreign operations 
 Available-for-sale financial 
  assets - fair value gain              18                -          485.529 
 Available-for-sale financial 
  assets - Gains recycled to 
  loss for the year                     18        (485.529)                - 
 
 Total comprehensive income                     (3.497.264)     (16.713.614) 
  for the year 
 
 
 
 
 Loss attributable to: 
 Owners of the parent                           (2.363.693)     (11.015.852) 
 Non-controlling interests                           11.052        (594.737) 
                                                (2.352.641)     (11.610.589) 
 
 
 Total comprehensive income 
  attributable to: 
 Owners of the parent                           (3.477.567)     (15.981.196) 
 Non-controlling interests                         (19.697)        (732.418) 
                                                (3.497.264)     (16.713.614) 
 
 
 
   Earnings / (Losses) per share 
   (Euro cent per share):            30b 
 Basic earnings/(losses) for 
  the year attributable to 
  ordinary equity owners of 
  the parent                               (0,03)   (0,16) 
 Diluted earnings/(losses) 
  for the year attributable 
  to ordinary equity owners 
  of the parent                            (0,02)   (0,13) 
 
   8.   CONSOLIDATED STATEMENT OF FINANCIAL POSITION 

For the year ended 31 December 2016

 
                                   Note        2016             2015 
                                                EUR              EUR 
 ASSETS 
 Non--current assets 
 Investment properties             12.4a      95.654.207        94.340.471 
 Investment properties under       12.4b       5.027.986         5.125.389 
  development 
 Tangible and intangible 
  assets                            15           129.396           164.617 
 Long-term receivables and 
  prepayments                       16           351.181           352.916 
 Investments in associates          14         5.217.310         4.887.944 
 Available for sale financial       18      ___________-     ____2.783.535 
  assets 
                                             106.380.080       107.654.872 
 Current assets 
 Inventory                          17         5.028.254        11.300.000 
 Prepayments and other current      19         2.778.361         4.795.223 
  assets 
 Cash and cash equivalents          20         1.701.007           895.422 
                                               9.507.622        16.990.645 
 Total assets                                115.887.702       124.645.517 
 
   EQUITY AND LIABILITIES 
 Issued share capital               21           900.145           900.145 
 Share premium                               122.874.268       122.874.268 
 Foreign currency translation       22        10.161.471         6.653.023 
  reserve 
 Exchange difference on            31.3     (37.567.055)      (33.399.513) 
  I/C loans to foreign holdings 
 Available for sale financial 
  assets - fair value reserve                          -           485.529 
 Accumulated losses                         (57.444.020)      (55.080.327) 
 Equity attributable to                       38.924.809        42.433.125 
  equity holders of the parent 
 
   Non-controlling interests         23        7.237.827           615.527 
 
 Total equity                                 46.162.636        43.048.652 
 
   Non--current liabilities 
 Borrowings                         24        16.895.155        26.263.559 
 Finance lease liabilities          28        11.081.379        11.273.639 
 Trade and other payables           25           451.123         4.672.888 
 Deposits from tenants              26           217.328           623.770 
                                              28.644.985        42.833.856 
 Current liabilities 
 Borrowings                         24        31.580.299        27.417.220 
 Trade and other payables           25         7.038.170         3.044.036 
 Taxes payable                      27         1.147.018           822.005 
 Redeemable preference shares      21.6                -         6.430.536 
 Provisions                         27           742.166           724.445 
 Deposits from tenants              26           271.019           132.684 
 Finance lease liabilities          28           301.409           192.083 
                                              41.080.081        38.763.009 
 Total liabilities                            69.725.066        81.596.865 
 
 Total equity and liabilities                115.887.702       124.645.517 
 
 
 
 
  Net Asset Value (NAV) EUR 
  per share:                    30c 
 
Basic NAV attributable to 
 equity holders of the parent        0,43  0,47 
Diluted NAV attributable 
 to equity holders of the 
 parent                              0,38  0,41 
 
 

On 27 June 2017 the Board of Directors of SECURE PROPERTY DEVELOPMENT & INVESTMENT PLC authorised these financial statements for issue.

 
 
 
 
 
   9.   CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 

For the year ended 31 December 2016

 
                                                    Attributable to owners of the Company 
                      ------------------------------------------------------------------------------------------------- 
                        Share       Share        Accumulated       Exchange       Foreign     Available       Total          Non-          Total 
                       capital     premium,        losses,        difference     currency      for sale                   controlling 
                                    Net(1)         net of           on I/C      translation   financial                    interest 
                                               non-controlling       loans      reserve(4)      assets 
                                                 interest(2)      to foreign                    - fair 
                                                                  holdings(3)                   value 
                                                                                              reserve(5) 
                         EUR         EUR             EUR             EUR            EUR                        EUR            EUR           EUR 
 Balance - 31 
  December 
  2014                 338.839    97.444.044      (44.064.475)   (19.746.111)   (1.411.825)            -     32.560.472       651.882     33.212.354 
 Loss for the year           -             -      (11.015.852)              -             -            -   (11.015.852)     (594.737)   (11.610.589) 
 Exchange difference 
  on I/C loans to 
  foreign holdings 
  (Note 10b)                 -             -                 -   (13.653.402)             -            -   (13.653.402)             -   (13.653.402) 
 Foreign currency 
 translation reserve         -             -                 -              -     8.064.848            -      8.064.848     (137.681)      7.927.167 
 Fair value gain 
  on 
  available-for-sale 
  financial assets 
  (Note 18)                  -             -                 -              -             -      485.529        485.529             -        485.529 
 Acquisition of 
  non-controlling 
  interest                   -             -                 -              -             -            -              -       696.063        696.063 
 Issue of share        561.306    25.430.224                 -              -             -            -     25.991.530             -     25.991.530 
  capital, net (Note 
  21) 
 Balance - 31 
  December 
  2015                 900.145   122.874.268      (55.080.327)   (33.399.513)     6.653.023      485.529     42.433.125       615.527     43.048.652 
 Loss for the year           -             -       (2.363.693)              -             -            -    (2.363.693)        11.052    (2.352.641) 
 Exchange difference 
  on I/C loans to 
  foreign holdings 
  (Note 10b)                 -             -                 -    (4.167.542)             -            -    (4.167.542)             -    (4.167.542) 
 Foreign currency 
 translation reserve         -             -                 -              -     3.508.448            -      3.508.448      (30.749)      3.477.699 
 Available-for-sale 
  financial assets 
  - Gains recycled 
  to loss for the 
  year (Note 18)                                                                               (485.529)      (485.529)             -      (485.529) 
 Restructuring 
  of the business 
  (Note 29)                  -                               -              -             -            -                    6.641.997      6.641.997 
 Balance - 31 
  December 
  2016                 900.145   122.874.268      (57.444.020)   (37.567.055)    10.161.471            -     38.924.809     7.237.827     46.162.636 
 

(1) Share premium is not available for distribution.

(2) Companies which do not distribute 70% of their profits after tax, as defined by the relevant tax law, within two years after the end of the relevant tax year, will be deemed to have distributed as dividends 70% of these profits. Special contribution for defense at 20% will be payable on such deemed dividends to the extent that the shareholders (companies and individuals) are Cyprus tax residents. The amount of deemed distribution is reduced by any actual dividends paid out of the profits of the relevant year at any time. This special contribution for defense is payable on account of the shareholders.

(3) Exchange differences on intercompany loans to foreign holdings arose as a result of devaluation of the Ukrainian Hryvnia during 2015 and 2016. The Group treats the mentioned loans as a part of the net investment in foreign operations (Note 32.3).

(4) Exchange differences related to the translation from the functional currency of the Group's subsidiaries are accounted for directly to the foreign currency translation reserve. The foreign currency translation reserve represents unrealized profits or losses related to the appreciation or depreciation of the local currencies against the euro in the countries where the Group's subsidiaries own property assets.

(5) Available For Sale financial assets are measured at fair value. Fair value changes on AFS assets are recognized directly in equity, through other comprehensive income.

10. CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended 31 December 2016

 
                                          Note            2016                2015 
                                                          EUR                 EUR 
CASH FLOWS FROM OPERATING ACTIVITIES 
Loss before tax and non-controlling 
 interests                                                   (2.178.326)  (11.530.401) 
Adjustments for: 
(Gains)/losses on revaluation 
 of investment property                     5                  (896.793)     2.335.247 
Net loss on disposal of investment 
 property                                  6b                    438.516       266.964 
Other non-cash movements                                         (1.367)        35.071 
Write offs of prepayments                  8                       6.701        47.316 
Impairment of assets                       8                           -       342.280 
Accounts payable written off               8                   (109.602)   (1.197.740) 
Depreciation/ Amortization charge          4                      58.491        40.823 
Interest income                            9                 (1.153.243)      (63.596) 
Interest expense                           9                   3.571.387     3.834.696 
Share of losses/(profit) from 
 associates                                14                  (469.248)     1.244.572 
Gain on acquisition of subsidiaries       13a                          -   (2.181.834) 
Results on disposal of available 
 for sale assets                           18                    206.491             - 
Impairment of inventory                    7                      63.513       975.659 
Goodwill impairment                       13b                          -       657.082 
Effect of foreign exchange differences    10a                  1.041.239     5.071.048 
                                                ------------------------  ------------ 
Cash flows from/(used in) operations 
 before working capital changes                                  577.759     (122.813) 
 
Change in inventory                        17                  1.522.234        24.341 
Change in prepayments and other 
 current assets                            19                  (380.280)     (659.770) 
Change in trade and other payables         25                (2.134.760)     1.131.688 
Change in VAT and other taxes 
 receivable                                19                    560.009     (290.593) 
Change in Provisions                       27                     17.721       656.192 
Change in other taxes payables             27                    157.026        87.524 
Increase in deposits from tenants          26                  (268.107)     (117.497) 
 
Cash generated from operations                                    51.602       709.072 
Income tax paid                                                  (2.879)     (238.616) 
 
Net cash flows provided in operating 
 activities                                                       48.723       470.456 
CASH FLOWS FROM INVESTING ACTIVITIES 
Sales proceeds from disposal 
 of investment property                    6b                  2.043.055     1.635.615 
Prepayment made for acquisition 
 of investment property                    12                          -     (100.000) 
Cash outflow on available for 
 sales financial assets                                                -   (2.298.006) 
Capital expenditure on property 
 plant and equipment                                            (23.266)             - 
Dividend received from associates                                127.570             - 
Interest received                                                    886        63.596 
Increase in long term receivables                                  1.734 
Cash outflow on acquisition of 
 subsidiaries                              13                          -   (1.786.934) 
Net cash flows from / (used in) 
 investing activities                                          2.149.979   (2.485.728) 
CASH FLOWS FROM FINANCING ACTIVITIES 
Proceeds from issue of share 
 capital/shareholders advances             21                          -    10.839.040 
Proceeds from bank loans                   24                  1.000.000             - 
Repayment of borrowings                    24                (2.881.423)   (5.672.198) 
Interest and financial charges 
 paid                                                        (3.716.433)   (2.619.506) 
Decrease in financial lease liabilities    28                   (82.934)     (179.255) 
Increase in Non controlling interest                           4.287.673 
Repayment of preference shares             21                          -     (349.325) 
Net cash flows from / (used in) 
 financing activities                                        (1.393.117)     2.018.756 
 
Net increase/(decrease) in cash 
 at banks                                                        797.092     (203.603) 
 
  Cash: 
At beginning of the year                                         895.422       891.938 
Effect of foreign exchange rates 
 on cash and cash equivalents                                    (8.493)     (207.086) 
 
At end of the year                         20                  1.701.007       895.422 
                                                ========================  ============ 
 

11. Notes to the Consolidated Financial Statements

For the year ended 31 December 2016

   1.       Investment in subsidiaries 

The Company has direct and indirect holdings in other companies, collectively called the Group, that were included in the consolidated financial statements, and are detailed below. The Group is planning to streamline its structure in Cyprus and Romania throughout 2017.

 
                                                                             Holding % 
----------------------------  -------------------  -------------------  ------------------ 
 Name                               Country           Related Asset       as at     as at 
                                of incorporation                          31 Dec    31 Dec 
                                                                           2016      2015 
----------------------------  -------------------  -------------------  --------  -------- 
 SC SECURE Capital 
  Limited                                      Cyprus                      100       100 
----------------------------  ----------------------------------------  --------  -------- 
 SL SECURE Logistics                                Brovary Logistics 
  Limited                            Cyprus                Park            100       100 
----------------------------  -------------------  -------------------  --------  -------- 
 LLC Aisi Brovary                              Ukraine                     100       100 
----------------------------  ----------------------------------------  --------  -------- 
 LLC Terminal Brovary                          Ukraine                     100       100 
----------------------------  ----------------------------------------  --------  -------- 
                                                       Kiyanovskiy 
 LLC Aisi Ukraine                   Ukraine              Residence         100       100 
----------------------------  -------------------  -------------------  --------  -------- 
 LLC Retail Development 
  Balabino                                     Ukraine                     100       100 
----------------------------  ----------------------------------------  --------  -------- 
 LLC Trade Center                              Ukraine                     100       100 
----------------------------  ----------------------------------------  --------  -------- 
                                                       Tsymlianskiy 
 LLC Almaz--press--Ukrayina         Ukraine              Residence         55        55 
----------------------------  -------------------  -------------------  --------  -------- 
                                                      Bela Logistic 
 LLC Aisi Bela                      Ukraine                Park            100       100 
----------------------------  -------------------  -------------------  --------  -------- 
                                                        Zaporizhia 
 LLC Interterminal                  Ukraine            Retail Center       100       100 
----------------------------  -------------------  -------------------  --------  -------- 
 LLC Aisi Ilvo                                 Ukraine                     100       100 
----------------------------  ----------------------------------------  --------  -------- 
                                                       Innovations 
 Myrnes Innovations                                      Logistics 
  Park Limited                       Cyprus                Park            100       100 
----------------------------  -------------------  -------------------  --------  -------- 
 Best Day Real Estate 
  SRL                                          Romania                     100       100 
----------------------------  ----------------------------------------  --------  -------- 
 Yamano Holdings                                       EOS Business 
  Limited                            Cyprus                Park            100       100 
----------------------------  -------------------  -------------------  --------  -------- 
 Secure Property 
  Development and 
  Investment Srl                               Romania                     100       100 
----------------------------  ----------------------------------------  --------  -------- 
 N-E Real Estate 
  Park First Phase 
  Srl                                          Romania                     100       100 
----------------------------  ----------------------------------------  --------  -------- 
 Victini Holdings 
  Limited                            Cyprus           GED Logistics        100       100 
----------------------------  -------------------  -------------------  --------  -------- 
 SPDI Logistics 
  S.A.                                         Greece                      100       100 
----------------------------  ----------------------------------------  --------  -------- 
 Zirimon Properties 
  Limited                            Cyprus            Delea Nuova         100       100 
----------------------------  -------------------  -------------------  --------  -------- 
 Bluehouse Accession                                    Praktiker 
  Project IX Limited                 Cyprus               Craiova          100       100 
----------------------------  -------------------  -------------------  --------  -------- 
 Bluehouse Accession 
  Project IV Limited                           Cyprus                      100       100 
----------------------------  ----------------------------------------  --------  -------- 
 Bluebigbox 3 Srl                              Romania                     100       100 
----------------------------  ----------------------------------------  --------  -------- 
 SEC South East 
  Continent Unique 
  Real Estate Investments 
  II Limited                                   Cyprus                      100       100 
----------------------------  ----------------------------------------  --------  -------- 
 SEC South East 
  Continent Unique 
  Real Estate (Secured) 
  Investments Limited                          Cyprus                      100       100 
----------------------------  ----------------------------------------  --------  -------- 
                                                       Residential 
 Diforio Holdings                                        and Land 
  Limited                            Cyprus              portfolio         100       100 
----------------------------  -------------------  -------------------  --------  -------- 
 Demetiva Holdings 
  Limited                                      Cyprus                      100       100 
----------------------------  ----------------------------------------  --------  -------- 
 Ketiza Holdings 
  Limited                                      Cyprus                      90        90 
----------------------------  ----------------------------------------  --------  -------- 
 Frizomo Holdings 
  Limited                                      Cyprus                      100       100 
----------------------------  ----------------------------------------  --------  -------- 
 SecMon Real Estate 
  SRL                                          Romania                     100       100 
----------------------------  ----------------------------------------  --------  -------- 
 SecVista Real Estate 
  SRL                                          Romania                     100       100 
----------------------------  ----------------------------------------  --------  -------- 
 SecRom Real Estate 
  SRL                                          Romania                     100       100 
----------------------------  ----------------------------------------  --------  -------- 
 Ketiza Real Estate 
  SRL                                          Romania                     90        90 
----------------------------  ----------------------------------------  --------  -------- 
 Edetrio Holdings 
  Limited                                      Cyprus                      100       100 
----------------------------  ----------------------------------------  --------  -------- 
 Emakei Holdings 
  Limited                                      Cyprus                      100       100 
----------------------------  ----------------------------------------  --------  -------- 
 RAM Real Estate 
  Management Limited                           Cyprus                      50        50 
----------------------------  ----------------------------------------  --------  -------- 
 Iuliu Maniu Limited                           Cyprus                      45        45 
----------------------------  ----------------------------------------  --------  -------- 
 Moselin Investments 
  srl                                          Romania                     45        45 
----------------------------  ----------------------------------------  --------  -------- 
 Rimasol Enterprises 
  Limited                                      Cyprus                     44,24     44,24 
----------------------------  ----------------------------------------  --------  -------- 
 Rimasol Real Estate 
  Srl                                          Romania                    44,24     44,24 
----------------------------  ----------------------------------------  --------  -------- 
 Ashor Ventures 
  Limited                                      Cyprus                     44,24     44,24 
----------------------------  ----------------------------------------  --------  -------- 
 Ashor Development 
  Srl                                          Romania                    44,24     44,24 
----------------------------  ----------------------------------------  --------  -------- 
 Jenby Ventures 
  Limited                                      Cyprus                     44,30     44,30 
----------------------------  ----------------------------------------  --------  -------- 
 Jenby Investments 
  Srl                                          Romania                    44,30     44,30 
----------------------------  ----------------------------------------  --------  -------- 
 Ebenem Limited                                Cyprus                     44,30     44,30 
----------------------------  ----------------------------------------  --------  -------- 
 Ebenem Investments 
  Srl                                          Romania                    44,30     44,30 
----------------------------  ----------------------------------------  --------  -------- 
 Sertland Properties 
  Limited                                      Cyprus                      100       100 
----------------------------  ----------------------------------------  --------  -------- 
 Boyana Residence 
  ood                                         Bulgaria                     100       100 
----------------------------  ----------------------------------------  --------  -------- 
 Mofben Investments 
  Limited                                      Cyprus                      100       100 
----------------------------  ----------------------------------------  --------  -------- 
 Delia Lebada Invest 
  srl                                          Romania                     65        65 
----------------------------  ----------------------------------------  --------  -------- 
 

During the reporting period the Group did not proceed with any acquisitions. In 2015 it realized a number of acquisitions: GED Warehouse, Praktiker Craiova and a part of the mixed portfolio including commercial, residential properties and land which were categorized under "Investment Property" (Notes 12 & 13). Another part of the mixed portfolio (Delea Nuova office Building, Green Lake land) has been categorized under "Associates" (Note 14). The 20% acquisition of Autounion has been recorded under "Available for Sale Financial Assets" (Note 18).

   2.       Income 

Income for the year ended 31 December 2016 represents:

a) rental income as well as service charges and utilities income collected from tenants as a result of the rental agreements concluded with tenants of the Terminal Brovary Logistic Park (Ukraine), Innovations Logistics Park (Romania), EOS Business Park (Romania), Praktiker Craiova (Romania), and GED Logistics (Greece)

b) the income from Nestle (EUR1,6m) pursuant to the agreement to early termination of their rental contract at Innovations Logistics Park (Romania)

   c)     income from the sale of electricity by GED Logistics to the Greek grid, 
   d)     rental income and service charges by tenants of the Residential Portfolio, and; 
   e)     income from third parties and /or partners for managing real estate properties in Romania. 
 
                                          31 Dec      31 Dec 
                                            2016        2015 
--------------------------------------  ----------  ---------- 
                                            EUR         EUR 
--------------------------------------  ----------  ---------- 
 Rental income                           5.262.607   4.605.022 
--------------------------------------  ----------  ---------- 
 Sale of electricity                       315.599     297.962 
--------------------------------------  ----------  ---------- 
 Service charges and utilities income      458.648     545.976 
--------------------------------------  ----------  ---------- 
 Service and property management            34.086           - 
  income 
--------------------------------------  ----------  ---------- 
 Total income                            6.070.940   5.448.960 
--------------------------------------  ----------  ---------- 
 

Occupancy rates in the various income producing assets of the Group as at 31 December 2016 were as follows:

 
 Income producing assets 
---------------------------------------------------- 
 %                                   31 Dec   31 Dec 
                                      2016     2015 
-----------------------  ---------  -------  ------- 
 EOS Business Park        Romania     100      100 
-----------------------  ---------  -------  ------- 
 Innovations Logistics 
  Park (Note 36b)         Romania      25       87 
-----------------------  ---------  -------  ------- 
 GED Logistics             Greece     100      100 
-----------------------  ---------  -------  ------- 
 Terminal Brovary 
  (Note 36a)              Ukraine     100       47 
-----------------------  ---------  -------  ------- 
 Praktiker Craiova        Romania     100      100 
-----------------------  ---------  -------  ------- 
 
   3.       Asset operating expenses 

The Group incurs expenses related to the proper operation and maintenance of all the income generating properties in Kiev, Bucharest, Athens, Sofia and Craiova. A part of these expenses is recovered from the tenants through the rental agreements (Note 2). The effective reduction between 2015 and 2016 is attributed in part to cost optimizing and in part to reduced occupancy at Innovations Logistics Park.

 
                                       31 Dec       31 Dec 
                                         2016         2015 
-----------------------------------  ----------  ------------ 
                                         EUR          EUR 
-----------------------------------  ----------  ------------ 
 Property related taxes               (283.193)     (363.080) 
-----------------------------------  ----------  ------------ 
 Utilities                            (207.086)     (274.149) 
-----------------------------------  ----------  ------------ 
 Property management fees             (173.363)     (253.060) 
-----------------------------------  ----------  ------------ 
 Repairs and technical maintenance    (101.325)      (70.247) 
-----------------------------------  ----------  ------------ 
 Property security                     (86.574)      (55.688) 
-----------------------------------  ----------  ------------ 
 Property insurance                    (49.622)      (48.258) 
-----------------------------------  ----------  ------------ 
 Leasing expenses                      (89.335)      (30.861) 
-----------------------------------  ----------  ------------ 
 Other operating expenses               (1.943)      (29.240) 
-----------------------------------  ----------  ------------ 
 Total                                (992.441)   (1.124.583) 
-----------------------------------  ----------  ------------ 
 

Property related taxes reflect local taxes related to land and building properties (in the form of land taxes, building taxes, garbage fees, etc).

Property Management fees relate to Property Management Agreements for Terminal Brovary Logistics Park, Innovation Logistics Park and Praktiker Craiova with third party managers outsourcing the related services.

Leasing expenses reflect expenses related to long term land leasing.

   4.       Administration Expenses 
 
                                             31 Dec        31 Dec 
                                               2016          2015 
----------------------------------------  ------------  ------------ 
                                               EUR           EUR 
----------------------------------------  ------------  ------------ 
 Salaries and Wages                          (977.304)   (1.108.614) 
----------------------------------------  ------------  ------------ 
 Advisory fees                               (403.185)     (323.232) 
----------------------------------------  ------------  ------------ 
 Audit and accounting fees                   (192.514)     (191.230) 
----------------------------------------  ------------  ------------ 
 Public group expenses                       (146.047)     (155.766) 
----------------------------------------  ------------  ------------ 
 Corporate registration and maintenance 
  fees                                       (185.772)     (226.326) 
----------------------------------------  ------------  ------------ 
 Directors' remuneration                     (140.779)     (278.417) 
----------------------------------------  ------------  ------------ 
 Legal fees                                  (127.926)     (241.092) 
----------------------------------------  ------------  ------------ 
 Depreciation/Amortization charge             (58.491)      (40.823) 
----------------------------------------  ------------  ------------ 
 Corporate operating expenses                (382.170)     (448.442) 
----------------------------------------  ------------  ------------ 
 Total Administration Expenses             (2.614.188)   (3.013.942) 
----------------------------------------  ------------  ------------ 
 

Salaries and wages include the remuneration of the CEO, the CFO, the Group Commercial Director, the Group Investment Director and the Country Managers of Ukraine and Romania who have accepted a reduction in their remuneration, as well as the salary cost of personnel employed in the region.

Advisory fees are mainly related to outsourced human resources support on the basis of advisory contracts, capital raising advisory expenses and marketing expenses incurred by the Group in relation to Cypriot, Ukrainian, Romanian, Bulgarian and Greek operations.

Audit and accounting expenses include the audit fees and accounting fees for the Company and all the subsidiaries.

Public group expenses include among others fees paid to the AIM:LSE stock exchange and the Nominated Adviser of the Company as well as other expenses related to the listing of the Group.

Corporate registration and maintenance fees represent fees paid for the annual maintenance of the Company and its subsidiaries as well as fees and expenses related to the normal operation of the companies including charges by the relevant local authorities.

Directors' remuneration represents the remuneration of all non-executive Directors and committee members for H1-2016 (Note 32.1.2). Following a BOD decision the Directors will receive no remuneration thereafter.

Legal fees represent legal expenses incurred by the Group in relation to asset operations (rentals, sales, etc), ongoing legal cases in Ukraine and compliance with AIM listing.

Corporate operating expenses include office expenses, travel expenses, communication expenses, D&O insurance and all other general expenses for Cypriot, Romanian, Ukrainian, Bulgarian and Greek operations.

   5.       Valuation gains /(losses) from investment properties 

Valuation gains /(losses) from investment property for the reporting period, excluding foreign exchange translation differences which are incorporated in the table of Note 12.2, are presented in the table below.

 
 Property Name (EUR)            Valuation gains/(losses) 
----------------------------  --------------------------- 
                                  31 Dec        31 Dec 
                                   2016           2015 
----------------------------  -------------  ------------ 
                                   EUR            EUR 
----------------------------  -------------  ------------ 
 Brovary Logistic Park            3.561.403     (589.179) 
----------------------------  -------------  ------------ 
 Bela Logistic Center               283.654     1.513.658 
----------------------------  -------------  ------------ 
 Kiyanivskiy Lane                   356.023       278.302 
----------------------------  -------------  ------------ 
 Tsymlyanskiy Lane                  111.893       178.669 
----------------------------  -------------  ------------ 
 Balabyne Lane                       77.597       (8.143) 
----------------------------  -------------  ------------ 
 Rozny Lane                        (55.673)     (865.054) 
----------------------------  -------------  ------------ 
 Innovations Logistics Park     (3.384.853)       400.000 
----------------------------  -------------  ------------ 
 EOS Business Park                  337.684       150.000 
----------------------------  -------------  ------------ 
 Residential Portfolio              133.130       251.500 
----------------------------  -------------  ------------ 
 Green Lake                          53.139     (865.000) 
----------------------------  -------------  ------------ 
 Pantelimon Lake                  (941.179)      (10.000) 
----------------------------  -------------  ------------ 
 Praktiker Craiova                  329.975   (2.870.000) 
----------------------------  -------------  ------------ 
 GED Logistics                            -       100.000 
----------------------------  -------------  ------------ 
 Boyana - Land                       34.000             - 
----------------------------  -------------  ------------ 
 Total                              896.793   (2.335.247) 
----------------------------  -------------  ------------ 
 
   6.       Gain/(Loss) from disposal of properties 

During the reporting period the Group progressed with selling properties classified under either Investment Property (Romanian residential assets) or Inventory (Bulgarian residential assets), designated as non-core assets. The sales proceed from sale of apartments and parking spaces minus the cost of assets sold, representing the fair value of the previous year of the apartments and parking spaces sold in 2016 is presented below.

6a Inventory (Note 17)

 
                                             31 Dec       31 Dec 
                                               2016         2015 
----------------------------------------  ------------  ---------- 
                                               EUR          EUR 
----------------------------------------  ------------  ---------- 
 Income from sale of inventory               1.153.326      89.711 
----------------------------------------  ------------  ---------- 
 Cost of inventory                         (1.522.233)   (141.070) 
----------------------------------------  ------------  ---------- 
 Gain/(Loss) from disposal of inventory      (368.907)    (51.359) 
----------------------------------------  ------------  ---------- 
 

6b Investment property

A large part of sold properties during 2016 represent the bulk sale of all the apartments held by the Group at the Linda Residence project. This sale resulted in EUR660.000 of income vs the carrying value of EUR1.014.000 reflecting the 2015 stated fair value. During the sale process the financing bank agreed to provide a discount of EUR326.937 against the one off repayment of the associated debt (Note 9). The net cash proceeds from the sale were EUR450k.

 
                                              31 Dec        31 Dec 
                                                2016          2015 
-----------------------------------------  ------------  ------------ 
                                                EUR           EUR 
-----------------------------------------  ------------  ------------ 
 Income from sale of investment property      2.043.055     1.635.615 
-----------------------------------------  ------------  ------------ 
 Cost of investment property                (2.481.571)   (1.902.579) 
-----------------------------------------  ------------  ------------ 
 Gain/(Loss) from disposal of investment 
  property                                    (438.516)     (266.964) 
-----------------------------------------  ------------  ------------ 
 
   7.         Impairment allowance for inventory and provisions 
 
                                 31 Dec      31 Dec 
                                  2016         2015 
-----------------------------  ---------  ------------ 
                                  EUR          EUR 
-----------------------------  ---------  ------------ 
 Impairment of Inventory        (63.513)     (975.659) 
-----------------------------  ---------  ------------ 
 Provisions (Notes 27, 33.3)           -     (700.000) 
-----------------------------  ---------  ------------ 
 Total                          (63.513)   (1.675.659) 
-----------------------------  ---------  ------------ 
 

Impairment of Inventory relates to Boyana residence (Note 17).

Provisions reflect potential contingent liabilities from legal cases (Notes 27, 33).

   8.       Other operating income/(expenses), net 
 
                                          31 Dec       31 Dec 
                                            2016         2015 
-------------------------------------  ------------  ---------- 
                                            EUR          EUR 
-------------------------------------  ------------  ---------- 
 Break fees received                              -     182.638 
-------------------------------------  ------------  ---------- 
 Accounts payable written off               109.602   1.197.740 
-------------------------------------  ------------  ---------- 
 Other income                               109.602   1.380.378 
-------------------------------------  ------------  ---------- 
 
 Impairment of assets                             -   (342.280) 
-------------------------------------  ------------  ---------- 
 Impairment of prepayments and other 
  current assets                            (6.701)    (47.316) 
-------------------------------------  ------------  ---------- 
 Transaction costs written off            (506.837)   (287.999) 
-------------------------------------  ------------  ---------- 
 Penalties                                (521.595)    (16.753) 
-------------------------------------  ------------  ---------- 
 Other expenses                           (378.773)    (32.174) 
-------------------------------------  ------------  ---------- 
 Other expenses                         (1.413.906)   (726.522) 
-------------------------------------  ------------  ---------- 
 
 Other operating income/(expenses), 
  net                                   (1.304.304)     653.856 
-------------------------------------  ------------  ---------- 
 

Break fees received represents extraordinary income due to early break fees of tenancy agreements by tenants in Terminal Brovary.

Accounts payable written off in 2015 represent a write off of management fees associated with SEC South East Continent Unique Real Estate (SECURED) Investments Ltd charged by a related party, Secure Management Ltd, which has accepted to forgo any claim on such payable amount.

Impairment of assets in 2015 represents an amount paid by a subsidiary 8 years ago for acquiring an option to buy properties which has not been exercised.

Transaction costs represent due diligence costs, previously held under deferred expenses, for properties that were considered for acquisition which at the end were not acquired (in 2016 mainly Bluehouse assets).

Penalties in 2016 mainly represents penalties associated with the 20% share disposal in Autounion (Note 18).

Other income/(expenses) in 2016 includes EUR246.337 of transaction expenses related to Terminal Brovary sale and EUR109.654 reflects a non realized loss due to amounts related with non controlling interest restructuring of the Group.

   9.        Finance costs and income 
 
 Finance income                         31 Dec     31 Dec 
                                          2016      2015 
------------------------------------  ----------  ------- 
                                          EUR       EUR 
------------------------------------  ----------  ------- 
 Income associated to partial write      326.937        - 
  off of bank loans 
------------------------------------  ----------  ------- 
 Interest received from non bank 
  loans (Note 32.1)                       61.925   48.730 
------------------------------------  ----------  ------- 
 Interest (non bank) written off         763.481        - 
------------------------------------  ----------  ------- 
 Interest income associated with 
  banking accounts                           900   14.866 
------------------------------------  ----------  ------- 
 Total finance income                  1.153.243   63.596 
------------------------------------  ----------  ------- 
 

Income associated to partial write off of bank loans reflects the amount foregone by the Raiffeisen Bank reflecting a discount of 26% of the principal amount (at the time of the agreement in 2015), upon complete sale of all the Linda Residence units (Note 6b) (effected in 2016) and full repayment of the remaining associated debt.

Interest received from non bank loans, reflects income from loans granted by the Group for financial assistance of associates or available for sale properties.

Interest (non bank) written off, represents accrued interest expense associated to one of the projects where the Company maintains a partnership participation and is under consolidation, whereas the shareholders have agreed to write off the interest and capitalize the shareholders' loan principal.

 
 Finance costs                           31 Dec        31 Dec 
                                           2016          2015 
------------------------------------  ------------  ------------ 
                                           EUR           EUR 
------------------------------------  ------------  ------------ 
 Interest expenses (bank)              (2.970.765)   (3.283.056) 
------------------------------------  ------------  ------------ 
 Interest expenses (non bank) (Note       (14.996)             - 
  32.1) 
------------------------------------  ------------  ------------ 
 Finance leasing interest expenses       (585.626)     (551.640) 
------------------------------------  ------------  ------------ 
 Finance charges and commissions         (123.413)     (258.493) 
------------------------------------  ------------  ------------ 
 Default interest                                -     (325.707) 
------------------------------------  ------------  ------------ 
 Other finance expenses                   (44.151)      (19.295) 
------------------------------------  ------------  ------------ 
 Total finance costs                   (3.738.951)   (4.438.191) 
------------------------------------  ------------  ------------ 
 
 Net finance result                    (2.585.708)   (4.374.595) 
------------------------------------  ------------  ------------ 
 

Interest expense (bank) represents interest expense charged on bank borrowings.

Interest expense (non-bank) represents interest expense charged on non-bank borrowings, mainly from related parties. (Note 32.1).

Finance leasing interest expenses relate to the sale and lease back agreements of the Group (Note 28).

Finance charges and commissions include regular banking commissions and various fees paid to the banks.

Default interest in 2015 relates to interest charged by Bank of Cyprus in relation to the loan over Delia Lebada Invest srl.

   10.    Foreign exchange profit / (losses) 
   a.        Foreign exchange loss - non realised 

Foreign exchange losses (non-realised) resulted from the loans and/or payables/receivables denominated in non EUR currencies when translated in EUR, mainly the EBRD loan (Note 24). The exchange loss for the year ended 31 December 2016 amounted to EUR1.041.239 (2015: loss EUR5.071.048).

   b.       Exchange difference on intercompany loans to foreign holdings 

The intercompany loans provided by SC Secure Capital Limited to Ukrainian subsidiaries (Note 32.3) incurred an exchange loss (non-realised) of EUR4.167.542, due to the UAH devaluation which took place during the reporting period (2015: loss EUR13.653.402). Settlement of these loans is not planned to occur in the foreseeable future and in substance is part of the Group's net investment in its foreign operations.

   11.    Income Tax Expense 
 
                                            31 Dec      31 Dec 
                                              2016       2015 
----------------------------------------  ----------  --------- 
                                              EUR        EUR 
----------------------------------------  ----------  --------- 
 Current income and defence tax expense    (174.315)   (80.188) 
----------------------------------------  ----------  --------- 
 Taxes                                     (174.315)   (80.188) 
----------------------------------------  ----------  --------- 
 

For the year ended 31 December 2016, the corporate income tax rate for the Group's subsidiaries are as follows: in Ukraine 18%, in Romania 16%, in Greece 29% and in Bulgaria 10%. The corporate tax that is applied to the qualifying income of the Company and its Cypriot subsidiaries is 12,5%.

The tax on the Group's results differs from the theoretical amount that would arise using the applicable tax rates as follows:

 
                                          31 Dec         31 Dec 
                                            2016          2015 
-------------------------------------  ------------  ------------- 
                                            EUR           EUR 
-------------------------------------  ------------  ------------- 
 Profit / (loss) before tax             (1.483.129)   (11.530.401) 
-------------------------------------  ------------  ------------- 
 
 Tax calculated on applicable rates         410.850    (3.340.505) 
-------------------------------------  ------------  ------------- 
 Expenses not recognized for tax 
  purposes                                2.923.266        483.029 
-------------------------------------  ------------  ------------- 
 Tax effect of allowances and income 
  not subject to tax                    (2.530.411)      (248.073) 
-------------------------------------  ------------  ------------- 
 Tax effect of group tax relief            (51.711)        (8.573) 
-------------------------------------  ------------  ------------- 
 Tax effect on tax losses for the 
  year                                      190.224      3.181.833 
-------------------------------------  ------------  ------------- 
 Tax effect on tax losses brought 
  forward                                 (776.537)          (822) 
-------------------------------------  ------------  ------------- 
 10% additional tax                           6.657          7.200 
-------------------------------------  ------------  ------------- 
 Defence tax                                     17          2.092 
-------------------------------------  ------------  ------------- 
 Overseas tax in excess of credit 
  claim used during the year                  1.044            166 
-------------------------------------  ------------  ------------- 
 Prior year tax                                 916          3.841 
-------------------------------------  ------------  ------------- 
 Total Tax                                  174.315         80.188 
-------------------------------------  ------------  ------------- 
 
   12.     Investment Property 
   12.1                        Investment Property Presentation 

Investment Property consists of the following assets:

Income Producing Assets

-- GED Logistics is a logistics park comprising 17.756 gross leasable sqm. It is fully let to the German multinational transportation and logistics company, Kuehne + Nagel (70%) and to a Greek commercial company trading electrical appliances GE Dimitriou SA (30%). On the roof of the warehouse there is a 1MW photovoltaic park installed with the electricity generated being sold to Greek Electric Grid on a long term contract.

-- EOS Business Park is a 3.386 sqm gross leasable area and includes a Class A office Building in Bucharest, which is currently fully let to Danone Romania. EOS Business Park was acquired by the Group in October 2014.

-- Praktiker Craiova, a DIY retail property was acquired by the Group in July 2015. Situated in a prime location in Craiova, Romania and it is fully let to Praktiker, a regional DIY retailer. The property has a gross lettable area of 9.385 sqm and is 100% rented until 2025.

-- Innovations Logistic Park is a 16.570 sqm gross leasable area logistics park located in Clinceni in Bucharest, which benefits from being on the Bucharest ring road. Its construction was tenant specific, was completed in 2008 and is separated in four warehouses, two of which offer cold storage (freezing temperature), the total area of which is 6.395 sqm. Innovations was acquired by the Group in May 2014 and was 25% leased at the end of the reporting period. As at the date of issuance of the financial statements occupancy stands at 60% (Note 36b).

-- Terminal Brovary Logistic Park consists of a 49.180 sqm gross leasable Class A warehouse and associated office space, situated on the junction of the main Kiev - Moscow highway and the Borispil road. The facility is in operation since Q1 2010 and as at the end of the reporting period its warehouse space is 100% leased. The Company has agreed to sell the property and the sale concluded beginning of 2017 (Note 36a).

Residential Assets

-- The Company owns a residential portfolio, consisting at the end of the reporting period of partly let and income producing 69 apartments and villas across four separate complexes located in different residential areas of Bucharest (Residential portfolio: Romfelt, Monaco, Blooming House, Green Lake Residential: Green Lake Parcel K). The Group acquired the portfolio partly in August 2014 and partly May 2015 (Note 13) and in May 2016 proceeded in full divestment from Linda Residences. The aggregate residential portfolio is 40% let at the end of the reporting period.

Land Assets

-- Bela Logistic Center is a 22,4 Ha plot in Odessa situated on the main highway to Kiev. Following the issuance of permits in 2008, below ground construction for the development of a 103.000 sqm GBA logistic center commenced. Construction was put on hold in 2009.

-- Kiyanivsky Lane consists of four adjacent plots of land, totaling 0,55 Ha earmarked for a residential development, overlooking the scenic Dnipro River, St. Michael's Spires and historic Podil neighborhood.

-- Tsymlianskiy Lane is a 0,36 Ha plot of land located in the historic Podil District of Kiev and is destined for the development of a residential complex.

-- Rozny Lane is a 42 Ha land plot located in Kiev Oblast, destined for the development of a residential complex. It has been registered under the Group pursuant to a legal decision in 2015.

-- Balabino project is a 26,38 Ha plot of land situated on the south entrance of Zaporizhia, a city in the south of Ukraine with a population of 800.000 people. Balabino is zoned for retail and entertainment development.

-- Green Lake land is a 40.360 sqm plot and is adjacent to the Green Lake part of the Company's residential portfolio, which is classified under Investments in Associates (Note 14). It is situated in the northern part of Bucharest on the bank of Grivita Lake in Bucharest. SPDI owns 44% of these plots, but has effective management control.

-- Pantelimon Lake consists of a 40.000 sqm plot of land in east Bucharest situated on the shore of Pantelimon Lake, opposite to a famous Romanian hotel, the Lebada Hotel. The construction permit, which allows for 54.000 sqm residential space to be built, is under renewal.

-- Boyana Land: The complex of Boyana Residence includes adjacent land plots with building permits to develop gross buildable area of 21,851 sqm (Note 17).

12.2 Investment Property Movement during the reporting period

The table below presents a reconciliation of the Fair Value movements of the investment property during the reporting period broken down by property and by local currency vs. reporting currency.

 
 2016 (EUR)                                           Fair Value                                   Asset Value at 
                                                       movements                                   the Beginning of 
                                                                                                   the period or at 
                                                                                                 Acquisition/Transfer 
                                                                                                         date 
-----------------------------  -------------  --------------------------  ------------  ------------------------------------ 
 Asset               Type         Carrying       Foreign        Fair        Disposals    Transfer    Additions    Carrying 
  Name                             amount       exchange        value          2016        from         2016        amount 
                                    as at      translation   gain/(loss)                 Inventory                  as at 
                                 31/12/2016    difference       based                                             31/12/2015 
                                                   (a)        on local 
                                                              currency 
                                                             valuations 
                                                                 (b) 
--------------  -------------  -------------  ------------  ------------  ------------  ----------  ----------  ------------ 
 Terminal         Warehouse       14.900.000     (925.726)     3.561.403                         -           -    12.264.323 
  Brovary 
  Logistics 
  Park 
--------------  -------------  -------------  ------------  ------------  ------------  ----------  ----------  ------------ 
 Bela Logistic 
  Center             Land          5.027.986     (381.057)       283.654                         -           -     5.125.389 
--------------  -------------  -------------  ------------  ------------  ------------  ----------  ----------  ------------ 
 Kiyanivskiy 
  Lane               Land          3.320.368     (239.023)       356.023                         -           -     3.203.368 
--------------  -------------  -------------  ------------  ------------  ------------  ----------  ----------  ------------ 
 Tsymlyanskiy 
  Lane               Land          1.043.544      (75.122)       111.893                         -           -     1.006.773 
--------------  -------------  -------------  ------------  ------------  ------------  ----------  ----------  ------------ 
 Balabyne            Land          1.517.883     (115.636)        77.597                         -           -     1.555.922 
--------------  -------------  -------------  ------------  ------------  ------------  ----------  ----------  ------------ 
 Rozny               Land          1.138.412             -      (55.673)                         -           -     1.194.085 
  Lane 
--------------  -------------  -------------  ------------  ------------  ------------  ----------  ----------  ------------ 
 Total                                         (1.736.564)     4.334.897             - 
  Ukraine 
--------------  -------------  -------------  ------------  ------------  ------------  ----------  ----------  ------------ 
 Overall                          26.948.193           2.598.333                                 -           -    24.349.860 
  change 
  in Ukraine 
--------------  -------------  -------------  --------------------------  ------------  ----------  ----------  ------------ 
 Innovations      Warehouse       11.000.000      (15.147)   (3.384.853)             -           -           -    14.400.000 
  Logistics 
  Park 
--------------  -------------  -------------  ------------  ------------  ------------  ----------  ----------  ------------ 
 EOS Business 
  Park              Office         6.860.000      (27.684)       337.684             -           -           -     6.550.000 
--------------  -------------  -------------  ------------  ------------  ------------  ----------  ----------  ------------ 
 Residential 
  portfolio      Residential       4.375.000         1.440       133.130   (2.481.570)           -           -     6.722.000 
--------------  -------------  -------------  ------------  ------------  ------------  ----------  ----------  ------------ 
 Green 
  Lake               Land         17.919.000      (66.139)        53.139             -           -           -    17.932.000 
--------------  -------------  -------------  ------------  ------------  ------------  ----------  ----------  ------------ 
 Pantelimon 
  Lake               Land          4.860.000      (10.821)     (941.179)             -           -           -     5.812.000 
--------------  -------------  -------------  ------------  ------------  ------------  ----------  ----------  ------------ 
 Praktiker 
  Craiova           Retail         7.500.000      (29.975)       329.975             -           -           -     7.200.000 
--------------  -------------  -------------  ------------  ------------  ------------  ----------  ----------  ------------ 
 Total                            52.514.000     (148.326)   (3.472.104)   (2.481.570)           -           -    58.616.000 
  Romania 
-----------------------------   ------------  ------------  ------------  ------------  ----------  ----------  ------------ 
 Boyana              Land          4.720.000             -        34.000             -   4.686.000           -             - 
--------------  -------------  -------------  ------------  ------------  ------------  ----------  ----------  ------------ 
 Total                             4.720.000             -        34.000                 4.686.000                         - 
  Bulgaria 
-----------------------------   ------------  ------------  ------------  ------------  ----------  ----------  ------------ 
 GED Logistics    Warehouse       16.500.000             -             -                         -           -    16.500.000 
--------------  -------------  -------------  ------------  ------------  ------------  ----------  ----------  ------------ 
 Total                            16.500.000             -             -             -           -           -    16.500.000 
  Greece 
-----------------------------   ------------  ------------  ------------  ------------  ----------  ----------  ------------ 
 
 TOTAL                           100.682.193   (1.884.890)       896.793   (2.481.570)   4.686.000           -    99.465.860 
-----------------------------   ------------  ------------  ------------  ------------  ----------  ----------  ------------ 
 
 
 2015 (EUR)                                          Fair Value                                      Asset Value at 
                                                      movements                                     the Beginning of 
                                                                                                    the period or at 
                                                                                                  Acquisition/Transfer 
                                                                                                          date 
-----------------------------  ------------  --------------------------  -------------  --------------------------------------- 
 Asset               Type        Carrying       Foreign        Fair        Disposals      Transfer     Additions     Carrying 
  Name                             amount      exchange        value          2015          from          2015         amount 
                                 31/12/2015   translation   gain/(loss)                  prepayments                   as at 
                                              difference       based                        made                     31/12/2014 
                                                  (a)        on local                        for 
                                                             currency                    investments 
                                                            valuations                      (Note 
                                                                (b)                        12.4c) 
--------------  -------------  ------------  ------------  ------------  -------------  ------------  -----------  ------------ 
 Terminal         Warehouse      12.264.323   (4.609.808)     (589.179)                            -            -    17.463.310 
  Brovary 
  Logistics 
  Park 
--------------  -------------  ------------  ------------  ------------  -------------  ------------  -----------  ------------ 
 Bela Logistic       Land         5.125.389   (1.471.485)     1.513.658                            -            -     5.083.216 
  Center 
--------------  -------------  ------------  ------------  ------------  -------------  ------------  -----------  ------------ 
 Kiyanivskiy         Land         3.203.368   (1.092.315)       278.302                            -            -     4.017.381 
  Lane 
--------------  -------------  ------------  ------------  ------------  -------------  ------------  -----------  ------------ 
 Tsymlyanskiy 
  Lane               Land         1.006.773     (319.719)       178.669                            -            -     1.147.823 
--------------  -------------  ------------  ------------  ------------  -------------  ------------  -----------  ------------ 
 Balabyne            Land         1.555.922     (567.608)       (8.143)                            -            -     2.131.673 
--------------  -------------  ------------  ------------  ------------  -------------  ------------  -----------  ------------ 
 Rozny               Land         1.194.085             -     (324.395)                    1.518.480            -             - 
  Lane 
--------------  -------------  ------------  ------------  ------------  -------------  ------------  -----------  ------------ 
 Total                                        (8.060.935)    1.048.912               - 
  Ukraine 
-------------------------------------------  ------------  ------------  -------------  ------------  -----------  ------------ 
 Overall                         24.349.860          (7.012.023)                           1.518.480                 29.843.403 
  change 
  in Ukraine 
-----------------------------   -----------  --------------------------  -------------  ------------  -----------  ------------ 
 Innovations      Warehouse      14.400.000             -       400.000                            -            -    14.000.000 
  Logistics 
  Park 
--------------  -------------  ------------  ------------  ------------  -------------  ------------  -----------  ------------ 
 EOS Business       Office        6.550.000             -       150.000                            -            -     6.400.000 
  Park 
--------------  -------------  ------------  ------------  ------------  -------------  ------------  -----------  ------------ 
 Residential     Residential      6.722.000             -       251.500                            -            -     8.373.000 
  portfolio                                                                (1.902.500) 
--------------  -------------  ------------  ------------  ------------  -------------  ------------  -----------  ------------ 
 Green               Land        17.932.000             -     (865.000)                            -   18.797.000             - 
  Lake 
--------------  -------------  ------------  ------------  ------------  -------------  ------------  -----------  ------------ 
 Pantelimon          Land         5.812.000             -      (10.000)                            -    5.822.000             - 
  Lake 
--------------  -------------  ------------  ------------  ------------  -------------  ------------  -----------  ------------ 
 Praktiker          Retail        7.200.000             -   (2.870.000)                            -   10.070.000             - 
  Craiova 
--------------  -------------  ------------  ------------  ------------  -------------  ------------  -----------  ------------ 
 Total                           58.616.000             -   (2.943.500)    (1.902.500)             -   34.689.000    28.773.000 
  Romania 
-----------------------------   -----------  ------------  ------------  -------------  ------------  -----------  ------------ 
 GED Logistics    Warehouse      16.500.000             -       100.000                            -   16.400.000             - 
--------------  -------------  ------------  ------------  ------------  -------------  ------------  -----------  ------------ 
 Total                           16.500.000             -       100.000              -             -   16.400.000             - 
  Greece 
-----------------------------   -----------  ------------  ------------  -------------  ------------  -----------  ------------ 
 
 TOTAL                           99.465.860   (8.060.935)   (1.794.588)    (1.902.500)     1.518.480   51.089.000    58.616.403 
-----------------------------   -----------  ------------  ------------  -------------  ------------  -----------  ------------ 
 

The two components comprising the fair value movements are presented in accordance with the requirements of IFRS in the consolidated statement of comprehensive income as follows:

a. The translation loss due to the devaluation of local currencies of EUR1.884.890 (a) is presented as part of the exchange difference on translation of foreign operations in other comprehensive income in the statement of comprehensive income and then carried forward in the Foreign currency translation reserve; and,

b. The fair value gain in terms of the local functional currencies amounting to EUR896.793 (b), is presented as Valuation gains/(losses) from investment properties in the statement of comprehensive income and is carried forward in Accumulated losses.

In respect of the main fair value changes of the various properties as at the reporting date:

- Terminal Brovary valuation reflects the price of which the property was sold in January 2017 (Note 36a).

- The decrease in the valuation of Innovations reflect the low occupancy of the property.

- The fair value of the unsold units of the Residential portfolio as at the end of the reporting period has increased by EUR133.130 compared to the 2015 valuation (which was used for discharging the units sold during the period).

12.3 Investment Property Carrying Amount per asset as at the reporting date

The table below presents the values of the individual assets as appraised by the appointed valuer as at the reporting date.

 
 Asset Name        Location      Principal      Related Companies          Carrying amount 
                                 Operation                                      as at 
---------------  -----------  --------------  ---------------------  -------------------------- 
                                                                        31 Dec        31 Dec 
                                                                          2016          2015 
---------------  -----------  --------------  ---------------------  ------------  ------------ 
                                                                          EUR           EUR 
---------------  -----------  --------------  ---------------------  ------------  ------------ 
 Terminal          Brovary,      Warehouse     LLC Terminal           14.900.000    12.264.323 
  Brovary            Kiev                       Brovary 
  Logistics         oblast                      LLC Aisi Brovary 
  Park                                          SL Logistics 
                                                Limited 
---------------  -----------  --------------  ---------------------  ------------  ------------ 
 Bela Logistic      Odesa        Land and      LLC Aisi Bela           5.027.986     5.125.389 
  Center                        Development 
                                 Works for 
                                 Warehouse 
---------------  -----------  --------------  ---------------------  ------------  ------------ 
 Kiyanivskiy        Podil,       Land for      LLC Aisi Ukraine        3.320.368     3.203.368 
  Lane               Kiev       residential     LLC Trade Center 
                     City       development 
                    Center 
---------------  -----------  --------------  ---------------------  ------------  ------------ 
 Tsymlyanskiy       Podil,       Land for      LLC Almaz Pres          1.043.544     1.006.773 
  Lane               Kiev       residential     Ukraine 
                     City       development 
                    Center 
---------------  -----------  --------------  ---------------------  ------------  ------------ 
 Balabyne         Zaporizhia     Land for      LLC Interterminal       1.517.883     1.555.922 
                                   retail       LLC Aisi Ilvo, 
                                development 
---------------  -----------  --------------  ---------------------  ------------  ------------ 
 Rozny Lane        Brovary       Land for      SC Secure Capital       1.138.412     1.194.085 
                   district,    residential     Limited 
                     Kiev       Development 
---------------  -----------  --------------  ---------------------  ------------  ------------ 
 Total Ukraine                                                        26.948.193    24.349.860 
---------------  -----------  --------------  ---------------------  ------------  ------------ 
 Innovations      Clinceni,      Warehouse     Myrnes Innovations     11.000.000    14.400.000 
  Logistics        Bucharest                    Park Limited 
  Park                                          Best Day Real 
                                                Estate Srl 
---------------  -----------  --------------  ---------------------  ------------  ------------ 
 EOS Business     Bucharest       Office       Yamano Limited          6.860.000     6.550.000 
  Park                            building      SPDI SRL, 
                                                N-E Real Estate 
                                                Park First Phase 
                                                Srl 
---------------  -----------  --------------  ---------------------  ------------  ------------ 
 Praktiker         Craiova        Big Box      Bluehouse Accession     7.500.000     7.200.000 
  Craiova                          retail       Project IX Limited 
                                                Bluehouse Accession 
                                                Project IV Limited 
                                                BlueBigBox 3 
                                                srl 
---------------  -----------  --------------  ---------------------  ------------  ------------ 
 Residential      Bucharest     Residential    Secure Investments      4.375.000     6.722.000 
  Portfolio                      apartments     II Limited 
                                   (55 in       Demetiva Limited 
                                  total in      Diforio Limited 
                                3 complexes)    Frizomo Limited 
                                                Ketiza Limited 
                                                SecRom Srl 
                                                SecVista Srl 
                                                SecMon Srl 
                                                Ketiza Srl 
---------------  -----------  --------------  ---------------------  ------------  ------------ 
 Green Lake       Bucharest     Residential    Secure Investments     17.919.000    17.932.000 
                                   villas       I Limited 
                                (14 villas)     Edetrio Holdings 
                                     &          Limited 
                                  land for      Emakei Holdings 
                                residential     Limited 
                                development     Iuliu Maniu 
                                                Limited 
                                                Ram Real Estate 
                                                Management Limited 
                                                Moselin Investments 
                                                srl 
                                                Rimasol Limited 
                                                Rimasol Real 
                                                Estate Srl 
                                                Ashor Ventures 
                                                Limited 
                                                Ashor Develpoment 
                                                Srl 
                                                Jenby Ventures 
                                                Limited 
                                                Jenby Investments 
                                                Srl 
                                                Ebenem Limited 
                                                Ebenem Investments 
                                                Srl 
---------------  -----------  --------------  ---------------------  ------------  ------------ 
 Pantelimon       Bucharest      Land for      Secure Investments      4.860.000     5.812.000 
  Lake                          residential     I Limited 
                                development     Mofben Investments 
                                                Limited 
                                                Delia Lebada 
                                                Invest srl 
---------------  -----------  --------------  ---------------------  ------------  ------------ 
 Total Romania                                                        52.514.000    58.616.000 
---------------  -----------  --------------  ---------------------  ------------  ------------ 
 Boyana             Sofia          Land        Boyana Residence        4.720.000    transferred 
                                                ood,                                    from 
                                                Sertland Properties                  Inventory 
                                                Limited 
---------------  -----------  --------------  ---------------------  ------------  ------------ 
 Total Bulgaria                                                        4.720.000 
---------------  -----------  --------------  ---------------------  ------------  ------------ 
 GED Logistics      Athens       Warehouse     Victini Holdings       16.500.000    16.500.000 
                                                Limited. 
                                                SPDI Logistics 
                                                S.A. 
---------------  -----------  --------------  ---------------------  ------------  ------------ 
 Total Greece                                                         16.500.000    16.500.000 
---------------  -----------  --------------  ---------------------  ------------  ------------ 
 
 TOTAL                                                                100.682.193   99.465.860 
---------------  -----------  --------------  ---------------------  ------------  ------------ 
 

12.4 Investment Property analysis

   a.        Investment Properties 

The following assets are presented under Investment Property: Terminal Brovary Logistics Park, Innovations Logistic park, EOS Business Park, GED Logistics, Praktiker Craiova, the Residential Portfolio (consisting of apartments in 3 complexes) and Green Lake parcel K as well as all the land assets namely Kiyanivskiy Lane, Tsymlyanskiy Lane, Balabyne and Rozny in Ukraine, Pantelimon Lake and Green Lake in Romania as well as the land in Sofia, Bulgaria (Boyana) which has been reclassified from Inventory.

 
                                           31 Dec        31 Dec 
                                             2016          2015 
--------------------------------------  ------------  ------------ 
                                             EUR           EUR 
--------------------------------------  ------------  ------------ 
 At 1 January                             94.340.471    53.533.187 
--------------------------------------  ------------  ------------ 
 Acquisitions of investment property               -    51.089.000 
--------------------------------------  ------------  ------------ 
 Disposal of investment Property         (2.481.570)   (1.902.500) 
--------------------------------------  ------------  ------------ 
 Transfer from Inventory/prepayments 
  made                                     4.686.000     1.518.480 
--------------------------------------  ------------  ------------ 
 Revaluation gain/(loss) on investment 
  property                                   613.139   (3.308.246) 
--------------------------------------  ------------  ------------ 
 Translation difference                  (1.503.833)   (6.589.450) 
--------------------------------------  ------------  ------------ 
 At 31 December                           95.654.207    94.340.471 
--------------------------------------  ------------  ------------ 
 
   b.       Investment Properties Under Development 

As at 31 December 2016 investment property under development represents the carrying value of Bela Logistic Center property, which has reached the +10% construction in late 2008 but it is stopped since then.

 
                                       31 Dec       31 Dec 
                                         2016         2015 
-----------------------------------  ----------  ------------ 
                                         EUR          EUR 
-----------------------------------  ----------  ------------ 
 At 1 January                         5.125.389     5.083.216 
-----------------------------------  ----------  ------------ 
 Revaluation on investment property     283.654     1.513.658 
-----------------------------------  ----------  ------------ 
 Translation difference               (381.057)   (1.471.485) 
-----------------------------------  ----------  ------------ 
 At 31 December                       5.027.986     5.125.389 
-----------------------------------  ----------  ------------ 
 
   c.        Prepayments made for Investments 

From time to time, when the Group acquires a new property, it may proceed with downpayment in order to facilitate such transactions. Movements of such prepayments are presented below for 2016 and 2015.

 
                                                31 Dec       31 Dec 
                                                 2016          2015 
-------------------------------------------  -----------  ------------ 
                                                 EUR           EUR 
-------------------------------------------  -----------  ------------ 
 At 1 January                                    100.000     2.674.219 
-------------------------------------------  -----------  ------------ 
 Advances for acquisition transferred 
  to Investment in subsidiary                          -     (624.841) 
-------------------------------------------  -----------  ------------ 
 Translation difference                                -         9.761 
-------------------------------------------  -----------  ------------ 
 Transfer to Investment Properties                     -   (1.518.480) 
-------------------------------------------  -----------  ------------ 
 Transfer to long term receivables             (100.000)             - 
  and prepayments of investments (Note 
  16) 
-------------------------------------------  -----------  ------------ 
 Advances for investments from acquisition 
  of subsidiaries                                      -       100.000 
-------------------------------------------  -----------  ------------ 
 Impairment provision                                  -     (540.659) 
-------------------------------------------  -----------  ------------ 
 At 31 December                                        -       100.000 
-------------------------------------------  -----------  ------------ 
 

12.5 Investment Property valuation method presentation

In respect of the Fair Value of Investment Properties the following table represents an analysis based on the various valuation methods. The different levels as defined by IFRS have been defined as follows:

- Level 1 relates to quoted prices (unadjusted) in active and liquid markets for identical assets or liabilities.

- Level 2 relates to inputs other than quoted prices that are observable for the asset or liability indirectly (that is, derived from prices). Level 2 fair values of investment properties have been derived using the market value approach by comparing the subject asset with similar assets for which price information is available. Under this approach the first step is to consider the prices for transactions of similar assets that have occurred recently in the market. The most significant input into this valuation approach is price per sqm.

- Level 3 relates to inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs). Level 3 valuations have been performed by the external valuer using the income approach (discounted cash flow) due to the lack of similar sales in the local market (unobservable inputs).

To derive Fair Values the Group has adopted a combination of income and market approach weighted according to the predominant local market and economic conditions.

 
 Fair value measurements             (Level     (Level       (Level        Total 
  at 31 Dec 2016 (EUR)                 1)         2)           3) 
----------------------------------  -------  -----------  -----------  ------------ 
 
 Recurring fair value measurements 
----------------------------------  -------  -----------  -----------  ------------ 
 Balabyne - Zaporizhia                    -    1.517.883            -     1.517.883 
----------------------------------  -------  -----------  -----------  ------------ 
 Tsymlyanskiy Lane - Podil, 
  Kiev City Center                        -    1.043.544            -     1.043.544 
----------------------------------  -------  -----------  -----------  ------------ 
 Bela Logistics Center- 
  Odessa                                  -            -    5.027.986     5.027.986 
----------------------------------  -------  -----------  -----------  ------------ 
 Terminal Brovary Logistics 
  Park - Brovary Kiev Oblast              -   14.900.000            -    14.900.000 
----------------------------------  -------  -----------  -----------  ------------ 
 Kiyanivskiy Lane - Podil, 
  Kiev City Center                        -    3.320.368            -     3.320.368 
----------------------------------  -------  -----------  -----------  ------------ 
 Rozny Lane - Brovary district, 
  Kiev oblast                             -    1.138.412            -     1.138.412 
----------------------------------  -------  -----------  -----------  ------------ 
 Innovations Logistics 
  Park - Bucharest                        -            -   11.000.000    11.000.000 
----------------------------------  -------  -----------  -----------  ------------ 
 EOS Business Park - Bucharest, 
  City Center                             -            -    6.860.000     6.860.000 
----------------------------------  -------  -----------  -----------  ------------ 
 Residential Portfolio 
  (ex Green Lake) - Bucharest             -    4.375.000            -     4.375.000 
----------------------------------  -------  -----------  -----------  ------------ 
 Green Lake - Bucharest                   -   17.919.000                 17.919.000 
----------------------------------  -------  -----------  -----------  ------------ 
 Pantelimon Lake - Bucharest              -    4.860.000            -     4.860.000 
----------------------------------  -------  -----------  -----------  ------------ 
 Praktiker - Craiova                      -            -    7.500.000     7.500.000 
----------------------------------  -------  -----------  -----------  ------------ 
 GED Logistics - Athens                   -            -   16.500.000    16.500.000 
----------------------------------  -------  -----------  -----------  ------------ 
 Boyana- Land                             -    4.720.000            -     4.720.000 
----------------------------------  -------  -----------  -----------  ------------ 
 Totals                                   -   53.794.207   46.887.986   100.682.193 
----------------------------------  -------  -----------  -----------  ------------ 
 
 
 Fair value measurements             (Level       (Level       (Level        Total 
  at 31 Dec 2015 (EUR)                   1)           2)           3) 
----------------------------------  -------  -----------  -----------  ----------- 
 
 Recurring fair value measurements 
----------------------------------  -------  -----------  -----------  ----------- 
 Balabyne - Zaporizhia                    -    1.555.922            -    1.555.922 
----------------------------------  -------  -----------  -----------  ----------- 
 Tsymlyanskiy Lane - Podil, 
  Kiev City Center                        -    1.006.773            -    1.006.773 
----------------------------------  -------  -----------  -----------  ----------- 
 Bela Logistics Center- 
  Odessa                                  -            -    5.125.389    5.125.389 
----------------------------------  -------  -----------  -----------  ----------- 
 Terminal Brovary Logistics 
  Park - Brovary Kiev Oblast              -            -   12.264.323   12.264.323 
----------------------------------  -------  -----------  -----------  ----------- 
 Kiyanivskiy Lane - Podil, 
  Kiev City Center                        -    3.203.368            -    3.203.368 
----------------------------------  -------  -----------  -----------  ----------- 
 Rozny Lane - Brovary district, 
  Kiev oblast                             -    1.194.085            -    1.194.085 
----------------------------------  -------  -----------  -----------  ----------- 
 Innovations Logistics 
  Park - Bucharest                        -            -   14.400.000   14.400.000 
----------------------------------  -------  -----------  -----------  ----------- 
 EOS Business Park - Bucharest, 
  City Center                             -            -    6.550.000    6.550.000 
----------------------------------  -------  -----------  -----------  ----------- 
 Residential Portfolio 
  (ex Green Lake) - Bucharest             -    6.722.000            -    6.722.000 
----------------------------------  -------  -----------  -----------  ----------- 
 Green Lake - Bucharest                   -   17.932.000                17.932.000 
----------------------------------  -------  -----------  -----------  ----------- 
 Pantelimon Lake - Bucharest              -    5.812.000            -    5.812.000 
----------------------------------  -------  -----------  -----------  ----------- 
 Praktiker - Craiova                      -            -    7.200.000    7.200.000 
----------------------------------  -------  -----------  -----------  ----------- 
 GED Logistics - Athens                   -   16.500.000            -   16.500.000 
----------------------------------  -------  -----------  -----------  ----------- 
 Totals                                   -   53.926.148   45.539.712   99.465.860 
----------------------------------  -------  -----------  -----------  ----------- 
 

The table below shows yearly adjustments for Level 3 investment property valuations:

 
 Level 3               Bela      Innovations      EOS      Praktiker   GED Logistics      Total 
  Fair value         Logistics    Logistics     Business     Craiova 
  measurements        Center         Park         Park 
  at 31 Dec 
  2016 (EUR) 
-----------------  -----------  ------------  ----------  ----------  --------------  ------------ 
 
 Opening                                                                           - 
  balance            5.125.389    14.400.000   6.550.000   7.200.000                    33.275.389 
-----------------  -----------  ------------  ----------  ----------  --------------  ------------ 
 Transfer 
  to and 
  from level 
  2 due to 
  change                                                                  16.500.000 
  of valuation 
  methods                    -             -           -           -                    16.500.000 
-----------------  -----------  ------------  ----------  ----------  --------------  ------------ 
 Acquisitions                -             -           -           -               -             - 
-----------------  -----------  ------------  ----------  ----------  --------------  ------------ 
 Additions                   -             -           -           -               -             - 
-----------------  -----------  ------------  ----------  ----------  --------------  ------------ 
 Disposals                   -             -           -           -               -             - 
-----------------  -----------  ------------  ----------  ----------  --------------  ------------ 
 Profit/(loss) 
  on revaluation       283.654   (3.384.853)     337.684     329.975               -   (2.433.540) 
-----------------  -----------  ------------  ----------  ----------  --------------  ------------ 
 Translation 
  difference         (381.057)      (15.147)    (27.684)    (29.975)               -     (453.863) 
-----------------  -----------  ------------  ----------  ----------  --------------  ------------ 
 Closing 
  balance            5.027.986    11.000.000   6.860.000   7.500.000      16.500.000    46.887.986 
-----------------  -----------  ------------  ----------  ----------  --------------  ------------ 
 
 
 Level             Terminal     Kiyanivskiy   Tsymlyanskiy      Bela       Innovations      EOS        Praktiker      Total 
  3 Fair            Brovary         Lane          Lane         Logistic     Logistics     Business       Craiova 
  value            Logistics                                    Center         Park         Park 
  measurements        Park 
  at 31 
  Dec 2015 
  (EUR) 
---------------  ------------  ------------  -------------  ------------  ------------  ----------  ------------  ------------ 
 
 Opening           17.463.310     4.017.381      1.147.823             -    14.000.000   6.400.000             -    43.028.514 
  balance 
---------------  ------------  ------------  -------------  ------------  ------------  ----------  ------------  ------------ 
 Transfer 
  to and 
  from level 
  2 due 
  to change 
  of valuation 
  methods                   -   (4.017.381)    (1.147.823)     5.083.216             -           -             -      (81.988) 
---------------  ------------  ------------  -------------  ------------  ------------  ----------  ------------  ------------ 
 Acquisitions               -             -              -             -             -           -    10.070.000    10.070.000 
---------------  ------------  ------------  -------------  ------------  ------------  ----------  ------------  ------------ 
 Additions                  -             -              -             -             -           -             -             - 
---------------  ------------  ------------  -------------  ------------  ------------  ----------  ------------  ------------ 
 Disposals                  -             -              -             -             -           -             -             - 
---------------  ------------  ------------  -------------  ------------  ------------  ----------  ------------  ------------ 
 Profit/(loss) 
  on 
  revaluation       (589.179)             -              -     1.513.658       400.000     150.000   (2.870.000)   (1.395.521) 
---------------  ------------  ------------  -------------  ------------  ------------  ----------  ------------  ------------ 
 Translation 
  difference      (4.609.808)             -              -   (1.471.485)             -           -             -   (6.081.293) 
---------------  ------------  ------------  -------------  ------------  ------------  ----------  ------------  ------------ 
 Closing 
  balance          12.264.323             -              -     5.125.389    14.400.000   6.550.000     7.200.000    45.539.712 
---------------  ------------  ------------  -------------  ------------  ------------  ----------  ------------  ------------ 
 

Information about Level 3 Fair Values is presented below:

 
                     Fair      Fair value    Valuation     Unobservable        Relationship 
                     value         at        technique         inputs         of unobservable 
                      at         31 Dec                                       inputs to fair 
                    31 Dec        2015                                             value 
                     2016 
---------------  -----------  -----------  ------------  ----------------  ------------------- 
                     EUR          EUR           EUR             EUR                EUR 
---------------  -----------  -----------  ------------  ----------------  ------------------- 
 Bela Logistic     5.027.986    5.125.389   Combined      Percentage        The higher 
  Center                                     market        of development    the percentage 
  - Odessa                                   and cost      works             of completion 
                                             approach      completion,       the higher 
                                                           deterioration     the fair value. 
                                                           rate              The higher 
                                                                             the deterioration 
                                                                             rate the lower 
                                                                             the fair value 
---------------  -----------  -----------  ------------  ----------------  ------------------- 
 Terminal                  -   12.264.323   Combined      Future            The higher 
  Brovary                                    market        rental            the rental 
  Logistics                                  and income    income            income the 
  Park- Brovary                              approach      and costs         higher the 
  Kiev Oblast                                              for 14            fair value. 
                                                           months,           The higher 
                                                           discount          the discount 
                                                           rate              rate, the lower 
                                                                             fair value 
---------------  -----------  -----------  ------------  ----------------  ------------------- 
 Innovations      11.000.000   14.400.000   Income        Future            The higher 
  Logistics                                  approach      rental            the rental 
  Park -                                                   income            income the 
  Bucharest                                                and costs         higher the 
                                                           for 10            fair value. 
                                                           years,            The higher 
                                                           discount          the discount 
                                                           rate              rate, the lower 
                                                                             fair value 
---------------  -----------  -----------  ------------  ----------------  ------------------- 
 EOS Business      6.860.000    6.550.000   Income        Future            The higher 
  Park -                                     approach      rental            the rental 
  Bucharest,                                               income            income the 
  City Center                                              and costs         higher the 
                                                           for 10            fair value. 
                                                           years,            The higher 
                                                           discount          the discount 
                                                           rate              rate, the lower 
                                                                             fair value 
---------------  -----------  -----------  ------------  ----------------  ------------------- 
 Praktiker         7.500.000    7.200.000   Income        Future            The higher 
  Craiova                                    approach      rental            the rental 
                                                           income            income the 
                                                           and costs         higher the 
                                                           for 10            fair value. 
                                                           years,            The higher 
                                                           discount          the discount 
                                                           rate              rate, the lower 
                                                                             fair value 
---------------  -----------  -----------  ------------  ----------------  ------------------- 
 GED Logistics    16.500.000            -   Income        Future            The higher 
                                             approach      rental            the rental/PV 
                                                           income            income the 
                                                           and costs         higher the 
                                                           for 10            fair value. 
                                                           years,            The higher 
                                                           discount          the discount 
                                                           rate for          rate, the lower 
                                                           real estate       fair value 
                                                           property 
                                                           and for 
                                                           Photovoltaic 
                                                           25 + 6 
                                                           years 
                                                           for PV 
---------------  -----------  -----------  ------------  ----------------  ------------------- 
 Total            46.887.986   45.539.712 
---------------  -----------  -----------  ------------  ----------------  ------------------- 
 
   13.     Investment Property Acquisitions and Goodwill Movement 

a. Investment Property Acquisitions

In March 2015 the Group completed the acquisition of an income producing logistics park (the "GED Logistics"), located in the West Attica Industrial Area of Athens, Greece (Note 12.1).

In July 2015 the Group acquired Praktiker Craiova, a DIY retail property (Note 12.1). The acquisition was effected through the issuance of Class B Redeemable Convertible Preference Shares ('RCPS') to the vendors (Note 21.6). The Company is in discussion with the vendor vis a vis the finalization of the redemption process (Note 18).

During 2015 the Group acquired the mixed use portfolio of Sec South, a private equity entity, which included investment properties, inventories and investment in associates, (Notes 12, 13, 14) via in kind contribution by the vendors and in exchange of 18.028.294 ordinary shares of EUR0,01 and two equivalent sets of warrants as described below (Note 21.4 and 21.5).The shares were issued at a price of GBP 0,65 per share while the first set of warrants had an exercise price of GBP 0,10 and the second of GBP 0,45. Out of the 1st set of 18.028.294 warrants, 14.324.627 were exercised in 2015 and an equal amount of ordinary shares was issued (Note 21.2) while the 2(nd) set has expired without being exercised (Note 21.2). The vendors of the Sec South included Ionian Equity Participations Limited, a substantial shareholder in the Company, holding then in excess of 10% of the Company's issued share capital, as well as an entity in which Lambros Anagnostopoulos (a director of the Company and the CEO) had a majority stake and Constantinos Bitros (the CFO of the Company) with stakes in Sec South of less than 20%, 4% and 1% respectively. Sec South transferred properties in SPDI, the net equity of which was EUR15.782.190 (fair value at acquisition).

The fair value of identifiable assets and liabilities of acquired projects during 2015 as of the date of their acquisition was as follows:

 
 EUR                             GED Logistics   SEC South    Praktiker      Total 
                                                    East        Craiova 
 ASSETS 
 Non-current assets 
 Investment property                16.400.000   24.619.000   10.070.000   51.089.000 
 Investments in associates                   -    6.132.516            -    6.132.516 
 Other non-current assets               29.911       69.536            -       99.447 
 
 Current assets 
 Inventories                                 -   12.300.000            -   12.300.000 
 Prepayments and other 
  current assets                       353.366    1.203.036      384.884    1.941.286 
 Cash and cash equivalents                 160      777.247       26.425      803.832 
 
 Total assets                       16.783.437   45.101.335   10.481.309   72.366.081 
 
 Non-current liabilities 
 Interest bearing borrowings        12.549.180   23.865.253    4.892.950   41.307.383 
 Deposits from tenants                 211.243            -            -      211.243 
 
 Current liabilities 
 Interest bearing borrowings           135.110    1.431.464            -    1.566.574 
 Trade and other payables              492.060    3.074.332      120.961    3.687.353 
 Taxes payable                          56.776      252.033            -      308.809 
 
 Total liabilities                  13.444.369   28.623.082    5.013.911   47.081.362 
 
 Net assets acquired                 3.339.068   16.478.253    5.467.398   25.284.719 
  (including non-controlling 
  interest) 
 
 Non-controlling interest                    -    (696.063)            -    (696.063) 
 
 Net assets acquired 
  attributable to equity 
  holders                            3.339.068   15.782.190    5.467.398   24.588.656 
 Financed by 
 Cash consideration paid             1.786.934            -            -    1.786.934 
 Issue of shares                             -   15.152.490    6.081.211   21.233.701 
 Total consideration                 1.786.934   15.152.490    6.081.211   23.020.635 
 
 Gain realized on acquisition 
  Goodwill =Net Assets               1.552.134      629.700            -    2.181.834 
  - Total consideration                      -            -    (613.813)    (613.813) 
 

b. Goodwill Movement

Management decided to fully impair the goodwill resulting mainly from the 2015 acquisitions and to a lesser extent from the 2014 acquisitions as they expect that the future cashflows to be generated from the related properties, based on year end valuations and sales price expectations do not validate any more. The total impairment was EUR657.082.

14. Investments in associates

In May 2015 by acquiring the mixed use Sec South portfolio (Note 13) the Group acquired participation in certain properties classified under Investments in Associates. The associates acquired were as follows:

a) Green Lake Development srl, is a residential compound company which consists as at end of the reporting period of 35 apartments plus 22 villas as well as 4 commercial use designated buildings (Phase A of Green Lake project). The compound is situated on the banks of Grivita Lake, in the northern part of the Romanian capital. The compound includes also facilities such as private kindergarten, nautical club, outdoor sport courts, and restaurants. The Company has a 40,35% participation in this asset. The property as of the end of the reporting period was 46% let.

b) The Group acquired a 24,35% participation in the Delea Nuova office building property in Bucharest. The property is a 10.280 sqm office building, which consists of two underground levels, a ground floor and ten above-ground floors. As of the end of the reporting period, the building was 100% let, with ANCOM (the Romanian Telecommunications Regulator) being the anchor tenant (70% of GLA). The table below summarizes the movements in the carrying amount of the Group's investment in associates.

 
 EUR                                           31 Dec       31 Dec 
                                                 2016         2015 
-------------------------------------------  ----------  ------------ 
 Cost of investment in associates 
  at the beginning of the period              4.887.944     6.132.516 
-------------------------------------------  ----------  ------------ 
 Share of profits /(losses) from associates     469.248   (1.244.572) 
-------------------------------------------  ----------  ------------ 
 Dividend Income                              (127.569)             - 
-------------------------------------------  ----------  ------------ 
 Foreign exchange difference                   (12.313)             - 
-------------------------------------------  ----------  ------------ 
 Total                                        5.217.310     4.887.944 
-------------------------------------------  ----------  ------------ 
 

As at 31 December 2016, the Group's interests in its associates and their summarised financial information, including total assets at fair value, total liabilities, revenues and profit or loss, were as follows:

 
  Project      Associates       Total          Total         Profit/     Holding      Share      Country      Asset 
    Name                        assets      liabilities       (loss)                of profits                 type 
                                                                                       from 
                                                                                    associates 
-----------  -------------  ------------  --------------  ------------  --------  ------------  --------  ------------ 
                                 EUR            EUR            EUR          %          EUR 
-----------  -------------  ------------  --------------  ------------  --------  ------------  --------  ------------ 
                 Lelar 
                Holdings 
                 Limited 
                   and 
                  S.C. 
 Delea           Delenco 
  Nuova         Construct                                                                                    Office 
  Project        S.R.L.       24.887.951     (3.461.850)     1.926.778   24,354%       469.248   Romania     building 
-----------  -------------  ------------  --------------  ------------  --------  ------------  --------  ------------ 
 GreenLake     GreenLake      13.867.862    (14.698.363)   (1.563.486)    40,35%             -   Romania   Residential 
  Project      Development                                                                                    assets 
  - Phase          Srl 
  A 
-----------  -------------  ------------  --------------  ------------  --------  ------------  --------  ------------ 
           Total               38.755.813   (18.160.213)       363.292                 469.248 
--------------------------   ------------  -------------  ------------  --------  ------------  --------  ------------ 
 

The share of profit from the associate GreenLake Delevopment Srl was limited up to the interest of the Group in the associate.

As at 31 December 2015, the Group's interests in its associates and their summarised financial information, including total assets at fair value, total liabilities, revenues and profit or loss, were as follows:

 
  Project      Associates       Total          Total         Profit/      Holding      Share      Country      Asset 
    Name                        assets      liabilities       (loss)                 of profits                 type 
                                                                                        from 
                                                                                     associates 
-----------  -------------  ------------  --------------  -------------  --------  ------------  --------  ------------ 
                                 EUR            EUR            EUR           %          EUR 
-----------  -------------  ------------  --------------  -------------  --------  ------------  --------  ------------ 
                 Lelar 
                Holdings 
                 Limited 
                   and 
                  S.C. 
 Delea           Delenco 
  Nuova         Construct                                                                                     Office 
  Project        S.R.L.       24.232.215     (4.158.521)    (2.895.756)   24,354%     (705.232)   Romania     building 
-----------  -------------  ------------  --------------  -------------  --------  ------------  --------  ------------ 
 GreenLake 
  Project      GreenLake 
  - Phase      Development                                                                                  Residential 
  A                Srl        15.651.396    (16.080.270)    (2.374.548)    40,35%     (539.340)   Romania      assets 
-----------  -------------  ------------  --------------  -------------  --------  ------------  --------  ------------ 
           Total               39.883.611    (20.238.791)   (5.270.304)             (1.244.572) 
--------------------------   ------------  --------------  ------------  --------  ------------  --------  ------------ 
 
   15.    Tangible and intangible assets 

As at 31 December 2016 the intangible assets were composed of the capitalized expenditure on the Enterprise Resource Planning system (Microsoft Dynamics-Navision) in the amount of EUR96.183. Accumulated amortization as at the reporting date amounts to EUR62.270 as the system was already in use.

As at 31 December 2016 and 2015 the tangible non-current assets mainly consisted of the machinery and equipment used for the servicing the Group's investment properties in Ukraine and Romania.

   16.    Long Term Receivables and prepayments 
 
                               31 Dec    31 Dec 
                                 2016      2015 
----------------------------  --------  -------- 
                                 EUR       EUR 
----------------------------  --------  -------- 
 Long Term Receivable          251.181   252.916 
----------------------------  --------  -------- 
 Prepayment for Investments    100.000   100.000 
----------------------------  --------  -------- 
 Total                         351.181   352.916 
----------------------------  --------  -------- 
 

Long term receivable mainly includes the cash collateral from Piraeus Leasing.

   17.    Inventory 
 
 EUR                               30 Dec        31 Dec 
                                    2016          2015 
--------------------------------  ------------  ------------ 
 At 1 January                       11.300.000             - 
--------------------------------  ------------  ------------ 
 Sale of Inventories               (1.522.233)             - 
--------------------------------  ------------  ------------ 
 Transfer to Investment Property   (4.686.000)             - 
--------------------------------  ------------  ------------ 
 Acquisition of subsidiaries                 -    12.300.000 
--------------------------------  ------------  ------------ 
 Impairment of inventory              (63.513)   (1.000.000) 
--------------------------------  ------------  ------------ 
 At 31 December                      5.028.254    11.300.000 
--------------------------------  ------------  ------------ 
 

In May 2015 by acquiring the mixed use Sec South portfolio (Note 13) the Group acquired 100% of a residential portfolio in Boyana, in Sofia, Bulgaria which is classified as Inventory.

After a decision of the Board of Directors of Boyana to change the initial plan for construction in the land and hold this land for capital appreciation, EUR4.686.000 which related to the land that was transferred to Investment Properties (Note 12.2) and from now on will be treated under IAS 40.

   18.    Available for sale financial assets 

In April 2015 the Group completed the acquisition of a 20% interest in a fully let and income generating office building in Sofia, Autounion, for a cash consideration of EUR4.059.839 including the assignment of a loan amounting to EUR1.859.278 together with accumulated interest up to the acquisition date (Note 19). The holding was classified as "Available for Sale Financial Assets" in conformity with IAS 39. Autounion is a Class A BREEAM certified office building, located close to the Sofia Airport. The building has a Gross Lettable Area of 19.476 sqm over ten floors, includes underground parking and is fully let to one of the largest Bulgarian insurance companies on a long lease extending to 2027.

In Q3-2016, as a result of the vendor (BLUEHOUSE ACCESSION PROPERTY HOLDINGS III S.A.R.L) of BIGBLUEBOX 3 (Praktiker Craiova) requesting redemption of the 8.618.997 Secured Redeemable Convertible Preference Class B Shares ("RCPS"), the Company transferred, the security, its 20% participation over Autounion to the said vendor. Although there is a difference appearing as a liability to the vendor (Note 25), the Group is in negotiation as to the final settlement amount and the method of payment.

Fair value gain for the period represents the difference between the fair value of the investment at acquisition date minus the fair value of investment at the reporting date.

 
                                          31 Dec       31 Dec 
                                           2016          2015 
------------------------------------  -------------  ---------- 
                                           EUR           EUR 
------------------------------------  -------------  ---------- 
 At 1 January                             2.783.535           - 
------------------------------------  -------------  ---------- 
 Acquisition cost of the investment               -   2.298.006 
------------------------------------  -------------  ---------- 
 Fair Value gain                                  -     485.529 
------------------------------------  -------------  ---------- 
 Disposal of AFS investment             (2.783.535)           - 
------------------------------------  -------------  ---------- 
 At 31 December                                   -   2.783.535 
------------------------------------  -------------  ---------- 
 

As a result of Autounion transfer a net loss of EUR206.491 was recognized in the Group's consolidated statement of comprehensive income for 2016. The amount reflects the aggregate book value of 20% interest in Autounion EUR2.783.535 plus the assigned loan including accumulated interest up to the disposal date amounting to EUR1.968.486 minus the accumulated fair value gain in the amount of EUR485.529 that was initially recognised in equity and recycled to the loss of the year as of the disposal date minus a pledged value of EUR4.060.000. The total remaining liability recognized at the reporting date to the vendor amounts to EUR2.521.211 (Note 25).

   19.    Prepayments and other current assets 
 
                                             31 Dec      31 Dec 
                                               2016        2015 
-----------------------------------------  ----------  ---------- 
                                               EUR         EUR 
-----------------------------------------  ----------  ---------- 
 Trade and other receivables                  992.482     792.565 
-----------------------------------------  ----------  ---------- 
 VAT and other taxes receivable               378.455     938.464 
-----------------------------------------  ----------  ---------- 
 Deferred expenses                            159.866     921.427 
-----------------------------------------  ----------  ---------- 
 Receivables due from related parties           7.284       3.384 
-----------------------------------------  ----------  ---------- 
 Loan receivable from 3(rd) parties         1.000.000           - 
-----------------------------------------  ----------  ---------- 
 Loan to associates (Note 32.4)               264.110     254.718 
-----------------------------------------  ----------  ---------- 
 Loan to Available for Sale Financial 
  Assets (Note 18)                                  -   1.905.933 
-----------------------------------------  ----------  ---------- 
 Allowance for impairment of prepayments 
  and other current assets                   (23.836)    (21.268) 
-----------------------------------------  ----------  ---------- 
 Total                                      2.778.361   4.795.223 
-----------------------------------------  ----------  ---------- 
 

Trade and other receivables mainly include receivables from tenants (including the Greek electricity grid administrator) and prepayments made for services.

VAT receivable represent VAT which is refundable in Romania, Cyprus and Ukraine.

Deferred expenses include legal, advisory, consulting and marketing expenses related to ongoing share capital increase and due diligence expenses related to the possible acquisition of investment properties in the near future.

Loan receivable from 3(rd) party represents an amount provided as an advance payment for acquiring a participation into an investment property and has a maturity date 30 June 2018.

Loan to associates reflects a loan receivable from Greenlake Development SRL, holding company of Greenlake Phase A (Note 14, Note 32.4).

Loan to Available for Sale Financial Assets reflects a loan receivable from Bluehouse V, holding company of Autounion building disposed in 2016 (Note 18).

   20.    Cash and cash equivalents 

Cash and cash equivalents represent liquidity held at banks.

 
                            31 Dec     31 Dec 
                              2016       2015 
------------------------  ----------  -------- 
                              EUR        EUR 
------------------------  ----------  -------- 
 Cash with banks in USD       17.670    25.205 
------------------------  ----------  -------- 
 Cash with banks in EUR      152.742   214.177 
------------------------  ----------  -------- 
 Cash with banks in UAH       31.744    40.505 
------------------------  ----------  -------- 
 Cash with banks in RON    1.319.686   569.424 
------------------------  ----------  -------- 
 Cash with banks in BGN      179.165     3.701 
------------------------  ----------  -------- 
 Cash equivalents                  -    42.410 
------------------------  ----------  -------- 
  Total                    1.701.007   895.422 
------------------------  ----------  -------- 
 

An amount of EUR1,1m held in accounts related to properties that carry debt facilities is restricted cash, as the lending banks control its usage to conform to contractual obligations.

   21.    Share capital 

Number of Shares during 2016 and 2015

 
               31 December    13 March      31 May      29 June     1 July      27 July    12 August   31 December    13 October    31 December 
                  2014          2015         2015        2015        2015        2015        2015         2015           2016           2016 
------------  ------------  -----------  -----------  ----------  ----------  ----------  ----------  ------------  -------------  ------------- 
                              Increase     Increase    Repayment   Increase    Exercise    Exercise                   Redemption 
                              of share     of share      RCPS      of share       of          of                          of 
                              capital      capital                  capital    warrants    warrants                   redeemable 
                                                                                                                        shares 
------------  ------------  -----------  -----------  ----------  ----------  ----------  ----------  ------------  -------------  ------------- 
 Authorised 
------------  ------------  -----------  -----------  ----------  ----------  ----------  ----------  ------------  -------------  ------------- 
 Ordinary      989.869.935                                                                             989.869.935                   989.869.935 
 shares of 
 EUR0,01 
------------  ------------  -----------  -----------  ----------  ----------  ----------  ----------  ------------  -------------  ------------- 
 Total         989.869.935                                                                             989.869.935                   989.869.935 
 equity 
------------  ------------  -----------  -----------  ----------  ----------  ----------  ----------  ------------  -------------  ------------- 
 RCP Class A 
  Shares of 
  EUR0,01          785.000                                                                                 785.000                       785.000 
------------  ------------  -----------  -----------  ----------  ----------  ----------  ----------  ------------  -------------  ------------- 
 RCP Class B                                                       8.618.997                             8.618.997                     8.618.997 
 Shares of 
 EUR0,01 
------------  ------------  -----------  -----------  ----------  ----------  ----------  ----------  ------------  -------------  ------------- 
 Total         990.654.935                                         8.618.997                           999.273.932                   999.273.932 
------------  ------------  -----------  -----------  ----------  ----------  ----------  ----------  ------------  -------------  ------------- 
 Issued and 
 fully paid 
------------  ------------  -----------  -----------  ----------  ----------  ----------  ----------  ------------  -------------  ------------- 
 Ordinary       33.884.054   23.777.748   18.028.294           -               8.785.580   5.539.047    90.014.723                    90.014.723 
 shares of 
 EUR0,01 
------------  ------------  -----------  -----------  ----------  ----------  ----------  ----------  ------------  -------------  ------------- 
 Total          33.884.054   23.777.748   18.028.294           -               8.785.580   5.539.047    90.014.723                    90.014.723 
 equity 
------------  ------------  -----------  -----------  ----------  ----------  ----------  ----------  ------------  -------------  ------------- 
 RCP Class A 
  Shares of 
  EUR0,01          785.000                             (392.500)                                           392.500      (392.500)              - 
------------  ------------  -----------  -----------  ----------  ----------  ----------  ----------  ------------  -------------  ------------- 
 RCP Class B                                                       8.618.997                             8.618.997    (8.618.997)              - 
  Shares of 
  EUR0,01 
------------  ------------  -----------  -----------  ----------  ----------  ----------  ----------  ------------  -------------  ------------- 
 Total          34.669.054   23.777.748   18.028.294   (392.500)   8.618.997   8.785.580   5.539.047    99.026.220   (99.026.220)     90.014.723 
------------  ------------  -----------  -----------  ----------  ----------  ----------  ----------  ------------  -------------  ------------- 
 

Nominal value (EUR) for 2016 and 2015

 
 EUR               31       13 March    31 May     29 June     1 July    27 July       12         31       13 October      31 
                December      2015       2015       2015        2015       2015      August    December       2016      December 
                  2014                                                                2015       2015                     2016 
-------------  ----------  ---------  ---------  ----------  ---------  ---------  ---------  ----------  -----------  ---------- 
                            Increase   Increase   Repayment   Increase   Exercise   Exercise               Redemption 
                            of share   of share     RCPS      of share      of         of                      of 
                            capital    capital                capital    warrants   warrants               redeemable 
                                                                                                             shares 
-------------  ----------  ---------  ---------  ----------  ---------  ---------  ---------  ----------  -----------  ---------- 
 Authorised 
-------------  ----------  ---------  ---------  ----------  ---------  ---------  ---------  ----------  -----------  ---------- 
 Ordinary       9.898.699                                                                      9.898.699                9.898.699 
 shares of 
 EUR0,01 
-------------  ----------  ---------  ---------  ----------  ---------  ---------  ---------  ----------  -----------  ---------- 
 Total equity   9.898.699                                                                      9.898.699                9.898.699 
-------------  ----------  ---------  ---------  ----------  ---------  ---------  ---------  ----------  -----------  ---------- 
 RCP Class A 
  Shares of 
  EUR0,01           7.850                                                                          7.850                    7.850 
-------------  ----------  ---------  ---------  ----------  ---------  ---------  ---------  ----------  -----------  ---------- 
 RCP Class B 
  Shares of 
  EUR0,01               -                                       86.190                            86.190                   86.190 
-------------  ----------  ---------  ---------  ----------  ---------  ---------  ---------  ----------  -----------  ---------- 
 Total          9.906.549                                       86.190                         9.992.739                9.992.739 
-------------  ----------  ---------  ---------  ----------  ---------  ---------  ---------  ----------  -----------  ---------- 
 Issued and 
 fully paid 
-------------  ----------  ---------  ---------  ----------  ---------  ---------  ---------  ----------  -----------  ---------- 
 Ordinary 
  shares of 
  EUR0,01         338.839    237.777    180.283                            87.856     55.390     900.145                  900.145 
-------------  ----------  ---------  ---------  ----------  ---------  ---------  ---------  ----------  -----------  ---------- 
 Total equity     338.839    237.777    180.283                            87.856     55.390     900.145                  900.145 
-------------  ----------  ---------  ---------  ----------  ---------  ---------  ---------  ----------  -----------  ---------- 
 RCP Class A 
  Shares of 
  EUR0,01 
  (Note 21.6)       7.850                           (3.925)                                        3.925      (3.925)           - 
-------------  ----------  ---------  ---------  ----------  ---------  ---------  ---------  ----------  -----------  ---------- 
 RCP Class B 
  Shares of 
  EUR0,01 
  (Note 21.6)           -                                       86.190                            86.190     (86.190)           - 
-------------  ----------  ---------  ---------  ----------  ---------  ---------  ---------  ----------  -----------  ---------- 
 Total            346.689    237.777    180.283     (3.925)     86.190     87.856     55.390     990.260    (990.190)           - 
-------------  ----------  ---------  ---------  ----------  ---------  ---------  ---------  ----------  -----------  ---------- 
 

21.1 Authorised share capital

As at the end of 2015 the authorized share capital of the Company was 989.869.935 Ordinary Shares of EUR0,01 nominal value each, 785.000 Redeemable Preference Class A Shares of EUR0,01 nominal value each and 8.618.997 Redeemable Preference Class B Shares of EUR0,01 nominal value each.

No changes were effected during the reporting period as far as the authorized share capital of the Company is concerned and therefore at the end of the reporting period the authorized share capital of the Company remained at 989.869.935 Ordinary Shares of EUR0,01 nominal value each, 785.000 Redeemable Preference Class A Shares of EUR0,01 nominal value each and 8.618.997 Redeemable Preference Class B Shares of EUR0,01 nominal value each. Yet the Company is in process to cancel the Class A and Class B Redeemable Preference Shares (Note 21.6), a process that will be completed in 2017.

21.2 Issued Share Capital

As at the end of 2015 the issued share capital of the Company was as follows:

a) 90.014.723 Ordinary Shares of EUR0,01 nominal value each,

b) 392.500 Redeemable Preference Class A Shares of EUR0,01 nominal value each,

c) 8.618.997 Redeemable Preference Class B Shares of EUR0,01 nominal value each.

No changes were effected throughout the reporting period in respect of the issued share capital of the Company and as at the end of the reporting period the issued share capital of the Company remained as follows:

a) 90.014.723 Ordinary Shares of EUR0,01 nominal value each,

b) 392.500 Redeemable Preference Class A Shares of EUR0,01 nominal value each, subject to cancellation during 2017 (Note 21.6),

c) 8.618.997 Redeemable Preference Class B Shares of EUR0,01 nominal value each, subject to cancellation during 2017 (Note 21.6).

In respect of the Class A Redeemable Preference Shares, issued in connection to the Innovations acquisition and the Class B Redeemable Preference Shares, issued in connection to the acquisition of Craiova Praktiker, following the holders of such shares notifying the Company on their intent to redeem within 2016, the Company:

- actually proceeded in effecting full redemption of the Class A shares (392.500) which was finalized in Q1-2017 while the process of cancelling them will be concluded within 2017

- for the Class B Redeemable Preference Shares, in lieu of redemption the Company gave its 20% holding in Autounion (Note 18) in October 2016, to the Craiova Praktiker seller BLUEHOUSE ACCESSION PROPERTY HOLDINGS III S.A.R.L and has been negotiating the resulting difference (if any) for a final settlement. As soon as the case is settled, the Company will proceed with the cancelation of the Class B Redeemable Preference Shares

21.3 Option schemes

A. Under the scheme adopted in 2007, each of the directors serving at the time, who is still a Director of the Company is entitled to subscribe for 2.631 Ordinary Shares exercisable as set out below:

 
                               Exercise   Number 
                                 Price      of 
----------------------------  ---------  ------- 
                                 USD      Shares 
----------------------------  ---------  ------- 
 Exercisable until 1 August 
  2017                            57      1.754 
----------------------------  ---------  ------- 
 Exercisable until 1 August 
  2017                            83       877 
----------------------------  ---------  ------- 
 

B. Under a second scheme also adopted in 2007, director Franz M. Hoerhager is entitled to subscribe for 1.829 ordinary shares exercisable as set out below:

 
                               Exercise   Number 
                                 Price      of 
----------------------------  ---------  ------- 
                                 GBP      Shares 
----------------------------  ---------  ------- 
 Exercisable until 1 August 
  2017                            40      1.219 
----------------------------  ---------  ------- 
 Exercisable until 1 August 
  2017                            50       610 
----------------------------  ---------  ------- 
 

C. Under a scheme adopted in 2015, pursuant to an approval by the AGM of 31/12/2013, the Company proceeded in 2015 in issuing 590.000 options to its employees, as a reward for their effort and support during the previous year. Each option entitles the Option holder to one Ordinary Share. Exercise price stands at GBP 0,15. The Option holders lose and thus may not exercise any option from the moment they cease to offer their services to the Company. The CEO and the CFO of the Company did not receive any options.

a. 147.500 Options may be exercised within 2016. Out of the Options that may be exercised in 2016, none has been exercised until the reporting date,

   b.        147.500 Options may be exercised within 2017, 
   c.         295.000 Options may be exercised within 2018. 

The Company considers that all option schemes are currently out of money and therefore has not made any relevant provision.

21.4 Class A Warrants issued

The Company acquired the Sec South portfolio in 2015 (Notes 12,13) in exchange of Ordinary shares which were issued at GBP 0,65 each. The sellers were also provided certain Class A Warrants giving the right to the Warrant holders to subscribe in cash at the Exercise price for additional Ordinary Shares in the Company. The Company issued then two sets of Class A Warrants as follows:

1) 18.028.294 warrants corresponding to 18.028.294 ordinary shares, exercisable within 45 days from signing at an exercise price of GBP 0,10 per ordinary share. 14.324.627 out of these warrants were exercised by August 2015 (Notes 21.2). The remaining warrants have lapsed.

2) 18.028.294 warrants corresponding to 18.028.294 ordinary shares, were exercisable by 31 December 2016 at an exercise price of GBP 0,45 per ordinary share. None of these warrants were exercised by 31 December 2016 and thus the warrants have lapsed.

21.5 Class B Warrants issued

On 8 August 2011 the Company issued an amount of Class B Warrants for an aggregate corresponding to 12,5% of the issued share capital of the Company after the exercise date. The Class B Warrants may be exercised at any time until 30 June 2017. The exercise price of the Class B Warrants will be the nominal value per Ordinary Share as at the date of exercise. The Class B Warrant Instruments have anti-dilution protection so that, in the event of further share issuances by the Company, the number of Ordinary Shares to which the holder of a Class B Warrant is entitled will be adjusted so that he receives the same percentage of the issued share capital of the Company (as nearly as practicable), as would have been the case had the issuances not occurred. This anti-dilution protection will freeze on the earlier of (i) the expiration of the Class B Warrants; and (ii) capital increase(s) undertaken by the Company generating cumulative gross proceeds in excess of USD 100.000.000. As at the financial statements issue date none of the Class B Warrants have been exercised. As of the reporting date, the aggregate amount of Class B Warrant is 12.859.246.

21.6 Capital Structure as at the end of the reporting period

As at the reporting date the Company's share capital is as follows:

 
 Number of                                                 (as at) 31 December 2016   (as at) 31 December 2015 
----------------------------  --------------------------  -------------------------  ------------------------- 
 Ordinary shares of EUR0,01    Issued and Listed in AIM                  90.014.723                 90.014.723 
----------------------------  --------------------------  -------------------------  ------------------------- 
 Class A Warrants                                                                 -                 18.028.294 
----------------------------  --------------------------  -------------------------  ------------------------- 
 Class B Warrants                                                        12.859.246                 12.859.246 
----------------------------  --------------------------  -------------------------  ------------------------- 
 Total number of Shares           Non-Dilutive Basis                     90.014.723                 90.014.723 
----------------------------  --------------------------  -------------------------  ------------------------- 
 Total number of Shares           Full Dilutive Basis                   102.873.969                102.873.969 
----------------------------  --------------------------  -------------------------  ------------------------- 
 Options                                                                      4.460                      4.460 
--------------------------------------------------------  -------------------------  ------------------------- 
 

Redeemable Preference Class A Shares

The Redeemable Preference Class A Shares which do not have voting or dividend rights where issued as part of the Innovation acquisition purchase consideration. As at the reporting date all of the Redeemable Shares Class A shares have been redeemed and the Company will proceed in their cancellation within 2017.

Redeemable Preference Class B Shares

The Redeemable Preference Class B Shares, issued to BLUEHOUSE ACCESSION PROPERTY HOLDINGS III S.A.R.L as part of the Praktiker Craiova asset acquisition (Note 13) do not have voting rights but have economic rights at par with ordinary shares. As at the reporting date all of the Redeemable Shares Class B have been redeemed (Note 26) but the Company is in discussions with the vendor in respect of a final settlement (Note 18).

   22.    Foreign Currency Translation Reserve 

Exchange differences related to the translation from the functional currency of the Group's subsidiaries are accounted by entries made directly to the foreign currency translation reserve. The foreign exchange translation reserve represents unrealized profits or losses related to the appreciation or depreciation of the local currencies against the EUR in the countries where the Company's subsidiaries' functional currencies are not EUR.

   23.    Non-Controlling Interests 

Non-controlling interests represent the percentage participations in the respective entities not owned by the Group:

 
 %                                       Non-controlling 
                                         interest portion 
------------------------------------  -------------------- 
 Group Company                          31 Dec     31 Dec 
                                         2016       2015 
------------------------------------  ---------  --------- 
 LLC Almaz-Press-Ukraine                  45,00      45,00 
------------------------------------  ---------  --------- 
 Ketiza Limited                           10,00      10,00 
------------------------------------  ---------  --------- 
 Ketiza srl                               10,00      10,00 
------------------------------------  ---------  --------- 
 Ram Real Estate Management Limited       50,00      50,00 
------------------------------------  ---------  --------- 
 Iuliu Maniu Limited                      55,00      55,00 
------------------------------------  ---------  --------- 
 Moselin Investments Srl                  55,00      55,00 
------------------------------------  ---------  --------- 
 Rimasol Enterprises Limited              55,76      55,76 
------------------------------------  ---------  --------- 
 Rimasol Real Estate Srl                  55,76      55,76 
------------------------------------  ---------  --------- 
 Ashor Ventures Limited                   55,76      55,76 
------------------------------------  ---------  --------- 
 Ashor Development Srl                    55,76      55,76 
------------------------------------  ---------  --------- 
 Jenby Ventures Limited                   55,70      55,70 
------------------------------------  ---------  --------- 
 Jenby Investments Srl                    55,70      55,70 
------------------------------------  ---------  --------- 
 Ebenem Limited                           55,70      55,70 
------------------------------------  ---------  --------- 
 Ebenem Investments Srl                   55,70      55,70 
------------------------------------  ---------  --------- 
 Delia Lebada Invest SRL                  35,00      35,00 
------------------------------------  ---------  --------- 
 
   24.    Borrowings 
 
                                              Project              31 Dec       31 Dec 
                                                                    2016         2015 
-----------------------------------  -------------------------  -----------  ----------- 
                                                                    EUR          EUR 
-----------------------------------  -------------------------  -----------  ----------- 
 Principal of bank Loans 
-----------------------------------  -------------------------  -----------  ----------- 
  European Bank for Reconstruction            Terminal 
   and Development ("EBRD")                    Brovary           11.551.023   12.164.107 
-----------------------------------  -------------------------  -----------  ----------- 
  Banca Comerciala Romana                  Monaco Towers 
   /Tonescu Finance                                                 924.562    1.210.962 
-----------------------------------  -------------------------  -----------  ----------- 
  Bancpost SA                                 Blooming 
                                                House             1.245.657    1.739.634 
-----------------------------------  -------------------------  -----------  ----------- 
                                              Romfelt 
  Alpha Bank Romania                            Plaza               809.919      869.602 
-----------------------------------  -------------------------  -----------  ----------- 
  Alpha Bank Romania                        EOS Business 
                                                Park                991.000            - 
-----------------------------------  -------------------------  -----------  ----------- 
  Raiffeisen Bank Romania                 Linda Residence                 -      429.858 
-----------------------------------  -------------------------  -----------  ----------- 
  Bancpost SA                                GreenLake 
                                              - Parcel 
                                                  K               3.092.926    3.099.639 
-----------------------------------  -------------------------  -----------  ----------- 
  Alpha Bank Bulgaria                          Boyana             2.680.492    3.460.813 
-----------------------------------  -------------------------  -----------  ----------- 
  Alpha Bank Bulgaria                     Boyana/Sertland           693.514      736.864 
-----------------------------------  -------------------------  -----------  ----------- 
  Bank of Cyprus                      Delia Lebada/Pantelimon     4.569.725    4.569.725 
-----------------------------------  -------------------------  -----------  ----------- 
  Eurobank Ergasias SA                     SPDI Logistics        11.726.960   12.343.116 
-----------------------------------  -------------------------  -----------  ----------- 
  Piraeus Bank SA                         GreenLake-Phase 
                                                  2               2.525.938    2.525.938 
-----------------------------------  -------------------------  -----------  ----------- 
  Marfin Bank Romania                        Praktiker 
                                               Craiova            4.502.128    4.839.149 
-----------------------------------  -------------------------  -----------  ----------- 
  Loans by non-controlling 
   shareholders                                                           -    2.713.458 
-----------------------------------  -------------------------  -----------  ----------- 
  Loans from other 3(rd) 
   parties                                                          359.134            - 
-----------------------------------  -------------------------  -----------  ----------- 
  Overdrafts                                                          2.062       26.516 
--------------------------------------------------------------  -----------  ----------- 
 Total principal of bank 
  and non bank Loans                                             45.675.040   50.729.381 
-----------------------------------  -------------------------  -----------  ----------- 
  Restructuring fees and 
   interest payable to EBRD                                          29.898       32.767 
--------------------------------------------------------------  -----------  ----------- 
  Interest accrued on bank 
   loans                                                          2.723.889    2.175.165 
-----------------------------------  -------------------------  -----------  ----------- 
  Interests accrued on non-bank 
   loans                                                             46.627      743.466 
--------------------------------------------------------------  -----------  ----------- 
 Total                                                           48.475.454   53.680.779 
--------------------------------------------------------------  -----------  ----------- 
 
 
                         31 Dec       31 Dec 
                          2016         2015 
--------------------  -----------  ----------- 
                          EUR          EUR 
--------------------  -----------  ----------- 
 Current portion       31.580.299   27.417.220 
--------------------  -----------  ----------- 
 Non-current portion   16.895.155   26.263.559 
--------------------  -----------  ----------- 
 Total                 48.475.454   53.680.779 
--------------------  -----------  ----------- 
 

EBRD loan related to Terminal Brovary

According to the agreement the loan expires in 2022 and has a balloon payment of USD 3.633.333. The loan bears interest of 3 M LIBOR + 6,75%. Such loan has a maturity date in 2022 and following Terminal Brovary sale (Note 36a), the Company sold LLC Terminal Brovary with its assets and liabilities (EBRD loan included).

Under the current agreement the collaterals accompanying the existing loan facility are as follows:

1. LLC Terminal Brovary pledged all movable property with the carrying value more than USD 25.000.

2. LLC Terminal Brovary pledged its Investment property, Brovary Logistics Centre the construction of which was finished in 2010 (Note 12), and all property rights on the center.

3. SPDI PLC pledged 100% corporate rights in SL SECURE Logistics Ltd, a Cyprus Holding Company which is the Shareholder of LLC Terminal Brovary and LLC Aisi Brovary.

   4.      SL SECURE Logistics Ltd pledged 99% corporate rights in LLC Aisi Brovary. 
   5.      LLC Aisi Brovary pledged 100% corporate rights in LLC Terminal Brovary. 

6. LLC Terminal Brovary pledged all current and reserve accounts opened by LLC Terminal Brovary in Unicreditbank Ukraine.

7. LLC Aisi Brovary entered into a call and put option agreement with EBRD, pursuant to which following an Event of Default (as described in the Agreement) EBRD has the right (Call option) to purchase at the Call Price from LLC Aisi Brovary, 20% of the Participatory Interest of LLC Terminal Brovary on the relevant Settlement Date.

8. LLC Terminal Brovary has granted EBRD a second ranking mortgage in relation to its own and LLC Aisi Brovary's obligations under the call and put option agreement.

9. LLC Terminal Brovary has pledged its rights arising in connection with the existing Lease agreements with Tenants.

10. LLC Aisi Brovary has entered with EBRD into a conditional assignment agreement of 20% and 80% corporate rights in LLC Terminal Brovary.

11. SL SECURE Logistics Ltd has entered with EBRD into a conditional assignment agreement of 99% corporate rights in LLC Aisi Brovary.

12. SPDI PLC has issued a corporate guarantee dated 12 January 2009 guaranteeing all liabilities and fulfilment of conditions under the existing loan agreement remains in force. The maturity of the guarantee is equal to the maturity of the loan.

The existing credit agreement with EBRD includes among others the following requirements for LLC Terminal Brovary and the Group as a whole:

1. At all times LLC Brovary Logistics shall maintain a balance in the Debt Service Reserve Amount (DSRA) account equal to not less than the sum of all payments of principal and interest on the Loan which will be due and payable during the next six months.

2. LLC Terminal Brovary shall achieve a "CNRI"(Contract Net Rental Income is the aggregate of monthly lease payments, net of value added tax, contracted by the Borrower pursuant to the Lease Agreements as of the relevant testing date and converted into Dollars at the official exchange rate established by the National Bank of Ukraine as of such testing date) according to the following schedule:

(1) on 31 December 2015, CNRI of USD 230.000 or more; and

(2) on 30 June and 31 December in each year commencing on the date of 30 June 2016, CNRI of USD 250.000 or more, in respect of the six month period commencing on any such date.

3. LLC Terminal Brovary shall achieve a "DSCR"(Debt Service Coverage Ratio is the sum of net income minus operating expenses plus amortization, divided with the sum of paid principal & interest) according to the following schedule:

i. in respect of the 6 months period ending on 30 June 2015 and 31 December 2015, the DSCR of more than 1,15x.

ii.in respect of the 6 months period ending on 30 June or 31 December in any year commencing on the date of 30 June 2016, the DSCR of more than 1,2x.

Other bank Borrowings

SecMon Real Estate Srl (2011) entered into a loan agreement with Banca Comerciala Romana for a credit facility for financing part of the acquisition of the Monaco Towers Project apartments. As of the end of the reporting period the balance of the loan was EUR924.562 and bears interest of EURIBOR 3M plus 5%. In June 2016, Banca Comerciala Romana has assigned the loan, all rights and securities to Tonescu Finance SRL. The loan, which is currently expired, is secured by all assets of SecMon Real Estate Srl as well as its shares. The Group is in discussion with Tonescu Finance SRL for a potential restructuring.

Ketiza Real Estate Srl entered (2012) into a loan agreement with Bancpost SA for a credit facility for financing the acquisition of the Blooming House Project and 100% of the remaining (without VAT) construction works of Blooming House project. As of the end of the reporting period the balance of the loan was EUR1.245.657. The loan bears interest of EURIBOR 3M plus 3,5% and matures in May 2017. The Group is in discussion for extending the loan to 2020. The bank loan is secured by all assets of Ketiza Real Estate Srl as well as its shares and is being repaid through sales proceeds.

SecRom Real Estate Srl entered (2009) into a loan agreement with Alpha Bank Romania for a credit facility for financing part of the acquisition of the Doamna Ghica Project apartments. As of the end of the reporting period, the balance of the loan was EUR809.919, bears interest of EURIBOR 3M+5% and is repayable on the basis of investment property sales. The loan has a maturity date in March 2017 and the Group has been in discussions with the lender for a restructuring. Following an agreement with the bank the loan was extended in Q1-2017 for another 3 years. The loan is secured by all assets of SecRom Real Estate Srl as well as its shares and is being repaid through sales proceeds.

SecVista Real Estate Srl entered (2011) into a loan agreement with Raiffeisen Bank Romania for a credit facility for financing part of the acquisition of the Linda Residence Project apartments. Due to a bulk sale of all the apartment units of the said project in 2016, the loan was fully repaid in May 2016 and an amount of EUR326.937 was written off (Note 6b and 9).

Moselin Investments Srl (2010) entered into a construction loan agreement with Bancpost SA covering the construction works of Parcel K Green Lake project. As of the end of the reporting period the balance of the loan was EUR3.092.926 and bears interest of EURIBOR 3M plus 5%. The loan is repayable from the sales proceeds while it matures in June 2017. The Group is in discussion for extending the loan to 2022. The loan is secured with the property itself and the shares of Moselin Investments Srl and is being repaid through sales proceeds.

Boyana Residence ood entered (2011) into a loan agreement with Alpha Bank Bulgaria for a construction loan related to the construction of the Boyana Residence project (finished in 2014). As of the end of the reporting period the balance of the loan was EUR2.680.492 and bears interest of EURIBOR 3M plus 5,75%. The loan maturity was extended following negotiation with the bank to March 2019. The loan currently is being repaid through sales proceeds. The facility is secured through a mortgage over the property and a pledge over the company's shares as well as those of Sertland Properties Limited. The Company has provided corporate guarantees for this loan.

Sertland Properties Limited entered (2008) into a loan agreement with Alpha Bank Bulgaria for an acquisition loan related to the acquisition of 70% of Boyana Residence ood. As of the end of the reporting period the balance of the loan was EUR693.514 and bears interest of EURIBOR 3M plus 5,75%. The loan maturity was extended following negotiation with the bank to March 2019. The loan currently is being repaid through sales proceeds of Boyana Residence apartments. The loan is secured with a pledge on company's shares, and a corporate guarantee by SEC South East Continent Unique Real Estate (Secured) Investments Limited.

Delia Lebada Invest Srl, a subsidiary, entered into a loan agreement with the Bank of Cyprus Limited in 2007 to effectively finance a leveraged buy-out of the subsidiary by the Group. The principal balance of the loan as at the end of the reporting period was EUR4.569.725 (without any accrued interest and default penalty). As the loan is in default the bank has initiated insolvency procedures to take over the Pantelimon lake asset. The Group is currently in discussion with its partner and the bank in an effort to find an amicable settlement to the case. The Company has provided corporate guarantees for this loan.

SPDI Logistics SA entered (April 2015) into a loan agreement with EUROBANK SA to refinance the existing debt facility related to GED Logistics terminal. As of the end of the reporting period the balance of the loan is EUR11.726.960 and bears interest of EURIBOR 6M plus 3,2%+30% of the asset swap. The loan is repayable by 2022, has a balloon payment of EUR8.660.000 and is secured by all assets of SPDI Logistics SA as well as its shares.

SEC South East Continent Unique Real Estate (Secured) Investments Limited has a debt facility with Piraeus Bank (since 2007) for the acquisition of the Green Lake project land in Bucharest Romania. As of the end of the reporting period the balance of the loan was EUR2.525.938 (without any accrued interest and default penalty) and bears interest of EURIBOR 3M plus 4% plus the Greek law 128/78 0,6% contribution. The loan matured in February 2017 and the Group is in discussions with the bank for prolongation of the term of facility to 2022. The Company has provided corporate guarantees for this loan.

BlueBigBox3 srl (Praktiker Craiova) has a loan agreement with Marfin Bank Romania. As of the end of the reporting period the balance of the loan was EUR4.502.128 and bears interest of EURIBOR 6M plus 5% and 3M plus 4,5%. The loan which is repayable by 2025 with a balloon payment of EUR2.159.628 and is secured by the asset as well as the shares of BlueBigBox3 srl.

N-E Real Estate Park First Phase SRL entered in 2016 into a loan agreement with Alpha Bank Romania for a credit facility of EUR1.000.000 for working capital purposes. As of the end of the reporting period, the balance of the loan was EUR991.000, bears interest of EURIBOR 1M+4,5% and is repayable from the free cash flow resulting from the rental income of the related property. The loan matures in April 2024 and is secured by a second rank mortgage over assets of N-E Real Estate Park First Phase SRL as well as its shares.

Other non bank borrowing includes borrowings from non-controlling interests. During the last eight years and in order to support the GreenLake project the non controlling shareholders of Moselin and Rimasol Limited (other than the Group) have contributed their share of capital injections by means of shareholder loans. The loans bear interest between 5% and 7% annually and were repayable in 2016 and 2017. An amount of EUR2,7m from such loans as presented in 2015 financial statements has been agreed to be capitalized (the process is to be concluded within 2017) and therefore appears under equity section.

   25.    Trade and other payables 

The fair value of trade and other payables due within one year approximate their carrying amounts as presented below.

 
                                          31 Dec      31 Dec 
                                            2016        2015 
--------------------------------------  ----------  ---------- 
                                            EUR         EUR 
--------------------------------------  ----------  ---------- 
 Payables to third parties               4.734.924   6.209.235 
--------------------------------------  ----------  ---------- 
 Payables to related parties (Note 
  32.2)                                  1.146.150     743.200 
--------------------------------------  ----------  ---------- 
 Deferred income from tenants current      635.240      99.554 
--------------------------------------  ----------  ---------- 
 Accruals                                  536.160     259.031 
--------------------------------------  ----------  ---------- 
 Payables due for construction             436.819     405.904 
--------------------------------------  ----------  ---------- 
 Total                                   7.489.293   7.716.924 
--------------------------------------  ----------  ---------- 
 
 
                        31 Dec      31 Dec 
                          2016        2015 
--------------------  ----------  ---------- 
                          EUR         EUR 
--------------------  ----------  ---------- 
 Current portion       7.038.170   3.044.036 
--------------------  ----------  ---------- 
 Non-current portion     451.123   4.672.888 
--------------------  ----------  ---------- 
 Total                 7.489.293   7.716.924 
--------------------  ----------  ---------- 
 

Payables to third parties represents: a) payable balances to third party shareholders of entities where the Group maintains a participation. An amount of EUR4m has been been agreed to be capitalized during 2016 (the process is to be concluded within 2017) and therefore has been transferred under equity section, b) payables due to Bluehouse Capital as a result the Redeemable Convertible Class B share redemption (Note 18) that are under negotiation for a final settlement and c) amounts payable to various service providers including auditors, legal advisors, consultants and third party accountants related to the current operations of the Group.

Payables to related parties represent amounts due to board of directors and board committee members and accrued management remuneration as well as the balances with Secure Management Ltd and Grafton Properties (Note 32.2).

Deferred income from tenants represents advances from tenants which will be used as future rental income and utilities charges.

Accruals mainly include the accrued, administration fees, accounting fees, facility management and other fees payable to third parties for the year 2016 (expenses not invoiced within 2016) as well as legal fees for the sale of Terminal Brovary logistics which was finalized at the beginning of 2017.

Payables for construction represent amounts payable to the contractor of Bela Logistic Center in Odessa. The settlement was reached in late 2011 on the basis of maintaining the construction contract in an inactive state (to be reactivated at the option of the Group), while upon reactivation of the contract or termination of it (because of the sale of the asset) the Group would have to pay an additional UAH 5.400.000 (USD 160.000) payable upon such event occurring. Since it is uncertain when the latter amount is to be paid, it has been discounted at the current discount rates in Ukraine and is presented as a non-current liability. Payables for construction also include an amount of EUR245.000 payable to Boyana's constructor which has been withheld as Good Performance Guarantee.

   26.    Deposits from Tenants 
 
                                      31 Dec    31 Dec 
                                        2016      2015 
-----------------------------------  --------  -------- 
                                        EUR       EUR 
-----------------------------------  --------  -------- 
 Deposits from tenants non-current    217.328   623.770 
-----------------------------------  --------  -------- 
 Deposits from tenants current        271.019   132.684 
-----------------------------------  --------  -------- 
 Total                                488.347   756.454 
-----------------------------------  --------  -------- 
 

Deposits from tenants appearing under current and non-current liabilities include the amounts received from the tenants of ]Terminal Brovary Logistics, Innovations Logistics Park, EOS Business Park, Craiova Praktiker, GED Logistics and companies representing residential segment as advances/guarantees and are to be reimbursed to these clients at the expiration of the lease agreements.

   27.    Provisions and Taxes Payables 
 
                                          31 Dec      31 Dec 
                                            2016        2015 
--------------------------------------  ----------  ---------- 
                                            EUR         EUR 
--------------------------------------  ----------  ---------- 
 Corporate income tax                      648.825     482.389 
--------------------------------------  ----------  ---------- 
 Defence tax                                29.918      24.920 
--------------------------------------  ----------  ---------- 
 Other taxes including VAT payable         468.275     314.696 
--------------------------------------  ----------  ---------- 
 Provision (Notes 7, 33.3)                 742.166     724.445 
--------------------------------------  ----------  ---------- 
 Total Provisions and Tax Liabilities    1.889.184   1.546.450 
--------------------------------------  ----------  ---------- 
 

Corporate income tax represents taxes payable in Cyprus and Romania.

Other taxes represent local property taxes and VAT payable in Ukraine, Romania, Greece, Bulgaria and Cyprus.

   28.    Finance Lease Liabilities 

As at the reporting date the finance lease liabilities consist of the non-current portion of EUR11.081.379 and the current portion of EUR301.409 (31 December 2015: EUR11.273.639 and EUR192.083, accordingly).

 
 31 Dec 2016             Note             Minimum 
                                   lease payments     Interest     Principal 
----------------------  -------  ----------------  -----------  ------------ 
                                              EUR          EUR           EUR 
----------------------  -------  ----------------  -----------  ------------ 
                          35.2 
                            & 
 Less than one year       35.6            961.744      665.796       295.948 
----------------------  -------  ----------------  -----------  ------------ 
 Between two and                        3.754.280    2.138.258     1.616.022 
  five years 
----------------------  -------  ----------------  -----------  ------------ 
 More than five years                  11.822.949    2.477.889     9.345.060 
----------------------  -------  ----------------  -----------  ------------ 
                                       16.538.973    5.281.943    11.257.030 
----------------------  -------  ----------------  -----------  ------------ 
 Accrued Interest                                                    125.758 
-------------------------------  ----------------  -----------  ------------ 
 Total Finance Lease                                              11.382.788 
  Liabilities 
-------------------------------  ----------------  -----------  ------------ 
 
 
 31 Dec 2015             Note             Minimum 
                                   lease payments     Interest     Principal 
----------------------  -------  ----------------  -----------  ------------ 
                                              EUR          EUR           EUR 
----------------------  -------  ----------------  -----------  ------------ 
                          35.2 
 
                            & 
 Less than one year       35.6            775.146      586.626       188.520 
----------------------  -------  ----------------  -----------  ------------ 
 Between two and                        3.592.679    2.169.534     1.423.145 
  five years 
----------------------  -------  ----------------  -----------  ------------ 
 More than five years                  12.373.657    2.573.824     9.799.833 
----------------------  -------  ----------------  -----------  ------------ 
                                       16.741.482    5.329.984    11.411.498 
----------------------  -------  ----------------  -----------  ------------ 
 Accrued Interest                                                     54.224 
-------------------------------  ----------------  -----------  ------------ 
 Total Finance Lease                                              11.465.722 
  Liabilities 
-------------------------------  ----------------  -----------  ------------ 
 

28.1 Land Plots Financial Leasing

The Group rents in Ukraine land plots classified as finance leases. Lease obligations are denominated in UAH. The fair value of lease obligations approximate to their carrying amounts as presented above. Following the appropriate discounting finance lease liabilities are carried at EUR291.322 under current and non-current portion. The Group's obligations under finance leases are secured by the lessor's title to the leased assets.

28.2 Sale and Lease Back Agreements

   A.       Innovations Logistic Park 

In May 2014 the Group concluded the acquisition of Innovations Logistics Park in Bucharest, owned by Best Day Srl, through a sale and lease back agreement with Piraeus Leasing Romania SA. As of the end of the reporting period the balance is EUR7.308.731, bearing interest rate at 3M Euribor plus 4,45% margin, being repayable in monthly tranches until 2026 with a balloon payment of EUR5.244.926. At the maturity of the lease agreement Best Day SRL will become owner of the asset.

Under the current finance lease agreement the collaterals for the facility are as follows:

   1.        Best Day SRL pledged its future receivables from its tenants. 
   2.        Best Day SRL pledged its shares. 

3. Best Day SRL pledged all current and reserved accounts opened in Piraeus Leasing, Romania.

4. Best Day SRL is obliged to provide cash collateral in the amount of EUR250.000 in Piraeus Leasing Romania, which had been deposited as follows, half in May 2014 and half in May 2015.

5. SPDI provided a corporate guarantee in favor of the bank towards the liabilities of Best Day SRL arising from the sale and lease back agreement.

In late February 2017 the Group finally agreed and signed (following twelve months of discussions) an amended sale and lease back agreement with the Piraeus Leasing Romania for Innovations Logistics Park in Bucharest, governing the allocation of the Nestle Romania, early termination fee of EUR1,6 million payable to SPDI (Note 36b).

   B.       EOS Business Park 

In October 2014 the Group concluded the acquisition of EOS Business Park in Bucharest, owned by N-E Real Estate Park First Phase SRL, through a sale and lease back agreement with Alpha Bank Romania SA. As of the end of the reporting period the balance is EUR3.782.735 bearing interest rate at 3M Euribor plus 5,25% margin, being repayable in monthly tranches until 2024 with a balloon payment of EUR2.546.600. At the maturity of the lease agreement by N-E Real Estate Park First Phase SRL will become owner of the asset.

Under the current finance lease agreement the collaterals for the facility are as follows:

   1.        N-E Real Estate Park First Phase SRL pledged its future receivables from its tenants. 
   2.        N-E Real Estate Park First Phase SRL pledged Bank Guarantee receivables from its tenants. 
   3.        N-E Real Estate Park First Phase SRL pledged its shares. 

4. N-E Real Estate Park First Phase SRL pledged all current and reserved accounts opened in Alpha Bank Romania SA.

5. N-E Real Estate Park First Phase SRL is obliged to provide cash collateral in the amount of EUR300.000 in Alpha Bank Romania SA, starting from October 2019.

6. SPDI provided a corporate guarantee in favor of the bank towards the liabilities of N-E Real Estate Park First Phase SRL arising from the sales and lease back agreement.

   29.    Restructuring of the business 

During 2016 the non controlling shareholders of Moselin, Iuliu Maniu, Ram, Rimasol Ltd, Rimasol SRL, Ashor Limited, Ashor SRL, Ebenem Limited, Ebenem SRL, Jenby Limited and Jenby SRL (in agreement with the Group) agreed to capitalize the bigger part of their capital injections by means of shareholder loans and payables effected from 2008 onwards. An amount of EUR6.641.997 from such loans and payables have been transferred to the equity section while the process of capitalization will be finalized within 2017.

   30.     Earnings and net assets per share attributable to equity holders of the parent 
   a.        Weighted average number of ordinary shares 
 
                                                      31 Dec 2016   31 Dec 2015 
---------------------------------------------------  ------------  ------------ 
 Issued ordinary shares capital                        90.014.723    90.014.723 
---------------------------------------------------  ------------  ------------ 
 Weighted average number of ordinary shares (Basic)    90.014.723    69.460.155 
---------------------------------------------------  ------------  ------------ 
 Diluted weighted average number of ordinary shares   102.873.969    82.631.610 
---------------------------------------------------  ------------  ------------ 
 
   b.       Basic diluted and adjusted earnings per share 
 
 Earnings per share                                     31 Dec 2016     31 Dec 2015 
-----------------------------------------------------  ------------  -------------- 
                                                            EUR            EUR 
-----------------------------------------------------  ------------  -------------- 
 Loss after tax attributable to owners of the parent    (2.363.693)    (11.015.852) 
-----------------------------------------------------  ------------  -------------- 
 Basic                                                       (0,03)          (0,16) 
-----------------------------------------------------  ------------  -------------- 
 Diluted                                                     (0,02)          (0,13) 
-----------------------------------------------------  ------------  -------------- 
 
   c.        Net assets per share 
 
 Net assets per share                                       31 Dec 2016   31 Dec 2015 
---------------------------------------------------------  ------------  ------------ 
                                                                EUR           EUR 
---------------------------------------------------------  ------------  ------------ 
 Net assets attributable to equity holders of the parent     38.924.809    42.433.125 
---------------------------------------------------------  ------------  ------------ 
 Number of ordinary shares                                   90.014.723    90.014.723 
---------------------------------------------------------  ------------  ------------ 
 Diluted number of ordinary shares                          102.873.969   102.873.969 
---------------------------------------------------------  ------------  ------------ 
 Basic                                                             0,43          0,47 
---------------------------------------------------------  ------------  ------------ 
 Diluted                                                           0,38          0,41 
---------------------------------------------------------  ------------  ------------ 
 
   31.    Segment information 

All commercial and financial information related to the properties held directly or indirectly by the Group is being provided to members of executive management who report to the Board of Directors. Such information relates to rentals, valuations, income, costs and capital expenditures. The individual properties are aggregated into segments based on the economic nature of the property. For the reporting period the Group has identified the following material reportable segments:

Commercial-Industrial

-- Warehouse segment - GED Logistics, Innovations Logistics Park, Terminal Brovary Logistics Park

   --              Office segment - Eos Business Park - Delea Nuova (Associate) 
   --              Retail segment - Craiova Praktiker 

Residential

   --               Residential segment 

Land Assets

   --              Land assets 

There are no sales between the segments.

Segment assets for the investment properties segments represent investment property (including investment properties under development and prepayments made for the investment properties). Segment liabilities represent interest bearing borrowings, finance lease liabilities and deposits from tenants.

Profit and Loss for the year 2016

 
                              Warehouse    Office      Retail     Residential     Land         Total 
                                                                                  Plots 
---------------------------  ----------  ----------  ----------  ------------  ----------  ------------ 
                                 EUR         EUR         EUR          EUR          EUR          EUR 
---------------------------  ----------  ----------  ----------  ------------  ----------  ------------ 
 Segment profit 
---------------------------  ----------  ----------  ----------  ------------  ----------  ------------ 
 Property Sales income 
  (Note 6)                            -           -           -     3.196.381           -     3.196.381 
---------------------------  ----------  ----------  ----------  ------------  ----------  ------------ 
 Cost of Property 
  sold (Note 6)                       -           -           -   (4.003.804)           -   (4.003.804) 
---------------------------  ----------  ----------  ----------  ------------  ----------  ------------ 
 Rental income (Note 
  2)                          4.022.457     579.894     545.564       114.692           -     5.262.607 
---------------------------  ----------  ----------  ----------  ------------  ----------  ------------ 
 Service charges 
  and utilities income 
  (Note 2)                      374.497      66.784           -        17.367           -       458.648 
---------------------------  ----------  ----------  ----------  ------------  ----------  ------------ 
 Sale of electricity 
  (Note 2)                      315.599           -           -             -           -       315.599 
---------------------------  ----------  ----------  ----------  ------------  ----------  ------------ 
 Asset Management 
  fees (Note 2)                       -           -           -        34.086           -        34.086 
---------------------------  ----------  ----------  ----------  ------------  ----------  ------------ 
 Valuation gains/(losses) 
  from investment 
  property (Note 5)             176.550     337.684     329.975       133.131    (80.547)       896.793 
---------------------------  ----------  ----------  ----------  ------------  ----------  ------------ 
 Share of profits/(losses) 
  from associates 
  (Note 14)                                 469.248           -             -           -       469.248 
---------------------------  ----------  ----------  ----------  ------------  ----------  ------------ 
 Result on disposal 
  of available for 
  sale financial assets 
  (Note 18)                           -   (206.491)           -             -           -     (206.491) 
---------------------------  ----------  ----------  ----------  ------------  ----------  ------------ 
 Asset operating 
  expenses (Note 3)           (530.020)    (71.045)   (111.500)      (80.429)   (199.447)     (992.441) 
---------------------------  ----------  ----------  ----------  ------------  ----------  ------------ 
 Impairment of inventory 
  and provisions (Note 
  7)                                  -           -           -      (63.513)           -      (63.513) 
---------------------------  ----------  ----------  ----------  ------------  ----------  ------------ 
 Segment profit               4.359.083   1.176.074     764.039     (652.089)   (279.994)     5.367.113 
---------------------------  ----------  ----------  ----------  ------------  ----------  ------------ 
 Administration expenses 
  (Note 4)                                                                                  (2.614.188) 
---------------------------  ----------  ----------  ----------  ------------  ----------  ------------ 
 Other (expenses)/income, 
  net (Note 8)                                                                              (1.304.304) 
---------------------------  ----------  ----------  ----------  ------------  ----------  ------------ 
 Finance income(Note 
  9) (Note 6)                                                                                 1.153.243 
---------------------------  ----------  ----------  ----------  ------------  ----------  ------------ 
 Interest expenses 
  (Note 9)                                                                                  (3.571.387) 
---------------------------  ----------  ----------  ----------  ------------  ----------  ------------ 
 Other finance costs 
  (Note 9)                                                                                    (167.564) 
---------------------------  ----------  ----------  ----------  ------------  ----------  ------------ 
 Foreign exchange 
  losses, net (Note 
  10a)                                                                                      (1.041.239) 
---------------------------  ----------  ----------  ----------  ------------  ----------  ------------ 
 Income tax expense 
  (Note 11)                                                                                   (174.315) 
---------------------------  ----------  ----------  ----------  ------------  ----------  ------------ 
 Exchange difference 
  on I/C loan to foreign 
  holdings (Note 10b)                                                                       (4.167.542) 
---------------------------  ----------  ----------  ----------  ------------  ----------  ------------ 
 Exchange difference 
  on translation foreign 
  holdings (Note 22)                                                                          3.508.448 
---------------------------  ----------  ----------  ----------  ------------  ----------  ------------ 
 Available-for-sale 
  financial assets 
  - Profit transferred 
  to net profit due 
  to disposal                                                                                 (485.529) 
---------------------------  ----------  ----------  ----------  ------------  ----------  ------------ 
 Total Comprehensive 
  Income                                                                                    (3.497.264) 
---------------------------  ----------  ----------  ----------  ------------  ----------  ------------ 
 

Profit and Loss for the year 2015

 
                                 Warehouse    Office       Retail      Residential      Land          Total 
                                                                                        Plots 
------------------------------  ----------  ----------  ------------  ------------  ------------  ------------- 
                                    EUR         EUR          EUR           EUR           EUR           EUR 
------------------------------  ----------  ----------  ------------  ------------  ------------  ------------- 
 Segment profit 
------------------------------  ----------  ----------  ------------  ------------  ------------  ------------- 
 Property Sales income 
  (Note 6)                               -           -             -     1.725.326             -      1.725.326 
------------------------------  ----------  ----------  ------------  ------------  ------------  ------------- 
 Cost of sales (Note 
  6)                                     -           -             -   (2.043.649)             -    (2.043.649) 
------------------------------  ----------  ----------  ------------  ------------  ------------  ------------- 
 Rental income (Note 
  2)                             3.627.698     523.013       258.191       196.120             -      4.605.022 
------------------------------  ----------  ----------  ------------  ------------  ------------  ------------- 
 Service charges 
  and utilities income 
  (Note 2)                         470.413      75.563             -             -             -        545.976 
------------------------------  ----------  ----------  ------------  ------------  ------------  ------------- 
 Sale of electricity 
  (Note 2)                         297.962           -             -             -             -        297.962 
------------------------------  ----------  ----------  ------------  ------------  ------------  ------------- 
 Valuation gains/(losses) 
  from investment 
  property (Note 5)               (89.178)     150.000   (2.870.000)       251.500       222.431    (2.335.247) 
------------------------------  ----------  ----------  ------------  ------------  ------------  ------------- 
 Gain realized on 
  acquisition of subsidiaries 
  (Note 13)                      1.552.134           -             -             -             -      1.552.134 
------------------------------  ----------  ----------  ------------  ------------  ------------  ------------- 
 Share of profits/(losses) 
  from associates 
  (Note 14)                                  (705.232)             -             -     (539.340)    (1.244.572) 
------------------------------  ----------  ----------  ------------  ------------  ------------  ------------- 
 Asset operating 
  expenses (Note 3)              (622.699)   (155.931)      (31.010)     (156.863)     (158.080)    (1.124.583) 
------------------------------  ----------  ----------  ------------  ------------  ------------  ------------- 
 Impairment of inventory 
  and provisions (Note 
  7)                                     -           -             -             -   (1.675.659)    (1.675.659) 
------------------------------  ----------  ----------  ------------  ------------  ------------  ------------- 
 Goodwill impairment 
  (Note 13b)                                  (43.269)     (613.813)                                  (657.082) 
------------------------------  ----------  ----------  ------------  ------------  ------------  ------------- 
 Segment profit                  5.236.330   (155.856)   (3.256.632)      (27.566)   (2.150.648)      (354.372) 
------------------------------  ----------  ----------  ------------  ------------  ------------  ------------- 
 Gain realized on 
  acquisition of subsidiaries 
  (Note 13)                                                                                             629.700 
------------------------------  ----------  ----------  ------------  ------------  ------------  ------------- 
 Administration expenses 
  (Note 4)                                                                                          (3.013.942) 
------------------------------  ----------  ----------  ------------  ------------  ------------  ------------- 
 Other (expenses)/income, 
  net (Note 8)                                                                                          653.856 
------------------------------  ----------  ----------  ------------  ------------  ------------  ------------- 
 Finance income (Note 
  9)                                                                                                     63.596 
------------------------------  ----------  ----------  ------------  ------------  ------------  ------------- 
 Interest expenses 
  (Note 9)                                                                                          (3.834.696) 
------------------------------  ----------  ----------  ------------  ------------  ------------  ------------- 
 Other finance costs 
  (Note 9)                                                                                            (603.495) 
------------------------------  ----------  ----------  ------------  ------------  ------------  ------------- 
 Foreign exchange 
  losses, net (Note 
  10a)                                                                                              (5.071.048) 
------------------------------  ----------  ----------  ------------  ------------  ------------  ------------- 
 Income tax expense 
  (Note 11)                                                                                            (80.188) 
------------------------------  ----------  ----------  ------------  ------------  ------------  ------------- 
 Exchange difference 
  on I/C loan to foreign 
  holdings (Note 10b)                                                                              (13.653.402) 
------------------------------  ----------  ----------  ------------  ------------  ------------  ------------- 
 Exchange difference 
  on translation foreign 
  holdings (Note 22)                                                                                  8.064.848 
------------------------------  ----------  ----------  ------------  ------------  ------------  ------------- 
 Available for sale 
  financial assets 
  gains (Note 18)                                                                                       485.529 
------------------------------  ----------  ----------  ------------  ------------  ------------  ------------- 
 Total Comprehensive 
  Income                                                                                           (16.713.614) 
------------------------------  ----------  ----------  ------------  ------------  ------------  ------------- 
 

Balance Sheet as at 31 December 2016

 
                          Warehouse      Office      Retail     Residential      Land      Corporate      Total 
                                                                                 plots 
-----------------------  -----------  -----------  ----------  ------------  -----------  ----------  ------------ 
                             EUR          EUR          EUR          EUR          EUR                       EUR 
-----------------------  -----------  -----------  ----------  ------------  -----------  ----------  ------------ 
 Assets 
-----------------------  -----------  -----------  ----------  ------------  -----------  ----------  ------------ 
 Investment                                                                                        - 
  properties              42.400.000    6.860.000   7.500.000     4.375.000   34.519.207                95.654.207 
-----------------------  -----------  -----------  ----------  ------------  -----------  ----------  ------------ 
 Investment 
  properties                                                                                       - 
  under development                -            -           -             -    5.027.986                 5.027.986 
-----------------------  -----------  -----------  ----------  ------------  -----------  ----------  ------------ 
 Long-term receivables 
  and prepayments            350.000            -           -           309            -         872       351.181 
-----------------------  -----------  -----------  ----------  ------------  -----------  ----------  ------------ 
 Investments                                                                                       - 
  in associates                    -    5.217.310           -             -            -                 5.217.310 
-----------------------  -----------  -----------  ----------  ------------  -----------  ----------  ------------ 
 Inventory                         -            -           -     5.028.254            -           -     5.028.254 
-----------------------  -----------  -----------  ----------  ------------  -----------  ----------  ------------ 
 Segment assets           42.750.000   12.077.310   7.500.000     9.403.563   39.547.193         872   111.278.938 
-----------------------  -----------  -----------  ----------  ------------  -----------  ----------  ------------ 
 
 
 Tangible and 
  intangible 
  assets                                                                                            129.396 
---------------------  -----------  ----------  ----------  ----------  -----------  --------  ------------ 
 Prepayments 
  and other current 
  assets                                                                                          2.778.361 
---------------------  -----------  ----------  ----------  ----------  -----------  --------  ------------ 
 Cash and cash 
  equivalents                                                                                     1.701.007 
---------------------  -----------  ----------  ----------  ----------  -----------  --------  ------------ 
 Total assets                                                                                   115.887.702 
---------------------  -----------  ----------  ----------  ----------  -----------  --------  ------------ 
 
 Borrowings             23.308.195     991.176   4.518.976   3.063.513   16.219.462   374.132    48.475.454 
---------------------  -----------  ----------  ----------  ----------  -----------  --------  ------------ 
 Finance lease 
  liabilities            7.550.279   3.782.735           -           -       49.774              11.382.788 
---------------------  -----------  ----------  ----------  ----------  -----------  --------  ------------ 
 Deposits from 
  tenants                  451.640           -           -      36.707            -                 488.347 
---------------------  -----------  ----------  ----------  ----------  -----------  --------  ------------ 
 Redeemable 
  preference 
  shares                         -           -           -           -            -                       - 
---------------------  -----------  ----------  ----------  ----------  -----------  --------  ------------ 
 Segment liabilities    31.310.114   4.773.911   4.518.976   3.100.220   16.269.236   374.132    60.346.589 
---------------------  -----------  ----------  ----------  ----------  -----------  --------  ------------ 
 Trade and other 
  payables                       -           -           -           -            -               7.489.293 
---------------------  -----------  ----------  ----------  ----------  -----------  --------  ------------ 
 Taxes payable 
  and provisions                 -           -           -           -            -               1.889.184 
---------------------  -----------  ----------  ----------  ----------  -----------  --------  ------------ 
 Total liabilities      31.310.114   4.773.911   4.518.976   3.100.220   16.269.236   374.132    69.725.066 
---------------------  -----------  ----------  ----------  ----------  -----------  --------  ------------ 
 

Balance Sheet as at 31 December 2015

 
                          Warehouse      Office      Retail     Residential      Land         Total 
                                                                                 plots 
-----------------------  -----------  -----------  ----------  ------------  -----------  ------------ 
                             EUR          EUR          EUR          EUR          EUR           EUR 
-----------------------  -----------  -----------  ----------  ------------  -----------  ------------ 
 Assets 
-----------------------  -----------  -----------  ----------  ------------  -----------  ------------ 
 Investment properties    43.164.324    6.550.000   7.200.000     6.847.538   30.578.609    94.340.471 
-----------------------  -----------  -----------  ----------  ------------  -----------  ------------ 
 Investment properties 
  under development                -            -           -             -    5.125.389     5.125.389 
-----------------------  -----------  -----------  ----------  ------------  -----------  ------------ 
 Long-term receivables 
  and prepayments            350.000            -           -         1.185        1.731       352.916 
-----------------------  -----------  -----------  ----------  ------------  -----------  ------------ 
 Goodwill                          -            -           -             -            -             - 
-----------------------  -----------  -----------  ----------  ------------  -----------  ------------ 
 Investments in 
  associates                       -    4.887.943           -             -            1     4.887.944 
-----------------------  -----------  -----------  ----------  ------------  -----------  ------------ 
 Available-for-sale 
  financial assets                 -    2.783.535           -             -            -     2.783.535 
-----------------------  -----------  -----------  ----------  ------------  -----------  ------------ 
 Inventory                         -            -           -     6.990.150    4.309.850    11.300.000 
-----------------------  -----------  -----------  ----------  ------------  -----------  ------------ 
 Segment assets           43.514.324   14.221.478   7.200.000    13.838.873   40.015.580   118.790.255 
-----------------------  -----------  -----------  ----------  ------------  -----------  ------------ 
 
 
 Tangible and 
  intangible assets                                                                          164.617 
-----------------------  -----------  ----------  -----------  ----------  -----------  ------------ 
 Prepayments and 
  other current 
  assets                                                                                   4.795.223 
-----------------------  -----------  ----------  -----------  ----------  -----------  ------------ 
 Cash and cash 
  equivalents                                                                                895.422 
-----------------------  -----------  ----------  -----------  ----------  -----------  ------------ 
 Total assets                                                                            124.645.517 
-----------------------  -----------  ----------  -----------  ----------  -----------  ------------ 
 
 Borrowings               24.539.925           -    4.839.149   4.586.129   19.715.576    53.680.779 
-----------------------  -----------  ----------  -----------  ----------  -----------  ------------ 
 Finance lease 
  liabilities              7.508.988   3.889.870            -           -       66.864    11.465.722 
-----------------------  -----------  ----------  -----------  ----------  -----------  ------------ 
 Deposits from 
  tenants                    614.018           -            -      37.444      104.992       756.454 
-----------------------  -----------  ----------  -----------  ----------  -----------  ------------ 
 Redeemable preference 
  shares                     349.325           -    6.081.211           -            -     6.430.536 
-----------------------  -----------  ----------  -----------  ----------  -----------  ------------ 
 Segment liabilities      33.012.256   3.889.870   10.920.360   4.623.573   19.887.432    72.333.491 
-----------------------  -----------  ----------  -----------  ----------  -----------  ------------ 
 Trade and other 
  payables                         -           -            -           -            -     7.716.924 
-----------------------  -----------  ----------  -----------  ----------  -----------  ------------ 
 Taxes payable 
  and provisions                   -           -            -           -            -     1.546.450 
-----------------------  -----------  ----------  -----------  ----------  -----------  ------------ 
 Total liabilities        33.012.256   3.889.870   10.920.360   4.623.573   19.887.432    81.596.865 
-----------------------  -----------  ----------  -----------  ----------  -----------  ------------ 
 

Geographical information

 
 Income from Rental Contracts (Note        31 Dec      31 Dec 
  2)                                         2016        2015 
---------------------------------------  ----------  ---------- 
                                             EUR         EUR 
---------------------------------------  ----------  ---------- 
 Ukraine                                  1.559.878   1.835.181 
---------------------------------------  ----------  ---------- 
 Romania                                  3.031.037   2.449.009 
---------------------------------------  ----------  ---------- 
 Greece                                   1.478.702   1.163.832 
---------------------------------------  ----------  ---------- 
 Bulgaria                                     1.323         938 
---------------------------------------  ----------  ---------- 
 Total                                    6.070.940   5.448.960 
---------------------------------------  ----------  ---------- 
 
 Loss from disposal of inventory (Note 
  6a) 
---------------------------------------  ----------  ---------- 
                                             EUR         EUR 
---------------------------------------  ----------  ---------- 
 Bulgaria                                 (368.907)    (51.359) 
---------------------------------------  ----------  ---------- 
 Total                                    (368.907)    (51.359) 
---------------------------------------  ----------  ---------- 
 
 Loss from disposal of investment 
  properties (Note 6b) 
---------------------------------------  ----------  ---------- 
 
 Romania                                  (438.516)   (266.964) 
---------------------------------------  ----------  ---------- 
 Total                                    (438.516)   (266.964) 
---------------------------------------  ----------  ---------- 
 
 
                                              31 Dec        31 Dec 
                                                2016          2015 
--------------------------------------  ------------  ------------ 
                                             EUR           EUR 
--------------------------------------  ------------  ------------ 
 Carrying amount of assets (investment 
  properties, associates, inventory 
  and available for sale investments) 
--------------------------------------  ------------  ------------ 
 Ukraine                                  26.948.193    24.349.860 
--------------------------------------  ------------  ------------ 
 Romania                                  57.731.310    63.503.944 
--------------------------------------  ------------  ------------ 
 Greece                                   16.500.000    16.600.000 
--------------------------------------  ------------  ------------ 
 Bulgaria                                  9.748.254    14.083.535 
--------------------------------------  ------------  ------------ 
 Total                                   110.927.757   118.537.339 
--------------------------------------  ------------  ------------ 
 
   32.    Related Party Transactions 

The following transactions were carried out with related parties:

32.1 Income/ Expense

32.1.1 Income

 
                                            31 Dec   31 Dec 
                                             2016     2015 
-----------------------------------------  -------  ------- 
                                             EUR      EUR 
-----------------------------------------  -------  ------- 
 Interest income on loan to related 
  parties                                   52.533   46.675 
-----------------------------------------  -------  ------- 
 Interest Income from loan to associates     9.392    2.055 
-----------------------------------------  -------  ------- 
 Total                                      61.925   48.730 
-----------------------------------------  -------  ------- 
 

Interest income on loan to related parties relates to interest income from Bluehouse V until October 2016 when the investment was disposed and interest income from associates relates to interest income from GreenLake Development SRL.

32.1.2 Expenses

 
                                        31 Dec     31 Dec 
                                          2016       2015 
-------------------------------------  --------  ---------- 
                                          EUR        EUR 
-------------------------------------  --------  ---------- 
 Board of Directors                     140.779     278.417 
-------------------------------------  --------  ---------- 
 Management Remuneration                721.305     863.810 
-------------------------------------  --------  ---------- 
 Interest expenses on Narrowpeak and     14.996           - 
  Secure Management Limited loan 
-------------------------------------  --------  ---------- 
 Back office expenses                    24.560       8.874 
-------------------------------------  --------  ---------- 
 Total                                  901.640   1.151.100 
-------------------------------------  --------  ---------- 
 

Board of Directors expense includes the remuneration of all Non-Executive Directors and committee members for H1-2016. Following a BOD decision the Directors will receive no remuneration thereon.

 
 Name                     Position                  2016 Remuneration   2015 Remuneration 
                                                          (EUR)               (EUR) 
-----------------------  ------------------------  ------------------  ------------------ 
 Paul Ensor               Chairman                             16.352              33.132 
-----------------------  ------------------------  ------------------  ------------------ 
 Barseghyan 
  Vagharshak              Non-Executive Director               16.352              16.921 
-----------------------  ------------------------  ------------------  ------------------ 
 Ian Domaille             Non-Executive Director               22.280              45.141 
-----------------------  ------------------------  ------------------  ------------------ 
 Franz Horhager           Non-Executive Director               16.352              33.132 
-----------------------  ------------------------  ------------------  ------------------ 
 Antonios Kaffas          Non-Executive Director               18.805              38.101 
-----------------------  ------------------------  ------------------  ------------------ 
 Kalypso Maria 
  Nomikou                 Non-Executive Director               16.352              16.921 
-----------------------  ------------------------  ------------------  ------------------ 
 Alvaro Portela           Non-Executive Director               16.352              33.132 
-----------------------  ------------------------  ------------------  ------------------ 
 Harin Thaker             Non-Executive Director               17.934              34.055 
-----------------------  ------------------------  ------------------  ------------------ 
                          Non-Executive Director 
 Antonios Achilleoudis     until 22 July 2015                       -              14.383 
-----------------------  ------------------------  ------------------  ------------------ 
                          Non-Executive Director 
 Robert Sinclair           until 22 July 2015                       -              13.499 
-----------------------  ------------------------  ------------------  ------------------ 
 

Management remuneration includes the remuneration of the CEO, the CFO, the Group Commercial Director, the Group Investment Director and that of the Country Managers of Ukraine and Romania pursuant to the decisions of the remuneration committee.

32.2 Payables to related parties (Note 25)

 
                                     31 Dec     31 Dec 
                                       2016       2015 
---------------------------------  ----------  -------- 
                                       EUR        EUR 
---------------------------------  ----------  -------- 
 Board of Directors & Committees      619.562   475.389 
---------------------------------  ----------  -------- 
 Grafton Properties                   123.549   123.549 
---------------------------------  ----------  -------- 
 Secure Management Services Ltd        15.179         - 
---------------------------------  ----------  -------- 
 SECURE Management Ltd                  1.062     1.062 
---------------------------------  ----------  -------- 
 Management Remuneration              386.798   143.200 
---------------------------------  ----------  -------- 
 Total                              1.146.150   743.200 
---------------------------------  ----------  -------- 
 

32.2.1 Board of Directors & Committees

The amount payable represents remuneration payable to Non-Executive Directors until the end of the reporting period. The members of the Board of Directors pursuant to a recommendation by the remuneration committee and in order to facilitate the Company's cash flow, will receive part of their payment in exchange for shares in the Company's capital.

32.2.2 Loan payable to Grafton Properties

During the Company restructuring in 2011 and under the Settlement Agreement of July 2011, the Company undertook the obligation to repay to certain lenders who had contributed funds for the operating needs of the Company between 2009-2011, by lending to AISI Realty Capital LLC as the SC Secure Capital Ltd was named then, the total amount of USD 450.000. As of the reporting date the liability towards Grafton Properties, representing the Lenders, was USD 150.000, which is contingent on the Group raising USD 50m of capital in the markets.

32.2.3 Management Remuneration

Management Remuneration represents deferred amounts payable to the CEO and CFO of the Company, as well as the Group Commercial Director, the Group Investment Director and the Country Managers for Romania and Ukraine.

32.3 Loans from SC Secure Capital Ltd to the Group's subsidiaries

SC Secure Capital Ltd, the finance subsidiary of the Group provided capital in the form of loans to the Ukrainian subsidiaries of the Company so as to support the acquisition of assets, development expenses of the projects, as well as various operational costs.

 
 Borrower                       Limit      Principal    Principal 
                                -as of        as of        as of 
                                31 Dec       31 Dec       31 Dec 
                                 2016         2016         2015 
--------------------------  ------------  -----------  ----------- 
                                 EUR          EUR          EUR 
--------------------------  ------------  -----------  ----------- 
 LLC "TERMINAL BROVARY"       30.724.931   30.724.931   26.798.804 
--------------------------  ------------  -----------  ----------- 
 LLC "AISI UKRAINE"           23.062.351       14.257       12.275 
--------------------------  ------------  -----------  ----------- 
 LLC "ALMAZ PRES UKRAINE"      8.236.554      162.633      140.021 
--------------------------  ------------  -----------  ----------- 
 Total                                     30.901.821   26.951.101 
----------------------------------------  -----------  ----------- 
 

All loans from SC Secure Capital Ltd to the Group's subsidiaries are USD denominated and in 2016 they generated a foreign exchange loss totaling EUR4.167.542 as a result of the devaluation of the Ukrainian Hryvnia during the reporting period. As settlement of these loans is not likely to occur in the foreseeable future and in substance is part of the Group's net investment in its foreign operations, the foreign exchange loss is recognised in other comprehensive income.

In that context SC Secure Capital Ltd has provided a loan to Limited Liability Company "Terminal Brovary" whose outstanding capital at the reporting date was EUR30.724.931. This loan was transferred to SL SECURE Logistics Limited by the end of 2016. This loan is expected to be transferred together with the sale of Terminal Brovary to the buyer (Note 36a).

A potential Ukrainian Hryvnia weakening/strengthening by 10% against the US dollar with all other variables held constant, would result in an exchange difference on I/C loans to foreign holdings of (EUR3.090.182)/ EUR3.090.182 respectively, estimated on balances held at 31 December 2016.

32.4 Loans to associates

 
                                       31 Dec    31 Dec 
                                         2016      2015 
------------------------------------  --------  -------- 
                                         EUR       EUR 
------------------------------------  --------  -------- 
 Loans to Greenlake Development SRL    264.110   254.718 
------------------------------------  --------  -------- 
 Total                                 264.110   254.718 
------------------------------------  --------  -------- 
 

The loan was given to GreenLake Development SRL from Edetrio Holdings Limited. The agreement was signed on 17 February 2012 and bears interest 5%. The maturity date is 30 April 2018.

   33.    Contingent Liabilities 

33.1 Tax Litigation

The Group performed during the reporting period a part of its operations in the Ukraine, within the jurisdiction of the Ukrainian tax authorities. The Ukrainian tax system can be characterized by numerous taxes and frequently changing legislation, which may be applied retroactively, open to wide and in some cases, conflicting interpretation. Instances of inconsistent opinions between local, regional, and national tax authorities and between the National Bank of Ukraine and the Ministry of Finance are not unusual. Tax declarations are subject to review and investigation by a number of authorities, which are authorised by law to impose severe fines and penalties and interest charges. Any tax year remains open for review by the tax authorities during the three subsequent calendar years; however, under certain circumstances a tax year may remain open for longer.

The Group performed during the reporting period part of its operations also in Romania, Greece and Bulgaria. In respect of Romanian, Bulgarian and Greek taxation systems all are subject to varying interpretation and to constant changes, which may be retroactive. In certain circumstances the tax authorities can be arbitrary in certain cases.

These facts create tax risks which are substantially more significant than those typically found in countries with more developed tax systems. Management believes that it has adequately provided for tax liabilities, based on its interpretation of tax legislation, official pronouncements and court decisions. However, the interpretations of the relevant authorities could differ and the effect on these consolidated financial statements, if the authorities were successful in enforcing their interpretations, could be significant.

At the same time the Group's entities are involved in court proceedings with tax authorities; Management believes that the estimates provided within the financial statements present a reasonable estimate of the outcome of these court cases.

33.2 Construction related litigation

There are no material claims from contractors due to the postponement of projects or delayed delivery other than those disclosed in the financial statements.

33.3 Delia Lebada SRL debt towards Bank of Cyprus

Sec South East Continent Unique Real Estate (SECURED) Investment Ltd has provided in 2007 a corporate guarantee to the Bank of Cyprus in respect to the loan provided by the latter to its subsidiary Delia Lebada SRL, the owner of the Pantelimon Lake plot (Note 12). As the loan is in default, the bank has initiated an insolvency procedure. Depending on the final outcome of the procedure (that may include an auctioning of the plot), the Bank may call the difference between the price received from the auction and EUR6.594.396 which is the total liability (out of which EUR4.569.725 is the principal and the remaining relates to interest, overdues and penalties). The Group is in discussions with the bank and its partner in the project to find an amicable settlement to the case. Management believes that the case has been adequately being provided for.

33.4 Other Litigation

The Group has a number of legal cases pending. Management does not believe that the result of these will have a substantial overall effect on the Group's financial position. Consequently no such provision is included in the current financial statements.

33.5 Other Contingent Liabilities

The Group had no other contingent liabilities as at 31 December 2016.

   34.    Commitments 

The Group had no other commitments as at 31 December 2016.

   35.    Financial Risk Management 

35.1 Capital Risk Management

The Group manages its capital to ensure adequate liquidity will being able to implement its stated growth strategy in order to maximize the return to stakeholders through the optimization of the debt-equity structure and value enhancing actions in respect of its portfolio of investments. The capital structure of the Group consists of borrowings (Note 24), trade and other payables (Note 25) deposits from tenants (Note 26), financial leases (Note 28), taxes payable (Note 27) and equity attributable to ordinary or preferred shareholders. The Group is not subject to any externally imposed capital requirements, but certain of its cash balances are restricted (Note 20).

Management reviews the capital structure on an on-going basis. As part of the review Management considers the differential capital costs in the debt and equity markets, the timing at which each investment project requires funding and the operating requirements so as to proactively provide for capital either in the form of equity (issuance of shares to the Group's shareholders) or in the form of debt. Management balances the capital structure of the Group with a view of maximizing the shareholder's Return on Equity (ROE) while adhering to the operational requirements of the property assets and exercising prudent judgment as to the extent of gearing.

35.2 Categories of Financial Instruments

 
                                          Note     31 Dec       31 Dec 
                                                    2016         2015 
---------------------------------------  -----  -----------  ----------- 
                                                    EUR          EUR 
---------------------------------------  -----  -----------  ----------- 
 Financial Assets 
---------------------------------------  -----  -----------  ----------- 
 Cash at Bank                              20     1.701.007      895.422 
---------------------------------------  -----  -----------  ----------- 
 Long-term Receivables and prepayments     16       351.181      352.916 
---------------------------------------  -----  -----------  ----------- 
 Prepayments and other receivables         19     2.778.361    4.795.223 
---------------------------------------  -----  -----------  ----------- 
 Available for sale investments            18             -    2.783.535 
---------------------------------------  -----  -----------  ----------- 
 Total                                            4.830.549    8.827.096 
---------------------------------------  -----  -----------  ----------- 
 
 Financial Liabilities 
---------------------------------------  -----  -----------  ----------- 
 Borrowings                                24    48.475.454   53.680.779 
---------------------------------------  -----  -----------  ----------- 
 Trade and other payables                  25     7.489.293    7.716.924 
---------------------------------------  -----  -----------  ----------- 
 Deposits from tenants                     26       488.347      756.454 
---------------------------------------  -----  -----------  ----------- 
 Finance lease liabilities                 28    11.382.788   11.465.722 
---------------------------------------  -----  -----------  ----------- 
 Taxes payable and provisions              27     1.889.184    1.546.450 
---------------------------------------  -----  -----------  ----------- 
 Redeemable preference shares              21             -    6.430.536 
---------------------------------------  -----  -----------  ----------- 
 Total                                           69.725.066   81.596.865 
---------------------------------------  -----  -----------  ----------- 
 

35.3 Financial Risk Management Objectives

The Group's Treasury function provides services to its various corporate entities, coordinates access to local and international financial markets, monitors and manages the financial risks relating to the operations of the Group, mainly the investing and development functions. Its primary goal is to secure the Group's liquidity and to minimize the effect of the financial asset price variability on the cash flow of the Group. These risks cover market risks including foreign exchange risks and interest rate risk as well as credit risk and liquidity risk.

The above mentioned risk exposures may be hedged using derivative instruments whenever appropriate. The use of financial derivatives is governed by the Group's approved policies which indicate that the use of derivatives is for hedging purposes only. The Group does not enter into speculative derivative trading positions. The same policies provide for the investment of excess liquidity. As at the end of the reporting period, the Group had not entered into any derivative contracts.

35.4 Economic Market Risk Management

The Group operates in Romania, Bulgaria, Greece and Ukraine. The Group's activities expose it primarily to financial risks of changes in currency exchange rates and interest rates. The exposures and the management of the associated risks are described below. There has been no change in the way the Group measures and manages risks.

Foreign Exchange Risk

Currency risk arises when commercial transactions and recognized financial assets and liabilities are denominated in a currency that is not the Group's functional currency. Most of the Group's financial assets are denominated in the functional currency. Management is monitoring the net exposures and adopts policies to contain them so that the net effect of devaluation is minimized.

Interest Rate Risk

The Group's income and operating cash flows are substantially independent of changes in market interest rates as the Group has no significant interest-bearing assets. On December 31(st) , 2016, cash and cash equivalent financial assets amounted to EUR1.701.007 (2015: EUR895.422) of which approx. EUR32.000 in UAH and EUR1.320.000 in RON (Note 20) while the remaining are mainly denominated in either USD or EUR.

The Group is exposed to interest rate risk in relation to its borrowings amounting to EUR48.475.454 (31 December 2015: EUR53.680.779) as they are issued at variable rates tied to the Libor or Euribor. Management monitors the interest rate fluctuations on a continuous basis and evaluates hedging options to align the Group's strategy with the interest rate view and the defined risk appetite. Although no hedging has been applied for the reporting period, such may take place in the future if deemed necessary in order to protect the cash flow of a property asset through different interest rate cycles.

Management monitors the interest rate fluctuations on a continuous basis and evaluates hedging options to align the Group's strategy with the interest rate view and the defined risk appetite. Although no hedging has been applied for the reporting period, such may take place in the future if deemed necessary in order to protect the cash flow of a property asset through different interest rate cycles.

As at 31 December 2016 the weighted average interest rate for all the interest bearing borrowing and financial leases of the Group stands at 5,32% (31 December 2015: 5,00%). Considering the finalization of Terminal Brovary sale, the weighted average interest rate for all the interest bearing borrowing and financial leases of the Group would be 4,67%.

The sensitivity analysis for LIBOR and EURIBOR changes applying to the interest calculation on the borrowings principal outstanding as at 31 December 2016 is presented below:

 
                             Actual         +100 bps     +200 bps 
                         as at 31.12.2016 
---------------------  ------------------  ----------  ------------ 
 Weighted average 
  interest rate               5,32%           6,32%        7,32% 
---------------------  ------------------  ----------  ------------ 
 Influence on yearly            -           (567.770)   (1.135.541) 
  finance costs 
---------------------  ------------------  ----------  ------------ 
 

The sensitivity analysis for LIBOR and EURIBOR changes applying to the interest calculation on the borrowings principal outstanding as at 31 December 2015 is presented below:

 
                             Actual         +100 bps     +200 bps 
                         as at 31.12.2015 
---------------------  ------------------  ----------  ------------ 
 Weighted average 
  interest rate               5,00%           6,00%        7,00% 
---------------------  ------------------  ----------  ------------ 
 Influence on yearly            -           (648.116)   (1.296.232) 
  finance costs 
---------------------  ------------------  ----------  ------------ 
 

35.5 Credit Risk Management

The Group has no significant credit risk exposure. The credit risk emanating from the liquid funds is limited because the Group's counterparties are banks with high credit-ratings assigned by international credit rating agencies. The Credit risk of receivables is reduced as the majority of the receivables represent VAT to be offset through VAT income in the future. In respect of receivables from tenants these are kept to a minimum of 2 months and are monitored closely.

35.6 Liquidity Risk Management

Ultimate responsibility for liquidity risk management rests with the Board of Directors, which applies a framework for the Group's short, medium and long term funding and liquidity management requirements. The Treasury function of the Group manages liquidity risk by preparing and monitoring forecasted cash flow plans and budgets while maintaining adequate reserves. The following table details the Group's contractual maturity of its financial liabilities. The tables below have been drawn up based on the undiscounted contractual maturities including interest that will be accrued.

 
 31 December 2016           Carrying          Total    Less than     From one         More 
                              amount    Contractual     one year           to         than 
                                               Cash                 two years    two years 
                                              Flows 
-----------------------  -----------  -------------  -----------  -----------  ----------- 
                                 EUR            EUR          EUR          EUR          EUR 
-----------------------  -----------  -------------  -----------  -----------  ----------- 
 Financial assets 
-----------------------  -----------  -------------  -----------  -----------  ----------- 
 Cash at Bank              1.701.007      1.701.007    1.701.007            -            - 
-----------------------  -----------  -------------  -----------  -----------  ----------- 
 Prepayments and           2.778.361      2.778.361 
  other receivables                                    2.778.361            -            - 
-----------------------  -----------  -------------  -----------  -----------  ----------- 
 Long-term Receivables 
  and prepayments            351.181        351.181            -            -      351.181 
-----------------------  -----------  -------------  -----------  -----------  ----------- 
 Total Financial 
  assets                   4.830.549      4.830.549    4.479.368            -      351.181 
-----------------------  -----------  -------------  -----------  -----------  ----------- 
 
 Financial liabilities 
-----------------------  -----------  -------------  -----------  -----------  ----------- 
 Borrowings               48.475.454     48.475.454   31.580.299    1.597.840   15.297.315 
-----------------------  -----------  -------------  -----------  -----------  ----------- 
 Trade and other 
  payables                 7.489.293      7.489.293    7.038.170            -      451.123 
-----------------------  -----------  -------------  -----------  -----------  ----------- 
 Deposits from 
  tenants                    488.347        488.347      271.019            -      217.328 
-----------------------  -----------  -------------  -----------  -----------  ----------- 
 Finance lease 
  liabilities             11.382.788     16.538.973      961.744      930.592   14.646.637 
-----------------------  -----------  -------------  -----------  -----------  ----------- 
 Taxes payable 
  and provisions           1.889.184      1.889.184    1.889.184            -            - 
-----------------------  -----------  -------------  -----------  -----------  ----------- 
 Total Financial 
  liabilities             69.725.066     74.881.251   41.740.416    2.528.432   30.612.403 
-----------------------  -----------  -------------  -----------  -----------  ----------- 
 Total net liabilities    64.894.517     70.050.702   37.261.048    2.528.432   30.261.222 
-----------------------  -----------  -------------  -----------  -----------  ----------- 
 
 
 31 December 2015           Carrying          Total    Less than     From one         More 
                              amount    Contractual     one year           to         than 
                                               Cash                 two years    two years 
                                              Flows 
-----------------------  -----------  -------------  -----------  -----------  ----------- 
                                 EUR            EUR          EUR          EUR          EUR 
-----------------------  -----------  -------------  -----------  -----------  ----------- 
 Financial assets 
-----------------------  -----------  -------------  -----------  -----------  ----------- 
 Cash at Bank                895.422        895.422      895.422            -            - 
-----------------------  -----------  -------------  -----------  -----------  ----------- 
 Prepayments and           4.795.223      4.795.223 
  other receivables                                    4.795.223            -            - 
-----------------------  -----------  -------------  -----------  -----------  ----------- 
 Available for             2.783.535      2.783.535 
  sale investments                                     2.783.535            -            - 
-----------------------  -----------  -------------  -----------  -----------  ----------- 
 Long-term Receivables 
  and prepayments            352.916        352.916            -            -      352.916 
-----------------------  -----------  -------------  -----------  -----------  ----------- 
 Total Financial 
  assets                   8.827.096      8.827.096    8.474.180            -      352.916 
-----------------------  -----------  -------------  -----------  -----------  ----------- 
 
 Financial liabilities                                                      -            - 
-----------------------  -----------  -------------  -----------  -----------  ----------- 
 Borrowings               53.680.779     56.037.869   24.198.982   14.649.577   17.189.310 
-----------------------  -----------  -------------  -----------  -----------  ----------- 
 Trade and other 
  payables                 7.716.924      7.716.924    3.044.036            -    4.672.888 
-----------------------  -----------  -------------  -----------  -----------  ----------- 
 Deposits from 
  tenants                    756.454        756.454      132.684            -      623.770 
-----------------------  -----------  -------------  -----------  -----------  ----------- 
 Finance lease 
  liabilities             11.465.722     16.741.482      775.146      840.158   15.126.178 
-----------------------  -----------  -------------  -----------  -----------  ----------- 
 Redeemable preference 
  shares                   6.430.536      6.430.536    6.430.536            -            - 
-----------------------  -----------  -------------  -----------  -----------  ----------- 
 Taxes payable 
  and provisions           1.546.450      1.546.450    1.546.450            -            - 
-----------------------  -----------  -------------  -----------  -----------  ----------- 
 Total Financial 
  liabilities             81.596.865     89.229.715   36.127.834   15.489.735   37.612.146 
-----------------------  -----------  -------------  -----------  -----------  ----------- 
 Total net liabilities    72.769.769     80.402.619   27.653.654   15.489.735   37.259.230 
-----------------------  -----------  -------------  -----------  -----------  ----------- 
 

35.7 Net Current Liabilities

The current liabilities amounting to EUR41.080.081 exceed current assets amounting to EUR9.507.622 by EUR31.572.459. This difference is primarily a result of:

a) the EBRD Terminal Brovary debt, amounting to EUR11.580.922 which is presented as a current liability due to the breach of certain covenants should be viewed as under transfer upon completion of the sale of Terminal Brovary (Note 36a).

b) the bank borrowings related to the residential portfolio EUR6.369.466 that are repayable by ongoing sales proceeds, which according to the IFRS appear to be repayable within the next 12 months. Most of these loans have been or are under the process to be extended for 2-5 years.

c) an amount of EUR6.594.396, registered as the total liability to the Bank of Cyprus, currently under final settlement

d) an aggregate amount of EUR3.624.319, registered as the total liability of the Group towards Alpha Bank in respect to the Boyana project which was under restructuring that has been signed in March 2017 (Note 36g)

e) an aggregate amount of EUR2.661.592 registered as the total liability of the Group towards the Bank of Piraeus in respect to the Green Lake project which is under restructuring.

Based on the above, current liabilities are higher than current assets by EUR741.764.

   36.    Events after the end of the reporting period 
   a.        Sale of Terminal Brovary 

In late January 2017 the Group completed the sale transaction of the Terminal Brovary Logistics Park to Temania Enterprises Ltd (company related to Rozetka Group). The transaction was concluded at a Gross Asset Value of over USD 16 (or EUR15) million (before the deduction of the outstanding EBRD loan, which was transferred to the buyer, while the SPDI guarantee to EBRD loan was cancelled. The transaction generated a profit for SPDI of EUR2,7 million, already included in the 2016 financial statements by way of presenting the property at a fair value equal to the transaction value, as well as a cash inflow of more than EUR3million. As part of the transaction the Group also sold SL SECURE Logisitcs Ltd, thus transferring its loan towards Terminal Brovary to the buyer (Note 32.3).

   b.       Amendment of the Sale & Leaseback of Romanian Logistics Park 

In late February 2017 the Group agreed to an amended Sale and Leaseback agreement ("SLB") with the Bank of Piraeus Romania ("BoP") regarding the Group's Innovations Logistics Park in Bucharest. The agreement which followed SPDI's agreement with the previous anchor tenant, Nestle Romania, of the Innovations Logistics Park for an early termination of their tenancy agreement for an agreed fee of EUR1,39 million payable to SPDI, stipulated the allocation of the termination fee.

   c.        Appointment of Joint Broker 

In March 2017 the Group appointed Beaufort Securities Ltd as the Group's Joint Broker.

   d.       Directors Buying shares 

The directors proceeded in March 2017 with the acquisition of 438.939 ordinary shares of the Company.

   e.        New lease Agreement for Innovations Logistics Park 

In the middle of April 2017 the Group signed a lease agreement with Aquila SRL a large Romanian logistics operator, for 5.740 sqm of ambient space in the Group's Innovations Logistics Park in Bucharest, Romania. Under the terms of the Agreement, the annual rent payable by Aquila to the Group is EUR300.000.

   f.         Issuance of shares 

In the middle of May 2017 the Company announced the issue of new ordinary shares to the Non-Executive Directors of the Company who were in office in 2015 in lieu of fees accrued in 2015. The new shares were issued at GBP 0,35 per share, which represented a 100% premium to the closing share price on 12 May 2017. The Company has also issued a number of new ordinary shares to an adviser in lieu of fees for services offered in 2017. As a result a total of 626.133 new ordinary shares have been issued, of which Non-Executive Directors received 519.474 shares and third party advisers and former directors received 106.659 shares.

   g.        Debt restructuring 

SecRom Real Estate Srl (Doamna Ghica Project) has signed a restructuring of its loan (EUR809.919) with Alpha Bank Romania, extending its maturity to 2020. All other terms remain substantially the same.

Boyana Residence ood has signed a restructuring of its loan (EUR2.680.492) with Alpha Bank SA, extending its maturity to 2019. All other terms remain substantially the same.

Sertland Properties Limited (Boyana land) has signed a restructuring of its loan (EUR693.514) with Alpha Bank SA extending its maturity to 2019. All other terms remain substantially the same.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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