Secure Proterty snaps up fresh portfolio

Acquisition of income producing assets in Romania and Bulgaria

Secure Property Development & Investment PLC, the AIM quoted property company focused on Emerging Europe, has announced it has agreed to acquire a series of prime property assets in Romania and Bulgaria, raising the Company’s annualised net operating income to over €8 million.

The Acquisitions follows the purchase of the Autounion office building in Sofia, Bulgaria as announced on 21 April 2015, and is in line with the Company’s strategy to build a diversified portfolio of prime commercial real estate in East and Southeast Europe, which generates cash flow from blue chip tenants and offers substantial potential for capital growth.

· The Acquisitions provide a 20%+ increase in the Company’s running annualised Net Operating Income (‘NOI’) to over €8 million and is expected to result in material cash-flows for reinvestment
· The Acquisitions, will be effected through the issuance of new SPDI shares to the vendors, at a blended issuance price of 43p per share, (a 100 % premium to current share price) representing a total consideration of £16.5 million, leaving current cash reserves intact
· The Company continues to evaluate additional opportunities, which fit its stringent investment criteria, by utilising its extensive regional experience and network

Details of the acquired properties:

· 100% interest in BLUEBIGBOX 3 S.R.L, a DIY retail property in a prime location in Craiova, Romania. The building is wholly let to Praktiker, a leading European DIY retailer – produces an annualised NOI of ~€1 million and has a Gross Lettable Area of 9,385 square metres
· 24.35% interest in Delea Nuova, a Class A office building in a prime business location in Bucharest – the building is fully let mainly to the telecommunications regulator of Romania, produces an annualised NOI of €1.9 million and has a GLA of 10,280 square metres over ten floors and includes underground parking
· A small portfolio of newly built income producing residential assets, located on Grivita Lake in north Bucharest and on the slopes of Boyana in South Sofia. They generate an annualised income of €300,000, as they are mostly let – the Company intends to sell these to generate substantial near term cash for reinvestment
· The portfolio now consists of seven income producing properties covering four countries with a total net asset value of c. €62 million compared to a pro forma market capitalisation of c. €28 million

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