Secure Property Dev & Inv PLC Completes Purchase of Prime European Property (9686S)

TIDMSPDI

RNS Number : 9686S

Secure Property Dev & Inv PLC

14 July 2015

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

14 July 2015

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

Completes Acquisition of Romanian DIY Retail Property with Annualised NOI of EUR1 million

Secure Property Development & Investment PLC, the AIM quoted South Eastern European focused property and investment company, is pleased to announce that further to its announcement of 21 May 2015, it has completed the acquisition of 100% interest in BLUEBIGBOX 3 S.R.L ('BLUEBIGBOX'), a DIY retail property in a prime location in Craiova, Romania wholly let to Praktiker, a leading European DIY retailer. The building produces an annualised net operating income ('NOI') of EUR1 million and has a Gross Lettable Area ('GLA') of 9,385 square metres.

This acquisition is part of a series of acquisitions of prime property assets in Romania and Bulgaria ('the Acquisitions'), which together raise the Company's annualised NOI to over EUR8 million. This 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.

As previously announced on 21 May 2015, the Acquisitions have been effected through the issuance of new SPDI ordinary shares, warrants and the Redeemable Convertible Preference Shares ('RCPS') to the vendors at a blended issuance price of 45p per share, (assuming full exercise of the warrants and conversion of the RCPSs) which represents a 67% premium to the share price at the close of business on 13 July 2015 and leaves current cash reserves intact. More specifically the acquisition of BLUEBIGBOX, with a total consideration of EUR6.1 million, has been settled by the issue of 8,618,997 RCPSs to the vendors which will be either converted to an equal number of ordinary shares or redeemed for EUR0.7056 per RCPS on 13 July 2016.

Lambros Anagnostopoulos, Chief Executive Officer of Secure Property, said: "This acquisition alone adds EUR1 million to our annualised net operating income and is a significant addition to our growing portfolio of prime real estate in South Eastern Europe. This all share transaction provides us with additional exposure to retail property in Romania, which with a GDP growth of 4.2% in the first quarter of 2015 has the fastest growing economy in the Eurozone, and also enables us to provide further immediate stable cash flows with long term visibility. This acquisition is yet another step as we progress towards our goal to build SPDI into a leading, regional, institutional, income generating property company in Emerging Europe."

**ENDS**

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

 
 
   Lambros Anagnostopoulos   SPDI                          Tel: [phone] 
   Constantinos Bitros       SPDI                          Tel: [phone] 
    Tercel Moore              SP Angel Corporate Finance    Tel: [phone] 
                              LLP                           0470 
   Jeff Keating              SP Angel Corporate Finance    Tel: [phone] 
                              LLP                           0470 
   Lottie Brocklehurst       St Brides Partners Ltd        Tel: [phone] 
                                                            1177 
   Frank Buhagiar            St Brides Partners Ltd        Tel: [phone] 
                                                            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.

This information is provided by RNS

The company news service from the London Stock Exchange

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