Secure Property Dev & Inv PLC Conversion of loan to equity in Joint Venture (2867X)
August 26 2022 - 2:00AM
UK Regulatory
TIDMSPDI
RNS Number : 2867X
Secure Property Dev & Inv PLC
26 August 2022
Secure Property Development & Investment PLC/ Index: AIM /
Epic: SPDI / Sector: Real Estate
26 August 2022
Secure Property Development & Investment PLC
('SPDI' or 'the Company')
Conversion of loan to equity in Romanian Logistics Joint
Venture
Secure Property Development and Investment PLC (AIM: SPDI), the
South Eastern European focused property and investment company,
announces that it has signed an agreement to convert EUR2,5m of the
loan it had extended in 2017 to Myrian Nes Ltd ("Myrian Nes"), the
logistics properties owner and developer in Romania ("Olympians
Loan" - for further details see announcement dated 10 October
2017), into a 50% equity stake of a joint venture company ("JV
Company") with Myrian Nes. The objective of this JV Company, which
Myrian Nes is contributing EUR2,5m in equity funds to, is to
develop a portfolio of logistics properties in Romania with a view
of letting them to third party tenants in a market that has very
low vacancy and has shown substantial strength and resilience in
recent years. The remaining part of the Olympians Loan, (being a
total of EUR3,8m as at 31 December 2021 and before the equity
conversion) is being repaid in regular intervals and is expected to
be fully repaid to the Company by the end of 2022 .
Myrian Nes is an established and experienced logistics
properties developer and operator in Romania, having developed more
than 200,000 square meters of such properties, including SPDI's
existing logistics terminal in Bucharest, the Innovations Logistics
Park. Myrian Nes has partnered with several international
institutional property investors in recent years, including GE
Capital ('GEC') and CTP. The partnership with SPDI opens a new
window of opportunity for both partners to exploit synergies in a
property market that they have both been profitably active in for a
long time. SPDI expects to be able to generate further value
through converting part of its loan into an equity stake in such
joint venture, which it expects to soon grow in tandem with the
market demand and the anticipated rental and yield trends.
The transaction complements SPDI's existing logistics properties
position in Romania, the only property type sector not contributed
to Arcona Property Fund (as announced on 28 June 2022), that
includes the 15,000 sqm Innovations Terminal, the cold storage
component of which is fully let to Favorite srl, the Carrefour 3PL
third party service provider, while the ambient component is partly
let to clients including Terra and Chipita. The terminal is
generating an annual net operating income of EUR840,000.
SPDI CEO, Lambros Anagnostopoulos, commented: "The conversion to
equity of part of the loan SPDI extended in 2017 to Myrian Nes,
with a view of investing in the development of a logistics
portfolio, both strengthens the Company's ability to generate
further value for its shareholders and facilitates the eventual
monetisation of such value. Myrian Nes operates in one of Europe's
fastest growing economies in the strategically important South East
corner of the EU, further giving SPDI exposure to the Romanian
property market. Together with the recent closing of Stage 2 of the
Arcona Transaction, that resulted in SPDI owning more than 25% of
Arcona Property Fund N.V. shares, the current transaction
consolidates SPDI's investments into equity positions in third
party managed property companies."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
**ENDS**
For further information please visit www.secure-property.eu or
contact:
Lambros Anagnostopoulos SPDI Tel: +357 22 030783
Rory Murphy Strand Hanson Limited Tel: +44 (0) 20 7409 3494
Ritchie Balmer
Robert Collins
Jon Belliss Novum Securities Limited Tel: +44 (0) 207 399 9400
Catherine Leftley St Brides Partners Ltd Tel: +44 (0) 20 7236 1177
Isabelle Morris
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.
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END
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