Secure Property Dev & Inv PLC Operating Cost Optimisation Measures and RPT (3808A)
May 24 2023 - 2:00AM
UK Regulatory
TIDMSPDI
RNS Number : 3808A
Secure Property Dev & Inv PLC
24 May 2023
Secure Property Development & Investment PLC/ Index: AIM /
Epic: SPDI / Sector: Real Estate
24 May 2023
Secure Property Development & Investment PLC ('SPDI' or 'the
Company')
Operating Cost Optimisation Measures and RPT
Secure Property Development and Investment PLC (AIM: SPDI), the
South Eastern European focused property and investment company,
informs its shareholders that as part of the process of
transferring the majority of its property assets to Arcona Property
Fund ("APF") (of which, the Company currently owns 25,6% and has
nominated one of APF's three Supervisory Board members, being
Michael Beys, the Company's Chairman of the Board) and reducing its
operating expenses in the process, the Company has agreed with
SECURE Management Limited ("SecMgt"), a Cyprus based advisory
company wholly owned by the Company's CEO Lambros Anagnostopoulos,
that the latter absorbs all existing HR and office costs in all
jurisdictions that the Company currently operates in, except
Ukraine.
Such absorption will take place by SecMgt assuming a) all direct
individual personnel contracts, b) the service contracts with local
real estate service providers, including with the Greek SCEPSI S.A.
(the entity through which HR and office costs in Greece are
incurred) and c) all HR and office costs in Romania, in return for
providing the services SPDI needs to operate in the various
jurisdictions against a fixed monthly fee of EUR 24,000 plus VAT.
Such fee has been set to reflect effectively the reduced personnel
time/cost and office costs of the Company during this phase of
transferring assets to APF. The advisory contract with SecMgt ("the
SecMgt Agreement") will be able to be terminated by either party
with one month's notice, after an initial period of eight months
elapses.
The resulting annual cost to SPDI under the SecMgt Agreement of
EUR288k is a 50% and 35% reduction vis a vis costs incurred by the
Company providing the same services in 2021 and 2022 of EUR600k and
EUR425k, respectively, and 70% reduction vis a vis the pre- APF
agreement signature 2019 costs of EUR900k.
Related Party Transaction
The entering into the SecMgt Agreement is deemed a related party
transaction for the purposes of AIM Rule 13 of the AIM Rules for
Companies due to SecMgt being 100% owned and controlled by Mr
Anagnostopoulos. Accordingly, the Independent Directors, being the
directors of the Company other than Mr Anagnostopoulos, consider,
having consulted with Strand Hanson Limited, the Company's
Nominated Adviser, that the terms of the SecMgt Agreement are fair
and reasonable in so far insofar as the Company's shareholders are
concerned.
* * ENDS * *
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further information please contact:
Lambros Anagnostopoulos SPDI Tel: +357 22 030783
Rory Murphy Strand Hanson Limited Tel: +44 (0) 20 7409
Ritchie Balmer 3494
Catherine Leftley St Brides Partners Tel: +44 (0) 20 7236
Ltd 1177
Jon Belliss Novum Securities Tel: +44 (0) 20 7399
Limited 9400
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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