Secure Property Dev & Inv PLC Sale of Ukrainian Warehouse (6660A)
June 09 2016 - 2:00AM
UK Regulatory
TIDMSPDI
RNS Number : 6660A
Secure Property Dev & Inv PLC
09 June 2016
Secure Property Development & Invest PLC/ Index: AIM / Epic:
SPDI / Sector: Real Estate
9 June 2016
Secure Property Development & Investment PLC ('SPDI' or 'the
Company')
Sale of Ukrainian Warehouse
Secure Property Development and Investment PLC (AIM: SPDI), the
South Eastern European focused property and investment company, is
pleased to announce that it has signed heads of terms with Temania
Enterprises Ltd for the sale of its Kiev based warehouse, Terminal
Brovary, at a Gross Asset Value exceeding US$16 million (before
deducting the outstanding EBRD attached loan). As completion of the
disposal is subject to a number of conditions being met, the
Company has also signed a fixed four-year lease agreement with a
subsidiary of the buyer raising the warehouse occupancy rate to
100%, thus generating US$150,000 of Net Operating Income ('NOI')
per month until the sale is concluded. The rent attributed to the
buyer received prior to the disposal will be deducted from the
purchase price, if such disposal is concluded by the end of October
2016. Once the sale is concluded, the Directors believe it will be
one of the largest property asset transactions in Ukraine in the
logistics and industrial sector since 2013.
The sale of Terminal Brovary, which the Company developed in
2010 on the north side of Kiev, the capital city of Ukraine, close
to its international airport, is subject to a number of conditions,
including reaching agreement on terms with the lending bank (EBRD)
with regards to the related debt attached to Terminal Brovary,
which may take some time to be effected. The Board is pleased that
is has agreed terms for both the rental as well as the sale,
especially taking into consideration the recent economic situation
in the country.
SPDI has a portfolio of properties with blue chip tenants in
high-yielding South Eastern European countries, which have
favourable supply and dynamics for modern commercial properties.
Its strategy is to deliver value to shareholders by acquiring and
managing properties that match its investment criteria: generate
annual cash-flows from solid covenants in assets in good locations
as well as having scope for capital appreciation as yields converge
towards the Central Eastern European and eventually the Western
European levels. The Company's portfolio now includes logistics
terminals in Athens, Bucharest and Kiev, offices in Sofia and
Bucharest, as well as a big box retail in Craiova, Romania.
SPDI CEO Lambros Anagnostopoulos commented, "This transaction is
in line with our strategy to optimise the value of our prime real
estate properties across South Eastern Europe, either through the
timely commercialization (including potential disposal) of assets,
when opportunities to generate value for our shareholders are
presented to us, or through maximising the cash generation through
active rent roll management. Our aim is not only to expose our
shareholders to the European yield compression play and the
significant capital appreciation on offer, but also to generate
substantial cash from managing our portfolio of income producing
assets. On completion of the sale we expect to receive a material
cash injection into the Company, which will assist us in this
growth plan.
"We are focused on positioning ourselves as the go to investment
vehicle for investors looking to gain exposure to the region's
highly attractive commercial property markets. At the same time, we
aim to close the disconnect that has opened up between the net
asset value of our Company and our share price."
* * ENDS * *
For further information please visit www.secure-property.eu or
contact:
Lambros Anagnostopoulos SPDI Tel: +30-210-7226470
Constantinos SPDI Tel: +30-210-7226470
Bitros SP Angel Corporate Tel: +44 (0) 20
Tercel Moore Finance LLP 3463 2260
Jeff Keating SP Angel Corporate Tel: +44 (0) 20
Finance LLP 3463 2260
Lottie Brocklehurst St Brides Partners Tel: +44 (0) 20
Ltd 7236 1177
Frank Buhagiar St Brides Partners Tel: +44 (0) 20
Ltd 7236 1177
This information is provided by RNS
The company news service from the London Stock Exchange
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