Secure Property Dev & Inv PLC EUR1.39M termination fee received from Nestle (9373G)
August 11 2016 - 6:10AM
UK Regulatory
TIDMSPDI
RNS Number : 9373G
Secure Property Dev & Inv PLC
11 August 2016
Secure Property Development & Invest PLC/ Index: AIM / Epic:
SPDI / Sector: Real Estate
11 August 2016
Secure Property Development & Investment PLC ('SPDI' or 'the
Company')
EUR1.39 million termination fee received from Nestle
Secure Property Development and Investment PLC (AIM: SPDI), the
South Eastern European focused property and investment company,
announces that it has received a mutually agreed EUR1.39 million
fee from Nestlé România in settlement of the early termination of
its rental contract for the Company's Innovations Logistics Park in
Bucharest, Romania (the "Innovations Park").
The Company announced on 10 June 2016 that Nestlé România, as a
part of its wider global restructuring plans, decided to terminate
the rental contract with SPDI for leasing of approximately 60 per
cent. of the Innovations Park space, which was due to expire in
September 2018.
The Innovations Park is subject to a sale and leaseback
agreement with Piraeus Bank Leasing ("PBL"). Approximately EUR0.25
million of the settlement fee will be paid to PBL to settle overdue
instalments due under the sale and leaseback agreement.
In addition, Nestle România has agreed to forego the rental
deposit guarantee of approximately EUR0.28 million and will leave
certain fixtures and fittings, including storage racks. The cash
component of the settlement received today of approximately EUR1.39
million represents approximately 1.5 years' worth of rental income
that would have been due from Nestlé România in the event it had
not terminated the lease.
The Company is hopeful of securing a new tenant for the vacant
space in the Innovations Park, which is located on the ring road of
Bucharest, and will update the market as soon as possible.
Lambros G. Anagnostopoulos, Chief Executive Officer, said,
"We are pleased to have reached an amicable settlement with
Nestlé România. Like all our core properties, the Innovations Park
is prime real estate well located in the capital city of a fast
growing South Eastern European country. As a result, we are
confident a replacement for Nestlé România will be found quickly.
In the meantime, we continue to look to add value for our
shareholders through our portfolio, which as at year end had a
total asset value of EUR125 million and generated operating income
of EUR5.1 million in FY2015, as we focus on transforming SPDI into
the leading London listed property company focused on selected
South East European countries."
* * ENDS * *
For further information please visit www.secure-property.eu or
contact:
Lambros Anagnostopoulos SPDI Tel: +357 22 030783
Constantinos Bitros
Andrew Emmott Strand Hanson Tel: +44 (0) 20
Ritchie Balmer Limited 7409 3494
Lottie Brocklehurst St Brides Partners Tel: +44 (0) 20
Frank Buhagiar Ltd 7236 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
END
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