Secure Property Dev & Inv PLC Sale of Greek Asset (9658E)
09 July 2019 - 9:32PM
UK Regulatory
TIDMSPDI
RNS Number : 9658E
Secure Property Dev & Inv PLC
09 July 2019
Secure Property Development & Investment PLC/ Index: AIM /
Epic: SPDI / Sector: Real Estate
9 July 2019
Secure Property Development & Investment PLC ('SPDI' or 'the
Company')
Sale of Greek Asset
Secure Property Development & Investment PLC, the AIM quoted
South Eastern European focused property company, is pleased to
announce that it has entered into a conditional agreement ('the
Agreement') for the sale of its Victini Logistics property in
Greece ('Victini' or 'the Property') to Brook Lane Capital (the
'Buyer') (the 'Sale'). The Transaction, which will generate a total
of approximately EUR2.6m in cash for SPDI (approximately 25% of the
Company's current market valuation) is in line with the Board's
strategy to realise value from its South Eastern European property
portfolio.
Highlights:
-- Sale of Victini logistic property at a deemed EUR12.50
million valuation, including EUR10.3m of debt, to Brook Lane
Capital, providing SPDI with a net consideration payment of c. EUR2
million
-- Additionally, SPDI to receive EUR600,000 from the Property's
previous owner, to be paid in the next 18 months
-- Combination of the Transaction's net result to SPDI together
with the EUR29.25 million proposed sale valuation of SPDI's
non-Greek portfolio brings total value of assets to more than
EUR31m- approximately two and a half times current market
valuation
Lambros Anagnostopoulos, Chief Executive Officer of SPDI, said;
"Since its purchase in March 2015, the Greek logistics property has
proved to be a valuable investment for the Company. The Property
has been generating revenue for four years following its
acquisition, and I am delighted to say it will top up this revenue
by more than EUR2m through this sale. The Victini acquisition in
2015 and sale four years later, generating substantial net cash, is
demonstrative of SPDI's strategy of creating value for its
shareholders through the streamlining and optimisation of its asset
portfolio.
"We have been saying for some time a huge disconnect has opened
up between how the market and how the industry value our assets.
Today's transaction and the Arcona deal serve to show that the
industry values these properties at a level that is approximately
two and a half times higher than the market. With this in mind, we
are keen to finalise this value-enhancing Agreement with Brook Lane
Capital in the near term and will update shareholders as soon as
practicable."
Further information
In March 2015, the Company completed the acquisition of Victini,
an income producing logistics park that includes warehouse space as
well as an alternative energy production facility (the 'Complex')
from a Greek company listed on the Athens Stock Exchange.
The Complex comprises logistics and office spaces situated on a
44,268m(2) land plot in the West Attica Industrial Hub of Athens
(Aspropyrgos) of Greece, with a gross leasable area of 17,756m(2) .
The roof of the warehouse buildings houses a photovoltaic park of
1,000KWp. The Property is 100% leased and generated in 2018 an
annual net operating income ('NOI') (excluding revenue generated
from an agreement with the previous owner, which SPDI retains the
right to following completion of the Transaction) of EUR1.05m and
profit pre-tax of EUR0.18m. The Property was valued at 31 December
2018 at a gross asset value of EUR15.2m, including the rental
agreement with the previous owner which SPDI retains the right to
and is therefore not part of the Transaction.
The sale of Victini is further to information provided in the
Company's Audited Final Results in which it disclosed that SPDI was
entertaining strong interest to sell the Greek logistics property
and was engaged in discussions with various possible buyers. Brook
Lane Capital is an investment management organisation focused on
value opportunities in various Real Estate markets, in particular
Greece and Cyprus. The Transaction values the Property at
EUR12.50m, including debt of approximately EUR10.3m (the "Loan")
which is to be assumed by Brook Lane Capital, while at the same
time SPDI retains c. EUR600k of asset's receivables.
The Transaction is subject to satisfaction of a number of
conditions precedent, including a waiver being granted by the bank
providing the Loan on the change of control of the Property that
would occur as part of the Transaction.
SPDI and Brook Lane Capital expect to close the transaction in
Q3 2019.
* * 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
Jack Botros
Jon Belliss Novum Securities Limited Tel: +44 (0) 207 399 9400
Frank Buhagiar St Brides Partners Ltd Tel: +44 (0) 20 7236 1177
Cosima Akerman
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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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