TIDMSPDI

RNS Number : 0541O

Secure Property Dev & Inv PLC

02 November 2016

Secure Property Development & Invest PLC/ Index: AIM / Epic: SPDI / Sector: Real Estate

2 November 2016

Secure Property Development & Investment PLC ('SPDI' or 'the Company')

Update on Acquisition of BLUEBIGBOX 3, Romania

Secure Property Development and Investment PLC (AIM: SPDI), the South Eastern European focused property and investment company, provides an update to its announcement of 25 October 2016, regarding its acquisition of a 100% interest in BLUEBIGBOX 3 S.R.L ("BIGBLUEBOX 3"), a retail property in a prime location in Craiova, Romania ("the Acquisition").

The Company originally announced the acquisition of BIGBLUEBOX 3, which is wholly let to leading European DIY retailer Praktiker, on 14 July 2015. At the time, the Acquisition was satisfied via the issuance of 8,618,997 Secured Redeemable Convertible Preference Shares ("RCPS") to Bluehouse Capital, a private equity property fund ("Vendor"). At the discretion of the Vendor, the RCPSs were either to be converted into an equal number of new ordinary shares of EUR0.01 each in the Company or redeemed by SPDI at EUR0.7056 for each RCPS, for a total amount of approximately EUR6 million. As part of the agreement, the RCPSs were secured against the Company's interests in Autounion Office ("Autounion"), an office building in Sofia, which was acquired in April 2015 from the Vendor for EUR4.05 million and in which the Vendor retains an interest.

During the course of negotiations, the Vendor has issued a default notice in respect of the RCPSs and has exercised its security over SPDI's interest in Bluehouse Accesion V, the vehicle through which SPDI's 20% interest in the Autounion is held. Discussions continue with the Vendor on the final terms for the settlement of the outstanding RCPSs and further announcements will be made as and when appropriate.

In the financial results for the six months ended 30 June 2016, the Group recognised a total value of EUR4.8m in connection with its interests in Autounion, comprising EUR2.9m under "Available for sale financial assets" and EUR1.9m under the "Prepayments and other current assets", and share of profit of EUR0,15m.

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: +30-210-7226470 
   Constantinos              SPDI                     Tel: +30-210-7226470 
    Bitros                    Strand Hanson Limited    Tel: +44 (0) 20 
    Andrew Emmott                                      7409 3494 
   Ritchie Balmer            Strand Hanson Limited    Tel: +44 (0) 20 
                                                       7409 3494 
   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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November 02, 2016 03:00 ET (07:00 GMT)