Secure Prop Regulatory News (SPDI)

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

21 May 2015

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

 Acquisition of income producing assets in Romania and Bulgaria

Secure Property Development & Investment PLC, the AIM quoted property company focused on Emerging Europe, is pleased to announce it has agreed to acquire a series of prime property assets in Romania and Bulgaria, raising the Company's annualised net operating income to over €8 million. The Acquisitions follows the purchase of the Autounion office building in Sofia, Bulgaria as announced on 21 April 2015, and is in line with the Company's strategy to build a diversified portfolio of prime commercial real estate in East and Southeast Europe, which generates cash flow from blue chip tenants and offers substantial potential for capital growth.

· The Acquisitions provide a 20%+ increase in the Company's running annualised Net Operating Income ('NOI') to over €8 million and is expected to result in material cash-flows for reinvestment

· The Acquisitions, will be effected through the issuance of new SPDI shares1 to the vendors, at a blended issuance price of 43p per share, (a 100 % premium to current share price) representing a total consideration of £16.5 million, leaving current cash reserves intact

· The Company continues to evaluate additional opportunities, which fit its stringent investment criteria, by utilising its extensive regional experience and network

· Details of the acquired properties:

· 100% interest in BLUEBIGBOX 3 S.R.L, a DIY retail property in a prime location in Craiova, Romania. The building is wholly let to Praktiker, a leading European DIY retailer - produces an annualised NOI of ~€1 million and has a Gross Lettable Area ('GLA') of 9,385 square metres

· 24.35% interest in Delea Nuova, a Class A office building in a prime business location in Bucharest - the building is fully let mainly to the telecommunications regulator of Romania, produces an annualised NOI of €1.9 million and has a GLA of 10,280 square metres over ten floors and includes underground parking

· A small portfolio of newly built income producing residential assets, located on Grivita Lake in north Bucharest and on the slopes of Boyana in South Sofia. They generate an annualised income of €300,000, as they are mostly let - the Company intends to sell these to generate substantial near term cash for reinvestment

· The portfolio now consists of seven income producing properties covering four countries with a total net asset value of c. €62 million2 compared to a pro forma market capitalisation of c. €28 million3

1 The Acquisition, will be effected through the issuance of 17,612,660 new SPDI ordinary shares together with the same number (17,612,660) of warrants, as well as 8,800,000 convertible redeemable preference shares [convertible to equal number of ordinary shares) to the vendors The issue of the convertible redeemable preference shares is subject to shareholder approval.

2 2014 y/e NAV adjusted for Open Offer and acquisitions since year end

3 Based on a total number of shares reflecting equity issuance due to recent acquisitions and full exercise of the warrants and conversion of the convertible redeemable preference shares

Lambros Anagnostopoulos, Chief Executive Officer of Secure Property, said: "This transaction matches our investment criteria by providing the Company with a significant additional cash generative platform from which to accelerate the roll-out of our strategy to build a portfolio of prime real estate in Southeastern Europe. As with all our income generating properties, these assets have prime locations, generate substantial income from blue chip tenants, provide immediate stable cash flows with long term visibility, and offer scope for significant capital uplift over the short to medium term, as the on-going European yield compression play gathers momentum across the continent.

"We view the vendors' decision to accept our shares as consideration for the Acquisition as a vote of confidence in management's expertise and our goal to build SPDI into a leading, institutional, income generating property company in Emerging Europe. With a long pipeline of additional opportunities, this is an exciting period for SPDI and we look forward to providing further updates on our progress in due course."

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For further information please visit www.secure-property.eu or contact:

Notes

Secure Property Development and Investment plc is an AIM listed property development and investment company focussed on the East and Southeast European markets. The Company's strategy is focussed 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 focussed 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.