Secure Prop Regulatory News (SPDI)

3 September 2014

Secure Property Development and Investment Limited PLC (SPDI.L)

("Secure" or the "Company")

SECURE PROPERTY AGREES TO ACQUIRE A 12,700 SQM INCOME PRODUCING RESIDENTIAL PORTFOLIO IN BUCHAREST

SECURE Property Development & Investment PLC (AIM: SPDI), a South Eastern Europe focused property investment company, today announces that it has agreed to acquire an income producing residential portfolio ("the Portfolio") in Bucharest, Romania, from a group of vendors including a number of prominent European family offices and institutional investors.

The acquisition will be the Company's third in Romania and marks the continuation of Secure's stated strategy of both growing its asset base and diversifying its portfolio across the economies of South Eastern Europe. In addition, and in view of the fact that the transaction involves an exchange of assets for shares, it brings into the shareholding of SECURE a number of seasoned regional and global investors that believe in SECURE's strategy and capabilities.

The Portfolio consists of 122 apartments totaling approximately 11,700 sqm across four separate complexes located in different residential areas of Bucharestand with a Net Asset Value of €3.3 million. 87 units are rented, bringing the occupancy of the Portfolio to 71.3%. The Net Operating Income of the rented part of the Portfolio is currently approximately € 270,000.

SECURE has agreed with all vendors that they will contribute the Portfolio to the Company in exchange for the issue of 3,934,854 new ordinary shares of the Company. As such all vendors will become shareholders of the Company. Lambros Anagnostopoulos (a director and the CEO of the Company) and Constantinos Bitros (the CFO of the Company) have small stakes in the Portfolio (less than 5% in aggregate) and, as such, are entitled to receive 133,437 and 33,357 new ordinary shares respectively. Application has been made for the new ordinary shares to be admitted to trading on AIM ("Admission") and it is expected that Admission will be effective on 9 September 2014. Following Admission, there will be a total of 32,723,413 ordinary shares in issue.

The new ordinary shares will be credited as fully paid and will rank pari passu with the existing ordinary shares, including the right to receive all dividends and other distributions declared in respect of such shares after the date of their issue. 50% of the newly issued shares are subject to a 12 month lock-in agreement, while the remaining 50% are subject to a 18 month lock-in.

Approval for the issue of the new ordinary shares on a non-pre-emptive basis was obtained at the Annual General Meeting of the Company's shareholders held on 30 December 2013.

The acquisition is a related party transaction under the AIM Rules for Companies. The Directors of the Company, having consulted with the Company's nominated adviser, SP Angel Corporate Finance LLP, unanimously agree (with Lambros Anagnostopoulos abstaining from the relevant Board vote) that the terms of the transaction are fair and reasonable insofar as Secure's shareholders are concerned.

Lambros Anagnostopoulos, Chief Executive Officer of Secure Property, commented: 

"This acquisition represents our third in Romania this year, and reaffirms our commitment to diversify our income property asset base across the economies of South Eastern Europe. The transaction generates a number of important new shareholders for SECURE, all of whom believe in the Company's strategy and future growth plan. With Romanian GDP well on its rebound, demand for residential property in Bucharest far outstrips supply, and we are expecting residential prices and rental values to increase, creating yet further value for the Company."

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SECURE PROPERTY Development & Investment PLC + 380 44 459 3000

Lambros Anagnostopoulos www.secure-property.eu

Constantinos Bitros

SP Angel Corporate Finance LLP

Tercel Moore +44 (0) 20 3463 2260

Jeff Keating

FTI Consulting +44 (0) 20 3727 1000

Richard Sunderland

Nick Taylor