Last checked at 12 Dec 2016 07:00
Secure Property Development & Invest PLC/ Index: AIM / Epic: SPDI / Sector: Real Estate
12 December 2016
SECURE Property Development & Investment PLC ('SPDI' or 'the Company')
Regulatory Approval for Sale of Ukrainian Property
SECURE Property Development and Investment PLC (LSE: AIM: SPDI), the South Eastern European focused property investment company, is pleased to announce the Ukrainian Antimonopoly Commission has approved the proposed sale of the Company's Terminal Brovary logistics park in Kiev ('the Transaction') to Temania Enterprises Ltd. The Transaction (including payment) remains subject to final approval by the lender ('EBRD') which is expected to be received shortly.
As announced on 20 October 2016, SPDI agreed the sale of Terminal Brovary for a gross cash consideration of US$16 million (before the deduction of the outstanding EBRD loan). This compares favourably to the US$13.4 million gross value assigned to the Terminal as at 31 December 2015. The Transaction will therefore generate a net profit of over US$2.5million net to SPDI and a net cash inflow of over US$3 million (see announcement of 9 June 2016 for further details).
The Transaction is in line with the Company's focus on high-yielding and growing South Eastern European economies such as Romania, Bulgaria and Greece. Following the completion of the Transaction, the Company's income producing asset portfolio will comprise logistics terminals in Athens and Bucharest, offices in Bucharest, as well as a big box retail in Craiova, Romania. In addition, the Company owns a residential portfolio in Bucharest and Sofia, as well as sizeable land assets in Ukraine, all of which have excellent locations and are debt free.
SPDI's strategy is to generate value from a portfolio of well located income generating properties with blue chip tenants in high-yielding locations that have favourable demand/supply dynamics. Such properties still command low prices / high income yields and have the potential for capital appreciation, as yields converge towards the Central Eastern European, and eventually to Western European levels.
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