Sale of the Linda residential portfolio, Bucharest

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

26 May 2016

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

Sale of the Linda residential portfolio, Bucharest

 

Secure Property Development and Investment Limited (AIM: SPDI), the South Eastern European focused property and investment company, is pleased to announce that it has signed a binding  agreement to sell its Linda Residences property portfolio in East Bucharest, Romania for €660,000 (gross of debt).  The sale is in line with the Company's strategy to capitalise on rising property prices in Bucharest, which are benefiting from continuous economic growth averaging more than 3% per annum, as well as increased interest in the residential, commercial and industrial sectors of the local property market. 

 

The Linda Residences portfolio, which was purchased in an all-share transaction is located off Pantelimon lake in East Bucharest in a heavily populated area and comprises 16 apartment units in different property blocks.  The sale of the Linda Residences portfolio will not only generate c. €450,000 net cash proceeds for the Company after repayment of debt, but also increase the proportion of income generating properties in its residential portfolio, as only c. 25% of the portfolio was let, allowing the Company to focus further on its income producing properties.  During the last two years SPDI, which originally had assets only in Ukraine, has expanded through the acquisition of properties located in certain other high-yield South Eastern European countries and let to blue chip tenants, generating significant cash returns. As of today the Company's income producing portfolio includes logistics terminals in Athens, Bucharest and Kiev, offices in Sofia and Bucharest, a big box retail building in Craiova, Romania, as well as a portfolio of residential units in Bucharest and Sofia which is mostly let. 

 

SPDI is focused on building a portfolio of income generating properties in South Eastern Europe, where the countries provide favourable supply and demand dynamics for modern commercial properties.  The Company is seeking to provide an annual cash dividend to its shareholders in the mid-term by acquiring properties that match its investment criteria at attractive yields providing scope for capital appreciation as yields converge.

 

SPDI CEO Lambros Anagnostopoulos commented, "The Linda sale demonstrates our active management of SPDI's portfolio.  This not only involves acquiring prime income producing assets with blue chip tenants in the fast growing South Eastern European region, but also taking advantage of opportunities to secure profitable transactions, and in the process generate cash for reinvestment into our growth plan.  The high quality and efficient management of the Linda residences attracted the interest of the potential buyer and created the opportunity in an area where such transactions have not been common in the last few years.  Additionally we are delighted to be receiving a significant cash injection from what was originally an all-share transaction in 2014.  I look forward to providing further updates on our progress as we focus on delivering on our objective to grow into a leading property company in the South East European Region, generating and delivering value to our shareholders whilst at the same time closing the disconnect between our current market cap and the true value of our company."

 

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

Lambros Anagnostopoulos SPDI Tel: +30-210-7226470 Constantinos Bitros Tercel Moore SPDI SP Angel Corporate Finance LLP Tel: +30-210-7226470 Tel: +44 (0) 20 3463 2260 Jeff Keating SP Angel Corporate Finance LLP Tel: +44 (0) 20 3463 2260 Lottie Brocklehurst St Brides Partners Ltd Tel: +44 (0) 20 7236 1177 Frank Buhagiar St Brides Partners Ltd Tel: +44 (0) 20 7236 1177