Acquisition

RNS Number : 7116O

Secure Property Dev & Inv PLC

11 August 2014

 



11 August 2014

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

("Secure" or the "Company")

SECURE PROPERTY AGREES TO ACQUIRE A GLA 17,756 SQM WAREHOUSE IN ATHENS

- Acquisition is SECURE's first in Greece -

SECURE Property Development & Investment PLC (AIM: SPDI, www.secure-property.eu), a South Eastern Europe focused property investment company, today announces that it has reached a binding agreement to acquire an income producing logistics park that includes warehouse space as well as an alternative energy production facility (the "Complex"), located in the West Attica Industrial Area, Greece, from G.E. DIMITRIOU A.E.E., a Greek company listed in Athens Stock Exchange (the ''Seller'').

The acquisition, which is in line with the Company's stated strategy for further growth and the diversification of its property portfolio, will be the Company's second outside of Ukraine and the first in Greece this year. The acquisition is expected to be concluded upon separation of the asset from G.E Dimitriou A.E.E, its transfer to a newly formed company, and completion of certain other conditions. The consideration is €2,000,000  payable in cash  reflecting an agreed value for the Complexof €15,000,000 and the assumption of associated debt of €13,000,000.  

The Complex comprises 17,756 leasable sq m and has a net operating income ("NOI") of approximately €1.5 million. It is fully let with 71% leased to the German multinational transportation and logistics company, Kuehne + Nagel. All leases have a remaining duration of 11 years. The NOI also includes approximately €350.000 of contractual income from selling electric energy produced by the photovoltaic park installed on the roof of the warehouse property to the Greek Electric Grid. 

This acquisition, which will increase the Company's annual net operating income by approximately 40%, to  US$7 million, will also further strengthen Secure's exposure to the logistics property sector and increases its regional logistics portfolio to 85,000 sq m, which also includes the fully let Terminal Brovary in Kiev and the recently acquired Innovations Logistics Park in Bucharest.

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

"The agreement to acquire the Complex, our first investment in Greece, is in line with our strategy to expand our focus on the logistics sector and become a leading regional property company in South Eastern Europe, a market that we  believe offers significant opportunities. The asset offers an attractive yield with secure high-quality tenants, and an income- producing photovoltaic park which further adds to the net operating income.

"The Greek economy has shown promising signs of recovery and we believe that this is an ideal time to invest in Greek property. We remain acquisitive and are actively seeking investment opportunities in Greece and other countries in the region"

- Ends -

SECURE PROPERTY Development & Investment plc               [phone]

Lambros Anagnostopoulos                                                                

Constantinos Bitros

SP Angel Corporate Finance LLP                                                  [phone]

Tercel Moore                                                                                      

Jeff Keating

FTI Consulting                                                                                  [phone]

Richard Sunderland

Nick Taylor

 

END

 

 

ACQPPMFTMBJMBBI