Update re: Transfer of Property Assets to Arcona

RNS Number : 3150P

Secure Property Dev & Inv PLC

17 June 2022

 

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

17 June 2022

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

Transfer of final stake in Romanian property asset to Arcona Property Fund N.V.

&

Transfer of further Romanian property asset

Secure Property Development & Investment PLC, the AIM quoted South Eastern European focused property company, is pleased to announce, further to the announcement of 30 March 2022, that is has transferred the remaining 3.2% stake in Lelar Holdings Limited to Arcona Property Fund N.V. ('Arcona') in exchange for the issue to SPDI of 47,020 new shares in Arcona and 11,333 warrants over shares in Arcona ('the Lelar Transfer').  Lelar Holdings Limited holds the Delenco Office Building asset in Bucharest ("Delenco").

Following the transfer of the additional 3.2% stake, the Company will no longer have a stake in Lelar Holdings Limited.

The Company is also pleased to announce the completion of the transfer of 100% of N-E REAL ESTATE PARK FIRST PHASE SRL to Arcona in exchange for the issue to SPDI of 116,688 new shares in Arcona and 28,125 warrants over shares in Arcona ('the EOS Transfer').  N-E REAL ESTATE PARK FIRST PHASE SRL holds the EOS Business Park, Bucharest, Romania ("EOS").

EOS is an office building in the North East of Bucharest, generating c.€54k lease income monthly, with the main tenant being Danone Romania and is fully let until 2025.

Based on the closing price of Arcona's shares on 16 June 2022, the EOS Transfer values EOS at c.€0.66million (excluding the issue of the warrants), while based on the current net asset value per Arcona share, the EOS Transfer values EOS asset at c.€1.39million (excluding the issue of the warrants).  The net asset value of N-E REAL ESTATE PARK FIRST PHASE SRL based on the 2020 valuation is c.€3.0 million.

SPDI now has a total holding of 1,072,910 shares in Arcona which based on the closing price of Arcona's shares on 15 June 2022, values the SPDI's stake in Arcona at c.€6.1 million (excluding the issue of the warrants), while based on the current net asset value per Arcona share (as at 22 March 2022), values the stake at €12.75 million (excluding the issue of the warrants).

Michael Beys, Chairman of the Board of Directors, said; " We are happy to announce the further progress of Stage Two of the Arcona Transaction with the completion of the transfer of the remaining interest in Delenco along with 100% of EOS Business Park. These latest transactions will bring the total number of Arcona Shares issued to SPDI to 1,072,910 or 25.3% of the total shareholding of the company This completes the Romanian asset disposals and represents c.75% of SPDI's current market capitalisation, a clear value trigger for our shareholders. Stage Two is ongoing with the remaining assets in the Kiev region of Ukraine. With the present military conflict in the country, and even though our first priority is the wellbeing of our people in Kiev, discussions with Arcona continue and we will keep shareholders updated as appropriate."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

**ENDS**

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

Lambros Anagnostopoulos	SPDI	Tel: [phone]
Rory Murphy Ritchie Balmer Robert Collins	Strand Hanson Limited	Tel: [phone]
Jon Belliss Catherine Leftley Isabelle Morris	Novum Securities Limited St Brides Partners Ltd	Tel: [phone] Tel: [phone]

Notes to Editors

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

 

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