REG - Secure Property Dev - Operating Cost Optimisation Measures and RPT

Secure Property Development & InvestmentAnnouncement

24/05/2023 07:00

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RNS Number : 3808A  Secure Property Dev & Inv PLC  24 May 2023

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

24 May 2023

 

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

 

Operating Cost Optimisation Measures and RPT

 

Secure Property Development and Investment PLC (AIM: SPDI), the South Eastern
European focused property and investment company, informs its shareholders
that as part of the process of transferring the majority of its property
assets to Arcona Property Fund ("APF") (of which, the Company currently owns
25,6% and has nominated one of APF's three Supervisory Board members, being
Michael Beys, the Company's Chairman of the Board) and reducing its operating
expenses in the process, the Company has agreed with SECURE Management Limited
("SecMgt"), a Cyprus based advisory company wholly owned by the Company's CEO
Lambros Anagnostopoulos, that the latter absorbs all existing HR and office
costs in all jurisdictions that the Company currently operates in, except
Ukraine.

 

Such absorption will take place by SecMgt assuming a) all direct individual
personnel contracts, b) the service contracts with local real estate service
providers, including with the Greek SCEPSI S.A. (the entity through which HR
and office costs in Greece are incurred) and c) all HR and office costs in
Romania, in return for providing the services SPDI needs to operate in the
various jurisdictions against a fixed monthly fee of EUR 24,000 plus VAT. Such
fee has been set to reflect effectively the reduced personnel time/cost and
office costs of the Company during this phase of transferring assets to APF.
The advisory contract with SecMgt ("the SecMgt Agreement") will be able to be
terminated by either party with one month's notice, after an initial period of
eight months elapses.

 

The resulting annual cost to SPDI under the SecMgt Agreement of €288k is a
50% and 35% reduction vis a vis costs incurred by the Company providing the
same services in 2021 and 2022 of ~€600k and ~€425k, respectively, and 70%
reduction vis a vis the pre- APF agreement signature 2019 costs of ~€900k.

Related Party Transaction

The entering into the SecMgt Agreement is deemed a related party transaction
for the purposes of AIM Rule 13 of the AIM Rules for Companies due to SecMgt
being 100% owned and controlled by Mr Anagnostopoulos. Accordingly, the
Independent Directors, being the directors of the Company other than Mr
Anagnostopoulos, consider, having consulted with Strand Hanson Limited, the
Company's Nominated Adviser, that the terms of the SecMgt Agreement are fair
and reasonable in so far insofar as the Company's shareholders are concerned.

 

* * ENDS * *

 

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

 

For further information please contact:

 

 Lambros Anagnostopoulos  SPDI                    Tel: +357 22 030783

 Rory Murphy              Strand Hanson Limited   Tel: +44 (0) 20 7409 3494

 Ritchie Balmer

 Catherine Leftley        St Brides Partners Ltd  Tel: +44 (0) 20 7236 1177

 

 Jon Belliss  Novum Securities Limited  Tel: +44 (0) 20 7399 9400

 

 

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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