REG - Secure Property Dev - Sale of the GreenLake land portfolio

Secure Property Development & InvestmentAnnouncement

03/01/2023 09:15

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RNS Number : 4848L  Secure Property Dev & Inv PLC  03 January 2023

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

 

 

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

 

Sale of the GreenLake land portfolio and settlement of land overlapping
dispute

 

Secure Property Development and Investment Limited (AIM: SPDI), the South
Eastern European focused property company, is pleased to announce that it has
signed a binding agreement to sell its interest in the remaining land
portfolio of the GreenLake project in Bucharest, Romania (the "GreenLake
portfolio"). The GreenLake portfolio consists of shares in four different
special purpose vehicles ("SPVs"), in three of which SPDI owns a minority
44,5% interest while in the fourth it owns a 70% stake, all of them owning
parts of the land in question which is not zoned for development. The
GreenLake portfolio is being sold to a company called Bougalon Investments
Limited, which is 60% owned by three of SPDI's directors, Michael Beys, Ian
Domaille and Lambros Anagnostopoulos

 

The consideration payable for the GreenLake is €400,000 upfront and a
further payment of approximately €450,000 in March 2023, subject to certain
adjustments, including 50% of any intermediate monetization of the GreenLake
portfolio by Bougalon Investments Limited between now and March 2023. In
parallel, following prolonged negotiations with neighbouring land owners, SPDI
and its partners in the GreenLake project are settling a land overlapping
dispute at a cost of €500,000 gross.

 

Related Party Transaction

The sale of the Company's interest in the GreenLake portfolio is regarded as a
related party transaction for the purposes of AIM Rule 13 of the AIM Rules for
Companies due to the collective interest that three of the Company's directors
own in Bougalon Investments Limited. Accordingly, the Independent Directors,
being Harin Thaker and Antonios Kaffas, consider, having consulted with Strand
Hanson Limited, the Company's Nominated Adviser, that the terms of the sale
are fair and reasonable in so far insofar as the Company's shareholders are
concerned.

 

SPDI Chairman of the Board Michael Beys commented, "The GreenLake land
overlapping settlement, and subsequent sale, follows an extended effort by the
Company to monetise the GreenLake property assets. Despite the difficult
conditions that followed the project's acquisition in 2015, and the Company's
minority stake interest, it has so far succeeded in selling most of the
existing property units and part of the adjacent land, and this conclusion has
generated further value for our shareholders."

 

Schedule Four Disclosure

As of 30 June 2022, the four SPVs recorded the GreenLake portfolio at an
unaudited Book Value of €1.9m. For the year ended 31 December 2021, the
GreenLake portfolio recorded an audited loss before tax of €32k from which
€16k were attributed to the Company, while for H1 2022 the unaudited losses
before tax were  €908k and €403k respectively.

 

* * ENDS * *

 

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

 Lambros Anagnostopoulos  SPDI                      Tel: +357 22 030783

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

 Ritchie Balmer
 Jon Belliss              Novum Securities Limited   Tel: +44 (0) 207 399 9400

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

 Zoe Briggs

 

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