REG - Secure Property Dev - Update re: Transfer of Property Assets to Arcona

Secure Property Development & InvestmentAnnouncement

17/06/2022 12:30

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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
(http://www.secure-property.eu/#_blank)  or contact:

 

 Lambros Anagnostopoulos  SPDI                       Tel: +357 22 030783

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

 Ritchie Balmer

 Robert Collins

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

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

 Isabelle Morris

 

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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