Disposal of Residential Units Gains Momentum

RNS Number : 9585F

Secure Property Dev & Inv PLC

27 February 2018

 

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

27 February 2018

Secure Property Development & Investment PLC

('SPDI' or 'the Company')

Disposal of Residential Units Gains Momentum

Secure Property Development & Investment PLC, the AIM-quoted property company focused on Emerging Europe, is pleased to announce the sale of nine residential units in Romania and Bulgaria for a total gross consideration of ~€980,000.  The proceeds will be used to reduce the Company's residential property asset debt by €0.7m to €11.5m, while at the same time generating free cash of ~€280,000.  The sales are in line with the Company's strategy to dispose of non-core assets and focus on growing its income producing portfolio of prime commercial and industrial real estate in high-yielding countries such as Romania and Greece. ‎

The sales contracts were all signed within the first two months of 2018 and together with sales prices ~10-15% higher than those achieved for similar residential units sold last year, demonstrate the buoyancy of the residential markets in the fast growing economies of Bucharest and Sofia.  Following these sales, SPDI still owns 110 residential units in these cities, ‎many of which are currently rented.  The Company intends in time to sell all its residential units. 

SPDI's core property asset portfolio consists of South Eastern European prime commercial and industrial real estate, the majority of which is let to blue chip tenants on long leases including logistics terminals in Athens and Bucharest, offices in Bucharest, as well as a retail BigBox in Craiova, Romania.

Lambros G. Anagnostopoulos, Chief Executive Officer, said, "The growth of the Romanian economy, the fastest in the EU over the last few years, has generated a positive environment for the sales of SPDI's residential property in Bucharest, as evidenced by the recent pick-up of both the sales momentum and price levels,  so we look forward to continuing to see an increased turnover of our residential portfolio at the higher prices we are experiencing. 

"We are delighted to be reaping the benefits of this advancing market in South Eastern Europe, as projected in our strategy and business plan, and in turn increasing our revenues and reducing our debt, as we continue to build a mostly income producing and cash generative platform with which to build the leading South Eastern European income generating and dividend paying property company. 

We hope the market realises soon that the substantial discount at which our shares trade to NAV is unwarranted."

* * ENDS * *

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

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

Lambros Anagnostopoulos	SPDI	Tel: [phone]
Rory Murphy Ritchie Balmer Jack Botros	Strand Hanson Limited	Tel: [phone]
Jon Belliss Elliot Hance	Beaufort Securities Limited	Tel: [phone]
Lottie  Wadham Frank Buhagiar	St Brides Partners Ltd	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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