EUR1.39M termination fee received from Nestle

RNS Number : 9373G

Secure Property Dev & Inv PLC

11 August 2016

 

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

11 August 2016

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

€1.39 million termination fee received from Nestle

Secure Property Development and Investment PLC (AIM: SPDI), the South Eastern European focused property and investment company, announces that it has received a mutually agreed €1.39 million fee from Nestlé România in settlement of the early termination of its rental contract for the Company's Innovations Logistics Park in Bucharest, Romania (the "Innovations Park").

The Company announced on 10 June 2016 that Nestlé România, as a part of its wider global restructuring plans, decided to terminate the rental contract with SPDI for leasing of approximately 60 per cent. of the Innovations Park space, which was due to expire in September 2018. 

The Innovations Park is subject to a sale and leaseback agreement with Piraeus Bank Leasing ("PBL").  Approximately €0.25 million of the settlement fee will be paid to PBL to settle overdue instalments due under the sale and leaseback agreement.

In addition, Nestle România has agreed to forego the rental deposit guarantee of approximately €0.28 million and will leave certain fixtures and fittings, including storage racks.   The cash component of the settlement received today of approximately €1.39 million represents approximately 1.5 years' worth of rental income that would have been due from Nestlé România in the event it had not terminated the lease.

The Company is hopeful of securing a new tenant for the vacant space in the Innovations Park, which is located on the ring road of Bucharest, and will update the market as soon as possible. 

Lambros G. Anagnostopoulos, Chief Executive Officer, said, 

"We are pleased to have reached an amicable settlement with Nestlé România.  Like all our core properties, the Innovations Park is prime real estate well located in the capital city of a fast growing South Eastern European country.  As a result, we are confident a replacement for Nestlé România will be found quickly.  In the meantime, we continue to look to add value for our shareholders through our portfolio, which as at year end had a total asset value of €125 million and generated operating income of €5.1 million in FY2015, as we focus on transforming SPDI into the leading London listed property company focused on selected South East European countries."

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

Lambros Anagnostopoulos Constantinos Bitros SPDI Tel: [phone] Andrew Emmott Ritchie Balmer Strand Hanson Limited Tel: [phone] Lottie Brocklehurst 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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