Acquisition

RNS Number : 8731B

SPDI Secure Property Dev&Inv PLC

10 March 2014

 



10 March 2014

Secure Property Development and Investment Limited PLC (SPDI.L)

("Secure" or the "Company")

SECURE PROPERTY AGREES TO ACQUIRE A 17,000 SQM LOGISTICS PARK IN BUCHAREST

SECURE Property Development & Investment PLC (AIM: SPDI), a South Eastern European focused property and investment company, today announces that it has reached an agreement to acquire the Innovations logistics park in Bucharest, Romania, from Myrian Nes Ltd and Theandrion Estates Ltd. The acquisition will be the Company's first outside of Ukraine and marks the commencement of SECURE's stated strategy of both growing and diversifying its portfolio across the economies of South Eastern Europe.

Innovations is a fully-let 17,000 sqm gross leasable area logistics park located in Clinceni in Bucharest, which benefits from being on the Bucharest ring road, and currently produces €1.3 million of income per annum. The anchor tenant is Nestle which leases more than 60% of the gross leasable area with the remainder is let to locally managed Romanian businesses.  This acquisition is expected to increase the Company's annual net operating income by over 60%.

The acquisition will strengthen SECURE's focus on the logistics industry and increases its regional logistics portfolio, which also includes the fully let Terminal Brovary asset in Kiev, to 67,000 sqm.

As the largest economy in South Eastern Europe, Romania has been recovering well in recent quarters, recording GDP growth of 5.2% in Q4 2013 (3.5% year on year 2013).  Unemployment in Bucharest is around 4% and the country's fundamentals outperform substantially any other economy in the region.  Logistics is widely considered to be among the fastest growing asset classes for the next few years, particularly given the return to economic growth which is now anticipated.

Lambros Anagnostopoulos, Chief Executive Officer of Secure Property, commented: 

"The agreement to acquire the Innovations Logistics Park signals the first step of the Company's growth strategy into becoming a regional property company across the very promising but often under rated region of South Eastern Europe. It adds diversification to our portfolio, consolidates our focus on the fast growing logistics sector and gives a substantial boost to our Company's income generating capacity."

- Ends -

Enquiries:
Secure Property Development & Investment Ltd (formerly Aisi Realty Public Ltd)	[phone]
Lambros Anagnostopoulos/Constantinos Bitros
Liberum Capital Limited (NOMAD and Broker)	[phone]
Chris Bowman / Richard Bootle
FTI Consulting	[phone]
Richard Sunderland / Will Henderson

 

END

 

 

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