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

30 January 2017

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

Closes Profitable Sale of Ukrainian Warehouse

Secure Property Development and Investment PLC (AIM: SPDI), the South Eastern European focused property and investment company, is pleased to announce that the sale of the Terminal Brovary warehouse in Kiev to Temania Enterprises Ltd has now completed ('the Transaction').  The Transaction was concluded at a Gross Asset Value of over US$16 (or ~€15) million (before the deduction of the outstanding EBRD loan, which was acquired by the buyer, while the SPDI guarantee to EBRD has been cancelled).  The Transaction generates a profit for SPDI of ~€2.7 million, as well as a cash inflow of more than ~€3million.

The Transaction is in line with the Company's strategy to focus on high-yielding South Eastern European countries such as Romania, Bulgaria and Greece while limiting its exposure in Ukraine.  SPDI is evaluating further acquisition targets that meet its objective of delivering value to its shareholders through acquiring properties that fit its investment criteria of well-located income generating properties with blue chip tenants in high-yielding locations that have favourable demand/supply dynamics for modern commercial properties. 

Following the conclusion of the Transaction, the Company's income producing asset portfolio will include logistics terminals in Athens and Bucharest, offices in Bucharest, as well as a retail BigBox in Craiova, Romania.  In addition, SPDI holds substantial residential and land assets in Bucharest and Sofia, as well as in Ukraine (where all land assets are debt free), all of which have excellent locations.   SPDI is currently evaluating various options to generate value from these assets. 

SPDI CEO, Lambros Anagnostopoulos, commented, "Following the successful closing of this profitable transaction, on 27 January 2017, having a poperty portfolio yelding 9.0% based on dversified actually yielding and ground Land assets, anchored by Logistics Greek and Romanian assets,  SPDI intends to step up its growth path.

Closing the Terminal Brovary sale reinforces SPDI's strategy of selecting prime well-located assets, ensuring these are both fully let, optimally financed, and generating value for its shareholders through both cash inflows and capital appreciation.  Terminal Brovary was fully let, despite the difficulties that the Ukrainian economy is going through, and its sale at a profit, proves SPDI's capacity to deliver on its strategy. 

The price achieved confirms SPDI's capabilities of generating value for its shareholders but also serves to illustrate the disparity that persists between the Net Asset Value of our Company and our share price.  We are determined to close this gap so that SPDI's share price fully reflects the real value of our prime real estate portfolio."

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