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Acquires an income yielding office building in Sofia, Bulgaria
Secure Property Development & Investment PLC, the AIM quoted property company focused on Emerging Europe, has announced the acquisition of an interest in a fully let and income generating office building in Sofia. The acquisition, which is the Company’s first in Bulgaria, is in line with its strategy to build a diversified portfolio of prime commercial real estate in East and Southeast Europe, which is fully let to blue chip tenants on long leases, generate high yields and have the potential for capital growth. The Company has acquired 20% of the corporate entity owning the building for a cash consideration of €4.06 million.
Autounion is a Class A BREEAM certified office building, located in a prime business location close to Sofia Airport and the city centre. The building is fully let to a leading Bulgarian insurance company on a long lease extending to 2027 and produces an annualized Net Operating Income of €2.9 million. It has a Gross Lettable Area of 19,476 square metres over ten floors and includes underground parking.
The acquisition widens the Company’s investment activity to four countries. The consideration is being funded from the Company’s current cash reserves, which were boosted by the recent fundraising, as announced on 13 March 2015. The Company continues to evaluate additional opportunities, which fit its stringent investment criteria, by utilising its extensive regional experience and network.
Lambros Anagnostopoulos, Chief Executive Officer of Secure Property, said: “This acquisition matches our investment criteria being in a prime location, fully let on a long lease with a blue chip tenant and acquired at an attractive rate. As well as providing our shareholders with immediate stable cash flows with long term visibility, we are also offering the potential for significant capital uplift over the short to medium term, as the on-going European yield compression play gathers momentum across the continent.
“Successfully securing this asset is testament to our management’s expertise and extensive contacts in the region. With a long pipeline of additional opportunities, I look forward to providing further updates on our progress as we deliver on our objective to build SPDI into a leading institutional income generating property play in Emerging Europe.”
