Secure Property Dev & Inv PLC New Lease Agreement Signed for Romanian Warehouse (5066C)
April 18 2017 - 1:00AM
UK Regulatory
TIDMSPDI
RNS Number : 5066C
Secure Property Dev & Inv PLC
18 April 2017
Secure Property Development & Invest PLC/ Index: AIM / Epic:
SPDI / Sector: Real Estate
18 April 2017
Secure Property Development & Investment PLC
('SPDI' or 'the Company')
New Lease Agreement Signed for Romanian Warehouse
Secure Property Development and Investment PLC (AIM: SPDI), the
South Eastern European focused property and investment company, is
pleased to announce the signing of a lease agreement ('the
Agreement') with Aquila srl ('Aquila'), a large Romanian logistics
operator, for 5,740 sqm of ambient space in the Company's
Innovations Logistics Park in Bucharest, Romania (the 'Innovations
Park'). Under the terms of the Agreement, the annual rent payable
by Aquila to the Company is EUR300,000, which increases the
Company's current net rental income by almost 10 per cent.
The Innovations Park is a Class A warehouse located in the area
of Clinceni, south west of the centre of Bucharest, just off the
city's ring road and 6km from Bucharest-Pitesti (A1) highway. It
comprises four separate warehouses, two of which offer cold
storage.
Out of a total gross leasable area of 16,570 sqm, approximately
one third is suitable for cold storage with the remaining comprised
of multipurpose warehousing space and of office space (together
referred to as the ambient section). The Agreement completes the
leasing of the entire ambient warehouse section of the Terminal,
with the other 3,870 sqm leased to two Romanian companies producing
and selling Structural Insulated Panels (SIPs) Europe-wide. The
Company continues to talk to a number of prospective tenants with
regards to leasing the cold storage space and will update the
market as and when it is appropriate to do so.
The Agreement follows the early termination of the rental
contract between the Company and Nestle Ice Cream Romania ('Nestlé
România') covering approximately 60 per cent. of the leasable area
of the Innovations Park. As announced on 11 August 2016, Nestlé
România paid SPDI a fee of EUR1.39 million in settlement of the
termination of the rental contract, which was due to expire in
September 2018. The fee paid represented 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.
Lambros G. Anagnostopoulos, Chief Executive Officer, said, "As
with all our core income producing assets, which include logistics
terminals in Athens and Bucharest, offices in Bucharest, as well as
a retail Big Box property in Craiova, Romania, the Innovations Park
is prime real estate with an excellent location in the capital city
of a fast-growing and/or strategically important European Union
economy.
"At EUR300,000 per annum, today's lease agreement with Aquila
increases the Company's current net rental income by almost 10% and
in our view it also demonstrates the quality of our asset base. As
at 30 June 2016, the Company's Net Asset Value stood at more than
EUR41 million, which is almost two and half times our current
market capitalisation, even after the profitable sale of Terminal
Brovary in January earlier this year. As we focus on transforming
SPDI into the leading London listed property company focused on
selected South East European countries, we expect to see the wide
discount between our market capitalisation and our net asset value
narrow."
* * ENDS * *
For further information please visit www.secure-property.eu or
contact:
Lambros Anagnostopoulos SPDI Tel: +357 22
Constantinos Bitros 030783
Andrew Emmott Strand Hanson Tel: +44 (0)
Ritchie Balmer Limited 20 7409 3494
Lottie Brocklehurst St Brides Partners Tel: +44 (0)
Frank Buhagiar Ltd 20 7236 1177
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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