Secure Property Dev & Inv PLC Corporate Update (7357Y)
May 17 2021 - 1:00AM
UK Regulatory
TIDMSPDI
RNS Number : 7357Y
Secure Property Dev & Inv PLC
17 May 2021
Secure Property Development & Invest PLC/ Index: AIM / Epic:
SPDI / Sector: Real Estate
Secure Property Development & Investment PLC ('SPDI' or 'the
Company')
Corporate Update
Secure Property Development and Investment PLC (AIM: SPDI), the
AIM-quoted South Eastern European focused property company, is
pleased to provide a corporate update including progress being made
with regards to the transaction with the Arcona Property Fund N.V.
('Arcona').
Arcona Property Fund Transaction
As previously announced, SPDI agreed to transfer its property
portfolio, excluding its Greek logistics properties, to Arcona in
exchange for new shares and warrants in Arcona to create a larger
Central and South Eastern European focused investment vehicle ('the
Transaction').
The Transaction is being implemented in three stages. Stage One
has been completed and involved the transfer of certain of SPDI's
Ukrainian assets, as well as all of its Bulgarian assets, in
exchange for 593,534 new shares in Arcona and 144,264 warrants over
shares in Arcona (see announcements of 1 November 2019 and on 6
December 2019 for further details).
Completion of Stage Two of the Transaction has been severely
disrupted by COVID-19 pandemic related business interruptions
however both SPDI and Arcona have now made it a priority to
complete Stage Two as soon as feasible with the relevant Sale and
Purchase Agreements due to be signed in the near future. Stage Two
includes the remaining property assets in Ukraine and certain of
SPDI's assets in Romania.
Update on commercial property portfolio
SPDI's Romanian income generating assets continue to experience
no adverse revenue effects from the pandemic. As previously
disclosed, this is largely due to the assets being leased to
companies active in defensive sectors such as food and telecoms,
sectors where trade has seen little or no disruption. The
large/anchor tenants in the Company's properties in Bucharest
include Favorit, a 3PL logistics operator servicing Carrefour;
Danone, the international food company; ANCOM, the Romanian
Telecoms Regulatory Authority; and the supermarket chain Mega
Image. In fact, ANCOM just extended its lease agreement, which was
terminating in June 2021, for an additional five years.
Shareholder call
The Company intends to hold a shareholders' call within the next
few weeks in order to address such matters in more detail and
answer any questions raised by its shareholders. Further details
regarding the shareholder call will be provided in due course.
Michael Beys, Chairman, said; " The directors see substantial
benefits in closing the Arcona deal, not least because of the EUR30
million of intrinsic value on offer. As a result, we have been
working toward that goal despite the pandemic and the consequent
business disruption. Signing Stage Two of the Transaction will be a
key event. It will mark a key advancement in executing the overall
Arcona Property Fund Transaction, which itself will crystallise the
value of SPDI's assets, and eventually offer SPDI shareholders
shares in a much larger, higher liquidity and more diversified
Central and South Eastern European focused property company."
Lambros G. Anagnostopoulos, Chief Executive Officer, said; " The
business disruption caused by the global pandemic over the last
fifteen months has affected the progress of the Arcona transaction
but, from this point onwards, we are confident that the pace will
pick up and progress will be swift. While our thoughts have been
with our fellow humans who have suffered the loss of loved ones
during the last year, we have worked hard to ensure that SPDI's
portfolio of income generating assets has been largely insulated
from the worst effects of the pandemic. In this we have been
successful. In the meantime, we continue to be guided by our strong
conviction that securing the closing of the Arcona transaction, as
per our shareholders guidance, will not only result in value
generation but will also create a strong platform for future
growth. With this in mind, I look forward to providing further
updates on our progress."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
* * ENDS * *
Lambros Anagnostopoulos SPDI Tel: +357 22 030783
Rory Murphy Strand Hanson Limited Tel: +44 (0) 20 7409 3494
Ritchie Balmer
Rob Patrick
Jon Belliss Novum Securities Limited Tel: +44 (0) 207 399 9400
Frank Buhagiar St Brides Partners Ltd Tel: +44 (0) 20 7236 1177
Cosima Akerman
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