Secure Property Development and Investment Limited PLC Acquires Office Building in Bucharest
SECURE Property Development & Investment PLC (AIM: SPDI, www.secure-property.eu), a South Eastern Europe focused property investment company, today announces that it has entered into a binding agreement to acquire the EOS Business Park, a fully let income producing office building in Bucharest, Romania. The property is the Romanian headquarters of Danone, the French multinational food company.
The EOS Business Park consists of 3,386 leasable sqm of office space, as well as 90 parking spaces. It generates a net operating income ("NOI") of circa €600,000 per annum and is fully let to Danone Romania until 2026. The building is situated next to the Danone factory on the North-Eastern part of Bucharest. The consideration is €5.85 million payable in cash from Secure's own cash resources and debt facilities.
The acquisition is in line with the Company's stated strategy of achieving further growth and diversification of its property portfolio within the South East Europe region. It is the Company's second in Romania this year and it will bring Secure's annualised NOI up to circa $7.5 million, representing a 250% increase from the beginning of the year. At the same time the Company's annualised EBITDA is expected to reach around $3.5 million, representing a 350% increase compared to 2013, thus further enhancing its positive net cash flow (after financing costs).
Lambros Anagnostopoulos, Chief Executive Officer of Secure Property, commented:
"The agreement to acquire the EOS Business Park, shows our commitment for profitable growth as well as our ability to acquire high value and low risk income producing properties in our region. As we continue to raise funds from investors we intend to put the proceeds to work in the acquisition of similar assets with a view to generating substantial income, providing a dividend to our shareholders and becoming a leading regional property company in South Eastern Europe."