Secure Property Development Completes €12.6 Million
SECURE Property Development & Investment PLC (AIM: SPDI), a South Eastern European focused property and investment company, today announces that, further to its announcement of 10 March 2014, it has completed the acquisition of Innovations logistics park in Bucharest, Romania, from Myrian Nes Ltd and Theandrion Estates Ltd for €12.6 million. The acquisition has been funded by €4.4 million of the Company's existing cash resources and by issuance of 785,000 redeemable shares, with the remainder funded by bank debt.
Innovations is a fully-let 17,000 sqm gross leasable area logistics park located in Clinceni in Bucharest, which benefits from being on the Bucharest ring road, and currently produces €1.3 million of income per annum. The anchor tenant is Nestle which leases more than 60% of the gross leasable area, with the remainder let to locally managed Romanian businesses. This acquisition is expected to increase the Company's annual net operating income by over 60%.
The acquisition increases SECURE's regional logistics portfolio, which also includes the fully let Terminal Brovary asset in Kiev, to 67,000 sqm (with occupancy being at 100% of the warehouse space).