Sale of the Linda residential portfolio, Bucharest

About this update from Secure Property Development & Investment Plc

[{"type":"text","content":"\n \nRNS Number : 3436Z Secure Property Dev & Inv PLC 26 May 2016  \n\nSecure Property Development & Invest PLC/ Index: AIM / Epic: SPDI / Sector: Real Estate\n26 May 2016\nSecure Property Development & Investment PLC ('SPDI' or 'the Company')\nSale of the Linda residential portfolio, Bucharest\n \nSecure Property Development and Investment Limited (AIM: SPDI), the South Eastern European focused property and investment company, is pleased to announce that it has signed a binding  agreement to sell its Linda Residences property portfolio in East Bucharest, Romania for €660,000 (gross of debt).  The sale is in line with the Company's strategy to capitalise on rising property prices in Bucharest, which are benefiting from continuous economic growth averaging more than 3% per annum, as well as increased interest in the residential, commercial and industrial sectors of the local property market.  \n \nThe Linda Residences portfolio, which was purchased in an all-share transaction is located off Pantelimon lake in East Bucharest in a heavily populated area and comprises 16 apartment units in different property blocks.  The sale of the Linda Residences portfolio will not only generate c. €450,000 net cash proceeds for the Company after repayment of debt, but also increase the proportion of income generating properties in its residential portfolio, as only c. 25% of the portfolio was let, allowing the Company to focus further on its income producing properties.  During the last two years SPDI, which originally had assets only in Ukraine, has expanded through the acquisition of properties located in certain other high-yield South Eastern European countries and let to blue chip tenants, generating significant cash returns. As of today the Company's income producing portfolio includes logistics terminals in Athens, Bucharest and Kiev, offices in Sofia and Bucharest, a big box retail building in Craiova, Romania, as well as a portfolio of residential units in Bucharest and Sofia which is mostly let.  \n \nSPDI is focused on building a portfolio of income generating properties in South Eastern Europe, where the countries provide favourable supply and demand dynamics for modern commercial properties.  The Company is seeking to provide an annual cash dividend to its shareh...

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