Sale of Ukrainian Warehouse

About this update from Secure Property Development & Investment Plc

[{"type":"text","content":"\n \nRNS Number : 6660A Secure Property Dev & Inv PLC 09 June 2016  \n\nSecure Property Development & Invest PLC/ Index: AIM / Epic: SPDI / Sector: Real Estate\n9 June 2016\nSecure Property Development & Investment PLC ('SPDI' or 'the Company')\nSale of Ukrainian Warehouse\n \nSecure Property Development and Investment PLC (AIM: SPDI), the South Eastern European focused property and investment company, is pleased to announce that it has signed heads of terms with Temania Enterprises Ltd for the sale of its Kiev based warehouse, Terminal Brovary, at a Gross Asset Value exceeding US$16 million (before deducting the outstanding  EBRD attached loan).  As completion of the disposal is subject to a number of conditions being met, the Company has also signed a fixed four-year lease agreement with a subsidiary of the buyer raising the warehouse occupancy rate to 100%, thus generating ~US$150,000 of Net Operating Income ('NOI') per month until the sale is concluded.  The rent attributed to the buyer received prior to the disposal will be deducted from the purchase price, if such disposal is concluded by the end of October 2016.  Once the sale is concluded, the Directors believe it will be one of the largest property asset transactions in Ukraine in the logistics and industrial sector since 2013.  \n \nThe sale of Terminal Brovary, which the Company developed in 2010 on the north side of Kiev, the capital city of Ukraine, close to its international airport, is subject to a number of conditions, including reaching agreement on terms with the lending bank (EBRD) with regards to the related debt attached to Terminal Brovary, which may take some time to be effected.  The Board is pleased that is has agreed terms for both the rental as well as the sale, especially taking into consideration the recent economic situation in the country.  \n \nSPDI has a portfolio of properties with blue chip tenants in high-yielding South Eastern European countries, which have favourable supply and dynamics for modern commercial properties.  Its strategy is to deliver value to shareholders by acquiring and managing properties that match its investment criteria: generate annual cash-flows from solid covenants in assets in good locations as well as having scope for capital appreciati...

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