Secure Property Dev & Inv PLC Arcona Property Fund N.V. Agreement Update (0499A)
May 24 2019 - 2:00AM
UK Regulatory
TIDMSPDI
RNS Number : 0499A
Secure Property Dev & Inv PLC
24 May 2019
Secure Property Development & Invest PLC/ Index: AIM / Epic:
SPDI / Sector: Real Estate
24 May 2019
Secure Property Development & Investment PLC ('SPDI' or 'the
Company')
Arcona Property Fund N.V. Agreement Update
Secure Property Development and Investment PLC (AIM: SPDI), the
AIM-quoted South Eastern European focused property company, is
pleased to provide an update on the sale of its Non-Greek assets to
Arcona Property Fund N.V. ('Arcona').
As announced on 18 December 2018, SPDI has entered into a
conditional implementation agreement (the 'Agreement') for the sale
of its property portfolio, excluding its Greek logistics properties
('the Non-Greek Portfolio') ('the Transaction'), to Arcona, an
Amsterdam-listed company that invests in commercial property in
Central Europe. The all-share Transaction values SPDI's Non-Greek
Portfolio at EUR29.25 million (based on a net asset value of
EUR13.98 per Arcona share), an approximate 150% premium to the
current market capitalisation of the Company.
As announced on 28 March 2019, mutual due diligence is underway,
as is the finalisation of the 2018 annual financial accounts for
both companies, including the necessary third party property
valuations. Based on the latest discussions, the parties expect to
agree binding terms for part of the Transaction, conditional on,
inter alia, SPDI shareholder approval, if required at that time,
for the Transaction pursuant to the AIM Rules, including the
expected distribution of the new Arcona shares to SPDI
shareholders, in June 2019, with overall completion of the
Transaction planned in two further steps to be executed within H2
2019.
The Transaction is subject to, among other things, asset and tax
due diligence (including third party asset valuations) and
regulatory approvals (including the approval of a prospectus
required in connection with the issuance and admission to listing
of the new Arcona shares) as well as successful negotiating and
signature of transaction documents. Due diligence is well advanced
and to date no issues have been uncovered that would obstruct the
successful completion of the Transaction.
Michael Beys, Chairman, said; "As we progress towards completing
the Arcona deal in three stages over Q2, Q3 and Q4 2019, we are
moving closer towards what we believe will be a value trigger event
for our shareholders. At an estimated value of EUR30million, the
value assigned to our Non-Greek assets which will be sold to Arcona
is approximately three times higher than our current GBP10m market
capitalisation and that is before the value of our remaining assets
is taken into account. Aside from crystallising the value of our
assets, the Arcona deal will allow our shareholders to gain direct
exposure to a much larger dividend paying, listed fund, which is
focused on the European property sector.
Lambros G. Anagnostopoulos, Chief Executive Officer, said; "This
is a very exciting year for the Company as we focus on the
continued development of and generating value from our asset base,
and as such, we are concentrating all our focus into completing
this transformative deal for the benefit of our shareholders. We
look forward to updating the market with our progress when
practicable."
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
Jack Botros
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
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDCKNDPPBKDDPB
(END) Dow Jones Newswires
May 24, 2019 02:00 ET (06:00 GMT)
Secure Property Developm... (LSE:SPDI)
Historical Stock Chart
From Apr 2024 to May 2024
Secure Property Developm... (LSE:SPDI)
Historical Stock Chart
From May 2023 to May 2024