SECURE PROPERTY DEVELOPMENT & INVESTMENT PLC

Regulatory Filings • Jun 10, 2016

National Storage Mechanism | Additional information

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RNS Number : 9123A

Secure Property Dev & Inv PLC

10 June 2016

Secure Property Development & Invest PLC/ Index: AIM / Epic: SPDI / Sector: Real Estate

10 June 2016

Secure Property Development & Investment PLC ('SPDI' or 'the Company')

Portfolio Update

Secure Property Development and Investment PLC (AIM: SPDI), the South Eastern European focused property and investment company, announces that it is in discussions with Nestle in Romania relating to its rental contract in the Company's Innovations Logistics Park in Bucharest ('the Logistics Park'). 

As part of its restructuring plans for its global ice-cream operations, Nestle has notified the Company that it intends to terminate its rental contract, which is due to expire in 2018.  Such termination is currently expected to result in a settlement being payable to SPDI by Nestle.  The Logistics Park has an existing sale and leaseback agreement in place with Piraeus Bank Leasing ('Piraeus') and as a result any final settlement requires their agreement on the allocation of funds to be received from Nestle as part of the expected amicable settlement.  While discussions are taking place with Piraeus, payments of rent by Nestle and instalments due under the sale & leaseback agreement by the Company are currently suspended.   SPDI  currently expects  that a settlement will be reached that is satisfactory to all parties, details of which will be provided when concluded, as well as an update on progress being made to secure future tenants for Nestle's space in this asset which is located at the ring road of Bucharest. 

The rental income from Nestle comprises less than 15% of the Company's annualised income1, as the Logistics Park is one of a number of properties in SPDI's portfolio which are located in countries with attractive yields and favourable supply and demand dynamics for modern commercial properties. 

1 based on current annualised rental income including Terminal Brovary (the conditional sale of which was announced on 9 June 2016)

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For further information please visit www.secure-property.eu or contact:

Lambros Anagnostopoulos	SPDI	Tel: +30-210-7226470
Constantinos Bitros Tercel Moore	SPDI SP Angel Corporate Finance LLP	Tel: +30-210-7226470 Tel: +44 (0) 20 3463 2260
Jeff Keating	SP Angel Corporate Finance LLP	Tel: +44 (0) 20 3463 2260
Lottie Brocklehurst	St Brides Partners Ltd	Tel: +44 (0) 20 7236 1177
Frank Buhagiar	St Brides Partners Ltd	Tel: +44 (0) 20 7236 1177

This information is provided by RNS

The company news service from the London Stock Exchange

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