LONDON, UK: Secure Property Development & Investment PLC (AIM: SPDI), the AIM-quoted South Eastern European focused property company, is happy to announce the switch of a 21.2% stake in Lelar Holdings Limited to Arcona Property Fund N.V. (‘Arcona’) in exchange for the issue to SPDI of 315,668 new shares in Arcona and 76,085 warrants over shares in Arcona (‘the Transfer’).
Lelar Holdings Limited holds the Delenco Office Building asset in Bucharest (“Delenco”).
Delenco is a fully let workplace constructing in Bucharest, producing c.€140k lease income monthly, with the main tenant being the Romanian Telecommunications Regulator ANCOM, which renewed its lease in June 2021.
Based on the closing price of Arcona’s shares on 28 March 2022, the Transfer values the Delenco stake at c.€2.05million (excluding the issue of the warrants), whereas based on the present net asset worth per Arcona share, the Transfer values the Delenco asset stake at €3.73 million (excluding the issue of the warrants). Both valuation numbers exclude previous dividends declared to be distributed to SPDI and deferred capital gains tax shared with Arcona, collectively totalling ~€0.52 million. For the year ended 2020, the Company recorded Delenco with an audited net asset worth of €4.4 million.
The Transfer represents the graduation of Stage Two of the beforehand introduced switch to Arcona of SPDI’s property portfolio, excluding its Greek logistics properties (which has been individually disposed of), in exchange for new shares and warrants in Arcona, to create a bigger Central and South Eastern European focused funding vehicle (‘the Arcona Transaction’).
An additional 3.2% stake in Lelar Holdings Limited will be contributed to Arcona for an additional proportionate variety of APF shares and warrants subsequent month. Following the switch of that additional 3.2% stake, the Company will no longer have a stake in Lehar Holdings Limited.
The events intend to full Stage Two of the Arcona Transaction in steps over the close to to medium term.
Michael Beys, Chairman of the Board of Directors, said; “Despite a really lengthy wait, we’re happy to announce the graduation of Stage Two of the Arcona Transaction with the completion of the switch of the 21.2% curiosity in Delenco, which will bring the total variety of Arcona Shares issued to SPDI to roughly 909,200 with a present market worth of €5.9 million, representing c.60% of SPDI’s present market capitalization. We have lengthy said that the Arcona Transaction was a worth set off occasion for SPDI shareholders. With Stage Two anticipated to be accomplished within the close to to medium term, we’re assured the underlying worth of our portfolio of prime actual property in South Eastern European countries will quickly be clear for all to see.”