3rd Sep 2014 07:47
LONDON (Alliance News) - Development Securities PLC and Secure Property Development & Investment PLC Wednesday said they have added to their portfolios, with Development Securities buying assets in Bristol and Sidcup and Secure Property picking up a residential portfolio in Romania.
Development Securities PLC said it has bought two investment assets for a combined fee of GBP18.6 million.
In Chippenham, near Bristol, the company bought Borough Parade, a local shopping centre anchored by retailers Waitrose and New look for GBP16.3 million at a 7.0% yield. The 82,000 square foot site was acquired from joint owners, Clearbell Capital and Tristan Capital Partners, and is fully let to a range of businesses.
Development Securities has also agreed to acquire the 82-year leasehold interest in a 22 acre site in Sidcup for GBP2.3 million at a 7.25% yield. The site is occupied by World of Golf, a golf driving range operator, on 20 year lease.
Meanwhile, Secure Property Development & Investment PLC has agreed to acquire an income producing residential portfolio in Bucharest, Romania from a group of vendors including what it called a number of "prominent" European family offices and institutional investors.
Secure has agreed with all vendors that they will contribute the portfolio to the company in exchange for the issue of 3.9 million new shares of the company. As such all vendors will become shareholders of the company.
Lambros Anagnostopoulos and Constantinos Bitros, Chief Executive and Chief Finance Officer at Secure Property, respectively, have small stakes in the portfolio of less than 5% in aggregate. As result, they are entitled to receive 133,437 and 33,357 new shares, respectively.
The portfolio consists of 122 apartments totalling approximately 11,700 square metres across four separate complexes located in different residential areas of Bucharestand with a Net Asset Value of EUR3.3 million. Of the 122 apartments 87 units are rented, bringing the occupancy of the portfolio to 71.3%.
The net operating income of the rented part of the portfolio is currently approximately EUR270,000.
Development Securities shares were quoted up 1.9% at 211 pence Wednesday morning, while Secure Property shares were untraded, quoted at 62 pence.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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