7th Aug 2019 15:09
(Alliance News) - Secure Property Development & Investment PLC said Wednesday it agreed to transfer some of its non-Greek assets to Arcona Property Fund NV in a EUR29.3 million deal.
The transfer of the assets - which had a gross asset value of EUR15.3 million - will be undertaken in a three-stage process. The assets will be moved outside of Secure Property's core Greek logistics unit to Arcona in order to "create a larger Central and South Eastern European focused investment vehicle."
Under this initial phase, Secure Property will receive 630,000 ordinary shares in Arcona and around 190,000 warrants. In total, the multi-stage process will see Secure Property receive 2.2 million shares and 561,756 warrants from Arcona.
Based on the EUR13.44 net asset value per share of Arcona on June 3, the total deal would be worth EUR29.3 million. On Monday, shares in Arcona were trading at EUR6.59 in Amsterdam.
"The estimated EUR30 million intrinsic value of the Arcona deal highlights the substantial divergence that has opened up between how the market and the industry value SPDI's portfolio of South Eastern European real estate," Secure Property Chair Michael Beys said.
"Stage one of the transaction, which accounts for assets valued on a net asset basis at over EUR12 million, alone accounts for the vast majority of SPDI's entire market capitalisation," Beys added.
"The completion of stage one in the third quarter of 2019 therefore ought to act as a value trigger event for shareholders, not just because it crystallises the value of the assets concerned, but also because SPDI will be issued with shares in a much larger and more diversified central and south eastern European focused property company," Beys continued.
Shares in Secure Property were 11% lower at 8.00 pence in London on Wednesday.
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