9th Jul 2019 13:40
(Alliance News) - Secure Property Development & Investment PLC on Tuesday said it has agreed to sell its Greek Victini Logistics property in a deal that will generate around EUR2.6 million in cash.
The property has been told to Brook Lane Capital and the EUR2.6 million generated from the sale will be around 50% of the south eastern European property company's market valuation.
The value of the sale is EUR12.5 million, which includes EUR10.3 million of debt and leaves a net consideration of about EUR2 million, with a further EUR600,000 from the property's prior owner due in the next 18 months and to be paid to Secure Property.
The net result, as well as the EUR29.3 million proposed sale value of the company's non-Greek portfolio takes the total value of Secure Property's assets to over EUR31 million, more than twice its present market value.
Secure Property Chief Executive Lambros Anagnostopoulos said: "Since its purchase in March 2015, the Greek logistics property has proved to be a valuable investment for the company. The Property has been generating revenue for four years following its acquisition, and I am delighted to say it will top up this revenue by more than EUR2 million through this sale."
Anagnostopoulos added: "We have been saying for some time a huge disconnect has opened up between how the market and how the industry value our assets. Today's transaction and the Arcona deal serve to show that the industry values these properties at a level that is approximately two and a half times higher than the market. With this in mind, we are keen to finalise this value-enhancing agreement with Brook Lane Capital in the near term and will update shareholders as soon as practicable."
Shares in Secure Property were untraded at 9.00 pence on Tuesday afternoon.
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