9th Jun 2016 07:09
LONDON (Alliance News) - Secure Property Development & Investment PLC on Thursday said it is selling a warehouse in Kiev, Ukraine for USD16.0 million, in one of the largest property transactions in Ukraine in the logistics and industrial sector since 2013.
The South Eastern Europe-focused property and investment company said it has signed a heads of term agreement with Temania Enterprises Ltd for the sale of its Kiev based warehouse, Terminal Brovary.
The sale is subject to a number of conditions being met, Secure Property said, and, as such, it has signed a fixed four-year lease agreement with a subsidiary of the buyer raising the warehouse occupancy rate to 100%, and generating around USD150,000 of net operating income per month until the sale is concluded.
Secure Property said the rent attributed to the buyer received before the disposal has completed will be deducted from the purchase price, if the sale is completed by the end of October.
"Once the sale is concluded, the directors believe it will be one of the largest property asset transactions in Ukraine in the logistics and industrial sector since 2013," Secure Property said.
The sale is conditional upon a number of factors, including Secure Property reaching an agreement on terms with its lending bank with regard to the related debt attached to Terminal Brovary, which "may take some time to be effected".
"This transaction is in line with our strategy to optimise the value of our prime real estate properties across South Eastern Europe, either through the timely commercialization (including potential disposal) of assets, when opportunities to generate value for our shareholders are presented to us, or through maximising the cash generation through active rent roll management. On completion of the sale we expect to receive a material cash injection into the company, which will assist us in this growth plan," said Chief Executive Lambros Anagnostopoulos.
Shares in Secure Property were untraded on Thursday, having last traded at 13.98 pence.
By Hannah Boland; [email protected]; @Hannaheboland
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