Secure Property to acquire 12,700 sq m Bucharest residential portfolio
Secure Property Development & Investment is to acquire an income producing residential portfolio in Bucharest, Romania from a group of vendors including a number of European family offices and institutional investors.
The acquisition will be the company’s third in Romania.
The transaction involves an exchange of assets for shares, bringing into the shareholding of Secure a number of seasoned regional and global investors.
The portfolio consists of 122 apartments totalling approximately 11,700 sq m across four separate complexes located in different residential areas of Bucharestand with a net asset value of EUR3.3 million. A total of 87 units are rented, bringing the occupancy of the portfolio to 71.3 per cent. The net operating income of the rented part of the portfolio is currently approximately EUR270,000.
Secure has agreed with all vendors that they will contribute the portfolio to the company in exchange for the issue of 3,934,854 new ordinary shares of the company. Application has been made for the new ordinary shares to be admitted to trading on AIM and it is expected that Admission will be effective on 9 September 2014. Following Admission, there will be a total of 32,723,413 ordinary shares in issue.
Lambros Anagnostopoulos, chief executive officer of Secure Property, says: “This acquisition represents our third in Romania this year, and reaffirms our commitment to diversify our income property asset base across the economies of South Eastern Europe. The transaction generates a number of important new shareholders for Secure, all of whom believe in the company’s strategy and future growth plan. With Romanian GDP well on its rebound, demand for residential property in Bucharest far outstrips supply, and we are expecting residential prices and rental values to increase, creating yet further value for the company.”
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