June 14 (SeeNews) - Arcona Property Fund N.V. said on Monday it has signed agreements to buy two office buildings in Bucharest owned by Secure Property Development & Investments Ltd (SPDI) and valued at a total of 9.87 million euro ($12 million).
The purchases should be completed in the second half of 2021, Arcona said in a press release.
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Arcona is acquiring a 2,700 sq m office building in northwestern Bucharest fully leased to Danone Romania until May 2026, valued at 5 million euro, and a 24.35% share in an office building located in central Bucharest partly leased to the Romanian Telecoms Authority (ANCOM) and valued at 4.87 million euro. ANCOM has just agreed a five-year lease extension for the building, according to the press release.
Besides from the properties in Romania, Arcona is also acquiring two development sites in the Kiev region of Ukraine, with a total value of 1.8 million euro.
The fund will acquire the assets by issuing some 605,000 shares at an intrinsic value of 11.87 euro each and some 146,000 warrants which can be converted into Arcona Property Fund shares if the fund´s shares reach a price of 7.20 euro.
The warrants will expire after five years following their issuance and are exercisable after one year, unless a prospectus with respect to the warrant and or the underlying shares is published.
Arcona Property is a closed-ended investment fund listed on the Euronext Amsterdam exchange. The fund invests in commercial real estate in Bulgaria, the Czech Republic, Romania, Slovakia, Ukraine and Poland.
SPDI is a London listed property company focused on Emerging Europe (Romania, Bulgaria, Greece, Serbia) with a growing portfolio of prime commercial properties let to blue chip clients on long leases, according to the press release.
($=0.8225 euro)