SPDI to acquire up to 50% of Romanian logistics property portfolio

The acquisition, which is subject to a number of conditions and banking consents, including the satisfactory completion of due diligence and funding, is in line with the company's strategy to build a leading Southeast European property company with a diversified portfolio of prime income producing real estate, SPDI said in a press release.

Currently generating a net operating income of some 4.5 million euro income per year, The Olympians Portfolio comprises 100,000 sq m of several fully let Grade A industrial properties co-developed and owned by GE Capital (GEC). The portfolio is now owned by GEC's partner Myrian Nes, a Grade A logistics properties developer in Romania.

The warehouses and offices are located across capital Bucharest, Timisoara and Brasov, strategically located close to national highways, thus facilitating the transportation of goods throughout the country and the wider region.

"The proposed acquisition of a fully let Grade A logistics portfolio underpins our strategy to increase SPDI's income generating capacity in one of Europe's fastest growing economies and in the strategically important South East corner of the EU," SPDI CEO Lambros Anagnostopoulos said.

SPDI intends to fund the acquisition through the issue of a financial instrument with a value of 3.5 million euro to 4 million euro, 35% of which is made up of a loan convertible into equity and 65% is made up of a warrant. The remaining consideration will be satisfied via external debt, over which the company is in discussions with providers.

This acquisition would complement SPDI's existing logistics properties in Greece and Romania which generated a net operating income of 1.8 million euro in the first half of 2017, the company said.

Secure Property Development and Investment PLC is an an AIM listed property development and investment company focused on the markets of Southeast Europe.

($=0.8517 euro)