Secure Property Development and Investment PLC, an SEE-focused property and investment company, announced the proposed acquisition of up to a 50% interest in a portfolio of fully let logistics properties in Romania. The so-called Olympians Portfolio comprises assets in Bucharest, Timisoara and Brasov. The gross asset value of the 100,000 sqm portfolio is approximately €50 million and there is a senior loan liability of approximately €30 million secured against the portfolio.
The portfolio was co-developed and owned by GE Capital (GEC) and is now owned by GEC’s development partner Myrian Nes Ltd, a leading developer of Class A logistics properties in Romania. The portfolio is located across three key logistics areas in Romania, being the capital Bucharest, the industrial city and automotive centre of Timisoara on the Romania/Hungary border, and Brasov, a major city close to the capital. The existing portfolio of approximately 100,000 sqm of warehousing and office facilities is fully let to largely multinational tenants and generates a net operating income of €4.5 million.
SPDI’s existing logistics terminal in Bucharest (the Innovations Logistics Park) was developed by Myrian Nes and the Olympians Portfolio transaction, should it complete, is expected to further cement SPDI’s longstanding relationship with the vendor partner. The vendor partner intends to develop additional warehouse space, which SPDI is expected to have first right of refusal to acquire.
The proposed acquisition complements SPDI’s existing logistics properties in Greece and Romania which, as announced on 28 September 2017, generated net operating income of €1.8 million in H1 2017. Subject to acquiring the full 50% interest, the Olympians Portfolio would increase the total lettable area of the company’s logistics assets under management to 135,000 sqm.
“The proposed acquisition of a fully let Class 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 southeast corner of the EU. The commitments received to date from both existing and new investors for the Instrument represent an endorsement of our strategy and management’s ability to execute it. We continue to enjoy the support of investors who have backed us in the past to firstly generate above market returns on our investments; and secondly to build SPDI into a leading income producing property company in a region of the EU which has the highest growth potential,” SPDI CEO Lambros Anagnostopoulos commented.
The proposed acquisition is to be funded via debt and equity package.
