Press releases

The transaction is being carried out in phases as the current financing banks have to agree to the change of the shareholder structure for transferring the bank financing to Arcona Property Fund NV. The first phase concerns the purchase of three plots of land in Ukraine for ca. € 4.5 million and the purchase of the Boyana residential project in Sofia, Bulgaria, for ca. € 7.8 million. The Boyana project is currently financed through a bank loan (from Alpha Bank) of ca. € 3.4 million.

Arcona Property Fund will acquire the first phase assets by issuing shares at an intrinsic value of € 13.44 each and warrants which can be converted into Arcona Property Fund NV shares if the Fund´s shares reach a price level of € 8.10. The warrants will mature 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. The shares will be admitted to listing in accordance with section 1 sub 5 (a) of Regulation (EU) 2017/1129. SPDI will also provide a sellers loan.

The transfer of the projects and issuance of the shares, warrants and sellers loan for the first phase is expected to take place in the third quarter of 2019. The shares will be issued to SPDI. SPDI plans to distribute the shares to its shareholders on a pro rata basis in the near future.