Press releases

Arcona Property Fund N.V. and SPDI progress 2nd phase acquisitions

14 June 2021

Arcona Property Fund N.V., the listed fund that invests in commercial real estate in Central Europe, has signed the purchase agreements with Secure Property Development & Investments Ltd (SPDI) for the acquisition of SPDI´s remaining real estate holdings in Ukraine and for two modern office buildings in Bucharest, Romania. The purchases should be completed in the second half of 2021. This is the second phase of the three-phase acquisition of SPDI´s property portfolio in the region

The assets being acquired are:

  • two development sites in the Kiev region of Ukraine, with a total value of EUR 1.8 million;
  • a modern 2,700 m2 office building in north-west Bucharest fully leased to Danone Romania until May 2026, valued at EUR 5 million;
  • a 24.35% share in a modern office building in central Bucharest partly leased to the Romanian Telecoms Authority (ANCOM) and valued at EUR 4.87 million. ANCOM has just agreed a five-year lease extension.

 

The Fund will acquire the second phase assets by issuing ca. 605,000 shares at an intrinsic value of EUR 11.87 each and ca. 146,000 warrants which can be converted into Arcona Property Fund NV shares if the Fund´s shares reach a price level of EUR 7.20. 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.

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 of EUR 1 million.

On completion, the Net Asset Value of the Fund should rise by ca. EUR 7.18 million and the debt level should rise by ca. EUR 4.16 million. The Loan to Value ratio, currently 47.5%, will therefore see a further decrease. The net asset value per share, currently EUR 11.87, should not materially change.

The shares will be issued to SPDI, who plans to distribute the shares to its shareholders on a pro rata basis in the near future. As soon as the deal is completed and the shares are issued, this will be communicated to the market.

Arcona Property Fund N.V. and SPDI progress 2nd phase acquisitions
14 June 2021
Download PDF
Back to overview

The dividend policy for Arcona Property Fund is to pay at least 35% of the annual direct result as a dividend. The target is, within a three to five year time frame from end 2016, to increase annual dividend payments to a level of 8% of the prevailing share price.

Arcona Property Fund counts the following substantial companies amongst its tenants: