Anti-monopoly watchdog approves sale of Secure Property's Ukraine site

12th Dec 2016 12:01

(ShareCast News) - AIM-listed Secure Property Development & Investment has gained regulatory approval to sell its Ukraine property to Temania Enterprises, a Cyprus based investor, for $16m.The Ukrainian Antimonopoly Commission approved the sale of the company's Terminal Brovary logistics park in Kiev, and the sale is subject to final approval by the lender which is expected "shortly".The $16m valuation obtained in October is before the deduction of the outstanding loan from the lender and is higher than the $13.4m at which the property was valued on 31 December 2015.The sale is expected to generate a profit of over $2.5m for the company and a net cash flow of over $3m.Following completion of the sale, the company's portfolio will comprise of assets in Athens and Bucharest, offices in Bucharest, as well as a retail site in Craiova, Romania. It also owns a residential portfolio in Bucharest and Sofia, as well as land assets in Ukraine, all of which are debt free.The company said its strategy is to generate income from properties with blue chip tenants in high-yielding locations that have favourable demand and supply dynamics, as they command low prices.