Secure Property agrees sale of Kiev warehouse

20th Oct 2016 09:43

(ShareCast News) - South Eastern European focused Secure Property Development and Investment has signed a sale and purchase agreement with Temania Enterprises for its Terminal Brovary warehouse in Kiev at a gross $16m.The asset was valued at $13.4m at the end of December and the sale will generate a net profit of more than $2.5m and a net cash inflow in excess of $3m.Secure Property said the deal was in line with its plan to focus on high-yielding South Eastern European countries such as Romania, Bulgaria and Greece while limiting its exposure in Ukraine as the economy and the political stability in the country show no signs of improvement.The group said it still holds sizeable land assets in Ukraine and is currently evaluating various options to generate value from them.Chief executive officer Lambros Anagnostopoulos said: "The net proceeds, which will be combined with additional capital we plan to generate, will go towards acquiring more attractively valued prime real estate in high growth countries such as Romania and Bulgaria, where we continue to evaluate additional opportunities."Our aim is not only to expose our shareholders to the European yield compression play and the significant capital appreciation on offer, but also to generate substantial cash from managing our portfolio of property assets."At 0950 BST, the shares were down 2.6% to 14.12p.