Secure Property extends Romania redeemable shares

Secure Property Development & Investment updated the market on the acquisition of the BLUEBIGBOX 3 property in Romania on Tuesday.

The AIM-traded firm had initially announced the acquisition of a 100% interest in BLUEBIGBOX 3 on 14 July 2015.

It described the investment as a retail property in a prime location in Craiova, Romania, wholly let to DIY retailer Praktiker.

The acquisition was satisfied through the issuance of 8,618,997 secured redeemable convertible preference shares to the vendor, private equity property fund.

“The RCPSs were to be converted to an equal number of new ordinary shares of €0.01 each in the company or redeemed by SPDI at €0.7056 for each of the RCPS, at the discretion of the vendor,” Secure’s board said in a statement.

“The deadline for such conversion or redemption was initially set for 14 July 2016 and subsequently extended to 14 October 2016 - as announced on 28 July 2016 - by agreement with the vendor.”

The RCPS are secured over the company's 20% interest in Autounion Office, an office building in Sofia - acquired in April 2015 from the vendor, and in which the vendor retains an interest.

SPDI and the vendor have entered into discussions on potential new conversion or redemption parameters, as well as the structure of such including the price and date.