Secure Property receives fee from Nestle over terminated rent

The AIM-traded company had announced on 10 June that Nestlé România, as a part of its wider global restructuring plans, decided to terminate the rental contract with SPDI for leasing of approximately 60% of the Innovations Park space, which was due to expire in September 2018.

SPDL said the Innovations Park is subject to a sale and leaseback agreement with Piraeus Bank Leasing, and approximately €0.25 million of the settlement fee will be paid to PBL to settle overdue instalments due under the sale and leaseback agreement.

In addition, Nestle România has agreed to forego the rental deposit guarantee of approximately €0.28m and will leave certain fixtures and fittings, including storage racks.

The cash component of the settlement, received on Thursday, consisted of approximately €1.39m or 1.5 years' worth of rental income that would have been due from Nestlé România.

SPDL said it is hopeful of securing a new tenant for the vacant space in the Innovations Park, which is located on the ring road of Bucharest, and will update the market as soon as possible.

“We are pleased to have reached an amicable settlement with Nestlé România,” said chief executive Lambros Anagnostopoulos.

“Like all our core properties, the Innovations Park is prime real estate well located in the capital city of a fast growing South Eastern European country.”

Anagnostopoulos said that as a result, SPDL is confident a replacement for Nestlé România will be found quickly.

“In the meantime, we continue to look to add value for our shareholders through our portfolio, which as at year end had a total asset value of €125m and generated operating income of €5.1m in 2015, as we focus on transforming SPDI into the leading London listed property company focused on selected South East European countries.”