New Europe Property Investments PLC, the Central and Eastern European Property Investment Company listed on AIM, announces a further investment.
The Company has acquired an industrial facility from HI-LO SISTEME DE DEPOZITARE in a partial sale and leaseback transaction for a total estimated price of €15.2 million, subject to certain conditions precedent. €1.7 million of the total amount due is deferred consideration which will only be payable when certain financial covenants are met or at the end of the lease term.
The property is in Rasnov in the Brasov county in Romania and consists of 23,040 m2 of lettable area, which includes some 1,554 m2 of office space. 8,306 m2 of space is currently under refurbishment with the remainder taken up by two tenants. 4,917 m2 of the space under refurbishment has been committed to the existing tenants and is expected to be taken up by March 2008. The weighted average lease period (before break options) on the leased space is in excess of 12 years and the initial weighted average net rent per square meter on the leased space is €4.34 per month. The vendor is responsible for the costs of the refurbishment.