Arcona Property Fund come to the real estate market in Romania

By Emea Riga
Arcona Property Fund, a closed-end investment fund listed on Euronext Amsterdam that manages EUR 94.8 million worth of assets in the Czech Republic, Slovakia and Poland, entered the Romanian market by acquiring the entire portfolio of assets owned by the Cypriot Secure Property Development & Investment Fund (SPDI) that mainly focuses on Romania.
SPDI sold their entire regional portfolio: some land in Ukraine and 34 apartments in Bulgaria, besides the land in Bucharest, in a transaction of EUR 29 million, out of which the Romanian assets accounted for the largest part, according to the Bucharest press.
Arcona will finance the acquisition through equity: 2.1 million of own shares issued and passed to SPDI. Supplementary, it will take over loans (some EUR 30 million) already contracted by SPDI for the purchased properties. The new shares will be listed both at Euronext Amsterdam and the Prague Stock Exchange and will be distributed to SPDI shareholders on a pro rata basis.
The transaction valued the properties sold by SPDI at EUR 29 million while their net value at the end of last year was EUR 35.8 million. The properties generated rents of EUR 1.91 million. Following the transaction, the fund will increase from about EUR 94.8 million to EUR 161 million.
Arcona focuses its investments on office buildings and retail space. Its current portfolio comprises 14 assets in the Czech Republic and Slovakia and 12 properties in Poland.
Arcona Capital is an independent, owner-managed real estate fund manager operating across northern and central Europe. Our strength comes from deep local market knowledge and long-term relationships throughout the region. Our focus is on adding value to real estate investment opportunities and development. Services include all aspects of Fund, Investment, Asset and Development Management, taking a long-term and transparent approach to every collaboration we undertake. Arcona Capital is currently responsible for over € 645 million of real estate and financial assets on behalf of both private and institutional clients across 7 European countries.