Eurobank Properties REIC proceeded with the acquisition of the Romanian joint stock company "Retail Development S.A.". The signing of the final agreement (4/6/2008) relates to the acquisition by Eurobank Properties REIC of 99,99% of the shares of Retail Development, owner of a retail property located in Iasi, Romania, of total GBA of 8,980 sq.m. on land of total area of 23,075.88 sq.m.
The building is leased to the well-known company S.C. Praktiker SRL for a 15-year period duration with an additional option of three successive renewals of the lease contract with the same terms (each for a five-year period).
Based on the agreement, the total acquisition price has been agreed at euro 14.50m on a liability and debt free basis. Due to the existence of liabilities and debts, the price to be paid amounted to euro 4.15 million. The Company had already paid an advance of euro 2.90m at the date of the signing of the preliminary agreement (31/8/2007), whereas the remaining amount of euro 1.25m was paid at the date of the signing of the final share purchase agreement and was financed by the funds raised from the recent share capital increase which took place during December 2007.
It is noted that the market value as estimated by the Body of Sworn-In Valuers of Greece (SOE) is euro 14.57 million.
The abovementioned acquisition is in line with Eurobank Properties REIC's investment strategy for future growth, through selective acquisitions of office, retail, logistics and industrial spaces in prime locations, taking into consideration the prevailing market conditions.