LONDON LISTED PROPERTY COMPANY FOCUSED ON

EMERGING EUROPE

INVESTOR PRESENTATION Q2 2016

| LSE: AIM | www.secure-property.eu |
 Disclaimer 2
Overview

Secure Property Development & Investment plc. (“SPDI”) has issued this document for information purposes
only. This document may not be distributed to any country in which its distribution is unlawful.

The information contained within this material has not been reviewed in the light of your personal
circumstances. If you require investment advice or wish to discuss the suitability of any investment decision,
Portfolio

you should seek such financial, legal, or tax advice from your professional advisors as appropriate. This
document is not and should not be construed as an offer to sell or solicitation of an offer to purchase or
subscribe for any investment or service.

SPDI has based this document on information obtained from sources it believes to be reliable but which it has
not independently verified. SPDI makes no guarantees, representations or warranties and accepts no
Value

responsibility or liability as to its accuracy or completeness. Expressions of opinion herein are subject to
change without notice.
Investment
 3
Exposure to several income
producing property portfolios
covering 4 countries in the
Overview

Emerging Europe Region

Portfolio
Value
Investment
 Introduction 4

 London listed property company focused on Emerging Europe with a

Overview

growing portfolio of prime commercial properties let to blue chip clients

on long leases SOUTH EAST
EUROPE
FOCUS
 Building a leading institutional, best in class dividend paying
property company with a mid term GAV target of over €500m
Portfolio

generating strong cash flows

BLUE CHIP
CLIENTS
 Strong asset backing – current share price trades at significant
discount to NAV of existing properties in core countries including
Romania and Bulgaria
LONG
Value

LEASES
 Provides exposure to European yield convergence play which the
ECB’s QE promises to accelerate
ASSET
 Management team with extensive track record and proven ability to
Investment

BACKING
source and secure deals at attractive yields with significant regional
network and experience

 Highly respected institutional and private global investors have

backed the Company and its strategy
 Key Data 5
Overview

Market EPIC Share Price Shares in Issue Market Cap

LSE:AI
SPDI 18.5p 90.01M £16.65M
M
Key Shareholder Holding
Portfolio

PM Capital Inc &MNC Finance

Establishment >10%
Ionian Equity Participations Ltd
Narrowpeak Consultants Ltd Key Board & Management Members
Dundee Corporation 5-10% CEO Lambros Anagnostopoulos
Carema Holdings SA CFO Constantinos Bitros
Beck Mack & Oliver International
Value

Non-exec BOD Paul Ensor

Fund Members
Harin Thaker
Wadad Inc
Dr. Franz Hoerhager
HABROK CAPITAL
MANAGEMENT LLP Alvaro Portela
<5%
Fidelity Management & Research
Investment

MacArthur Foundation
Clerkenwell Capital Ltd
Sloane Robinson LLP
 Strategy 6
Overview

 To create the largest SEE dividend issuing
property company taking advantage of macro
and regional trends
 Focus on SEE countries – favourable
Portfolio
SPDI has a number of distinct investment criteria
aimed at reducing risk and maximising investment
returns both through annual cash dividends and
capital growth

supply/dynamics for modern commercial

Secure
properties Property

Income –
 Utilise regionally spread team and network to yield rates
of c.8-10%
source investment opportunities
Value

 Acquire properties that match investment

criteria at attractive yields providing scope for Blue Chip Under
capital appreciation as yields converge Tenants Priced
Investment

 Build a portfolio of income generating

properties to provide annual cash dividend Prime High
Location Quality
 SEE Regional Investment Drivers 7

 Favourable political and economic conditions Real GDP Growth Rates (%)
 Economic liberalisation
Overview

 Political reforms
 EU expansion east
 Steadily growing internal markets
 Positive demographic fundamentals
 Growing urban population and improving standards
of living
Portfolio

 Increasing disposable incomes over the long term

 Supply-Demand imbalances
 Substantial undersupply of modern property units
 Fundamental need/demand outweighs supply Source: Eurostat, National Sources
 Majority of existing stock is old, small & of low European Property Market Clock
quality
Value

 Expected cap rate contraction similar to CEE

SEE* CEE**

Population (mln) 69.8 58.7

Investment

GDP / capita (US$) 8,174 16,366

Commercial GLA / capita (sqm/1000) 405 800
* Ukraine, Romania and Bulgaria
** Poland, Hungary and Czech

Source: Jones Lang LaSalle

 The Business 8
Overview

 A property investment company focused primarily on capitalising on opportunities in the

growing economies of South Eastern Europe (‘SEE’)

 The Company has gone through a structural shift to build a broad geographic portfolio with
high yields and capital growth potential
Portfolio

 Management and Board have created a best in class internal structure and platform upon which
to expand the business

 From 1 income producing property in 1 country in 2013, the portfolio now includes 7 properties
covering 4 countries with blue chip tenants, generating significant yield (with cap rate >10%)
Value

 On-going exercise to optimise portfolio performance utilising in-house and external resources

 Anchored by a defined investment strategy to generate shareholder value through taking

Investment

advantage of the highly positive region macro and property market fundamentals
 Portfolio Summary 9

RO RO RO
Overview

RO GR RO
Delea Nuova Praktiker Craiova Nestle warehouse K&N Warehouse Danone Office Resi Bucharest Resi Bucharest Resi Bucharest

GR
Romania
UKR # of properties: 7
Portfolio anchored
Portfolio

Terminal Brovary
GLA: 52,591 sqm
Sectors: Warehouse, Office, Resi Ukraine
# of properties: 5
GLA: 49,180 sqm
by 7 income
RO
Sector: Warehouse, Land generating
Resi Bucharest properties in SEE
Bulgaria
# of properties: 2 with GLA of
Value

GLA: 27,259 sqm

Sector: Office, Resi 125,000 m2
Autounion Bulgaria

Greece
Investment

# of properties: 1
GLA: 17,756 sqm
Sector: Warehouse 4 high-yield countries (Romania,
Bulgaria, Greece, Ukraine), with
significant upside potential, where
SPDI has strong network and
presence
 Portfolio Breakdown 10

Income Generating Property

Overview

Land Bank

7 properties
across 4
Portfolio

High yield with

countries A low
capital growth Provides
generate stable maintenance cost
significant upside
potential land portfolio in
income Ukraine,
potential on
market recovery
platform Romania, Bulgaria
Value

Blue chip
tenants Land located in
Sale option for all
prime areas of
Long lease including major cities in
property to
terms provide Danone, Pernod generate
line with
additional
revenue Ricard and corporate
shareholder value
Investment

strategy
visibility Nestle provide
revenue
security
 Income-generating Portfolio 11

Building a leading institutional, best in class dividend paying property company with a mid term
Overview

GAV target of over €500m generating strong cash flows to fund a ~5% dividend

Core Income Location Tenant annualise NAV

Generating Assets d NOI (€m)
(€m) as of H1 2015 Total annualized NOI
Innovation Logistics
Park
Bucharest Nestle 1.4 7.1
~€7.5m
Portfolio

Danone HQ Bucharest Danone 0.6 2.6

Autounion (20%) Sofia Bulgarian Insurance Co 0.6 4.5
Total NAV
Brovary Logistics Park Kiev Amway, Pernod Ricard 2.0 6.4
GED W&PP Athens Kuehne & Nagel 1.5 4 ~€34m
BLUEBIGBOX 3 Craiova Praktiker 0.7 5.5
Value

Delea Nuova (24%) Bucharest Telecom Regulator 0.5 3.9

Total 7.3 34 Market Value : €22m
Discount to NAV >
60%
Other Non Core Location Type NAV (€m)
Investment

Assets

Land portfolio Kiev, Odessa Land (resi, 14

logistics)
Total NAV ~€28m
Residential Portfolio Bucharest, Sofia Resi Units to 14
let/sell & adjacent
land
 European Real Estate Markets 12

SPDI is targeting high yielding commercial, retail and industrial property which will benefit
the Company on a) high cash on cash return (>15%) and b) a yield compression basis
Overview

Industrial Yields - 2015 Office Yields - 2015

Kiev Kiev

Moscow Moscow
Portfolio

Belgrade Belgrade

Sofia Sofia

Athens Athens

Bucharest Bucharest
Value

Budapest Budapest

Madrid Prague

Prague Warsaw

Warsaw Madrid
Investment

Paris Berlin

Berlin London

London Paris
0 5 10 15 20 0 5 10 15
Source: CBRE, JLL, Colliers
 SPDI Growth and Value Proposition 13

Strategic focus is to build a high yielding portfolio which supports both NAV and
Overview

dividend growth
Portfolio
Value
Investment
 Key Financial Information at H1 2015 14
Overview

Change Change
Key Facts 2013 2014 H1 2015
’13 - ’14 ’14 - ‘15
Total Assets (€ million):  39  62  +59% 143* +131%
Portfolio

Number of Assets:  5  8  +60% 13 +63%

Bank Debt (€ million):  11  30  +172% 80* +167%

Operational Gearing 28% 48% +71% 56% +17%

Rental Income (€ million): 2.7 3.6 +33% 7.3** +103%

Value

EBITDA (€ million):  0.2  0.8  +300% 4.3** +438%

Net Equity (€ million):  37.6  32.5  -13% 62* +91%

Issued Shares:  28,171,833  33,884,054   +20%  90,010,000* +166%

Investment

NAV per share(£): 1.13 0.75 - 0.68* -

* Includes August 2015 big box acquisition and exercise of warrants

** Annualised
 Investment Case 15
Overview

Platform in place to take advantage of excellent market fundamentals in South East Europe

Defined growth strategy in place to expand portfolio and geographic spread

Portfolio

Portfolio covering four countries negating individual country risk

High yielding commercial property with significant (~15%) annual cash return
Value

Yield compression potential drives expected IRR’s to above 25%

Share price trading at a significant discount to NAV

Investment

Highly experienced management team and network of advisors to execute strategy

16
APPENDICES
Overview Portfolio Value Investment
 Innovation Logistics Park 17
Overview

 8,470 sqm of multipurpose warehousing space, 6,395 KEY FEATURES

sqm of cold storage and 1,705 sqm of office space Gross Lettable Area 16,570sqm
Completion Date Dec 2008
 Separated in four warehouses, two of which offer cold Annual NOI €1,400,000

storage
Portfolio

 Located in the area of Clinceni, south west of Bucharest

centre, 200m from the city’s Ring Road and 6km from
Bucharest-Pitesti (A1) highway
Value
Investment
 Danone Headquarters 18

KEY FEATURES
Overview

Gross Buildable Area 3,610 sqm

 A class “A” office building of 3,386 sqm GLA and
Gross Leasable Area 3,386 sqm
90 parking places Completion Date 2008
Anchor Tenant Danone Romania (100%)
 Fully let by Danone Romania, until 2026 Average Rental Rate €14.5/sqm/month
(including fit out)
Portfolio

Lease Term till 2026

 Located next to the Danone production unit and Occupancy Rate 100%
warehouse, in the North-Eastern part of Bucharest Annual NOI €0.6m
 Access to: a) the Colentina Road b) the Fundeni Road Existing Debt €4.0m
- also serviced by public transportation Acquisition Price €5.8m
 Close proximity to Bucharest’s ring road and the DN 2
national road (E60 and E85)
Value

 The weighted average lease length is c. 11 years,

against the market average of 3-4 years
Investment

 Average rent is €14.5/sqm/month

 Residential Bucharest 19

Monaco  Located in South Bucharest

Overview

Towers  Public transportation including subway (2 mins away)

 Shopping mall at short driving distance
 SPDI owns 26 apartments, 11 of them are let €15m GAV

Blooming
House  CBD location
 In the Vitan with access to Vitan Mall
 Close to kindergartens, café, schools & public transport
Portfolio

€5m NAV
 SPDI owns 22 units, 11 of them let
Doamna Ghica

 Situated at Gara de Est

€0.7m
 Close to city centre & easily accessible by public transport
Annual NOI
 SPDI owns 20 units, 12 of them let
Value

Linda
Residence  Situated in a low rise residential area 45%
 Nearby Republica subway station occupancy
 SPDI owns 22 units, 4 of them let

Green Lake
Investment

 Located in upmarket North Bucharest 13,678 sqm

remaining GLA
 Extensive lake frontage
 Kindergarten, restaurant on site
 SPDI owns 40 units, 21 of them let
 Autounion Bulgaria 20
Overview

 Acquired 20% of corporate entity owning the KEY FEATURES

Autounion building in April 2015 Gross Lettable Area 19,476sqm

Completion Date April 2015
Lease Term till 2027
 Provides immediate stable cash-flow with long term Annual NOI €2.9m
visibility Gross Asset Value €35m
Portfolio

 Widens SPDI’s investment activity to four European

countries

 Class A BREEAM certified office building located in

prime business area close to Sofia airport & city centre
Value

 Blue chip tenant - fully let to leading Bulgarian

insurance company on long lease extending to 2027
Investment
 Capital Gain Potential 21

Ukrainian and Greek properties could see significant capital gains as their respective
political and economic issues show some improvement
Overview

Brovary Logistic GED Logistics

Park Warehouse &
Kiev Photovoltaic Park,
Greece
Portfolio

 Previously Aisi’s flagship development & currently SPDI’s  17,756 sqm industrial & office space complex in a 44,268 sqm plot in West
biggest income-producing asset generating US$2.9m of NOI Attica Industrial Area (Aspropyrgos)

 GED Warehouse annual yield of 11% and NOI of €1.2m

 Modern 49,180 sqm class A logistics property (with associated
office and mezzanine space)  Photovoltaic Park annual NOI of €0.3m
Value

 Strategically located in Brovary town (Е-95/М-01 highway),  High construction quality & state-of-the-art security measures
15km from Borispol international airport & 10 km from Kiev
city border  The complex has 5- position parking for trucks & 100 car parking spaces,
while there are two central gateways (south and west)
 Primarily international tenants with the largest tenant accounting
 Over the roofs of the warehouse buildings there is photovoltaic park of
Investment

for 27% of the income 1,000KWp

 Weighted average lease length just under 3 years, greater than the  100% occupied, major tenant (~72%) international transportation & logistics
market average of 1.5 company Kuehne + Nagel with remained contract duration 11 years

 Located at exit 4 of Attiki Odos - 20 minutes from the port of Piraeus and the
National Road
 Land Bank ~45 hectares
The Market values the land in Ukraine as a free option
Overview
Kiyanovsky Lane, Ukraine
 0.55 ha of prime residential development land in a
historical & central area of Kiev
 Site offers uninterrupted views of historic Podil
Portfolio
district & the Dnipro River framed by parkland
 Overlooking “European Square”, a new
commercial/residential/embassy development
 New metro station planned in close proximity
Bela Logistics Center, Ukraine
Value
 The 22.4 ha site located on the main Kiev – Odessa
highway, 20km from Odessa port & in a sought
after area for logistics & distribution warehousing
 On receipt of planning permits in 2008,
Investment
construction commenced with column foundation
& peripheral walls for 100,000 sqm – work
stopped in 2009, project on hold ever since
 Foundation for 3 buildings partly completed
22
Tsymlyanski Lane, Ukraine
 0.36 ha of land in historic vastly developing Podil
District, to be developed into 10,000 sqm of high
end residential & office units as well as three
underground parking levels
 Kiev City approval for a primarily residential
development of ~40 apartments  with office space
on lower floors & 40 parking spaces underground
Balabino, Ukraine
 Situated on the south entrance of the city, 3 km
away from the administrative border of
Zaporozhye
 Covers approximately 26.4 ha & is intended for
retail/entertainment development
 Borders on the Kharkov-Simferopol Highway
(which goes through the two largest residential
districts of the city) as well as another major artery
accessing the city centre
 Board & Management 23

“A highly qualified team with the experience to deliver in South East Europe”
Overview

Former founder & CEO of LAMDA Development, a real estate developer active in SEE, listed in Athens. Co-founded
Grivalia (former Eurobank Properties) Greece’s largest listed REIT. Founded South East Continent Unique Real Estate
CEO Management in 2006 as a private equity platform to manage property investment & development vehicles in SEE.
SECURE established 2 funds to invest in development projects in Romania, Bulgaria & Serbia. Degrees from the
Lambros Anagnostopoulos National Technical University of Athens (Naval Architecture, Marine & Mechanical Engineering), Massachusetts
Institute of Technology (MSc) & MIT Sloan School of Management (MBA).

Appointed CFO of AISI in August 2011. From 2007, CFO of SECURE Investments, a private company with more that
Portfolio

US$250m AUM in three SEE countries. Held positions at Kantor Management Consultants. Previously ran a
CFO US$150m private equity derivatives portfolio in the US. MBA in Financial Engineering & Business Strategy from
Constantinos G. Bitros Loyola University of Chicago. BA in Finance & Accounting from Athens University of Economics & Business
(AUEB).

Joined SECURE in 2009. Previously a partner of Phoenix Real Estates where he supervised the development of 250K
Commercial Director sqm of industrial/logistics centres in Romania. Held project management related positions with international firms
(Hill International, Parsons) focusing in SEE & the ME, leading project planning, financial structuring, team
George Dopoulos augmentation & project implementation/completion tasks. Studied International Business & Finance at University of
Texas at Austin.
Value

Joined in 2011. Previously at Deloitte Kiev, acting as a manager in Financial advisory & Audit. Led buy-side & sell-
side due diligence projects, IFRS & US GAAP audit engagements for local & international listed companies doing
Manager Ukraine business in Ukraine & Georgia. Past managing positions in large Ukrainian industrial & trade business groups, &
Dmitry Kichmarenko banks of the region. Master degrees in Banking & Finance from Kyiv National Economic University & ACCA
qualification.
Investment

Joined SECURE in 2010. Managing partner for One Real Partner for 4 years, completing deals regarding industrial &
residential projects. Previously Head of Office Agency for CB Richard Ellis & responsible for a portfolio of more than
Manager Romania 200 clients. Degree in International Business from the Academy of Economics Studies of Bucharest & an MBA
Mihai Octavian Ghircoias certification from the Open University (UK).
 Board & Management cont. 24

+20 years Executive President & CEO of Sonae Sierra, the Portuguese based leader in retail real estate. Developed &
Overview

operated 71 shopping malls (with a GLA of over 2m sqm) in Europe & Brazil, including Romania. Former Chairman of
Non Executive Director Real Estate Developer MAFP & also of the Investment Advisory Committee at Paneuropean Fund. Currently sits on the
Alvaro Portela Investment Committee at ECE European Prime Shopping Centre Fund & on the Boards of Sonae SGPS, Sonae Capital
SGPS & Fundação Carmona e Costa.

CEO of Aeriance Investments S.A., the multi-strategy debt fund platform of Aerium, an independent pan-European real
Portfolio

estate investment manager. Former CEO of Hypo Real Estate Bank International and former Head of Real Estate Finance
Non-Executive Director International at Deutsche Pfandbriefbank AG (as Hypowasrenamed). The bank is a specialized lender in real estate
Harin Thaker finance and under Harin’s leadership it expanded in various international markets in Europe, and Asia, including several
countries in Eastern and South Eastern Europe.

Founding partner & executive director of Mezzanine Management GmbH, the manager of Accession Mezzanine Capital -
the leading fund provider of subordinated debt to businesses in Accession countries in Central & Eastern Europe.
Non-Executive Director Previously member of the managing board of Bank Austria Creditanstalt International AG where he was responsible for
Value

all international commercial banking activities with an emphasis on the countries of the former Soviet Union, Slovenia,
Dr. Franz Hoerhager Slovakia, Croatia, the European Union & the USA. Holds a doctorate in Economics from Vienna University for Economy
& World Trade.

Managing Partner of RK Equity (London) Ltd., part of RK Equity, a specialist financial group. Spent 20 years in Asia &
Investment

London as an equity analyst covering companies in emerging markets for leading investment banks including CLSA &
Non-Exec Chairman UBS. Founder & director of Brazil Tungsten Holdings Ltd., which has financed, developed, and is now operating a
Paul Ensor tungsten mine in Brazil. B.A. in History from Brown University. M. Phil. of Development Economics from Sussex
University.
 European Property Play 25

“European commercial real estate investment reached a total of €70bn in Q4 ‘15 pushing 2015
Overview

volumes to a new record high of €246bn, a 32% increase on 2014”

 Offices continued to drive investment activity

with a 42% market share in 2015
Portfolio

 Retail segment was one of the beneficiaries with

volumes reaching a total of €70bn in 2015 -
driven by several shopping centre portfolio sales

 Positive 2016 outlook - good relative value in the

majority of Europe’s markets
Value

 Combined with a strong weight of new capital

chasing opportunities across the region, this will
lead to further growth in volumes which are set to
Investment

reach at least €260bn in 2016

Facts source: DTZ/Cushman & Wakefield

 26
Overview

Lambros Anagnostopoulos
E: lga@secure-management.eu
Tel: +30-210-7226470
Portfolio

Constantinos Bitros
E: cgb@secure-management.eu
Tel: +30-210-7226470
Value

Paul Ensor
E: pensor@rkequity.com
Tel: +44 7595 219 011
Investment

Tercel Moore/ Jeff Keating Hugo de Salis/ Lottie Brocklehurst/ Frank Buhagiar
SP Angel Corporate Finance LLP St Brides Partners Limited
Tel: +44 (0) 203 470 0470 Tel: +44 (0) 207 236 1177