Eastern European Property says that an agreement was signed on 12 December 2016 to sell its Romanian subsidiary, Southern Properties SRL, the holding company for the property located in Bucharest.
The consideration is expected to be EUR 1.50 million (c. GBP 1.27 million) after allowing for local transaction costs and related company costs. This compares to a valuation of the Romanian operations at 30 June 2016 of EUR 1.68 million (c. GBP 1.40 million).
EUR 1.16 million is payable on completion and the remaining EUR 0.34 million is payable in instalments by 30 June 2018. The deferred consideration will be secured by a charge on the underlying property.
It is currently anticipated that the sale will be completed before the end of 2016. Following the sale, Eastern European Property’s property portfolio will be focused on Turkey and Bulgaria.
EEP : Eastern European Property sells Romanian investment