Secure Property plans to raise $16 million via placing of ordinary shares (UA)

SECURE PROPERTY Development & Investment (formerly AISI Realty Public Limited), a South Eastern European focused property and investment company, today announces its intention to raise not less than US$16 million (approx. €12 million) via a placing of new ordinary shares of €0.01 each in the capital of the Company (the "Placing Shares") to new and existing investors at £0.74 per Placing Share (the "Placing Price").

Commitments to subscribe in the Placing have already been received from five institutional investors for $16 million (approx. €12 million) at the Placing Price. The Placing Price represents a premium of 15,6% to the closing price of the Company's ordinary shares on January 23, 2013.

The majority of the Placing Shares have been subscribed for by two prominent businessmen, Peter Munk and Ned Goodman via Dundee Corporation. Peter Munk is Chairman and founder of mining company Barrick Gold, the world's largest gold producer. He also has extensive experience in real estate, including as co-founder of TriGránit Development Corporation in Budapest, one of the leading property developers in Central and Eastern Europe. Ned Goodman is President and CEO of Dundee Corporation, an independent publicly traded Canadian asset management company.

Following the recapitalization and restructuring of the Company in August 2011 and the successful completion of various stabilizing initiatives during 2012, the Placing represents the Company's first step towards the implementation of its strategic plan for growth. The Company is aiming to increase its income generating capacity by enhancing its asset base through the acquisition of core income producing commercial properties. A number of potential investment opportunities have already been identified and are under exclusive negotiations the first of which can be funded with the Placing proceeds.

Another part of the Company's strategy for growth is to broaden its activities in the South Eastern European region beyond its existing properties in the Ukraine, to become multi-country focused, whilst maintaining its emphasis on efficient asset management and deriving the greatest possible value from its existing assets.

The Placing follows the shareholder approval which was obtained at the Company's annual general meeting held on 26 November 2012 for the issuance of up to 100 million additional new ordinary shares in the capital of the Company to accommodate further investments and fundraisings in the future in order to maximize fund utilization.

The Placing Shares will be issued credited as fully paid and will rank pari passu with the existing ordinary shares, including the right to receive all dividends and other distributions declared in respect of such shares after the date of their issue. The Placing is conditional upon, inter alia, admission of the Placing Shares to trading on AIM, a market operated by the London Stock Exchange, becoming effective.

Lambros Anagnostopoulos, the Company's Chief Executive Officer, commented: "To have received commitments for $16 million of additional funds from a number of new investors, particularly such well-respected businessmen as Peter Munk and Ned Goodman, backing the Company and its strategy, reflects extremely positively on our success in restructuring the Company and gives a vote of confidence to our plans for future growth.

The Company is now strongly positioned to pursue both a number of exciting acquisition targets that we have already identified, and attract further investment. Our aim is to build on these successes, by continuing to grow the Company and create value for our shareholders."

Source: Secure Property

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