Secure Property Development & Investment Limited, formerly Aisi Realty Public Limited, a South Eastern European focused property and investment company, today announces that it has signed a new three year lease agreement for 55,238 ft² (5,132 m²) to Amway at its main operating asset, Terminal Brovary Logistics Park ('the Park'), in Kiev, Ukraine.
The letting increases occupancy at the Park to over 83% compared with 20% in August 2011, when a new internal team took over the management of the Company, and brings the total annualized income from the property to more than US $3 million (approx. 2.44 million).
Amway is a one of the world's largest direct-selling companies, supplying consumer products, primarily in the nutrition, beauty and home care markets. It operates in more than 80 countries and territories worldwide through more than 3 million distributors, 500,000 of which are located in Europe. Amway has successfully been doing business in Europe since 1973 and is currently active in 29 European countries, with more than 1,500 employees across the region.
Situated in the Ukrainian capital of Kiev, Terminal Brovary comprises circa 525,000 ft² (approx. 48,772 m²) of class-A warehouse and associated office space and is well-located, adjacent to the junction of the main Kyiv Moscow highway and the Borispil road.
The letting to Amway follows the circa 150,000 ft² (approx. 13,935 m²) of lettings at Terminal Brovary announced in June 2012, and is in line with the management team's plans to maximize income from the Park. Since the introduction of the new internal management in August 2011, occupancy at the Park has increased more than fourfold and the Park is now cash flow positive.
The lettings also build on a number of successful initiatives that have been implemented as part of a wider strategy to turn the business around, improve the Company's financial strength, and reposition it for future growth.
Lambros Anagnostopoulos, Chief Executive Officer of Secure Property, commented:
"The signing of this lease with Amway is further evidence of the management team's ability to secure significant lettings to high quality tenants, in order to increase income and generate value from the Company's assets. We have made excellent progress with lettings at Terminal Brovary, and will continue to focus on reducing vacancy at the property.
"The lettings that we have achieved to date represent strong delivery of our plans to increase capital values at the center, as we work hard to execute our strategy to enhance the Company's performance and future prospects."
Source: FTI Consulting