HALF YEAR REPORT

30 JUNE 2020

Table of Contents

SECTION A- Half Year Report

1.

Management Report

2

1.1

Corporate Overview and Financial Performance

2

2.

Regional Economic Developments

3

3.

Real Estate Market Developments

5

∙3.1 Romania

5

∙3.2 Ukraine

6

4.

Property Assets

6

4.1

EOS Business Park - Danone headquarters, Romania

6

4.2

Delenco office building, Romania

7

4.3

Innovations Logistics Park, Romania

7

4.4

Kindergarten, Romania

8

4.5

Residential portfolio

8

∙Romfelt Plaza (Doamna Ghica), Bucharest, Romania

8

∙Monaco Towers, Bucharest, Romania

9

∙Blooming House, Bucharest, Romania

9

∙GreenLake, Bucharest, Romania

9

4.6

Land Assets

10

∙Kiyanovskiy Residence - Kiev, Ukraine

10

∙Tsymlyanskiy Residence - Kiev, Ukraine

10

∙Rozny Lane - Kiev Oblast, Kiev, Ukraine

10

SECTION B- Financial Statements

SECURE PROPERTY DEVELOPMENT AND INVESTMENT PLC

KIRIAKOU MATSI 16, AG. OMOLOGITES,1082, NICOSIA,CYPRUS

HALF YEAR REPORT 2020|1

1. Management Report

1.1 Corporate Overview and Financial Performance

Summary

SPDI's core property asset portfolio currently consists of South Eastern European prime commercial and industrial real estate, the majority of which is let to blue chip tenants on long leases.

During 2020, management in line with Company's strategy to maximise value for shareholders, continued the discussions with Arcona Property Fund N.V (Arcona) in relation to the conditional implementation agreement for the sale of Company's property portfolio, excluding its Greek logistics property (which has now also separately been sold), in an all-share transaction to Arcona, an Amsterdam and Prague listed company that invests in commercial property in Central Europe. Arcona currently holds high yielding real estate investments in Czech Republic, Poland and Slovakia, with the transaction valueing the SPDI assets NAV at ~ €29m, significantly higher than the current market value of the Company as a whole. If one takes into consideration and assumes the warrants that will be issued together with the ARCONA shares, the transaction values the SPDI assets at their Net Asset Value.

Following the completion of Stage 1 of the transaction in 2019, which involved two land plots in Ukraine and residential and land asset in Bulgaria and resulted in Company receiving a total of 595.534 Arcona shares and 144.264 warrants over Arcona shares, during the current period the two parties engaged in negotiating and planning Stage 2 of the aforementioned transaction. This Stage is centred on the sale of two commercial income producing assets in Romania and three land plots in Ukraine. The combination of the two complimentary asset portfolios is expected to create a significant European Property company, benefiting both the Company's and the buyer's respective shareholders.

However, the rapid development of COVID-19 outbreak and its effects on all related countries and therefore on all participants in this process, have caused major delays. Lockdowns, travel restrictions, remote working and other similar measures, have affected the effective completion of all relevant actions and therefore brought barriers to the successful completion of the negotiations. Both parties are currently trying to overcome all issues and continue towards completion of this part of the transaction.

Corporate

developments

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The table below presents the operating performance for H1 2020 compared to H1

P&L

2019. EBITDA reached €0,18m compared to €0,47m in H1 2019, net finance costs

reduced by 56% to €0,24m, and operating result after finance and tax expenses

increased by 8% to -€0,080m from -€0,088m in H1 2019. Romania has now become

the single operating income source of the Company.

2. Regional Economic Developments 1

In Romania, growth fell to a six year low in Q1 2020, mainly due to March 2020 being

Romania

hit by the consequences of the COVID-19 containment measures. GDP growth for Q1

2020 was 2,4%, considerably lower than Q4's 2019 4,3% expansion. In seasonally-

adjusted quarter-on-quarter terms, GDP plunged 12,3% in Q2 as COVID-19

containment measures took their toll, marking the worst reading on record. Although

1 Sources: World Bank Group, Eurostat, National Bank of Greece, Eurobank Research, and Economic Research Division, National Institute of Statistics- Romania, National Statistical Institute -Republic of Bulgaria, National Institute of Statistics - Ukraine, , IMF, Focus Economics

HALF YEAR REPORT 2020|3

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SPDI - Secure Property Development & Investment plc published this content on 30 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 October 2020 07:39:07 UTC