Secure Property Development & Invest : - – 2017 Half Year Report & Financial Statements

HALF-YEAR REPORT‌ H1 2017 Table of Contents

SECTION A- Half-Year Report

1. Management Report 4

2. Regional Economic Developments 6

3. Real Estate Market Developments 7

   • 3.1 Romania 7

   • 3.2 Greece 8

   • 3.3 Bulgaria 8

   • 3.4 Ukraine 8

4. Property Assets 9

1. GED Logistics center, Athens Greece 9
2. EOS Business Park - Danone headquarters, Romania 9
3. Praktiker Retail Center, Romania 10
4. Delenco office building, Romania 10
5. Innovations Logistics Park, Romania 10
6. Residential portfolio 11

   • Romfelt Plaza (Doamna Ghica), Bucharest, Romania 11

   • Monaco Towers, Bucharest, Romania 12

   • Blooming House, Bucharest, Romania 12

   • Green Lake, Bucharest, Romania 12

   • Boyana Residence, Sofia, Bulgaria 13

7. Land Assets 13

   • Aisi Bela - Bela Logistic Center, Odessa, Ukraine 13

   • Kiyanovskiy Lane - Kiev, Ukraine 13

   • Tsymlyanskiy Lane - Kiev, Ukraine 13

   • Balabino- Zaporozhye, Ukraine 14

   • Rozny Lane - Kiev Oblast, Kiev, Ukraine 14

   • Delia Lebada, Romania 14

SECTION B- Financial Statements

SECURE PROPERTY DEVELOPMENT AND INVESTMENT PLC KIRIAKOU MATSI 16, AG. OMOLOGITES,1082, NICOSIA,CYPRUS

This report may contain forward-looking statements about the Company. Such statements are predictive in nature and depend upon or refer to future events or conditions and may include such words as ''expects'', ''plans'', ''anticipates'', ''believes'', ''estimates'' or other similar expressions. In addition, any statement regarding future performances, strategies, prospects, actions or plans is also a forward- looking statement. Forward-looking statements are subject to known and unknown risks and uncertainties and other factors that may cause actual results, events, activities and achievements to differ materially from those expressed or implied by such statements. Such factors include general economic, political and market conditions, interest and foreign exchange rates, regulatory or judicial proceedings, technological change and catastrophic events. You should consider these and other factors carefully before making any investment decisions and before relying on forward-looking statements.

1. Management Report

The first half of 2017 was a period of strong and steady value generation for SPDI following the consolidation period of the previous years. Specifically the Company sold two assets in Ukraine: one income producing fully let core asset that was sold in January; and one non-core asset that was conditionally sold in July. Both properties have been sold at around book value and in aggregate, generated more than €6 million in cash in net proceeds for the Company, demonstrating again the mismatch between the Company's Net Asset Valuation compared to its market capitalisation, which currently stands at more than a 50% discount to book value. In addition, the Company prepared the sale of other non-core assets (with one being effected in July 2017) while undertaking a cost cutting plan, as embarked upon last year. In Romania, the fastest growing economy in the EU, we spent time and resources progressing the refinancing of various components and facilitating sales within our residential portfolio, actions we believe will ideally place SPDI to reap the benefits of this advancing market. In parallel with this, we rented all the unlet ambient space at Innovations Logistics Terminal to Aquila Srl, a large Romanian logistics operator and Coca Cola's distributor in Romania. This followed the signing of a new sale and leaseback agreement with Bank of Piraeus after Nestle's departure from the building, which had prompted prolonged negotiations with the lending bank. In July 2017, the Company closed the disposal of the Delia Lebada 40k sqm lake front plot of land on Pantelimon lake, which generated a profit of more than €3 million as the plot was recorded in the Company's books at a discounted €4.5 million, while the related loan (which the Company managed to negotiate a 50% haircut) was kept at full value of more than €6 million. By retaining a small percentage of the now debt free plot and the right to increase it, the Company has the option of tapping into any further value-add, should this prove possible. In Ukraine, an economy that has been hampered by both the war and continuing tensions with neighboring Russia as well as the resulting drop in its GDP, SPDI concluded in January the sale of Terminal Brovary Logistic Park in Kiev ('Brovary'), generating more than €3 million in cash. A few months later, the Company conditionally sold its Kiyanovski land plot in Podil, a 0.55Ha plot of land very well located in this traditional neighborhood of Kiev, for a price greater than US$3m million. Having received a non-refundable down payment of US$100k, SPDI is awaiting the issuance of the construction permit, which will signal the second payment of ~ US$1.4 million with the remainder of the cash following suit. As a result of these transactions, the Company is one of the few sellers in the country that managed to generate cash and not make a loss in the process. The economic climate in South East Europe improved further in the first half of 2017. Romania continues its fast growth after recording an annual rise of ~4% in GDP. Bucharest continues to boast almost no unemployment and its property market is continuing its uptrend with prices growing and cap rates dropping. Greece managed to finalise the agreement with its international lenders (ECB, IMF and EU), which was signed within the period, removing most of the uncertainty surrounding its economic direction. With a primary surplus and indications pointing to possible GDP growth within 2017, the first non-recessionary year since 2012, Greece is poised to experience a positive economic reversal.

In summary