On 26 March 2018, VBare subscribed a purchase option on a property located in Madrid, for a price of €2 million. The Company will exercise the purchase option, once the conditions agreed upon by the Grantor have been fulfilled. The purchase price of the property, upon exercise of the purchase option, will amount to between €8 million and €9 million, resulting in a total disbursement of between €10 million and €11 million for the acquisition (including the option price and the amount paid for its exercise).

The final deadline for the exercise of the purchase option is 15 December 2018 (including extensions). In the event that the maximum period for the exercise of the purchase option elapses without the agreed conditions having been met, the Company may terminate the purchase option and recover the entire amount disbursed.

There is currently a mortgage loan amounting to approximately €5 million on the property. The Company has received a binding offer from the existing mortgage bank to step into the position of borrower and the balance of the payment will be paid by cash available.

The property is located in the centre of Madrid and is mainly dedicated to residential use. The property is currently leased below market value and the Company estimates a net yield of approximately 4.00% once the reconditioning work has been undertaken and the property is fully occupied at market rents.

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