Acquisition in Poland

RNS Number : 7717H

Globalworth Real Estate Inv Ltd

15 March 2018

 

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this information is considered to be in the public domain.

15 March 2018

Globalworth Real Estate Investments Limited

("Globalworth" or the "Company")

Acquisition in Poland

Globalworth is pleased to announce the acquisition by Globalworth Poland¹ ("GPRE") of Warta Tower, a modern office tower in the City Centre West district of Warsaw, Poland for a consideration of €55 million. 

Warta Tower, which was completed in 2000, comprises approximately 28,000 sqm of gross leasable area, and offers outstanding architectural qualities, including its iconic lobby. The 21-floor building is multi-tenanted, with TUiR Warta S.A. (insurance and reinsurance company being a subsidiary of Talanx International AG) as its largest tenant, has a contracted rental income of c.€5.9 million, occupancy of c.92% and a weighted average lease length of c.3.5 years.  This transaction represents a substantial transaction pursuant to the AIM Rules².

This acquisition is being financed by a €55 million increase in the short-term bridging loan provided to GPRE by the Company announced on 19 December 2017 and which represents a substantial transaction pursuant to the AIM Rules³. Subsequent to the announcement on 19 December 2017⁴, the Company agreed to extend the period whereby the loan could be increased from two months to the date of this acquisition. 

Dimitris Raptis, Deputy Chief Executive Officer and Chief Investment Officer of Globalworth, commented: 

"Globalworth Poland is very excited to be growing its portfolio with the acquisition of this sizeable, landmark asset in Warsaw, following on from the high-quality offices in Wroclaw, Gdansk and Katowice acquired in December 2017. In addition to an attractive current income, this property offers excellent asset management potential."

For further information visit www.globalworth.com or contact: 

Enquiries

Andrew Cox                                                                                                                Tel: [phone]

Head of Investor Relations & Corporate Development  

Jefferies (Joint Broker)                                                                                          Tel: [phone]

Stuart Klein

Panmure Gordon (Nominated Adviser and Joint Broker)                        Tel: [phone]

Andrew Potts

Milbourne (Public Relations)                                                                               Tel: [phone]

Tim Draper

About Globalworth / Note to Editors: 

Globalworth is an AIM-listed real estate company active in Central and Eastern Europe.  It has become the leading office investor in the Romanian real estate market and now has established a significant platform in Poland, through a 72% shareholding in Griffin Premium RE.. N.V. (GPRE), a pure-play Polish real estate platform listed on the Warsaw Stock Exchange.  Globalworth acquires, develops and directly manages high-quality office and logistics/light-industrial real estate assets in prime locations, through which it benefits from a strong rental income profile from high quality tenants from around the globe. Managed by approximately 110 professionals across Romania and Poland, the combined value of its portfolio is €1.8 billion, of which over 90% is in income-producing assets, predominately in the office sector, and leased to some 440 national and multinational corporates from 28 countries and 37 different sectors. In Romania, Globalworth is present in Bucharest, Timisoara and Pitesti, whilst assets in Poland span Warsaw, Wroclaw, Lodz, Krakow, Gdansk and Katowice.  For more information, please refer to http://www.globalworth.com/.

IMPORTANT NOTICE:  This announcement has been prepared for the purposes of complying with the applicable laws and regulations of the United Kingdom and the information disclosed may not be the same as that which would have been disclosed if this announcement had been prepared in accordance with the laws and regulations of any jurisdiction outside of the United Kingdom.  This announcement may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "targets", "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward looking statements include all matters that are not historical facts and involve predictions. Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements reflect the Company's current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Company's business, results of operations, financial position, liquidity, prospects, growth or strategies and the industry in which it operates. Forward-looking statements speak only as of the date they are made and cannot be relied upon as a guide to future performance. Save as required by law or regulation, the Company disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements in this announcement that may occur due to any change in its expectations or to reflect events or circumstances after the date of this announcement.

 

---

¹ Globalworth Poland, in which the Company has a 71.7% shareholding, is the new branding for Griffin Premium RE.. N.V.   The proposed name change of the legal entity will be presented at GPRE's forthcoming AGM.

² Further information required to be disclosed pursuant to Schedule 4 to the AIM Rules is that the profits attributable to the SPV owning Warta Tower, acquired from KREH2 spółka z ograniczoną odpowiedzialnością and Chmielna S.á r.l., for the year ended 31 December 2017 were (€10.7m) subject to Polish GAAP, with the loss reflecting a negative revaluation of the investment property and FX movements.

³ Further information required to be disclosed pursuant to Schedule 4 to the AIM Rules is that the profits attributable to GPRE for the year ended 31 December 2016 were €14.6m, which reflected its results in the financial year prior to its IPO in April 2017, and the gross assets of GPRE at 30 June 2017 were €569.4m.

⁴ On the 19 December 2017, the Company announced that it had agreed to provide a short-term bridging loan to GPRE for an amount of €165 million to fund a portfolio acquisition, which was concluded on 22 December 2017.  It also announced that this loan may be increased by a further €65 million within the next 2 months, for further potential acquisitions under consideration by GPRE.  The Company subsequently amended the terms of the increase, and is now providing €55 million for the purchase of Warta Tower. The loan will bear fixed interest from the date of its utilisation at market rate, and is repayable within 6 months, but may be extended a further 6 months at the request of GPRE (and at the Company's sole discretion). The loan agreement provides for a list of undertakings, representations and events of default standard for financings of such type. 

 

END

 

 

ACQUSSARWUAOAUR