Acquisition in Poland

RNS Number : 4808U

Globalworth Real Estate Inv Ltd

12 July 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.

12 July 2018

Globalworth Real Estate Investments Limited

("Globalworth" or the "Company")

Acquisition in Poland

Globalworth, the leading office investor in Central and Eastern Europe, is pleased to announce the acquisition of Spektrum Tower in Warsaw by Globalworth Poland ("GPRE")1.

Spektrum Tower is a high-rise office building in the heart of the Warsaw Central Business District with a gross leasable area of 29,500 sqm, annual contracted rental income of c.€6.3 million, occupancy of c.93% and a weighted average lease length of approximately 5 years. The project underwent extensive refurbishment in 2015 when it was converted into a multi-tenanted building, and today hosts over 60 companies. 

Dimitris Raptis, Deputy CEO and Chief Investment Officer of Globalworth, commented: "Spektrum Tower is another great addition to Globalworth's portfolio, consistent with acquiring assets with asset management and value-add potential. We are delighted to welcome a significant number of new tenants with whom we look forward to developing long-term partnerships. With nearly €350 million of acquisitions completed in the first half of 2018, we have established our position as the largest institutional office investor and landlord in Poland and strengthened our position as the leading office investor in Central and Eastern Europe. We continue to assess attractive opportunities and make progress with our developments in our two main markets, Poland and Romania."

The total transaction consideration (including repayment of existing debt in the company owning the asset) is €101 million2. This will be funded from GPRE's existing cash resources. This acquisition represents a substantial transaction pursuant to the AIM Rules3.

With the acquisition of Spektrum Tower, the combined value4 of the Company's portfolio is now broadly split between Romania and Poland. Following the Company's successful expansion in Poland, the Board considers both Romania and Poland as its primary markets of focus. Accordingly, and as permitted by the investing policy, the Board has approved the lifting of the restriction which would have prevented the acquisition of any asset resulting in more than 50% of the Company's net asset value (at the time of investment) being attributable to assets located in South-Eastern Europe (SEE) or Central and Eastern Europe (CEE) countries other than Romania.

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 a listed real estate company active in Central and Eastern Europe, quoted on the AIM-segment of the London Stock Exchange.  It has become the pre-eminent office investor in the CEE real estate market through its market-leading positions both in Romania and in Poland, where the Company has a majority shareholding in Globalworth Poland, 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, generating rental income from high quality tenants from around the globe. Managed by approximately 110 professionals across Romania and Poland, the combined value of its portfolio is currently approximately €2 billion. Over 90% of this 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, while in Poland its assets span Warsaw, Wroclaw, Lodz, Krakow, Gdansk and Katowice. For more information, please visit www.globalworth.com and follow us on Facebook, Instagram and LinkedIn.

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.

 

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1 Globalworth has a 68.4% shareholding in Globalworth Poland Real Estate N.V. ("GPRE")

2 The transaction has been structured as a corporate acquisition, with the consideration payable to the vendor for the shares in ERE III fourteen S.à r.l. (the "Target") on completion of €2.3 million (subject to working capital and other customary adjustments) plus a further €35 million to subrogate shareholder loans.

3 Further information required to be disclosed pursuant to Schedule 4 to the AIM Rules is that the profits attributable to the Target for the year ended 31 December 2017 were €6.4 million and the gross assets as at that date were €107 million. 

4 Combined portfolio is defined as the aggregation of all assets in the Company's portfolio, including consolidation of 100% of GPRE.

 

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