Acquisition of Bucharest One

RNS Number : 3714W

Globalworth Real Estate Inv Ltd

27 December 2013

 

Globalworth Real Estate Investments Limited

Acquisition of Bucharest One

Guernsey, 27 December 2013: Globalworth Real Estate Investments Ltd. (AIM: GWI) ("Globalworth" or "the Company"), the real estate investment company targeting opportunities in Romania and the broader SEE and CEE regions, is pleased to announce the acquisition of Bucharest One, a landmark office development project to be constructed in the Floreasca/Barbu Vacarescu area in the northern part of Bucharest. 

Dimitris Raptis, Deputy Chief Executive Officer and Chief Investment Officer of the Company commented: "We are delighted to have acquired another of the assets identified in the Initial Portfolio as described in our admission document. The Floreasca/Barbu Vacarescu area is considered to be the fastest growing and most attractive office sub-market in Bucharest. The appeal of the area has resulted in both strong investor and tenant demand and one of the lowest office vacancy rates in Bucharest".

Bucharest One is expected to comprise 48,732 sqm of Gross Build Area above ground over twenty four floors. One completed, it will be the second tallest building in Bucharest.  The project is located in the northern part of the City and has easy access by public transport and car. On-going improvements to local infrastructure are underway. The project has obtained the necessary permits to commence construction, which is scheduled to start in the first months of 2014, and is expected to be completed within Q3 2015.

The acquisition of Bucharest One took place in accordance with the terms and conditions of the Bucharest One Acquisition Agreement and the Founder Subscription Agreement as disclosed in the Company's admission document. As such, part of the transaction consideration has been satisfied through the issue to Bakaso Holdings Limited, a Founder Company (as defined in the admission document) of 3,986,934 shares of no par value ("Ordinary Shares") at the placing price of Euro 5 per share.  Application will be made to AIM for these Ordinary Shares to be admitted to trading on AIM with this expected to occur on 2 January 2014. Following the above issue, the total issued share capital of the Company will comprise 20,905,638 Ordinary Shares.

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

Panmure Gordon (Nominated Adviser)                             Tel: [phone]

Nicola Marrin

Freddy Crossley

Cantor Fitzgerald Europe (Joint Broker)                            Tel: [phone]

Rick Thompson

David Porter

Milbourne (Public Relations)                                               Tel: [phone]

Tim Draper

About Globalworth:

Globalworth Real Estate Investments Ltd is a real estate investment company founded by real estate investor and developer Ioannis Papalekas to take advantage of investment opportunities in Romania and the broader SEE and CEE regions. The company is Guernsey incorporated and registered as a closed-ended collective investment scheme by the Guernsey FSC. The Company's shares were admitted to trading on AIM in July 2013.

The Romanian market offers an attractive real estate investment proposition in the medium-to-long term. Globalworth believes that global investor capital flows will gradually move from markets considered as "safe havens" to more peripheral markets such as Romania and the broader SEE and CEE regions in search of higher yielding investments. As a result, Romania and the broader SEE and CEE regions should, in due course, become more attractive destinations for a wide investor audience. Globalworth anticipates holding an early mover advantage in these markets and benefitting from this gradual shift in investor sentiment.

 

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