Acquisition of Upground Towers

RNS Number : 8376C

Globalworth Real Estate Inv Ltd

20 March 2014

 



Globalworth Real Estate Investments Limited

Acquisition of Upground Towers

Guernsey, 20 March 2014: 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 Upground Towers, a modern residential complex in the northern part of Bucharest.

Upground Towers comprises circa 70,000 sqm of Gross Built Area.  Upground Towers is part of a wider building complex developed by the Founder between 2006 and 2011 which also includes the BOB and BOC office buildings (the Founder Pipeline). Upground Towers primarily targets the demand for good quality residential space from professionals working in the area.  Accordingly, it also comprises a wide range of leisure and food & beverage outlets, including Bucharest's largest gym.

The acquisition of Upground Towers took place in accordance with the main terms and conditions of the Upground Acquisition Agreement and the Founder Subscription Agreement, both as disclosed in the Company's admission document (the "Admission Document").

The acquisition cost for Upground Estates SRL, the holding SPV of Upground Towers, is Euro 52 million. The equity part of the acquisition cost is being satisfied through (a) the issue of shares of no par value ("Ordinary Shares") equal to Euro 13 million at the IPO placing price of Euro 5.00 (that is, 2,600,000 Ordinary Shares), which are being issued as to 1,300,000 shares to Milabrin Limited (a company affiliated to the Founder) and 1,300,000 shares to Tomafer Limited and (b) Euro 500,000 to be paid in cash to each of Milabrin Limited and Tomafer Limited. A loan of Euro 230,000 made by the Founder to Upground Estates SRL is also being repaid in cash on completion. 

Application will be made to AIM for 2,600,000 Ordinary Shares to be admitted to trading on AIM with this expected to occur on 27 March 2014. Following the above issue, the total issued share capital of the Company will comprise 26,238,857 Ordinary Shares.

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

EastWest Partners (Financial Adviser)

David Hill                                                                                  Tel: [phone]

Scott Evans                                                                              Tel: [phone]

Panmure Gordon (Nominated Adviser)                             Tel: [phone]

Nicola Marrin

Freddy Crossley

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

Rick Thompson

David Foreman

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 and currently focussing its activities in Romania. 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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