Acquisition

RNS Number : 0250V

Globalworth Real Estate Inv Ltd

03 April 2019

 

3 April 2019

Globalworth Real Estate Investments Limited

("Globalworth" or the "Company")

Acquisitions in Poland

Globalworth, the leading office investor in Central and Eastern Europe, is pleased to announce that its subsidiary Globalworth Poland ("GPRE")1 has completed two acquisitions in Poland, which were identified as part of its acquisition pipeline announced on 11 March 2019, for a combined transaction value of €169.9 million.

The first acquisition, completed on 26 March 2019 for €37.0 million, is Rondo Business Park, located in the northern part of Krakow.  It offers a gross leasable area of 17.8k sqm across three buildings, current occupancy of 90% and an annualised contracted rent of €3.0 million.   Rondo Business Park is multi-tenanted with a weighted average unexpired lease length of nearly 4.5 years, with Capgemini as the principal tenant.  This investment is strategically located being directly adjacent to Quattro Business Park, which GPRE acquired in June 2018, creating critical mass and a combined campus of over 75k sqm.   

The second acquisition, which was completed today for €132.9 million2, is Warsaw Trade Tower (WTT), a 38-storey tower located in the Wola district of Warsaw's extended CBD. WTT is one of the tallest towers in Warsaw, with a gross leasable area of 45.4k sqm, and benefits from the lobby and the majority of the common areas having been fully refurbished.  With current occupancy of 88%, it has an annualised contracted rental income of €9.0 million, which is anticipated to rise to €10.1 million on full occupancy.  The property is multi-tenanted, with a weighted average lease length of 2.2 years, with AXA as the largest tenant alongside other international companies including American Express, Leroy-Merlin and Mattel.   

Dimitris Raptis, Deputy CEO and Chief Investment Officer of Globalworth, commented: "We are delighted to add Warsaw Trade Tower, a prominent landmark office tower, to our Polish portfolio at a compelling entry price, offering an attractive yield and a range of asset management opportunities. The acquisition of Rondo Business Park in Krakow has sound strategic rationale, being located alongside our Quattro Business Park and creating management synergies through an enlarged footprint. We are very pleased to be increasing our office presence in Krakow to over 100k sqm, given the backdrop of strong occupier demand arising from its position as the largest business process service centre in Poland and one of the largest in Europe."

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]

Alina Vaskina

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 nearly 200 professionals across Romania and Poland, the combined value of its portfolio is €2.5 billion, as at 31 December 2018. Over 90% of the portfolio is in income-producing assets, predominately in the office sector, and leased to a diversified array of some 650 national and multinational corporates. 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 77.5% shareholding in Globalworth Poland Real Estate N.V. ("GPRE")

2 The transaction value includes the assumption by GPRE of existing bank financing of €75 million, with the balance of €57.9 million (before working capital and other customary adjustments) representing consideration to the vendor and debt repayment.

 

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