Trading Statement

RNS Number : 9403E

Globalworth Real Estate Inv Ltd

16 February 2015

 



NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.

16 February 2015

Globalworth Real Estate Investments Limited

Trading Update and Unaudited Q4 -2014 period-end EPRA Net Asset Value

Globalworth Real Estate Investments Limited ("Globalworth" or the "Company") is pleased to release the following:

·     Trading Update

·     Unaudited Q4 2014 period-end EPRA Net Asset Value

The EPRA Net Asset Value is presented in accordance with the stated intention of the Company to publish its estimated NAV on a quarterly basis.

Highlights

·     7 transactions completed in 2014 increasing the appraised value of the Company's portfolio to €599.3[1]  million

·     Signed SPAs for the acquisition of 3 Class "A" office properties in Bucharest (subject to completion) resulting in a Pro-forma[2] appraised value of the Company's entire portfolio of c.€752.1^[1] million

·     4 developments in progress, which upon development completion are expected to increase the appraised value of the Company's real estate portfolio to c.€1,042.6[3] million (Pro-forma)

·     c.114,860 sqm of commercial GLA leased in the past 13 months

o  Land mark leases include Continental (TAP: c.45,000 sqm - Light Industrial), Deutsche Telekom (Globalworth Campus: c.25,000 sqm - Office) and Vodafone (Bucharest One: c.16,000 sqm - Office).

·     Average occupancy of commercial GLA at c.70% (82% on Standing Properties) with a remaining WALL of 8.1 years and 7.3 years on a Pro-forma² basis.

·     LTV of c.34.4% at December 31^st 2014

·     Unaudited EPRA NAV at December 31^st 2014, of €8.09 per share representing a c.34.2% increase in the past 12 months

·     Cash and Cash Equivalents at December 31^st 2014 of c.€22.0 million

IMPORTANT NOTICE / FORWARD LOOKING STATEMENTS

This Announcement contains forward-looking statements. These relate to the Company's future prospects, developments and strategies.  Forward-looking statements are identified by their use of terms and phrases such as "believe", "could", "envisage", "estimate", "expect", "intend", "may", "plan", "will" or the negative of those, variations or comparable expressions, including references to assumptions and discussions of strategy, plans, objectives, goals, future events, intentions or expectations. The forward-looking statements in this Announcement, including as to expected or estimated NOI (net operating income), GLA and WALL, are current expectations based on a number of assumptions that reflect a substantial degree of judgment and are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed or implied by the relevant statements.  Factors that could cause actual results and outcomes (including NOI) to differ materially include, but are not limited to, those discussed under "Risk Factors" in Part I of the Admission Document of the Company dated 24 July 2013.  These forward-looking statements speak only as of the date of this Announcement.

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

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

Andrew Potts

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

Rick Thompson

David Foreman

Milbourne (Public Relations)                                                           Tel: [phone]

Tim Draper

About Globalworth:

Globalworth Real Estate Investments Limited is a real estate investment company founded by real estate investor and developer Ioannis Papalekas currently focused on taking advantage of investment opportunities in Romania. The Company is Guernsey incorporated and has been declared by the Guernsey Financial Services Commission to be a registered closed-ended collective investment scheme. 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 in search of higher yielding investments. As a result, Romania should, in due course, become a more attractive destination for a wide investor audience. Globalworth anticipates holding an early mover advantage in and benefitting from this gradual shift in investor sentiment.

Investments in Real Estate

During the second half of 2014, Globalworth completed the acquisitions of the Timisoara Airport Park ("TAP") in Timisoara and of 2 land plots in Bucharest (c.9,060sqm in total), increasing the overall appraised portfolio value to c.€599.3 million as at December 31^st 2014.

In addition, the Company announced the acquisition of 3 Class "A" office properties in Bucharest for a total of c.€133 million. The acquisition of Unicredit HQ is expected to be completed in Q1 2015, while the acquisitions of Nusco Tower and Green Court Building "A" are expected to be completed by the end of Q2 2015, which would increase the appraised portfolio value by an additional c.€152.8 million to a total of c.€752.1 million on a Pro-forma basis (based on December 31^st 2014 valuations).

Finally, in December 2014, Globalworth signed MoU's for the potential acquisitions of a c.28,000 sqm land plot valued at c.€30.5 million, and of a standing office property with GLA of c.8,800 sqm valued at €13.2 million, both located in Bucharest. The Company is currently undertaking the necessary due diligence on these assets.

	31 Dec. 20131	31 Dec. 2014	Pro-forma
Number of Assets:	4	11	14
GLA (standing)2:	39,901 sqm	224,479 sqm	282,120 sqm
Portfolio Value "As Is":	€117.8m	€599.3m	€752.1m
Portfolio Value "Completion":	€240.2m	€921.5m	€1,042.6m
(1) Excluding the Floreasca One development which was sold in 2014 (2) Includes residential space of c.3,933sqm and  c.53,217sqm in Dec 2013 and Dec 2014/Pro-forma respectively.

Portfolio Breakdown by Classification "As Is" Valuation	31 Dec. 2014	Pro-forma
Total "As Is" Valuation	€599.3m	€752.1m
of which: Standing Properties	76.8%	81.5%
of which: Developments	20.2%	16.1%
of which: Land for future development	3.0%	2.4%
Note: Globalworth Campus is presented as "Development".

Portfolio Breakdown by Classification "Completion" Valuation	31 Dec. 2014	Pro-forma
Total "Completion" Valuation	€921.5m	€1,042.6m
of which: Standing Properties	98.0%	98.3%
of which: Land for future development	2.0%	1.7%
Note: Development projects assumed to be completed.

Standing Properties

Globalworth's owned standing portfolio as at December 31^st 2014, is comprised of 6 properties, offering a total GLA of c. 224ksqm and valued at c.€460.0 million. All properties are located in Bucharest except the TAP logistics park in Timisoara, which is partly developed.

In addition the Company has announced the acquisition of 3 Class "A" standing office properties in Bucharest which on completion will contribute an additional c.58k sqm of GLA, with an appraised value of c.€152.8 million. The total portfolio of Standing Properties of Globalworth adjusted for the 3 announced acquisitions (which are subject to completion) will comprise 9 properties offering GLA of c.282k sqm and have an appraised value of c.€612.8 million as at December 31^st 2014.

Total standing properties	31 Dec. 2014	Pro-forma
Number of Assets	6	9
GLA (sqm)1	224,479	282,120
"As Is" Valuation (31 Dec 2014)2	€460.0m	€612.8m
(1) Includes c.53,217 sqm of residential space (2 )Appraised value to increase by c.€500k following additional capex spend at City Offices

In Q4 2014, Globalworth completed the works for the repositioning / refurbishment of City Offices, with the property comprising of 2 two connected buildings, now offering a total of c.36,000sqm of GLA and 1,019 parking spaces. In addition, the Company has continued to invest in a greener and more efficient portfolio, with BOB and BOC buildings receiving Green Certifications during the year and we are in the process of exploring the potential for similar certifications in 2 other offices properties in the portfolio.

Green Certified Properties
BOB	·      BREEAM In-use / Excellent and LEED Gold certifications (for part of the property)
BOC	·      BREEAM In-use / Excellent certification
Unicredit HQ	·      BREEAM VERY GOOD certification
Green Court Building "A"	·      LEED Gold pre-certified

Development Projects

We currently have 2 principal developments under construction, Bucharest One and Phase "A" of Globalworth Campus, which upon estimated completion in Q4-2015 / H1-2016 respectively, are expected to offer c.107,000 sqm of GLA. Both investments are located in the north east part of Bucharest in the Barbu Vacarescu / Dimitrie Pompeiu area which is the fastest growing office hub in the country attracting a significant number of multinational tenants.

The construction of Bucharest One has reached the 5th floor (January 2015) and is progressing in line with the estimated development plan. Bucharest One has been pre-certified with the Green Certification of Leed Platinum, and Globalworth Campus is expected to receive a similar or higher certification before its completion.

For Globalworth Campus, the concept design has been finalised and the Company is currently in the final phase of the tender process for the appointment of the General Contractor for the construction of Buildings A and B. Construction is expected to commence in Q1-2015.

Globalworth has also recently started the development of "Gara Herastrau", a 2,434sqm land plot located on Gara Herastrau (Barbu Vacarescu / Dimitrie Pompeiu area). The plot was acquired for €4.0 million in December 2014 and has all the necessary building permits in place. Gara Herastrau is adjacent to Green Court Building "A" and c.200 meters away from Nusco Tower and Bucharest One, and is expected to offer c.11,000sqm of GLA upon estimated completion in Q1-2016.

In addition, two new light industrial warehouses are under construction in the TAP logistics complex in Timisoara which are pre-let to Continental and Elster and are expected to be completed by the end of H1-2015. The new warehouses will increase the total area offered in TAP by c.54,500sqm to a total of c.81,950sqm. Valeo, Continental and Elster have additional options to expand in the complex which would result in TAP being one of the largest logistics park in the country offering a total of c.124,286sqm.

The current appraised value of the Development Projects is c.€121.2 million ("As Is" valuation) which upon completion of the developments is expected to offer c.244k sqm of office and light industrial space with an appraised value of c.€442.9 million as at December 31^st 2014.

Development Projects	31 Dec. 2014
Number of Assets	4
GLA (sqm)	244,634
"As Is" Valuation (31 Dec 2014)	€121.2m
Estimated remaining development Capex	€188.2m
"Completion" Valuation (31 Dec 2014)	€411.2m

Land for future development

Globalworth owns land plots located in two prime locations in Bucharest for future development. These plots represent further opportunities for office or mixed-use developments which we intend to take advantage of in the future in order to further grow our real estate portfolio. We are currently in the planning phase of the development and in discussions with potential tenants in order to secure pre-letting commitments to mitigate risks associated with the development / success of the investments.

In December 2014, Globalworth acquired Aserat SA, which owns the lands at Luterana street in Bucharest, for a total cost of c.€7.3 million.

Globalworth's total land for future development represents 2 locations with a total land plot size of c. 9,767sqm and an appraised value of c.€18.1 million.

Globalworth's value upon "Completion" - 31 Dec 2014

The appraised value upon Completion of Globalworth's real estate portfolio is expected to increase to €1,074.3 million, following the investment of the remaining estimated c.€188.2 million of Capex for the completion of our 4 development projects.

Property	Status	"As Is" Value   (€ m)	Capex                (€ m)	Mark to Market Uplift (€ m)	Value upon "Completion" (€ m)
BOB	Completed	50.5	-	-	50.5
BOC	Completed	142.5	-	-	142.5
TCI	Completed	76.4	-	-	76.4
City Offices	Completed	65.0	-	0.5	65.5
Upground Towers	Completed	108.9	-	-	108.9
TAP	Comp./Dev.	33.9	21.6	0.1	55.6
Bucharest One	Development	67.6	45.9	44.0	157.5
Globalworth Campus	Development	29.8	109.0	49.2	188.0
Gara Herastrau	Development	6.6	11.7	8.5	26.8
Luterana	Land	12.2	-	-	12.2
Herastrau 1	Land	5.9	-	-	5.9
Total Owned		599.3	188.2	102.3	889.8
Unicredit HQ	Completed	47.6	-	-	47.6
Nusco Tower	Completed	59.6	-	-	59.6
Green Court	Completed	45.6	-	-	45.6
Total Pro Forma		752.1	188.2	102.3	1,042.6

Leasing Update

During 2014, Globalworth successfully signed commercial lease contracts corresponding to a total of c.112,960sqm of GLA. In addition, during January 2015, we concluded the signing of an additional c.1,900sqm increasing our 13 month total to c.114,860sqm of GLA.

The Company signed some of the largest and landmark leases in the Romanian market in 2014 including Continental (TAP: c.45,000sqm - Light Industrial), Deutsche Telekom (Globalworth Campus: c.25,000 sqm - Office) and Vodafone (Bucharest One: c.16,000 sqm - Office). Other notable lease contracts included Elster (TAP: c.6,950sqm - Light Industrial), Stefanini (BOB: c.6,200sqm - Office), Ministry of European Funds (TCI: c.3,500sqm - Office), ADP (BOC: c.1,900sqm - Office), Honeywell (BOC: c.1,900sqm - Office) and Delhaize Group (Bucharest One: c.1,600sqm - Retail).

Globalworth has agreed in principle (but not signed) or is in various stages of negotiations with a number of tenants for the take-up of additional spaces in the portfolio. With regard to City Offices, the Company is participating in a number of tenders as well being in direct negotiation with a number of parties that if successful would result in the full take-up of the property.

The majority of the Company's new tenants are multinational corporate groups and financial institutions who signed long, triple net leases, in line with our overall strategy. The average duration of the new commercial leases signed was c.10.0 years. Overall, the WALL remaining on the commercial lease contracts in the overall portfolio was 8.1 years at December 31^st 2014 and 7.3 years on a Pro-forma basis.

Commercial Contracted Rent Expiration Profile (% of total)
Year	2015	2016	2017	2018	2019	≥2020
31 Dec. 2014	9%	0%	4%	2%	6%	79%
Pro-forma	7%	8%	3%	2%	5%	75%

Total Commercial Properties	Standing Properties		Development Projects
	31 Dec. 2014	Pro-forma	31 Dec. 2014
Occupancy	77.2%	82.1%	57.2%
GLA (sqm)1	171,263	228,903	244,634
Contracted Rent	20.7m	32.3m	11.9m
WALL	6.2 yrs	5.8 yrs	11.4 yrs
Note: Table excludes c.53,217sqm of residential space in Upground Towers which have c.€1.5m of contracted rent

In our Commercial Properties, we have achieved a diversified tenant mix which comprises of c.75 different national and multinational corporates from +20 different countries and include some of the most recognisable corporates in their respective industries.

Tenant Origin:	% of Contracted Rent (31 Dec. 2014 / Pro-forma)	Selected Tenants of Commercial Portfolio
Multinational	88.9 % / 91.4%	ADP, Bayer, BCR, Billa, BRD, Cegeca, Clearanswer, Continental, Credit Agricole Bank, Delhaize Group, Deutsche Bank, Deutsche Telekom, EADS, Elster Rometrics, EY, G4S, GfK, Honeywell, HP, Huawei, Intel, Mood Media, NBG Group, Nestle, Oracle, Orange, Piraeus Bank, Raiffeisen Leasing, Schneider Electric, Securitas, Snamprogetti, Stefanini, Subway, Unicredit, Valeo, Vodafone, Volksbank, Way Media, Worldclass
National	2.2% / 2.8%	NX Data, GlobalVision, Generalcom
State Owned Entities	7.9% / 5.8%	Hidroelectrica, Ministry of European Funds

Portfolio Review - Consolidated

Investment:	Property Status	Acquisition & Development Cost			NOI - €m
		Investment Cost to Dec-14 (€ m)1	Remaining     Cost (€ m)	Total Acq./Dev.  Cost (€ m)	Jan-152	Q1'16(E)3	Q1'17(E)3	NOI Yield4
BOB	Completed	42.0	-	42.0	3.3	3.9	3.9	9.3%
BOC	Completed	110.0	-	110.0	9.4	10.2	10.4	9.5%
TCI	Completed	58.0	-	58.0	4.9	5.1	5.2	9.0%
City Offices	Completed	51.0	-	51.0	2.4	6.9	6.9	13.5%
Upground Towers	Completed	58.0	-	58.0	2.9	3.5	5.1	8.8%
TAP5	Comp./Dev	25.5	21.6	47.2	3.8	4.8	4.8	10.2%
Bucharest One	Development	48.9	45.9	94.8	5.5	11.3	12.4	13.1%
Globalworth Campus	Development	16.0	109.0	125.0	4.2	10.7	16.5	13.2%
Gara Herastrau	Development	4.0	11.7	15.7	-	2.0	2.0	12.7%
Total Real Estate		413.4	188.2	601.7	36.4	58.4	67.2	11.2%
Land 6	Land	13.3	-	13.3	-	-	-	-
Asset Manager	Operations	15.0	-	15.0	2.7	2.7	2.7	18.0%
Total Owned		441.7	188.2	630.0	39.1	61.1	69.9	11.1%
Announced:
Unicredit HQ	Completed	2.0	40.7	42.7	3.7	3.7	3.8	8.9%
Nusco Tower	Completed	-	46.0	46.0	4.3	4.8	4.4	9.6%
Green Court "A"	Completed	4.1	36.9	41.0	3.5	3.5	3.6	8.8%
Total Pro-forma		447.8	311.8	759.7	50.6	73.1	81.7	10.8%

¹ Investment Cost to Dec-14, represents the total acquisition cost and subsequent development capex spent by GWI on each asset

² Assumes signing of new leases agreed in Bucharest One (5,575 sqm) and City Offices (10,000 sqm)

³ Expected NOI for 2016 / 2017, is based on the Company's business plan

⁴ NOI yield based on Total Acquisition and Development Cost and 1Q17 Estimated NOI per property

⁵ Remaining development for TAP includes all construction costs for Elster, Valeo and Continental.

⁶ Land for future development includes Herastrau 1 (€6 million cost) and Luterana (€7.3 million cost)

Portfolio Review - Consolidated (December 31^st 2014)

BOB:
Location:	Bucharest / New CBD
Status:	Standing Property
Description:	Class "A" multi-tenanted office building
Ownership:	100.0%
Year of Completion:	2008
Appraised Value "As Is":	€50.5m
GLA:	22,391
Occupancy:	86.2%
Contracted Rent:	€3.3m
WALL:	5.8 yrs
Selected Tenants:	Deutsche Bank, Stefanini, Snamprogetti, Securitas, NX Data, NBG Group, Clearanswer Europe

BOC:
Location:	Bucharest / New CBD
Status:	Standing Property
Description:	Class "A" multi-tenanted office building
Ownership:	100.0%
Year of Completion:	2009
Appraised Value "As Is":	€142.5m
GLA:	56,647
Occupancy:	94.4%
Contracted Rent:	€9.4m
WALL:	5.9 yrs
Selected Tenants:	NBG Group, Honeywell, HP, GfK, Intel, Nestle, EADs, G4S, Deutsche Telekom

TCI:
Location:	Bucharest / Historical CBD
Status:	Standing Property
Description:	Class "A" multi-tenanted office building
Ownership:	100.0%
Year of Completion:	2012
Appraised Value "As Is":	€76.4m
GLA:	22,228
Occupancy:	100.0%
Contracted Rent:	€4.9m
WALL:	4.4 yrs
Selected Tenants:	Ministry of European Funds, Ernst & Young, Hidroelectrica, Huawei, Cegeka, Deutsche Bank

City Offices:
Location:	Bucharest / South
Status:	Standing Property
Description:	Mix Use Property comprising of an Commercial building and a multi-level parking
Ownership:	100.0%
Year of Completion:	2014
Appraised Value "As Is":	€65.0m
GLA:	35,968
Occupancy:	9.0%
Contracted Rent:	€0.9m
WALL:	5.9 yrs
Selected Tenants:	Delhaize Group, Max Bet, Billa, BCR, Piraeus Bank, Vodafone, Credit Agricole Bank, Germanos

Upground Towers:
Location:	Bucharest / New CBS
Status:	Standing Property
Description:	Residential complex comprising of two towers
Ownership:	100%
Year of Completion:	2011
Appraised Value "As Is":	€108.9m
GLA:	59,879
Occupancy:	Commercial: 99.0% / Residential: 44.7%
Contracted Rent:	€2.3m
WALL:	9.5 / 1.0 yrs
Selected Tenants:	WorldClass, Delhaize Group, Marfin Bank, Subway, Starbucks, Huawei, Rocazare

TAP:
Location:	Timisoara
Status:	Standing / Under Development Property
Description:	Light-industrial complex
Ownership:	100%
Year of Completion:	2011 / 2015E
Appraised Value "As Is":	€33.9m
Appraised Value "Completion":	€55.6m
GLA:	124,286sqm (81,953sqm in H1 2015)
Occupancy:	98.5%
Contracted Rent:	€4.9m
WALL:	13.5 yrs
Selected Tenants:	Continental, Valeo, Elster

Bucharest One:
Location:	Bucharest / New CBD
Status:	Development / Under Construction
Description:	Class "A" multi-tenanted office building
Ownership:	100%
Year of Completion:	2015E
Appraised Value "As Is":	€67.6m
Appraised Value "Completion":	€144.0m
GLA1:	49,277
Occupancy:	40.4%
Contracted Rent:	€4.3m
WALL:	10.7 yrs
Selected Tenants:	Vodafone, Huawei, Delhaize Group

(1)       c.53,923sqm including extension

Globalworth Campus:
Location:	Bucharest / New CBD
Status:	Development / Under Construction
Description:	Class "A" multi-tenanted office complex
Ownership:	100.0%
Year of Completion:	2016E
Appraised Value "As Is":	€29.8m
Appraised Value "Completion":	€188.0m
GLA:	87,808
Occupancy:	28.5% (Phase "A" c.50%)
Contracted Rent:	€4.2m
WALL:	10.0 yrs
Selected Tenants:	Deutsche Telekom

Gara Herastrau:
Location:	Bucharest / New CBD
Status:	Development / Under Construction
Description:	Class "A" office building
Ownership:	100.0%
Year of Completion:	2016E
Appraised Value "As Is":	€6.6m
Appraised Value "Completion":	€26.8m
GLA:	10,737
Occupancy:	-
Contracted Rent:	-
WALL:	-
Selected Tenants:	-

Portfolio Review - Properties Pending Closing

Unicredit HQ:
Location:	Bucharest / North
Status:	Standing Property
Description:	Class "A" single-tenanted office building
Ownership:	100.0%
Year of Completion:	2012
Appraised Value "As Is":	€47.6m
GLA:	15,500
Occupancy:	100.0%
Contracted Rent:	€3.8m
WALL:	7.3 yrs
Selected Tenants:	Unicredit Tiriac Bank

Nusco Tower:
Location:	Bucharest / New CBD
Status:	Standing Property
Description:	Class "A" multi-tenanted office building
Ownership:	100.0%
Year of Completion:	2010
Appraised Value "As Is":	€59.6m
GLA:	22,972
Occupancy:	91.5%
Contracted Rent:	€4.3m
WALL:	2.1 yrs
Selected Tenants:	Volksbank, Oracle, Bayer, Vodafone

Green Court Building "A":
Location:	Bucharest / New CBD
Status:	Standing Property
Description:	Class "A" multi-tenanted office building
Ownership:	100.0%
Year of Completion:	2014
Appraised Value "As Is":	€45.6m
GLA:	19,168
Occupancy:	100.0%
Contracted Rent:	€3.5m
WALL:	6.7 yrs
Selected Tenants:	Orange, Schneider Electric

Debt Financing

As at December 31^st 2014, Globalworth had €206.0 million of outstanding bank borrowings representing a Loan to Value ("LTV") of c.34.4%, in line with the intention of the Company for the LTV not to exceed the 60.0% threshold. In addition, there are €4.0 million of undrawn facilities.

The weighted average cost of debt is 3.99% and has a weighted average maturity of 5.4 years.

On December 19^th 2014, the Company announced that the indebtedness under the €65,000,000 secured term bridge facility agreement held by York Global Finance Offshore BDH (Luxembourg) S.a.r.l., a private entity affiliated with York Capital Management Global Advisors, LLC, ("York") and private funds managed by Oak Hill Advisors and its affiliates  ("Oak Hill Advisors"), was repaid through a mandatory conversion into 11,999,962 ordinary shares at €5.90 per Ordinary Share, being the placing price of the secondary offering as announced on 23 April 2014.

Asset /         Company Name	Facility	Outstanding amount (31 Dec. 2014)	Undrawn amount (31 Dec. 2014)	Maturity Date
BOB	Facility 1	€34.5m	-	Dec. 2018
BOC	Facility 2	€84.4m	-	Dec. 2018
GAM	Facility 3	€14.8m	-	Mar. 2019
	Facility 4	€0.5m	-	Feb. 2015
Upground	Facility 5	€37.0m	-	Dec. 2016
TCI	Facility 6	€26.2m	€4.0m	Oct. 2032
TAP	Facility 7	€4.0m	-	Oct. 2015
	Facility 8	€4.6m	-	Dec. 2020
TOTAL		€206.0m	€4.0m

Net Asset Value
The unaudited Net Asset Value (NAV) and EPRA Net Asset Value (EPRA NAV) as at December 31st 2014 is presented below in accordance with the stated intention of the Company to publish its estimated NAV on a quarterly basis.
DESCRIPTION			31-Dec-14		30-Jun-14		31-Dec-13
(Figures in € million unless otherwise stated)			(unaudited)		(unaudited)		(audited)
Net assets			392.7		378.2		120.3
Less:
Non-controlling interests			(0.0)		(0.5)		(0.6)
NAV attributable to ordinary equity holders of the parent, used to calculate diluted NAV per share			392.7		377.7		119.7
Exclude:
Deferred tax liability			47.1		41.6		12.4
Goodwill as a result of deferred tax			(5.7)		(6.0)		(5.9)
EPRA NAV attributable to ordinary equity holders of the parent			434.1		413.3		126.2
Number of ordinary shares used to calculate diluted NAV per share and EPRA NAV per share			53.6		53.6		20.9
Diluted NAV per share (€)			7.32		7.04		5.73
EPRA NAV per share (€)			8.09		7.70		6.03

GLOSSARY

Assets: "Standing Properties"	Comprises of i) the 6 owned properties, BOB, BOC, TCI, City Offices, Upground Towers and TAP (c.27,474 sqm) and ii) the 3 announced properties (on a Pro-forma or adjusted basis only), Unicredit HQ, Nusco Tower and Green Court Building "A" which are subject to completion in 2015.
Assets: "Developments"	Comprises Bucharest One, Globalworth Campus, Gara Herastrau and TAP (excluding the completed sqm already included in Standing Properties).
Assets: "Land"	Comprises land plots for future development located in Luterana and Herastrau 1.
"Capex"	Represents the estimated Capital Expenditure to be incurred for the completion of the Development Projects.
"Commercial Properties"	Comprises the office, light-industrial and retail properties or areas of the portfolio.
"LTV"	Calculated as the total outstanding debt divided by the appraised value of owned assets as at December 31st 2014.
"NOI"	Net operating income (being the gross operating income less operating expenses that are not paid by or rechargeable to tenants, excluding funding costs, depreciation and capital expenditure).
"Pro-forma"	Includes the announced acquisitions of Unicredit HQ, Nusco Tower and Green Court Building "A" which are subject to completion, together with the remaining Standing Properties and where applicable includes the Development Projects and Land for future development.
Valuation "As Is"	Represents the appraised value for standing and operational properties (owned and announced), properties under development and land, performed by Coldwell Banker as at December 31st 2014.
Valuation "Completion"	Represents the appraised value for standing and operational properties (owned and announced), properties under development (including the expansions for TAP, Bucharest One and Globalworth Campus) and land, performed by Coldwell Banker as at December 31st 2014, assuming that the properties under development were completed as of the date of valuation. The estimated appraised values on completion are subject to risks and uncertainties that could cause actual outcomes to differ materially from those expressed or implied by the relevant statements; they are not guarantees of future performance and there can be no assurance that these estimated values on completion can or will be achieved.
"WALL"	Represents the remaining weighted average lease length of the contracted leases as of December 31st 2014, until the lease contracts full expiration.

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[1] Based on appraised valuation for standing and operational properties (owned and announced), properties under development and land, performed by Coldwell Banker as of December 31st 2014.

[2] Pro-forma as at December 31st 2014 includes the announced acquisitions of Unicredit HQ, Nusco Tower and Green Court Building "A" which are subject to completion, and where applicable the appraised value as at  December 31st 2014.

[3] Appraised value on "Completion" performed by Coldwell Banker, assuming that properties under development projects were completed as at December 31st 2014.

 

END

 

 

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