Update on Anticipated Acquisition of Tower Center

RNS Number : 7768N

Globalworth Real Estate Inv Ltd

11 September 2013

 

Globalworth Real Estate Investments Limited ("Globalworth" or the "Company")

Update on Anticipated Acquisition of Tower Center International (TCI)

11 September 2013: Globalworth (AIM: GWI), a real estate investment company formed to take advantage of investment opportunities in Romania and the broader SEE and CEE regions, today announces that it has agreed with the vendors of Tower Center International ("TCI"), a recently constructed landmark office ("class A") building in Bucharest's Central Business District, an additional six months (to 31 March 2014) to close the transaction. The Company is currently in discussions with a number of banks to obtain the financing to complete the acquisition.

As the second tallest building in Bucharest, comprising 24,711 square metres of Gross Built Area over 26 floors, strategically located in Victoriei Square and including Ernst & Young, Hidroelectrica, and Cegeka as tenants, TCI is a landmark asset which, upon reaching fully let status, is expected to generate more than Euro 5m of net operating income. The vendors of TCI are Stanuta Enterprises Limited, a company controlled by Globalworth's Founder and CEO Ioannis Papalekas and a 50% shareholder in TCI, and Pokandro Limited, a company controlled by Mr Dragos Bilteanu, the remaining 50% shareholder.

In consideration of its agreeing to this extended schedule, Pokandro Limited will receive an immediate advance payment of Euro 6m from the total cash consideration payable to it under the TCI Acquisition Agreement. In the event that conditions under the TCI Acquisition Agreement are not satisfied by 31 March 2014, Pokandro Limited will repay this advance payment with interest.  The advance payment will also be secured against the shares of Pokandro Limited.

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

 

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