TIDMGWI
RNS Number : 7717H
Globalworth Real Estate Inv Ltd
15 March 2018
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this information is considered to be in the public
domain.
15 March 2018
Globalworth Real Estate Investments Limited
("Globalworth" or the "Company")
Acquisition in Poland
Globalworth is pleased to announce the acquisition by
Globalworth Poland(1) ("GPRE") of Warta Tower, a modern office
tower in the City Centre West district of Warsaw, Poland for a
consideration of EUR55 million.
Warta Tower, which was completed in 2000, comprises
approximately 28,000 sqm of gross leasable area, and offers
outstanding architectural qualities, including its iconic lobby.
The 21-floor building is multi-tenanted, with TUiR Warta S.A.
(insurance and reinsurance company being a subsidiary of Talanx
International AG) as its largest tenant, has a contracted rental
income of c.EUR5.9 million, occupancy of c.92% and a weighted
average lease length of c.3.5 years. This transaction represents a
substantial transaction pursuant to the AIM Rules(2) .
This acquisition is being financed by a EUR55 million increase
in the short-term bridging loan provided to GPRE by the Company
announced on 19 December 2017 and which represents a substantial
transaction pursuant to the AIM Rules(3) . Subsequent to the
announcement on 19 December 2017(4) , the Company agreed to extend
the period whereby the loan could be increased from two months to
the date of this acquisition.
Dimitris Raptis, Deputy Chief Executive Officer and Chief
Investment Officer of Globalworth, commented:
"Globalworth Poland is very excited to be growing its portfolio
with the acquisition of this sizeable, landmark asset in Warsaw,
following on from the high-quality offices in Wroclaw, Gdansk and
Katowice acquired in December 2017. In addition to an attractive
current income, this property offers excellent asset management
potential."
For further information visit www.globalworth.com or
contact:
Enquiries
Andrew Cox Tel: +44 20 3026 4027
Head of Investor Relations & Corporate Development
Jefferies (Joint Broker) Tel: +44 20 7029 8000
Stuart Klein
Panmure Gordon (Nominated Adviser and Joint Broker) Tel: +44 20 7886 2500
Andrew Potts
Milbourne (Public Relations) Tel: +44 7903 802545
Tim Draper
About Globalworth / Note to Editors:
Globalworth is an AIM-listed real estate company active in
Central and Eastern Europe. It has become the leading office
investor in the Romanian real estate market and now has established
a significant platform in Poland, through a 72% shareholding in
Griffin Premium RE.. N.V. (GPRE), 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,
through which it benefits from a strong rental income profile from
high quality tenants from around the globe. Managed by
approximately 110 professionals across Romania and Poland, the
combined value of its portfolio is EUR1.8 billion, of which over
90% is in income-producing assets, predominately in the office
sector, and leased to some 440 national and multinational
corporates from 28 countries and 37 different sectors. In Romania,
Globalworth is present in Bucharest, Timisoara and Pitesti, whilst
assets in Poland span Warsaw, Wroclaw, Lodz, Krakow, Gdansk and
Katowice. For more information, please refer to
http://www.globalworth.com/.
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.
(1) Globalworth Poland, in which the Company has a 71.7%
shareholding, is the new branding for Griffin Premium RE.. N.V. The
proposed name change of the legal entity will be presented at
GPRE's forthcoming AGM.
(2) Further information required to be disclosed pursuant to
Schedule 4 to the AIM Rules is that the profits attributable to the
SPV owning Warta Tower, acquired from KREH2 spó ka z ograniczon
odpowiedzialności and Chmielna S.á r.l., for the year ended 31
December 2017 were (EUR10.7m) subject to Polish GAAP, with the loss
reflecting a negative revaluation of the investment property and FX
movements.
(3) Further information required to be disclosed pursuant to
Schedule 4 to the AIM Rules is that the profits attributable to
GPRE for the year ended 31 December 2016 were EUR14.6m, which
reflected its results in the financial year prior to its IPO in
April 2017, and the gross assets of GPRE at 30 June 2017 were
EUR569.4m.
(4) On the 19 December 2017, the Company announced that it had
agreed to provide a short-term bridging loan to GPRE for an amount
of EUR165 million to fund a portfolio acquisition, which was
concluded on 22 December 2017. It also announced that this loan may
be increased by a further EUR65 million within the next 2 months,
for further potential acquisitions under consideration by GPRE. The
Company subsequently amended the terms of the increase, and is now
providing EUR55 million for the purchase of Warta Tower. The loan
will bear fixed interest from the date of its utilisation at market
rate, and is repayable within 6 months, but may be extended a
further 6 months at the request of GPRE (and at the Company's sole
discretion). The loan agreement provides for a list of
undertakings, representations and events of default standard for
financings of such type.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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