NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, JAPAN OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.
7 June 2017
Globalworth Real Estate Investments Limited
Leasing Update May 2017
Globalworth Real Estate Investments Limited ("Globalworth" or the "Company") is pleased to release the following Leasing Update on the Company's portfolio since the beginning of 2017.
Highlights
· Successfully signed in total 16.6k sqm of commercial GLA in our properties
· 413.2k sqm of commercial space let or pre-let with a WALL of 6.3 years as of 30 May 2017
· Total average occupancy of commercial standing GLA of 89.7%
· 11.5k sqm of additional commercial GLA under HoT, further increasing occupancy to 92.2%
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 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 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: +44 20 7886 2500
Andrew Potts
Cantor Fitzgerald Europe (Joint Broker) Tel: +44 20 7894 7000
Rick Thompson
David Foreman
Milbourne (Public Relations) Tel: +44 7903 802545
Tim Draper
About Globalworth:
Globalworth is a real estate investment company active in the SEE and CEE regions with a prime focus on Romania. The Company is internally managed by c.70 professionals and its portfolio comprises high quality real estate investments valued at c. Euro 977.5 million at 31 December 2016, all located in Romania.
Leasing Update 2017 (1 Jan - 30 May)
Over the past 3 ½ years Globalworth has negotiated the take-up of approximately 283k sqm of commercial GLA within its buildings, confirming the Company's position as one of the most successful investors and developers in the Romanian real estate market.
Our leasing efforts in 2017 have continued from the success of the previous year and during the first five months of 2017 we have negotiated the take-up of 16.6k sqm of new commercial space in our properties.
Take-up of available space in the two class "A" offices delivered in 2016 has been strong, with occupancy in our flagship Globalworth Tower and the smaller Gara Herastrau office property increasing as of 30 May 2017 to 96.3% and 75.4% respectively (from 83.2% and 68.9% as of 31 December 2016). It should be noted that taking into account the options available to the tenants in the Gara Herastrau office, occupancy in this property would rise to over 95%.
In 2017, we have made further progress in the take-up of available space in the remainder of our properties and have improved our occupancy rates in Globalworth Plaza by 12.9% (to 42.6% as of 30 May 2017) and in City Offices by 12.7% (to 34.5% as of 30 May 2017). In addition, we are currently at different stages of discussions or negotiation with a number of tenants for leasing the remaining available space in our portfolio, and most notably have signed Heads Of Terms ("HoT") for the take-up of an additional 11.5k sqm of office space in Globalworth Plaza and City Offices, which would result in the occupancy rate in the respective properties rising to 78.1% and 42.9%.
New contracts signed in 2017 have included well-known national and multinational corporates such as Wipro (Globalworth Tower) for 3.9k sqm, Global Compass (City Offices) for 3.3k sqm, Zara/Inditex Group (Globalworth Tower) for 1.5k sqm, Printec (Globalworth Plaza) for 1.3k sqm, Coface Insurance Services (Globalworth Plaza) for 1.2k sqm, Prime Kapital Development (Globalworth Tower) for 1.1k sqm, Baker Tilly (Gara Herastrau) for 0.8k sqm and Nestle (Globalworth Tower) for 0.7k sqm.
The average occupancy rate of our standing commercial portfolio as of 30 May 2017 was 89.7% (vs 83.1% as of December 2016) as a result of the new leases signed in 2017 and the addition of two light-industrial / warehouse facilities 100% leased to Valeo Lightnings and Dacia Automotive. Average occupancy including leases currently under HoT would reach 92.2%.
Tenancies in our portfolio have been signed with over 100 national and multinational corporates from 19 countries, operating in 27 different sectors / industries.
This announcement does not constitute, or form part of, an offer or invitation to sell or issue, or any solicitation of an offer to buy or subscribe for, any securities in the United States or any other jurisdiction nor shall it (or any part of this announcement) or the fact of its distribution form the basis of, or be relied upon in connection with, or act as any inducement to enter into, any contract or commitment. In particular, no securities of Globalworth Real Estate Investments Limited have been or will be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and such securities may not be offered, sold or delivered within the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the Securities Act) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable state securities laws.
