14 November 2017
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
Globalworth Real Estate Investments Limited
("Globalworth" or the "Company")
Intention to raise additional equity capital, dividend guidance and notice of EGM
In response to significant investor interest and to take advantage of a pipeline of attractive investment opportunities in both Poland and Romania, the Board of Globalworth (AIM: GWI) today announces its intention to raise in the region of €300 million additional equity capital through a non-pre-emptive issue of new ordinary shares, with the ability to flex this dependent on demand. The Company has received strong indications of support from existing and new investors for this equity raise and currently expects to price it at or around prevailing EPRA NAV per share.
In addition to funding further investments, a key objective of the intended equity raise will be to attract new institutional investors and broaden the liquidity of the Company's shares ahead of its planned move to the Main Market of the London Stock Exchange in 2018. The equity raise will also assist the Company in managing its gearing strategy to a target LTV of 35%.
The Board also confirms that based on the current timetable any placing shares will be entitled to the H2-17 dividend previously stated at €0.22 per share, anticipated to be paid in January 2018. Consistent with the target of a sustainable and growing dividend, the Board is pleased to indicate a prospective H1-18 dividend of not less than €0.27 (or not less than €0.54 annualised) anticipated to be paid in August 2018.
A further announcement providing details of the proposed equity raise will be issued in due course. In order to provide the shareholder authorities necessary to issue shares as part of the proposed equity raise, a circular (the "Circular") convening an Extraordinary General Meeting ("EGM") at which the required shareholder approvals will be sought is today being published and sent to shareholders. In addition to containing the notice of EGM, the Circular also contains an explanation of each resolution being proposed and the recommendation of the Board to vote in favour of each resolution.
The EGM will be held at 10.00 a.m. on 4 December 2017 at Ground Floor, Dorey Court, Admiral Park, St Peter Port, Guernsey, GY1 2HT.
A full copy of the Circular will be available here, once published later today: www.globalworth.com/investor-relations/key-corporate-documents.aspx
Under the AIM Rules for Companies, an issue of shares to a related party which exceeds a specific percentage in any of the class tests would be treated as a related party transaction and is subject to certain disclosure and confirmation requirements. Once the terms of the equity raise are agreed, any disclosures required under Rule 13 of the AIM Rules for Companies will be published.
Enquiries:
Andrew Cox Tel: +44 20 3026 4027
Head of Investor Relations & Corporate Development
Panmure Gordon (Nominated Adviser and Joint Broker) Tel: +44 20 7886 2500
Andrew Potts
Jefferies (Joint Broker) Tel: +44 20 7029 8000
Stuart Klein
Milbourne (Public Relations) Tel: +44 7921 881 800
Tim Draper
About Globalworth / Note to Editors
Globalworth is a real estate investment company active in Central and Eastern Europe, and has become the leading office investor in the Romanian real estate market. 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. With approximately 70 professionals managing it, Globalworth's portfolio, as at 30 June 2017, was valued in excess of €1bn, of which 90% is in income-producing assets and over 80% in the office sector. Globalworth has a strong and supportive investor base, having been listed on the AIM Market of London Stock Exchange since 2013 and in 2017 issued its debut Eurobond on the Irish and Bucharest stock exchanges.
Globalworth announced in October 2017 that its subsidiary Globalworth Asset Managers SRL had entered into a conditional investment agreement to acquire a minimum of 50.01% and up to 67.90% of the issued share capital of Griffin Premium RE.. N.V. ("GPRE"), a Dutch entity listed on the Warsaw Stock Exchange, to be effected by way of the Tender Offer. GPRE is a pure-play Polish real estate platform that primarily owns high-quality office and mixed-use assets located in Warsaw and across a number of other key cities, notably Wroclaw, Lodz, Krakow and Katowice. Its portfolio comprises six office and three mixed-use (office and retail) properties, and benefits from a further pipeline of contracted acquisitions. For more information please refer to related regulatory announcements.
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IMPORTANT NOTICE:
No public offer of securities is being made by virtue of this announcement.
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.
