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.
1 October 2019
Globalworth Real Estate Investments Limited
("Globalworth" or the "Company")
Intention to Raise Additional Equity
Globalworth, the leading office investor in Central and Eastern Europe, announces its intention to raise additional equity capital via a placing of up to approximately 28.5 million new shares to existing and new investors to take advantage of a strong pipeline of acquisition opportunities identified by the Company. Any placing of new shares, which is expected in the near term, is intended to be priced by reference to recent trading levels and the last reported EPRA net asset value per share.
Dimitris Raptis, Deputy Chief Executive Officer and Chief Investment Officer of Globalworth, commented: "We have consistently demonstrated our ability to secure attractive investments, primarily by the opportunistic acquisition of assets sourced through multiple channels. Since our entry into Poland in late 2017, we have acquired nearly €1 billion of standing assets in that market. At the same time, in line with our track record of delivering over 260k sqm of development completions since 2015, we have been expanding our development pipeline in Romania with new projects, both in the Bucharest office market and in the fast-growing logistics / light industrial sector at other key locations. We are confident that additional equity capital will allow us to further enhance our platform and continue our strong pace of growth in these attractive markets, having established a solid pipeline of near-term investment opportunities."
Investment Pipeline
The Company continues to evaluate a wide array of investment opportunities that fit its strategic criteria and sets out below details of some key investments in its near-term pipeline, all of which are under exclusivity and at advanced stages of negotiation, and which it expects would be the primary use of the net proceeds of any placing.
In Poland, the Company has three transactions under exclusivity, with one in Warsaw and two in Krakow. These potential investments comprise five properties, one standing and operating and four at various stages of development to be acquired upon completion (expected between Q4-2019 and mid-2021). The expected aggregate consideration is approximately €320 million, to be staggered over 21 months, with approximately 75% falling due in the first six months (inclusive of forward funding payments). These investments represent a gross leasable area of 114k sqm and offer an expected rent of approximately €22 million, two-thirds of which is already leased or pre-let, with a strong tenant profile of multi-national companies from the financial, banking and IT industries. These properties would add further critical mass to Globalworth's presence in Warsaw and Krakow, enabling the Company to maximise asset management synergies and benefits of scale.
In Romania, the Company has recently added two new joint venture projects in Constanta and Bucharest to its Globalworth Industrial portfolio of logistics / light industrial assets, alongside its pipeline of future office developments in Bucharest and the expansion of its Timisoara Industrial Park.
In addition to these highlighted investments, the Company continues to perform detailed due diligence on further investment opportunities with an aggregate consideration in excess of €300 million.
A further announcement providing details of any placing will be issued in due course.
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
Alina Vaskina/Justin Gulston
Milbourne (Public Relations) Tel: +44 7903 802545
Tim Draper
About Globalworth / Note to Editors:
Globalworth is a listed real estate company active in Central and Eastern Europe, quoted on the AIM-segment of the London Stock Exchange. It has become the pre-eminent office investor in the CEE real estate market through its market-leading positions both in Romania and in Poland. Globalworth acquires, develops and directly manages high-quality office and logistics/light-industrial real estate assets in prime locations, generating rental income from high quality tenants from around the globe. Managed by over 200 professionals across Romania and Poland, the combined value of its portfolio is €2.85 billion, as at 30 June 2019 pro forma for subsequent acquisitions. Over 95% of the portfolio is in income-producing assets, predominately in the office sector, and leased to a diversified array of some 685 national and multinational corporates. In Romania, Globalworth is present in Bucharest, Timisoara, Constanta and Pitesti, while in Poland its assets span Warsaw, Wroclaw, Lodz, Krakow, Gdansk and Katowice. For more information, please visit www.globalworth.com and follow us on Facebook, Instagram and LinkedIn.
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.
