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LONDON (Alliance News) - Globalworth Real Estate Investments Ltd Tuesday said it is looking to raise up to EUR200 million in a proposed share placing at EUR5.90 per share, money it will use to repay debt, fund projects currently in its portfolio and future investments.
It said the price represented approximately a 36% discount to the its pro-forma EPRA net asset value. EPRA is the European Public Real Estate Association, the industry body for European REITs.
Shares in Globalworth were trading at EUR5.30 per share Tuesday afternoon, up 0.5%.
Globalworth said it has already secured EUR95 million of capital commitments from two institutional investors, York Capital Management and Oak Hill Advisors, while Ioannis Papalekas, Founder and CEO of the company, has committed to invest an additional EUR25 million.
It said a further EUR30 million will be subscribed by way of new share at the proposed placing price.
The property firm said that out of the EUR200 million targeted to be raised, EUR65 million will be used to repay a UBS facility, EUR23 million to fund developing projects in its current portfolio, and EUR112 million for future investments, of which EUR94 million consists of investments contracted or at a very advanced stage of negotiations.
In a trading update on Monday, the property firm said it has concluded around EUR360 million worth of transactions and leased around 50,000 square metres since its initial public offering in July, while its current portfolio open market value is EUR487.9 million.
It said the commercial element of its current portfolio has occupancy of 77.7% with 74.5% of net operating income derived from multinational tenants with a weighted averaged lease length of 6.5 years.
Globalworth said its loan to value ratio stood at 49.9% on March 21, with around half of the debt expiring in 2018 or later.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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