Globalworth Real Estate Buys Warsaw Office Block For EUR55 Million

LONDON (Alliance News) - Property investor Globalworth Real Estate Investments Ltd said Thursday its Polish subsidiary acquired an office block in Poland for EUR55 million.

Globalworth Poland bought the 21-floor Warta Tower in the centre of the capital Warsaw. Built in 2000, it has a lessable area of 28,000 square metres with reinsurance firm TUiR Warta SA - a subsidiary of Talanx International AG - the largest tenant.

The building has 92% occupancy and contracted rental revenue of EUR5.9 million per year. The lease length is around 3.5 years.

The deal is being financed through a EUR55 million increase in the bridging loan provided to Globalworth Poland in December 2017.

"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," Globalworth Deputy Chief Executive Officer Dimitris Raptis said. "In addition to an attractive current income, this property offers excellent asset management potential."

At the end of 2017, Globalworth's portfolio rose to EUR1.8 billion from EUR680.1 million after it acquired Globalworth Poland.

Shares in Globalworth were 0.5% lower at 9.20 pence on Thursday.