(Alliance News) - Globalworth Real Estate Investments Ltd on Thursday said it plans to issue as many as 28.6 million shares at a price of EUR9.25 each in order to fund its investment pipeline in Poland.
If all shares are subscribed for under the placing, the central and eastern Europe-focused office property investor will raise around EUR265 million.
The likely aggregate consideration for the Polish investment pipeline, which is currently under exclusivity, is around EUR320 million. This would mean the placing would raise about 83% of the necessary funds.
The Polish investments consist of five properties, four in development and one in operation. The developing properties will be acquired once complete, which should take place between the fourth quarter of 2019 and midway through 2021. The properties have a 114,000 square million leasable area and represent around EUR22 million of annual rent, two third of which is leased, or pre-let.
Along with these Polish investments, Globalworth Real Estate is conducting due diligence on more investment opportunities and these have "an aggregate consideration in excess of EUR300 million".
Jefferies International Ltd, JP Morgan Securities PLC, and UBS AG are acting as joint global co-ordinators for the placing. The bookbuilding process begins immediately and closes at 1800 BST Thursday evening.
"The board has determined that it is appropriate for the company to raise new equity by way of the proposed placing in order to take advantage of these investment opportunities, maintaining its policy that future investments will be funded through a mixture of equity and debt whilst managing gearing to a long-term target [loan-to-value] of below 40%," said Globalworth Real Estate.
Shares in Globalworth Real Estate were untraded at 9.34p in London on Thursday morning.
By Anna Farley; annafarley@alliancenews.com
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Globalworth (GWI)