Globalworth Real Estate To Fund Polish Unit Warsaw Offices Purchase

LONDON (Alliance News) - Globalworth Real Estate Investments Ltd said Wednesday its Polish subsidiary has agreed to acquire two Warsaw office properties for EUR190 million from French property firm Unibail-Rodamco-Westfield SE.

Globalworth Poland - 68% owned by Globalworth Real Estate - has entered into a preliminary purchase deal for the "landmark acquisition" of the Skylight and Lumen buildings in the Polish capital.

The two properties are above the Zlote Tarasy Shopping Centre in the centre of the Warsaw central business district. Close to the main train station and other public transport, they were completed in 2007 and have a gross lettable area of 45,500 square metres between them.

At the current 89% occupation, the buildings generate a contracted rental income of EUR11.5 million per year and have an average lease life of around four years. Tenants include spirits maker Pernod Ricard, sweets maker Mars and, and flexible office space provider Regus, part of IWG PLC.

"We are excited by this major acquisition of landmark assets in the centre of Warsaw, representing our largest asset acquisition to date," Globalworth Real Estate Deputy Chief Executive Officer Dimitris Raptis said. "Our strategy is to own assets within which we can create a strong sense of community, suited to the needs of a dynamic workforce."

"Skylight and Lumen offer centrally-located modern office space with excellent local amenities and transport connectivity," Raptis added. "Their addition will further enhance our leadership in the Polish office market and aspirations in the CEE region and reiterate our focus on acquiring assets with ongoing asset management opportunities and attractive total return potential."

Globalworth Real Estate expects to fund the EUR190 million deal using existing cash resources. This is after it entered in a second loan agreement with Globalworth Poland in April.

The final acquisition is expected to complete before the end of 2018.

Shares in Globalworth Real Estate were 2.3% lower at EUR8.60 on Wednesday.