Last checked at 9 May 2018 07:00
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.
9 May 2018
Globalworth Real Estate Investments Limited
("Globalworth" or the "Company")
Acquisition in Poland
Globalworth is pleased to reference the announcement by Globalworth Poland Real Estate N.V. ("GPRE"), in which the Company has a 71.7% shareholding, that GPRE has agreed terms and is conditionally proceeding with the acquisition of Quattro Business Park in Krakow, Poland.
Quattro Business Park is a high-quality office complex of 5 buildings offering a gross leasable area of 60,200 sqm and has annual contracted rental income of c.€10.7 million, with occupancy of c.99% and a weighted average lease length of c.3 years. Tenants include Capgemini, Google and Luxoft.
The transaction is to be structured as a corporate acquisition[1], with the purchase price calculated on the basis of a consideration of €139 million, with the cash consideration payable by GPRE adjusted to reflect in-place cash, debt[2] and the working capital position at completion. While the main terms of the transaction have been agreed, the transaction is subject to finalising the transaction documentation and agreeing the remaining conditions between the parties, including the purchase price for the shares of the company owning the asset, obtaining internal corporate consents and obtaining the decision of the President of UOKiK (Office of Competition and Consumer Protection in Poland) on granting clearance to the transaction.
This transaction represents a substantial transaction pursuant to the AIM Rules[3].
A further update will be provided 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
Andrew Potts
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 leading office investor in the Romanian real estate market and now has established a significant platform in Poland, through a 72% shareholding in Globalworth Poland, a pure-play Polish real estate platform listed on the Warsaw Stock Exchange. Globalworth acquires, develops and directly manages high-quality office and logistics/light-industrial real estate assets in prime locations, through which it benefits from a strong rental income profile from high quality tenants from around the globe. Managed by approximately 110 professionals across Romania and Poland, the combined value of its portfolio is €1.9 billion, of which over 90% is in income-producing assets, predominately in the office sector, and leased to some 440 national and multinational corporates from 28 countries and 37 different sectors. In Romania, Globalworth is present in Bucharest, Timisoara and Pitesti, whilst assets in Poland span Warsaw, Wroclaw, Lodz, Krakow, Gdansk and Katowice. For more information, please refer to http://www.globalworth.com/.
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.
[1] The transaction is the acquisition of 100% of the shares in Blackwyn Investments spółka z ograniczoną odpowiedzialnością (the "Target") from the seller, SOF-10 Quattro NL B.V. The Target holds the legal title to Quattro Business Park in Krakow.
[2] Within the transaction, the Purchaser may either repay or refinance the existing bank loan granted by Bank Polska Kasa Opieki S.A.
[3] Further information required to be disclosed pursuant to Schedule 4 to the AIM Rules is that the profits attributable to the Target, for the year ended 31 December 2017 were €4.5m.