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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.
14 June 2018
Globalworth Real Estate Investments Limited
("Globalworth" or the "Company")
Update on Poland
Further to its announcement of 8 June 2018, Globalworth is pleased to announce the conclusion of the equity capital raise by its Warsaw-listed subsidiary, Globalworth Poland Real Estate N.V. ("GPRE").
GPRE today announced the successful closing of a private placement of its ordinary shares, at €1.57 per share, raising gross proceeds of €450 million, through which the Company[1] subscribed for €300 million and Growthpoint Properties Limited[2] ("Growthpoint") subscribed for €150 million[3]. Following closing of the private placement, Globalworth's shareholding[4] in GPRE will be 68.4%, and Growthpoint's shareholding will be 21.6%.
In conjunction with this placement, GPRE will repay €300 million of outstanding debt (including the principal, interest and any other amounts due) under the loans entered into between GPRE and the Company and its affiliates, resulting in no change in the Company's net investment in GPRE[5]. Subject to the approval of a listing prospectus by the Dutch Authority for the Financial Markets (Stichting Autoriteit Financiële Markten), trading in the new GPRE shares on the Warsaw Stock Exchange are expected to commence in mid-July 2018.
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 majority 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] via a wholly owned subsidiary of the Company.
[2] via Growthpoint Properties International Proprietary Limited.
[3] As already announced, the participation by Growthpoint constitutes a related party transaction under Rule 13 of the AIM Rules for Companies as Growthpoint is a related party of Globalworth by virtue of it being a substantial shareholder in Globalworth. As such, the Directors (other than Mr Sasse, Mr Muchanya and Mr Fechter, who are each directors of Growthpoint) consider, having consulted with the Company's nominated adviser, Panmure Gordon (UK) Limited ("Panmure Gordon"), that the terms of Growthpoint's participation in the GPRE Placing are fair and reasonable insofar as the Company's shareholders are concerned.
[4] Held through wholly owned subsidiaries of the Company.
[5] As already announced, Globalworth's €300m subscription represents a substantial transaction pursuant to the AIM Rules for Companies. Further information required to be disclosed pursuant to Schedule 4 to the AIM Rules for Companies, being the most recently notified financial information, is that the profits attributable to GPRE for the year ended 31 December 2017 were €42.5m and the gross assets of GPRE at 31 December 2017 were €757.2m.