Central and Eastern Europe-focused Globalworth Real Estate seeks capital raise to fund pipeline

Globalworth Real Estate announces €170m Poland deals

Central and Eastern Europe-focused Globalworth Real Estate seeks capital raise to fund pipeline – Globalworth Real Estate (GWI), a leading office investor in Central and Eastern Europe, has announced its intention to raise additional equity capital through a placing of up to approximately 28.5m new shares to existing and new investors to take advantage of what it describes as a strong pipeline of acquisition opportunities,

Dimitris Raptis, deputy CEO and CIO of Globalworth, commented: “We have consistently demonstrated our ability to secure attractive investments, primarily by the opportunistic acquisition of assets sourced through multiple channels. Since our entry into Poland in late 2017, we have acquired nearly €1bn of standing assets in that market. At the same time, in line with our track record of delivering over 260k sqm of development completions since 2015, we have been expanding our development pipeline in Romania with new projects, both in the Bucharest office market and in the fast-growing logistics / light industrial sector at other key locations. We are confident that additional equity capital will allow us to further enhance our platform and continue our strong pace of growth in these attractive markets, having established a solid pipeline of near-term investment opportunities.”

Investment Pipeline

GWI says that it is continuing to evaluate a wide array of investment opportunities that fit its strategic criteria and sets out below details of some key investments in its near-term pipeline, all of which are under exclusivity and at advanced stages of negotiation, and which it expects would be the primary use of the net proceeds of any placing.

  • In Poland, the company has three transactions under exclusivity, with one in Warsaw and two in Krakow. These potential investments comprise five properties, one standing and operating and four at various stages of development to be acquired upon completion (expected between Q4-2019 and mid-2021). The expected aggregate consideration is approximately €320m, to be staggered over 21 months, with approximately 75% falling due in the first six months (inclusive of forward funding payments). These investments represent a gross leasable area of 114k sqm and offer an expected rent of approximately €22m, two-thirds of which is already leased or pre-let, with a strong tenant profile of multi-national companies from the financial, banking and IT industries.
  • In Romania, the company recently added two new joint venture projects in Constanta and Bucharest to its Globalworth Industrial portfolio of logistics / light industrial assets, alongside its pipeline of future office developments in Bucharest and the expansion of its Timisoara Industrial Park.

In addition to these highlighted investments, the GWI says it continues to perform detailed due diligence on further investment opportunities with an aggregate consideration in excess of €300m.

GWI: Central and Eastern Europe-focused Globalworth Real Estate seeks capital raise to fund pipeline

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