Globalworth provides covid-19 update on European portfolio

Globalworth Real Estate, which owns a portfolio of predominantly offices in Poland and Romania, has provided a covid-19 update.

The group said its office assets in the two countries, which have both adopted measures similar to those seen in the UK, has yet to see a significant impact.

It added, it was in discussions with several tenants mostly related to the co-working industry, which relates to close to 3% of its annual rental income. 

Office assets accounts for around 85% of its €190m rental income, with retail accounting for 9%, industrial 5% and other 1%.

On the retail side, more than 50% of the rental income is related to retail operations that have not been closed down or materially affected by the emergency legislation in both countries and Globalworth said it did not foresee any material rental income reductions from such tenants. On the remaining retail rental income (which includes non-closed but materially affected operations like restaurants), it said it had received notifications from almost all affected tenants and it is working closely with them to find appropriate solutions once their operations resume. 

Globalworth said it had adopted several measures to preserve cash flow, which includes suspending or renegotiating supplier contracts and passing the service charge cost saving on to tenants; reducing its asset capex programme by €12m; scaling back its construction and development programme to those projects which have significant pre-lets or construction is substantially completed or very advanced; suspending new investment activity; and reducing overheads and other costs.

Globalworth’s loan to value is close to 35%, as of December 31 2019, and it has €550m of available cash currently.

GWI : Globalworth provides covid-19 update on European portfolio

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