Company aims to grow portfolio in Romania and expand into Poland
The EBRD has acquired a 4.4 per cent stake in the central and eastern European property investor and developer Globalworth Real Estate Investments Limited as part of a public offering to support growth in the company’s property portfolio and operations in Romania and support its expansion into Poland.
Listed in 2013 on London Stock Exchange’s Alternative Investment Market (AIM), Globalworth has grown to become the largest investor and developer of office space in Romania, a market which has been developing rapidly in recent years due to strong demand, especially for high quality property from expanding multi-national tenants. Following the company’s strategic investment in Poland, through the acquisition of a 67.9 per cent stake in Griffin Premium R.E.. N.V. (“GPRE”), Globalworth is set to become one of the leading office investors in the region and is extending its mission to be the partner of choice for the wide variety of high-quality tenants looking to expand in the region.
The EBRD’s investment is taking place within the framework of a capital increase in which Globalworth has raised €340 million. The Bank’s share represents 4.4 per cent of its capital and voting rights. By supporting Globalworth’s planned expansion into Poland through GPRE the Bank will promote regional integration and cross-border activities within central and eastern Europe.
Matteo Patrone, EBRD Director – Regional Head of Romania and Bulgaria, said: “The EBRD is pleased to intensify its partnership with Globalworth through this equity investment and we welcome the company’s readiness to introduce the standards for sustainability reporting set by the Global Reporting Initiative. It demonstrates the company’s commitment to grow its portfolio in line with best economic, environmental and social practices.”
Vlaho Kojakovic, EBRD Head of Property and Tourism, added: “Both Romania and Poland are establishing themselves as global investment destinations for a number of large multinational companies which are the pillars of the digital economy. The EBRD is pleased to support Globalworth as it provides high quality office space and business infrastructure in Romania and Poland, linking the two key property markets in central and eastern Europe.”
Dimitris Raptis, Deputy CEO and Chief Investment Officer at Globalworth, added: "We welcome the EBRD onto our shareholder register and are delighted to deepen our partnership with such a leading institution. 2017 has been a pivotal year in Globalworth’s development and this is an important step in facilitating further growth and our objective to establish Globalworth as the region’s leading office investor in the two key markets of Poland and Romania, as we strive to be the partner of choice for the wide variety of high-quality tenants in the region.”
Romania and Poland are the fastest growing real estate markets among the EBRD countries of operations thanks to strong macroeconomic performances and high demand in both countries. The EBRD is a leading investor in Romania and to date has invested €7.5 billion in some 400 projects in the country. In Poland the Bank has invested €8.7 billion in 391 projects.
Globalworth is a real estate investment company active in central and eastern Europe and has become the leading office investor in the Romanian real estate market. 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.
With approximately 70 professionals managing it, Globalworth’s portfolio, as at 30 September 2017, was valued in excess of €1 billion, of which 90 per cent is in income-producing assets and over 80 per cent in the office sector. Globalworth has a strong and supportive investor base, having been listed on the AIM Market of London Stock Exchange since 2013 and in 2017 issued its debut Eurobond on the Irish and Bucharest stock exchanges.
On 6 December 2017, Globalworth completed its strategic investment in Griffin Premium R.E.. N.V. ("GPRE"), with Globalworth now holding a 67.9 per cent shareholding in GPRE. GPRE is a pure-play Polish real estate platform that primarily owns high-quality office and mixed-use assets located in Warsaw and across a number of other key cities, notably Wroclaw, Lodz, Krakow and Katowice. Its portfolio comprises six office and three mixed-use (office and retail) properties and benefits from a further pipeline of contracted acquisitions. For more information please refer to related regulatory announcements.