Globalworth Real Estate Investments

Location:

Regional

Project number:

49735

Business sector:

Property and tourism

Notice type:

Private

Environmental category:

B

Target board date:

29 Nov 2017

Status:

Disbursing

PSD disclosed:

12 Dec 2017

Project Description

The Bank participated in a new capital issuance by Globalworth Real Estate Investment Limited ("GREIL" or the "Company"), a Guernsey incorporated public limited liability company listed on the Alternative Investment Market of the London Stock Exchange. The Bank's equity investment represents 4.4 per cent of the Company's capital and voting rights. The Company owns and manages a portfolio of office and logistics properties in Romania, leased primarily to blue-chip multinational tenants, and recently acquired (with its existing cash balance) through a tender offer a majority stake in Griffin Premium RE ("GPRE"), a property company listed on the Warsaw Stock Exchange and investing in Poland.

Project Objectives

The EBRD's investment was a part of GREIL's capital increase on the London Stock Exchange and the proceeds will be used to fund further growth of the Company's operations in Romania and Poland (through GPRE).

Transition Impact

The expected Transition Impact will contribute to the "Well-governed" and "Green" qualities.

The Company has committed to implement the Global Reporting Initiative (GRI) reporting standards in its operations. The Company is focused on sustainability, with over half of the portfolio green certified, and is committed to expand the certification across the rest of the portfolio.

Client Information

GLOBALWORTH REAL ESTATE INVESTMENT LTD

The Company is focused on acquiring, developing and managing real estate assets in central and eastern Europe, with a prime emphasis on Romania and Poland, listed on the Alternative Investment Market of the London Stock Exchange.

EBRD Finance Summary

EUR 50,000,000

Total Project Cost

EUR 340,000,000.00

Environmental and Social Summary

Categorised B (2014 ESP). Environmental and social issues associated with a real estate investment company are readily identified and can be addressed through adequate formal environmental and social risk management procedures. Environmental and Social Due Diligence (ESDD) which was carried out for the preceding projects earlier in 2017 is still valid and applicable for the project. The ESDD showed that the company is in legal compliance and has adequate environmental and social risk management capacities and system in place. For this new project, the client is required to continue to ensure that the all operations are in compliance with the EBRD PRs, the existing Environmental & Social Action Plan (ESAP) agreed with GPRE is implemented and an annual environmental and social report will need to be submitted to the Bank. These requirements have been incorporated into the Framework Agreement.

The ESDD has been based on a review of publicly available information contained in the company's official documentation as well as the completed Corporate Environmental and Social Questionnaire. The existing ESAP agreed with GPRE addresses the formalisation of general environmental and social risk management. The future sub-projects will be limited to Romania and Poland, which are both EU Member States and therefore their environmental and social legislation is in line with EU standards and requirements. The Globalworth portfolio primarily comprises office and light industrial and warehouse buildings. Ten of the existing 24 properties are office buildings with LEED Gold or BREEAM Very Good rating or higher and a further three office buildings are under the certification process. For the future investment, the company is looking for green buildings to achieve at least LEED Gold or BREEAM Very Good rating. Given the EU legal environment, portfolio and green strategy, the project's environmental and social risk is limited. The Bank will continue to monitor the client's environmental and social performance by reviewing the annual environmental and social reports and carrying out site visits if deemed necessary. The first annual environmental and social report is due next year.

Technical Cooperation

None.

Company Contact Information

Andrew Cox, Head of Investor Relations & Corporate Development
Andrew.cox@globalworth.com
+40 372 800 000
www.globalworth.com
Globalworth Tower, 26th floor, 201 Barbu Vacarescu Street, 020276, Bucharest, Romania

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@ebrd.com

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Email: projectenquiries@ebrd.com

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Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.