GLOBALWORTH REAL ESTATE INVESTMENTS LIMITED

Share Issue/Capital Change • Feb 19, 2014

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RNS Number : 3763A

Globalworth Real Estate Inv Ltd

19 February 2014

Globalworth Real Estate Investments Limited

Acquisition of Tower Center International

Guernsey, 19 February 2014: Globalworth Real Estate Investments Ltd. (AIM: GWI) ("Globalworth" or "the Company"), the real estate investment company targeting opportunities in Romania and the broader SEE and CEE regions, is pleased to announce the acquisition of Tower Center International (TCI), a recently constructed landmark office ("class A") building in Bucharest's Central Business District ("CBD").

Dimitris Raptis, Deputy Chief Executive Officer and Chief Investment Officer of the Company commented: "We are delighted to have completed the acquisition of TCI.  Being the second tallest building in Bucharest and strategically located in the heart of the city's CBD in Victoriei Square, with tenants such as EY (Ernst & Young), Hidroelectrica, Deutsche Bank, the Romanian Ministry of European Funds and Cegeka, TCI constitutes a landmark office asset".

TCI comprises 24,711 sqm of Gross Built Area over twenty six floors above ground. The CBD is one of Bucharest's prime office submarkets and has good infrastructure, public transportation (subway, tram and bus) and is in close proximity to many public institutions.

The acquisition of TCI took place in accordance with the main terms and conditions of the TCI Acquisition Agreement (amended, as announced, on 11 September 2013) and the Founder Subscription Agreement, both as disclosed in the Company's admission document. As such, the acquisition cost for the acquisition of Tower Center International Srl, the holding SPV of TCI, is Euro 58 million.  The equity part of the consideration is being satisfied through (a) the issue of shares of no par value ("Ordinary Shares") equal to Euro 13,666,100 at the IPO placing price of Euro 5.00 (that is, 2,733,220 Ordinary Shares), of which 2,533,220 Ordinary Shares are being issued to Stanuta Enterprises Limited, a Founder Company (as defined in the Admission Document) which has a 50% interest in TCI and 200,000 Ordinary Shares are being issued to Pokandro Limited, the remaining 50% shareholder of TCI, and (b) the payment of Euro 11,666,092 in cash to Pokandro Limited (Euro 6,000,000 of which was already paid to Pokandro Limited by the Company by means of an advance cash payment, as already announced on 11 September 2013). 

Application will be made to AIM for 2,733,220 Ordinary Shares to be admitted to trading on AIM with this expected to occur on 24 February 2014. Following the above issue, the total issued share capital of the Company will comprise 23,638,857 Ordinary Shares.

For further information visit www.globalworth.com or contact:  

EastWest Partners (Financial Adviser)

David Hill                                                                                       Tel: +44 20 7653 8967

Scott Evans                                                                                    Tel: +44 20 7653 8965

Panmure Gordon (Nominated Adviser)                           Tel: +44 20 7886 2500

Nicola Marrin

Freddy Crossley

Cantor Fitzgerald Europe (Joint Broker)                           Tel: +44 20 7894 7000

Rick Thompson

David Porter

Milbourne (Public Relations)                                               Tel: +44 20 3540 6458

Tim Draper

About Globalworth:

Globalworth Real Estate Investments Ltd is a real estate investment company founded by real estate investor and developer Ioannis Papalekas to take advantage of investment opportunities in Romania and the broader SEE and CEE regions and currently focussing its activities in Romania. The company is Guernsey incorporated and registered as a closed-ended collective investment scheme by the Guernsey FSC. The Company's shares were admitted to trading on AIM in July 2013.

The Romanian market offers an attractive real estate investment proposition in the medium-to-long term. Globalworth believes that global investor capital flows will gradually move from markets considered as "safe havens" to more peripheral markets such as Romania and the broader SEE and CEE regions in search of higher yielding investments. As a result, Romania and the broader SEE and CEE regions should, in due course, become more attractive destinations for a wide investor audience. Globalworth anticipates holding an early mover advantage in these markets and benefitting from this gradual shift in investor sentiment.

This information is provided by RNS

The company news service from the London Stock Exchange

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