Globalworth Real Estate Inv Ltd Leasing Update (1217H)

TIDMGWI

RNS Number : 1217H

Globalworth Real Estate Inv Ltd

15 August 2016

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.

15 August 2016

Globalworth Real Estate Investments Limited

Leasing Update

Globalworth Real Estate Investments Limited ("Globalworth" or the "Company") is pleased to release the following leasing update on the Company's portfolio since the beginning of 2016.

Highlights

   --     c.50,300sqm of commercial GLA contracted in 2016 
   --     c.214,000sqm of commercial GLA successfully leased since the beginning of 2014 
   --     Total c.341,600sqm of commercial space let or pre-let with a WALL of c.6.8 years 

-- Tenant base comprising of c.85 national and multinational corporates from 17 different countries

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

   Panmure Gordon (Nominated Adviser and Joint Broker)            Tel: [phone] 

Andrew Potts

Cantor Fitzgerald Europe (Joint Broker) Tel: [phone]

Rick Thompson

David Foreman

Milbourne (Public Relations) Tel: [phone]

Tim Draper

IMPORTANT NOTICE / FORWARD LOOKING STATEMENTS

This Announcement contains forward-looking statements. These relate to the Company's future prospects, developments and strategies. Forward-looking statements are identified by their use of terms and phrases such as "believe", "could", "envisage", "estimate", "expect", "intend", "may", "plan", "will" or the negative of those, variations or comparable expressions, including references to assumptions and discussions of strategy, plans, objectives, goals, future events, intentions or expectations. The forward-looking statements in this Announcement, including as to expected or estimated NOI (net operating income), GLA and WALL, are current expectations based on a number of assumptions that reflect a substantial degree of judgment and are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed or implied by the relevant statements. Factors that could cause actual results and outcomes (including NOI) to differ materially include, but are not limited to, those discussed under "Risk Factors" in Part I of the Admission Document of the Company dated 24 July 2013. These forward-looking statements speak only as of the date of this Announcement.

About Globalworth:

Globalworth Real Estate Investments Limited is a real estate investment company founded by real estate investor and developer Ioannis Papalekas currently focused on taking advantage of investment opportunities in Romania. 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 in search of higher yielding investments. As a result, Romania should, in due course, become a more attractive destination for a wide investor audience. Globalworth anticipates holding an early mover advantage in and benefitting from this gradual shift in investor sentiment.

Leasing Update during 2016

Our ability to successfully lease space in our properties has been one of the key strengths of our business. Over the past c.2 1/2 years we have successfully negotiated the take-up or extension of 214,000sqm of commercial GLA within our buildings, confirming Globalworth's position as one of the most successful investors and developers in the Romanian real estate market.

Our leasing strategy has been very successful in 2016, as we have signed 78% more commercial GLA in the first c.7 1/2 months of 2016 compared to the entire of 2015. Total take-up since the beginning of the year for office and logistics space has reached c.50,300sqm, with contracts signed at a WALL of 6.9 years.

We are pleased to report that Green Court Building "B" is now 100.0% leased (vs 82.1% at year-end), and that we have made significant progress in the letting of our recently completed Glowbalworth Tower and Gara Herastrau office properties which as of 11 August '16 had occupancy of 70.2% (vs 51.0% at year-end) and 50.6% (vs vacant at year-end) respectively.

In addition, we have continued to improve the risk-profile of our portfolio, through the extension and / or expansion of leases with some of our prime tenants, such as Deutsche Bank in BOB and Honeywell and Hewlett Packard Enterprises in BOC and, Cegeca and Hidroelectica in TCI.

Most notable new contracts signed in 2016 by Globalworth included some of the best known national and multinational corporates such as Valeo (TAP) for c.13,500sqm, Deutsche Bank (BOB) for c.6,200sqm, ADP (Gara Herastrau) for c.6,100sqm, Honeywell (BOC) for c.3,800sqm, Hewlett Packard Enterprises (BOC) for c.2,500sqm, Vodafone (Globalworth Tower) for c.2,000sqm, Wipro (Globalworth Tower) for c.1,980sqm, Ericson (Green Court "B") for c.1,900sqm, Bunge (Globalworth Tower) for c.1,800sqm, Ferrero and Anritsu (Globalworth Tower) for a total of c.1,800sqm, while in TCI we signed expansion contracts with existing tenants Cegeca, Hidroelectrica and EY for a total of c.3,100sqm.

Currently, our portfolio is occupied by c.85 different national and multinational corporates from 17 different countries, including some of the most recognisable corporates in their respective industries.

The WALL remaining on the commercial lease space in our portfolio was 6.8 years at 11 August 2016.

 
 Tenant             % of       Selected Tenants of Commercial Portfolio 
  Origin:         Contracted 
                     Rent 
--------------  ------------  --------------------------------------------- 
 Multinational      88.5%      Abbott Laboratories, Adecco, ADP, 
                                Anritsu Solutions, Bayer, BCR, Billa, 
                                BRD, Bunge, Carrefour, Cegeka, Clearanswer, 
                                Colgate-Palmolive, Continental, Credit 
                                Agricole Bank, Delhaize Group, Deutsche 
                                Bank, Deutsche Telekom, EADS, Elster 
                                Rometrics, Ericsson, EY, Ferrero, 
                                GfK, Honeywell, Hewlett Packard Enterprise, 
                                Huawei, Intel, Mood Media, NBG Group, 
                                Nestle, Oracle, Orange, Piraeus Bank, 
                                Saipem, Sanofi, Schneider Electric, 
                                Skanska, Starbucks, Stefanini, Subway, 
                                UniCredit, Valeo, Vodafone, Wipro, 
                                Worldclass 
--------------  ------------  --------------------------------------------- 
 National           6.0%       CITR, GlobalVision, NNDKP, NX Data, 
                                RINF, Creative Media 
--------------  ------------  --------------------------------------------- 
 State              5.5%       Hidroelectrica, Ministry of European 
  Owned                         Funds 
  Entities 
--------------  ------------  --------------------------------------------- 
 

GLOSSARY

 
 "Contracted   Represents the gross contracted headline 
  Rent"         property rent (including pre-lettings), 
                on an annualized basis, as of the 
                specified date. Additionally, it 
                includes variable, tenant turnover 
                based rent based on historical performance. 
------------  --------------------------------------------- 
 "GLA"         Gross Leasable Area (in square meters) 
------------  --------------------------------------------- 
 "WALL"        Represents the remaining weighted 
                average lease length of the contracted 
                leases as of 11 August '16, until 
                the lease contracts full expiration. 
------------  --------------------------------------------- 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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August 15, 2016 02:00 ET (06:00 GMT)