Operational and Trading update

RNS Number : 3116Z

Globalworth Real Estate Inv Ltd

17 September 2015

 

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.

17 September 2015

Globalworth Real Estate Investments Limited

Operational and Trading Update

Globalworth Real Estate Investments Limited ("Globalworth" or the "Company") is pleased to release the following Trading Update to investors summarizing its performance since the beginning of the year.

Highlights

·     Completed on target the previously announced acquisitions of the three Class "A" office buildings located in Bucharest

·     Expanded our TAP light industrial complex in Timisoara, by delivering two light-industrial facilities offering c.53,900 sqm (pre-)let to Continental and Elster

·     Increased our open market portfolio value by c.35% to €808.81 million since year-end 2014.

·     Progressed with the construction of our development projects, which upon completion are expected to increase the appraised value of the Company's real estate portfolio to c.€1,049.62million

·     Standing GLA increased to 335,883sqm of which 282,779 sqm of commercial space

·     Average occupancy of commercial standing GLA increased to c.88.1% (77.2% at YE 2014)

·     c.300,850 sqm of commercial space let or pre-let in our portfolio with a WALL of c.7 years

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.

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

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

Nicola Marrin

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

Rick Thompson

David Foreman

Milbourne (Public Relations)                                                           Tel: [phone]

Tim Draper

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.

Update on Investments in Real Estate

Globalworth's real estate portfolio comprises 14 properties. Bucharest is our primary market of focus with 13 properties. We also own one logistics park in Timisoara, one of Romania's principal peripheral industrial hubs.

Our portfolio comprises high quality real estate assets positioned in prime locations within their respective sub-markets in Romania. We primarily focus in managing and developing or repositioning office properties (c.80% of appraised value as of 30 Jun. '15).

In 2015-YTD, we completed the acquisition of the three assets announced by Globalworth in Q4-14. All acquisitions were closed within their respective agreed timelines, with UniCredit HQ and Nusco Tower acquired on 31 March 2015 and Green Court Building "A" acquired on 30 June 2015. The total investment cost for the three properties was c.€130 million.

In addition, in May 2015, we delivered Phase I of the TAP/Continental investment, which involved the development of a c.44,800 sqm warehouse in our TAP complex in Timisoara. Subsequently, in August 2015, we expanded the complex by a further c.9,100sqm following the completion of a new light-production facility, let principally to Elster.

With the acquisition of UniCredit HQ and the delivery of the TAP (Continental) investment, we have now concluded all of the major investments presented in our April 2014 Equity Capital Raise.

	31 Dec. '131	31 Dec. '14	15 Sept. '15
Number of Assets:	4	11	14
GLA (standing)2,3:	39,901 sqm	224,479 sqm	335,883 sqm
Portfolio Value "As Is"(4):	€117.8m	€599.3m	€808.8m(3)
Portfolio Value "Completion"(4):	€240.2m	€889.8m	€1,049.6m
(1) Excluding the Floreasca One development which was sold in 2014 (2) Includes residential space of c.3,933sqm,  c.53,217sqm, c.53,104sqm in Dec 2013, Dec 2014 and Sept 2015 respectively. (3) The Elster light-production facility, delivered in Q3-15 is valued as "development" as of 30 Jun. '15 and included in the "GLA (standing)" on 15 Sept. '15 (4)"As Is" and "Completion" valuations, as of 30 Jun. '15

Portfolio Breakdown by Classification "As Is" Valuation	31 Dec. '14	30 Jun. '15(*)
Total "As Is" Valuation	€599.3m	€808.8m
of which: Standing Properties	76.8%	79.1%
of which: Developments	20.2%	18.6%
of which: Land for future development	3.0%	2.3%
(*) The Elster light-production facility, delivered in Q3-15 is valued as "Development" as of 30 Jun.' 15.

Portfolio Breakdown by Classification "Completion" Valuation	31 Dec. 14	30 Jun. 15(*)
Total "Completion" Valuation	€889.8m	€1,049.6m
of which: Standing Properties	98.0%	98.2%
of which: Land for future development	2.0%	1.8%
Note: Development projects assumed to be completed. (*) The Elster light-production facility, delivered in Q3-15 is valued as "Development" as of 30 Jun. '15.

Standing Properties

Our standing portfolio comprises 9 properties, valued at €639.5 million (as at 30 Jun. '15). In Bucharest we own 7 standing office properties and a residential complex, while in Timisoara we own a logistics park.

Our standing portfolio has increased by c.111,400 sqm since the beginning of the year, following the acquisitions of UniCredit HQ, Nusco Tower, Green Court Building "A" and the delivery of two new light-industrial facilities in the TAP complex, (pre-)let to Continental and Elster. The total GLA of our standing portfolio reached c.335,883 sqm in Sept. '15.

Like-for-like third party valuation of our standing portfolio did not materially change over the first six months of 2015, although the overall value of our standing properties increased by c.€179.5 million as a result of the new additions.

All our properties are modern, have been completed or refurbished since 2008, with c.76% of our GLA and c.69%3 of our standing portfolio value,  having been delivered in the past 5 ½  years.

The number of "Green" properties in our portfolio has increased with the addition of the UniCredit HQ and Green Court Building "A", which are certified with BREEAM Very Good and LEED Gold certifications. In addition, we are targeting similar certifications of properties within our portfolio, which we hope to receive in the next 12 months.

Green Certified Properties
BOB:	·      BREEAM In-use / Excellent and LEED Gold certifications (for part of the property)
BOC:	·      BREEAM In-use / Excellent certification
Unicredit HQ	·      BREEAM VERY GOOD certification
Green Court "A"	·      LEED Gold certification

In addition to our commercial portfolio, we currently own 442 apartments at "Upground Towers", a modern two-tower residential complex offering a total of 571 apartments benefiting from fine views of the nearby Tei lake. The property is ideally situated in the New CBD, in close proximity to our commercial portfolio located in the area, thus allowing us to leverage its use and provide a complete package to many of our international tenants looking for turnkey solutions when relocating operations.

Since Q2-15, underpinned by the gradual improvement in the residential investment market, we actively marketed residential units in Upground Towers and as a result sold five apartments between May and September at an average price per unit of €148,000. In addition, we currently have 199 apartments leased, generating €1.5 million of rental income per annum.

Total Standing Properties	31 Dec. '14	15 Sept. '15
Number of Assets	6	9
GLA (sqm)(1)	224,479	335,883
"As Is" Valuation(2)	€460.0m	€639.5m

(1) Includes c.53,217 sqm and c.53,104sqm of residential space in Dec 14 and Sep 15 respectively and the light-production facility leased to Elster which was completed in Q3-15.                        

(2) Appraised valuations as of 30 Jun. '15.

Standing Properties - 15 Sept. '15	Commercial Properties	Total Standing Properties
Number of Assets	8	9
GLA (sqm)(1)	282,779	335,883
"As Is" Valuation(2)	€538.3m	€639.5m
Occupancy	88.1%	81.2%
Contracted Rent	€35.9m	€37.4m
WALL	5.8yrs	5.6yrs

(1) Includes c.53,217 sqm and c.53,104sqm of residential space in Dec 14 and Sep 15 respectively and the light-production facility leased to Elster which was completed in Q3-15.

(2) Appraised valuations as of 30 Jun '15.

Developments

In 2015 year-to-date we delivered Continental's Phase-I light-industrial space and Elster's light-production facility, part of our TAP complex in Timisoara and made further progress with the construction of our three office projects in Bucharest.

Timisoara

In May 2015, we delivered a c.44,800 sqm light industrial space which was (pre-)let to Continental Automotive, the leading German automotive manufacturing company. The Continental space was developed within our TAP complex in Timisoara. The complex was further expanded in Q3-15, following completion of the construction of a c.9,100 sqm production facility, which is let principally to Elster. The Elster Group (part of Honeywell) is a leading provider of gas, electricity and water meters and related communications, networking and software solutions globally.

The TAP complex currently offers a total of c.81,349 sqm of GLA and upon the exercise of the expansion options currently available to Valeo and Continental, these may increase the complex to a total GLA of c.123,400 sqm, making it one of the largest light industrial and logistics parks in the country.

Bucharest

The construction of the structure of Bucharest One has reached the 23rd floor and the facade has been completed up to the 20th floor (September 4, 2015). Mechanical and electrical works also under way and the construction of the project is expected to be completed in Q4-15, in line with the estimated timeline. The property has been pre-certified with the Green Certification of LEED Platinum.

For Globalworth Campus, the concept design has been finalised and the demolition works and site preparation have been completed. Following a tender process, the Company selected Bog'Art as the general contractor for the construction of Phase I. Construction is expected to reach the ground floor in October 2015.

The development of the Gara Herastrau project is in progress, with excavation works and piling now completed and the tower has reached the 4th floor. The property is adjacent to Green Court Building "A", around 200 metres from Nusco Tower and Bucharest One, and is expected to be completed in Q1-16. We will seek to achieve Green certifications similar to those of other assets in the existing portfolio, for both Globalworth Campus and Gara Herastrau.

All three of our Bucharest developments are located in the new CBD area, the fastest growing office hub in the country, which is attracting a significant number of multinational tenants.

The appraised value of the Development Projects was €150.7 million ("As Is" valuation). On completion, these projects are expected to deliver c.200,271 sqm of new office and light-industrial space, with an appraised value of €391.6 million ("Completion" valuation) as at 30 June 2015.

Development Projects	31 Dec. '14	30 Jun. '15
Number of Assets	4	4
GLA (sqm)	244,634	200,271
"As Is" Valuation	€121.2m	€150.7 m
Estimated remaining development Capex	€188.2m	168.6
"Completion" Valuation	€411.2m	€391.6 m

Development Projects - 30 Jun. '15	Under Construction(1)	Future Development(2)	Total        Development
Number of Assets	4	2	4
GLA (sqm)(1)	128,155	72,116	200,271
"As Is" Valuation	€137.8 m	€13.0 m	€150.7 m
Estimated remaining development Capex	€104.1 m	€64.6 m	€168.6 m
"Completion" Valuation	€310.4 m	€81.2 m	€391.6 m
Occupancy (3)	43.5%	57.2%	49.1%
Contracted Rent (3)	€9.9m	€1.4m	€11.3m
WALL (3)	10.5 yr	12.7 yr	10.8 yr

(1)      " Under Construction"; data as of 30 Jun. '15 comprises Bucharest One, GWI Campus Phase I, Gara Herastrau and Elster (completed in Q3-15). Total GLA to be developed excluding Elster light-production facility, delivered in Q3-15,  of 191,153sqm

(2)      "Future Development"; data as of 30 Jun. '15 comprises GWI Campus Phase II and TAP extensions for Valeo and Continental

(3)      Data as of 15 Sept. '15.

Land for Future Development

The Company owns land plots in two prime locations (Herastrau lake and the historical CBD) in Bucharest for future development, with a total land area of c.9,767 sqm and an appraised value of €18.6 million at 30 June 2015.

These plots represent further opportunities for office or mixed-use developments which we intend to take advantage of in the future in order to further grow our real estate portfolio. We are currently in the planning phase for each project, and in discussions with potential tenants for the potential take-up of space in each future development.

Globalworth's value upon "Completion" - 30 June 2015

The appraised value upon Completion of Globalworth's real estate portfolio is expected to increase to €1,049.6 million, following the investment of the remaining estimated c.€168.6 million of Capex for the completion of our four development projects.

Property	Status	"As Is" Value   (€ m)	Capex                (€ m)	Mark to Market Uplift (€ m)	Value upon "Completion" (€ m)
BOB	Completed	52.1	-	-	52.1
BOC	Completed	143.4	-	-	143.4
TCI	Completed	77.1	-	-	77.1
City Offices	Completed	64.4	-	-	64.4
Upground Towers	Completed	109.0	-	-	109.0
Unicredit HQ	Completed	52.4	-	-	52.4
Nusco Tower	Completed	59.8	-	-	59.8
Green Court "A"	Completed	47.6	-	-	47.6
TAP(1)	Comp./Dev.	43.0	13.7	3.5	60.2
Bucharest One	Development	98.5	38.1	17.6	154.2
Globalworth Campus	Development	31.2	106.8	46.3	184.3
Gara Herastrau	Development	11.7	10.0	4.8	26.5
Luterana	Land	12.7	-	-	12.7
Herastrau 1	Land	5.9	-	-	5.9
Total Owned		808.8	168.6	72.2	1,049.6
(1)   Ester / TAP, "As is" value and "Capex" of 30 June '15 are classified as "Developments", as the facility was completed in Q3-15.

Leasing Update

Most of our standing commercial properties benefit from high occupancy rates, with 7 of them having occupancy over 85%. Like-for-like occupancy increased by c.5.6% compared to YE 2014.

Overall occupancy was further enhanced with the addition of two fully occupied properties UniCredit HQ and Green Court "A", as well as the TAP expansion (Continental and Elster) and the Nusco Tower whose current occupancy is c.96.0% and c.91.1% respectively, which results in an average occupancy for our standing portfolio of c.88.1%.

Occupancy at the recently fully refurbished City Offices, the only standing property with occupancy lower than 85%, increased to c.21.0% following lease extension signed by Vodafone in Q3-15 (initial lease signed in Q1-15). In addition, we are in active discussions with a number of tenants for the take-up of new space in the property. The overall average occupancy of our commercial standing properties, excluding City Offices, is 97.9%.

The majority of our tenants are multinational corporate groups and financial institutions which sign long, triple net leases, in line with our overall strategy. The WALL remaining on the commercial lease contracts in the overall portfolio is c.7.0 years.

Commercial Contracted Rent Expiration Profile (% of total)
Year	2015	2016	2017	2018	2019	≥2020
	7%	7%	1%	1%	4%	80%

Total Commercial Properties (15 Sept. '15)	Standing	Development
Occupancy	88.1%	49.1%
GLA (sqm)	282,779	191,153
Contracted Rent	€35.9 m	€ 11.3 m
WALL	5.8 yrs	10.8 yrs

Note: Table excludes c.53,104sqm of residential space in Upground Towers which have c.€1.5m of contracted rent.

We have achieved a diversified tenant mix in our Commercial Properties, represented by c.85 different corporates from c.20 different countries and including some of the most recognisable corporates in their respective industries.

Tenant Origin:	% of Contracted Rent	Selected Tenants of Commercial Portfolio
Multinational	88.7%	ADP, Bayer, BCR, Billa, BRD, Cegeca, Clearanswer, Continental, Credit Agricole Bank, Delhaize Group, Deutsche Bank, Deutsche Telekom, EADS, Elster Rometrics, EY, G4S, GfK, Honeywell, HP, Huawei, Intel, Mood Media, NBG Group, Nestle, Oracle, Orange, Piraeus Bank, Raiffeisen Leasing, Schneider Electric, Securitas, Snamprogetti, Stefanini, Subway, Unicredit, Valeo, Vodafone, Volksbank, Way Media, Worldclass
National	5.8%	NX Data, GlobalVision, Generalcom, NNDKP
State Owned Entities	5.5%	Hidroelectrica, Ministry of European Funds

Portfolio Review - Consolidated

Investment:	Property Status	Acquisition & Development Cost			Contracted NOI - €m
		Investment Cost to Jun-15 (€ m)1	Remaining     Cost (€ m)	Total Acq./Dev.  Cost (€ m)	Jun-15	Sep-15	Q1'17(E)2	Q1'18(E)2	NOI Yield3
BOB	Completed	42.0	-	42.0	3.7	3.7	3.8	3.9	9.3%
BOC	Completed	110.0	-	110.0	9.6	9.9	10.1	10.3	9.4%
TCI	Completed	58.0	-	58.0	5.0	5.0	5.1	5.3	9.1%
City Offices	Completed	51.0	-	51.0	1.1	1.5	6.5	6.5	12.7%
Upground Towers	Completed	58.0	-	58.0	2.4	2.4	3.5	4.9	8.4%
Unicredit HQ	Completed	42.7	-	42.7	3.8	3.8	3.9	4.0	9.4%
Nusco Tower	Completed	46.0	-	46.0	4.3	4.3	4.6	4.6	10.0%
Green Court "A"	Completed	41.0	-	41.0	3.5	3.5	3.7	3.7	9.0%
TAP4	Comp./Dev	33.5	13.7	47.2	3.5	3.5	3.5	4.9	10.4%
Bucharest One	Development	56.7	38.1	94.8	4.4	5.7	11.6	11.8	12.4%
Globalworth Campus	Development	18.2	106.8	125.0	4.2	4.2	10.7	16.5	13.2%
Gara Herastrau	Development	5.7	10.0	15.7	-	-	2.3	2.3	14.6%
Total Real Estate		562.8	168.6	731.4	45.4	47.3	69.3	78.7	10.8%
Land 5	Land	13.3	-	13.3	-	-	-	-	-
Asset Manager	Operations	15.0	-	15.0	1.5	1.5	1.5	1.5	10.0%
Total Owned		591.1	168.6	759.7	46.9	48.8	70.8	80.2	10.6%

¹ Investment Cost to Jun-15, represents the total acquisition cost and subsequent development capex spent by GWI on each asset

² Expected contracted NOI for 2017 / 2018, is based on the Company's business plan

³ NOI yield based on Total Acquisition and Development Cost and Q1-18 estimated contracted NOI per property

⁴ Remaining development for TAP includes all construction costs for Valeo and Continental.

⁵ Land bank includes Herastrau 1 (EUR 6.0 million cost) and Luterana (EUR 7.3 million cost).

Portfolio Review - Sept. 15^th 2015

BOB:
Location:	Bucharest / New CBD
Status:	Standing Property
Description:	Class "A" multi-tenanted office building
Ownership:	100.0%
Year of Completion:	2008
Appraised Value "As Is":	€52.1m
GLA:	22,391
Occupancy:	97.5%
Contracted Rent:	€3.7m
WALL:	4.9 yrs
Selected Tenants:	Deutsche Bank, Stefanini, Snamprogetti, Securitas, NX Data, NBG Group, Clearanswer Europe, HP

Note: All data as of 15 Sept. '15, except "As Is" valuation dated as of 30 Jun. '15

BOC:
Location:	Bucharest / New CBD
Status:	Standing Property
Description:	Class "A" multi-tenanted office building
Ownership:	100.0%
Year of Completion:	2009
Appraised Value "As Is":	€143.4m
GLA:	56,647
Occupancy:	99.6%
Contracted Rent:	€9.9m
WALL:	6.0 yrs
Selected Tenants:	NBG Group, Honeywell, HP, GfK, Intel, Nestle, EADs, ADP, Deutsche Telekom

Note: All data as of 15 Sept. '15, except "As Is" valuation dated as of 30 Jun. '15

TCI:
Location:	Bucharest / Historical CBD
Status:	Standing Property
Description:	Class "A" multi-tenanted office building
Ownership:	100.0%
Year of Completion:	2012
Appraised Value "As Is":	€77.1m
GLA:	22,228
Occupancy:	100.0%
Contracted Rent:	€5.0m
WALL:	3.7 yrs
Selected Tenants:	Ministry of European Funds, Ernst & Young, Hidroelectrica, Huawei, Cegeka, Deutsche Bank

Note: All data as of 15 Sept. '15, except "As Is" valuation dated as of 30 Jun. '15

City Offices:
Location:	Bucharest / South
Status:	Standing Property
Description:	Mix Use Property comprising of an Commercial building and a multi-level parking
Ownership:	100.0%
Year of Completion:	2014
Appraised Value "As Is":	€64.4m
GLA:	35,968
Occupancy:	20.5%
Contracted Rent:	€1.5m
WALL:	5.2 yrs
Selected Tenants:	Vodafone, Delhaize Group, Max Bet, Billa, BCR, Piraeus Bank, Credit Agricole Bank, Germanos

Note: All data as of 15 Sept. '15, except "As Is" valuation dated as of 30 Jun. '15

Unicredit HQ:
Location:	Bucharest / North
Status:	Standing Property
Description:	Class "A" single-tenanted office building
Ownership:	100.0%
Year of Completion:	2012
Appraised Value "As Is":	€52.4m
GLA:	15,500
Occupancy:	100.0%
Contracted Rent:	€3.8m
WALL:	6.7 yrs
Selected Tenants:	Unicredit Tiriac Bank

Note: All data as of 15 Sept. '15, except "As Is" valuation dated as of 30 Jun. '15

Nusco Tower:
Location:	Bucharest / New CBD
Status:	Standing Property
Description:	Class "A" multi-tenanted office building
Ownership:	100.0%
Year of Completion:	2010
Appraised Value "As Is":	€59.8m
GLA:	22,972 (c.24,013sqm following refurbishment)
Occupancy:	91.1%
Contracted Rent:	€4.3m
WALL:	1.4 yrs
Selected Tenants:	Volksbank, Oracle, Bayer, Vodafone

Note: All data as of 15 Sept. '15, except "As Is" valuation dated as of 30 Jun. '15

Green Court Building "A":
Location:	Bucharest / New CBD
Status:	Standing Property
Description:	Class "A" multi-tenanted office building
Ownership:	100.0%
Year of Completion:	2014
Appraised Value "As Is":	€47.6m
GLA:	19,168
Occupancy:	100.0%
Contracted Rent:	€3.5m
WALL:	6.6 yrs
Selected Tenants:	Orange, Schneider Electric, Skanska

Note: All data as of 15 Sept. '15, except "As Is" valuation dated as of 30 Jun. '15

Upground Towers:
Location:	Bucharest / New CBS
Status:	Standing Property
Description:	Residential complex comprising of two towers
Ownership:	100%
Year of Completion:	2010
Appraised Value "As Is":	€109.0m
GLA:	59,847
Occupancy:	Commercial: 100.0% / Residential: 44.3%
Contracted Rent:	€2.4m
WALL:	8.5 / 1.0 yrs
Selected Tenants:	WorldClass, Delhaize Group, Marfin Bank, Subway, Starbucks, Huawei, Rocazare

Note: All data as of 15 Sept. '15, except "As Is" valuation dated as of 30 Jun. '15

TAP:
Location:	Timisoara
Status:	Standing / Under Development Property
Description:	Light-industrial complex
Ownership:	100%
Year of Completion:	2011 - 2015
Appraised Value "As Is":	€43.0m
Appraised Value "Completion":	€60.2m
GLA:	81,349sqm (123,380sqm on completion)
Occupancy:	97.3%
Contracted Rent:	€3.5m (€4.9m on completion)
WALL:	12.8 yrs
Selected Tenants:	Continental, Valeo, Elster

Note: All data as of 15 Sept. '15, except "As Is" and "Completion" valuations dated as of 30 Jun. '15. The Elster facility delivered in Q3-15 is valued as "Development" as of 30 Jun. '15

Bucharest One:
Location:	Bucharest / New CBD
Status:	Development / Under Construction
Description:	Class "A" multi-tenanted office building
Ownership:	100%
Year of Completion:	2015E
Appraised Value "As Is":	€98.5m
Appraised Value "Completion":	€154.2m
GLA1:	49,277
Occupancy:	54.3%
Contracted Rent:	€5.7m
WALL:	10.8 yrs
Selected Tenants:	Vodafone, Huawei, Delhaize Group, NNDKP

(1)       c.53,923sqm including extension

Note: All data as of 15 Sept. '15, except "As Is" and "Completion" valuations dated as of 30 Jun. '15.

Globalworth Campus:
Location:	Bucharest / New CBD
Status:	Development / Under Construction
Description:	Class "A" multi-tenanted office complex
Ownership:	100.0%
Year of Completion:	2016E / 2017E
Appraised Value "As Is":	€31.2m
Appraised Value "Completion":	€184.3m
GLA:	87,808
Occupancy:	28.5% (Phase "A" c.50%)
Contracted Rent:	€4.2m
WALL:	10.0 yrs
Selected Tenants:	Deutsche Telekom

Note: All data as of 15 Sept. '15, except "As Is" and "Completion" valuations dated as of 30 Jun. '15.

Gara Herastrau:
Location:	Bucharest / New CBD
Status:	Development / Under Construction
Description:	Class "A" office building
Ownership:	100.0%
Year of Completion:	2016E
Appraised Value "As Is":	€11.7m
Appraised Value "Completion":	€26.5m
GLA:	12,037
Occupancy:	-
Contracted Rent:	-
WALL:	-
Selected Tenants:	-

Investment Pipeline

In September 2015, we have signed MoU's for the potential acquisition of a portfolio of c.30 assets (completed and land plots) and the potential acquisition of two standing properties with total GLA of c.35,000sqm, all located in Romania. The real estate portfolio is anchor tenanted by a large multinational corporate and is expected to contribute c.€3.0 million per annum of additional rental income, while the two standing properties are expected to add an additional c.€6.5 million per annum. The total investment cost for both transactions is estimated at c.€120 million. The Company is currently undertaking the necessary due diligence on these assets.

Debt Financing Update

The Company incurred c. €194 million of additional debt since the beginning of the year to fund its acquisitions and ongoing development program, which constitutes a strong vote of confidence from the local and international financing community on the quality of the Company's portfolio and its future prospects.  Despite such additional indebtedness, the Company's LTV remains at the moderate level of c.49% (based on 30 Jun. '15 valuations).

A short outline of the financing transactions that have taken place during 2015 are as follows:

•              Conclusion of a €55 million short-term holding Company level secured debt facility in March 2015 provided by subsidiaries of funds managed by Oak Hill Advisors, L.P. and certain of its advisory affiliates and York Capital Management Global Advisors, LLC, through York Global Finance Offshore BDH (Luxembourg) S.à r.l.

•              In June 2015 the Company concluded an addendum to the above mentioned facility for an additional €45 million funding and extended the maturity of the entire €100 million facility to July 2016.

•              In March 2015, together with the finalization of the Nusco Tower and Unicredit building acquisitions, we have taken over financing facilities of c. €52.5 million in total from UniCredit HQ, with maturities ranging from two years and a half to seven years.

•              In June 2015 extension of two existing facilities granted by Bancpost S.A. of c.€8 million and conclusion of a new 7 year, c. €9 million loan facility arranged by a subsidiary of National Bank of Greece against the TAP property.

•              In July 2015 conclusion of a long-term €27 million facility provided by Banca Comerciala Romana (part of Erste Group) against the Green Court A property

•              In August 2015 conclusion of a c. €5.5 million facility provided by Libra Bank against the Luterana and Herastrau One land plots

Corporate Update

Globalworth has determined that it is no longer appropriate to maintain its registration as a closed-ended collective investment scheme with the Guernsey Financial Services Commission and has applied to the Guernsey Financial Services Commission to deregister.

GLOSSARY

Assets: "Standing Properties"	Comprises 9 owned properties, BOB, BOC, TCI, City Offices, Unicredit HQ, Nusco Tower, Green Court Building "A", Upground Towers and TAP (c.81,349 sqm).
Assets: "Developments"	Comprises Bucharest One, Globalworth Campus, Gara Herastrau and TAP (excluding the completed sqm already included in Standing Properties).
Assets: "Land"	Comprises land plots for future development located in Luterana and Herastrau 1.
"Capex"	Represents the estimated Capital Expenditure to be incurred for the completion of the Development Projects.
"Commercial Properties"	Comprises the office, light-industrial and retail properties or areas of the portfolio.
"NOI"	Net operating income (being the gross operating income less operating expenses that are not paid by or rechargeable to tenants, excluding funding costs, depreciation and capital expenditure).
Valuation "As Is"	Represents the appraised value for standing and operational properties, properties under development and land, performed by Coldwell Banker as at June 30th 2015.
Valuation "Completion"	Represents the appraised value for standing and operational properties, properties under development (including the expansions for TAP, Bucharest One and Globalworth Campus) and land, performed by Coldwell Banker as at June 30th 2015, assuming that the properties under development were completed as of the date of valuation. The estimated appraised values on completion are subject to risks and uncertainties that could cause actual outcomes to differ materially from those expressed or implied by the relevant statements; they are not guarantees of future performance and there can be no assurance that these estimated values on completion can or will be achieved.
"WALL"	Represents the remaining weighted average lease length of the contracted leases as of 15 September 2015, until the lease contracts full expiration.

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1 Based on appraised valuation for standing and operational properties, properties under development and land, performed by Coldwell Banker as of June 30^th 2015.

2 Appraised value on "Completion" performed by Coldwell Banker, assuming that properties under development projects were completed as at June 30th 2015.

3 Data as of 30 June '15, excluding Elster which was completed in Q3-15

 

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