Globalworth, the leading office investor in Central and Eastern Europe, has reported its results for the first half of 2019. The Group negotiated the take-up or extension of more than 100,000 sqm of commercial space, predominantly split between its two target markets of Romania and Poland, making this Globalworth's most active half year of leasing activity to date.
Overall, Globalworth’s combined real estate portfolio was valued at €2.74 billion as of 30 June 2019, rising to €2.85 billion pro forma for acquisitions as of July 2019. This represents an increase of 11.5% and 16.1% respectively since December 2018. The portfolio’s pro forma geographical allocation is 53.5% for Poland and for 46.5% Romania, reflecting the rapid pace of acquisitions in Poland since Globalworth entered the market at the end of 2017.
“We are proud of our achievements in the first half of 2019, notably the further expansion of our portfolio, our robust operating metrics, and the strong increase in our financial results. We contracted out over 100,000 sqm of space, marking this as our most active half year of leasing activity to date. Our rental income increased by 35% over H1 2018 and our EPRA net asset value from 31 December 2018 rose by 46% to stand at over €1.75 billion. We were delighted with the success of our €501 million equity issuance in April, as well as €283 million of acquisitions in Poland and further additions to our development pipeline in Romania. The team continues to deliver on our ambitious objectives, while seeking to consolidate Globalworth’s position as the leading office landlord in the CEE”, says Dimitris Raptis, Deputy Chief Executive Officer and Chief Investment Officer of Globalworth.
In the first half of 2019, the Group announced the acquisition of four office investments in Poland for a total of €283.1 million. In April, the company finalized the acquisition of the Warsaw Trade Tower office building (where the main tenant AXA, signed a renewal for the next 10 years) and the Rondo Business Park complex in Kraków. In July, Globalworth bought the Retro Office House in Wrocław and Silesia Star in Katowice.
Good progress was made with the Group’s development pipeline in Romania, with Globalworth Campus Tower 3 on course for completion by the end of the year, and Globalworth Square due to be completed in mid-2020. Since 31 December 2018, major leases have been signed for Campus Tower 3 with Allianz and Unicredit for 18,900 sqm in total, resulting in 56% (70% including expansion options of the building) of the commercial space being pre-leased for a term of 10 years.
Globalworth’s activities continue to benefit from a buoyant economic environment and healthy real estate fundamentals in both Poland and Romania. With ongoing expansionary demand from multinational companies attracted to the region, the company considers itself well positioned because of its strategy of offering high quality, well located space, with a long-term tenant orientated approach and a strong focus on localised management.
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