Globalworth announced that is has acquired a 67.90% of the issued share capital of Griffin Premium Real Estate, a Dutch entity listed on the Warsaw Stock Exchange.
The previous announcement also stated that, amongst other investments in the pipeline, GPRE had contracted to acquire three high quality office properties in Wroclaw, Gdansk and Katowice from Echo Polska Properties for an aggregate purchase price of €160 million, which were expected to be acquired before 31 January 2018.
Globalworth now announced that it has agreed to provide a short-term bridging loan to GPRE for an amount of €165 million to fund the entire EPP portfolio acquisition. This loan may be increased, at the company's sole discretion, by a further €65 million within the next 2 months, for further potential acquisitions under consideration by GPRE. The loan is repayable within 6 months but this may be extended by a further 6 months at the request of GPRE (and at the company's sole discretion).
The loan will bear fixed interest from the date of its utilisation at market rate. The loan agreement provides for a list of undertakings, representations and events of default standard for financings of such type. In addition, at the request of the company, following completion of the EPP portfolio acquisition, the company may request that a security package over the acquired assets is established, including guarantees, pledges and mortgages, to the extent respective security interest will be permitted under the bank financing arrangements in place in respect of the acquired assets.
Subject to approval at a general meeting of GPRE, the company has the option to convert the loan into shares in GPRE at a conversion price equal to the 60-day volume weighted average price of GPRE shares at the date of submission of the conversion notice.
