News Article financial Globalworth Poland report Romania
by Property Forum | Report

As at 31 December 2017, Globalworth's combined real estate portfolio was valued at €1,815.4 million, comprising €1,135.3 million in Romania and €680.1 million in Poland via GPRE. Globalworth posted its results for the year 2017.


Operational highlights:

  • Completion of strategic investment in Griffin Premium Real Estate in December 2017, resulting in a shareholding of 71.66%, at a price reflecting a discount of 20% to its last reported EPRA NAV per share. GPRE has now been fully consolidated into Globalworth's financial statements for the year ended 31 December 2017. As announced on 28 February 2018, GPRE is being rebranded Globalworth Poland.
  • As at 31 December 2017, Globalworth's combined real estate portfolio was valued at €1,815.4 million (31 December 2016: €977.5 million), comprising €1,135.3 million in Romania and €680.1 million in Poland via GPRE. Total annualised contracted rental income for the combined portfolio stood at €115.9 million (31 December 2016: €49.5 million), including pre-leases on developments, an increase of 134% compared to 31 December 2016.
  • Occupancy of the commercial standing portfolio was 93.3% (95.4% including tenant expansion options) at 31 December 2017, compared to 83.1% at 31 December 2016. Like-for-like occupancy of the Romanian portfolio improved by 10.2% in 2017.
  • In 2017, the company successfully negotiated the take-up or extension of 57,400 sqm of commercial space in its Romanian portfolio, resulting in 747,900 sqm of commercial space let or pre-let in Romania and Poland as at 31 December 2017, with a weighted average lease length of 5.7 years. The company has a diversified tenant base with some 440 national and multinational corporates from 28 countries and 37 different sectors / industries.
  • During 2017, the company more than doubled its commercial standing GLA to 748,100 sqm (2016: 370,000 sqm), including the addition of 242,600 sqm through GPRE in Poland and the delivery of 51,000 sqm of developments. A further two development projects, comprising 70,500 sqm, remain under construction in Romania. Together with the further pipeline of investments, and additional projects in the planning stages, the company will continue to grow the standing portfolio, whilst further reinforcing its quality.
  • The company's portfolio now includes 18 properties certified with LEED Gold / BREEAM Very Good or higher certifications, including Globalworth Tower which was the first property in South-Eastern Europe (SEE) to be awarded LEED Platinum certification.
 
"These results highlight the significant progress achieved by Globalworth in 2017 across the business, with the strengthened capital structure placing us in a strong position going into 2018. Our two markets, Romania and Poland, continue to offer above-average economic growth prospects and we see a strong backdrop of tenant demand. By targeting the right sectors in the right markets, we believe we are well positioned to capitalise on the dynamic structural trends we are witnessing today. We are focused on our objective of establishing Globalworth as the region's leading office landlord and to build on our ambition of being the partner of choice for the wide variety of high-quality tenants in the region,” Dimitris Raptis, Deputy Chief Executive Officer and Chief Investment Officer of Globalworth commented.