In 2018 Globalworth registered an increase of 36% in portfolio value compared to 2017, reaching €2.5 billion, split 51% in Romania and 49% in Poland. Also, during last year, the gross leasable area of the company’s combined portfolio grew with over 250,000 sqm to 1 million sqm. Following the dynamic expansion in Poland and the new developments in Romania, Globalworth’s net operating income (NOI) noted an impressive increase by over 160% and exceeded €133 million.
„Last year was an amazing one for Globalworth as we continued our growth strategy both through investments in income-producing assets and developments of new projects, registering great financial results. We are very pleased to have been able to include in our portfolio some of the most recognizable office properties in Poland, including three of the 10 largest transactions of the year. We have concluded five transactions during 2018, adding over 185,000 sqm of Class ‘A’ space to our portfolio. These transactions helped us establish Globalworth as the leading institutional office landlord in the CEE region with a portfolio of prime assets, supported by a strong team of experienced professionals,” said Dimitris Raptis, Deputy CEO and CIO of Globalworth Group and CEO of Globalworth Poland.
In 2018, over €538 million were invested in new transactions, including five acquisitions in Poland, namely Lumen and Skylight, Warta Tower, Spektrum Tower (totaling €346 million) in Warsaw, Quattro Business Park (€139 million) in Krakow and West Link (€35.8 million) in Wroclaw, and three land plots in Bucharest, for new office projects (€17.5 million). Globalworth also negotiated the take-up or extension of 121,800 sqm of commercial space in Romania and Poland, comprising some 67,900 sqm of new lettings or expansions and 54,000 sqm of renewals. Over 45,500 sqm of GLA were negotiated in Poland, 20,000 sqm representing new leases and 25,700 sqm renewals of existing contracts.
Currently, Globalworth has €280 million of acquisitions under exclusivity in Poland and is also analyzing a number of further value accretive deals. The company continues to develop its office portfolio consequently in 2019 and keeps up the dynamics of growth.
At the end of 2018, green-certified properties accounted for over 70% of the company’s portfolio, with the potential to rise to 100% through properties currently under certification.
During 2018 Globalworth also raised a €550 million unsecured Eurobond issue in March 2018, which was more than twice oversubscribed, and Globalworth Poland completed a €450 million equity capital raise in June 2018, funding its ongoing portfolio expansion.
After a dynamic year, in which the company bolstered its leading position in the CEE real estate market, Globalworth continues to evaluate a strong pipeline of further high-quality investment opportunities. With these investments in mind, Globalworth will be looking to raise additional equity capital of up to €500 million in the near term.
