25th Sep 2014 10:31
LONDON (Alliance News) - Globalworth Real Estate Investments Ltd Thursday, which was admitted to trading on AIM in July 2013, said it has been a "busy" first half, as it achieved a number of its key objectives, including the acquisition of eight property assets in Bucharest, Romania.
The company, which was incorporated in Guernsey in February last year as a closed-ended real estate investment trust, posted earnings before tax of EUR76.7 million for the six months to June 30. In the six months to December 31, 2013, the company posted earnings before tax of EUR13.7 million.
Rental income amounted to EUR5 million, pushing overall rental income and property management fees to EUR9.1 million for the period.
The company, which is focused on investment opportunities in Eastern Europe, said the value of its assets portfolio at the period end stood at EUR521 million, compared with EUR121 million at December 31.
Globalworth acquired a number of assets including BOB Development SRL and BOC Real Property SRL, valued at EUR49.7 million and EUR140.3 million, respectively.
In addition, the group acquired land plots located in Bucharest from third parties for EUR14.3 million in June that had an asset fair value of around EUR29 million. The group plans to develop these land plots as part of the Globalworth Campus complex, comprising predominantly office space, as well as some retail space.
Globalworth said its EPRA NAV per share stood at EUR7.70.
Financially, the company said it successfully raised a EUR65 million short-term bridge debt financing from UBS in February and a total a total equity of EUR144 million from a range of investors, including York Capital, Oak Hill Advisors and Ioannis Papalekas, in an equity capital raising which was completed in April.
"With the funds raised from the recent second equity capital raising the company is well placed to acquire a number of very attractive, pre-identified investment opportunities in high quality assets in the short term and to progress with our development projects," Chief Executive Ioannis Papalekas said in a statement.
"We are also optimistic about the future prospects of the Romanian economy and real estate market, which we believe will continue to grow," he added.
Globalworth Real Estate Investment shares were quoted flat at EUR6.25 Thursday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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