Leader of the office building market
Globalworth is a leading real estate company with a primary focus on Poland and Romania, the two largest markets in Central and Eastern Europe (CEE). The company acquires, develops and manages commercial real estate assets, primarily in the office sector, with the objective of being the landlord of choice for the broad and growing variety of multinational corporations in the region. Globalworth has an internal team of over 170 professionals located in Romania and in Poland, through its subsidiary Globalworth Poland (GPRE), and has an overall real estate portfolio valued at about €2.5 billion.
Globalworth’s origins go back to 2001 when Ioannis Papalekas (Founder & CEO) began investing in the Romanian real estate market, building up a sizable portfolio which was subsequently sold. Having remained an active player in the market, the opportunity to rebuild the portfolio came in early 2013, as the economic environment showed improved prospects, and with it the opportunity for attractive acquisitions. At this point, Globalworth Real Estate Investments Limited was established as a public company, subsequently incorporating the know-how, expertise and the resources of the original platform (Globalworth Asset Managers, now a subsidiary of Globalworth).
Since its initial public offering (IPO) in July 2013, Globalworth has been quoted on the AIM-segment of the London Stock Exchange. Following positive share price performance and further equity issuance, Globalworth’s market capitalisation had grown to approximately €2.1 billion as at H1 2018. Globalworth has also been active in the debt capital markets and has two outstanding bonds, each totalling €550 million - the first issued in June 2017, and the second in March 2018 - both being listed on the Bucharest and Irish Stock Exchanges.
In Romania, Globalworth has built a unique portfolio, valued at about €1.2 billion and established itself as the leading real estate investor in the country, through acquisitions and developments. These include landmark office buildings in Bucharest such as Globalworth Tower, Globalworth Plaza, Bucharest Tower Center and, most recently, Globalworth Campus.
In 2017, Globalworth expanded into Poland, the CEE region’s largest market, through the acquisition of a majority shareholding in Griffin Premium RE.. NV. (GPRE), which has since been renamed Globalworth Poland. Listed on the Warsaw Stock Exchange, GPRE is a pure-play Polish real estate platform that primarily owns high-quality office and mixed-use assets located in Warsaw and a number of other major Polish cities, notably Wroclaw, Lodz, Krakow, Gdansk and Katowice. The portfolio, with a value of approximately €1.3 billion, includes landmark properties such as Hala Koszyki in Warsaw, West Gate in Wroclaw, Tryton Business House in Gdańsk, A4 Business Park in Katowice and Green Horizon Office Center in Łódź. Further information on Globalworth Poland can be found at http://www.en.globalworth.pl.
The key to Globalworth’s success lies in its ability to execute value-accretive acquisitions, to effectively manage or reposition its assets, and to deliver development projects at very attractive returns, all with the support of an in-house team of professionals. The company has also diversified its sources of capital and built a strong, internationally-backed capital structure comprising a large number of institutional equity and debt investors.
Globalworth continues to see exciting opportunities ahead, with a very active acquisition and development pipeline in both its target markets, Poland and Romania. Modern and environmentally-friendly properties in prime locations are a priority for the company when looking for new projects to invest in, this being best suited to the needs of multi-national companies, as well as other key occupiers active in the region, with whom the company targets long-term partnerships.
Globalworth benefits from an internal and multi-disciplinary management platform with extensive experience in its markets focused on value-added initiatives on existing assets, developments and acquisitions. The company is led by Ioannis Papalekas, Founder and CEO, who has been active in the market since 2001, and Dimitris Raptis, Deputy CEO and CIO, who brings over 20 years of experience in real estate investment and the financial sector.
What is our focus?
Globalworth is primarily focused on office properties in prime locations in Romania and Poland, whilst also targeting the fast-growing sector of logistics and light-industrial properties. Key attributes of its portfolio include:
- Prime locations in key cities;
- Modern assets with excellent environmental credentials;
- Established, blue-chip and mostly international tenants;
- Primarily long-term, euro-denominated, triple net and inflation-linked leases.
Globalworth works towards two main objectives: generating a growing and sustainable cash flow and achieving value creation through the active management of real estate assets, including those under development. Cash flows are underpinned through long-term leases to multinational corporations and financial institutions. Core to its strategy, the company proactively manages its real estate portfolio to maintain the high quality of the assets and long-term cash flows. With particular emphasis on maintaining a prudent and efficient debt capital structure and a stated policy of distributing at least 90% of its underlying earnings as dividends, Globalworth seeks to deliver a sustainable and progressive dividend income to its shareholders.
Through the acquisition and repositioning of properties that present active asset management opportunities, including distressed, underperforming, or otherwise mispriced real estate assets, and the delivery of successful development projects, the company seeks to create value through net asset value growth and thereby continually improve its portfolio of high-quality, marketable properties.