Globalworth Real Estate Profit Doubles As Polish Subsidiary Expands


Globalworth Real Estate Investments Ltd said Wednesday profit in 2017 more than doubled, with revenue also rising, as it made a bargain purchase gain on the acquisition of subsidiaries.

Pretax profit rose to EUR 26.1 million in 2017 from EUR 12.2 million in 2016, boosted by a EUR 28.9 million bargain purchase gain.

Revenue rose to EUR 77.9 million for the year from the EUR 68.2 million posted in 2016.

These figures include Griffin Premium RE NV, in which Globalworth took a 72% stake in December. As of the end of the year, its combined real estate portfolio was worth EUR1.82 billion, and total contracted rental income was EUR115.9 million.

Globalworth also said Wednesday that Griffin Premium is to be renamed Globalworth Poland Real Estate NV, ahead of a EUR 400.0 million capital raise to enable expansion in Poland. It is in negotiations, Globalworth said, for EUR300.0 million worth of deals having made a EUR 160.0 million purchase in December in Gdansk, Wroclaw, and Katowice.

Deputy Chief Executive Dimitris Raptis said: “Globalworth strives to contribute to Poland’s leading position in the central & eastern Europe real estate market. We have chosen the country as the core market for our expansion in CEE due to its size, liquidity, bright economic prospects, and the outstanding potential to invest in a fast-growing office real estate market.

“Seeing the continuous and increasing flow of foreign direct investment and demand for modern office space in recent years, we believe this is the premier destination for us to develop as the leader of the office market in the region. We enter Poland with a committed, long-term investment strategy, advancing our ambition to become the first-choice partner for globally acclaimed corporates establishing and expanding their business in this part of Europe.”

Shares were down 2.2% on Wednesday at 8.80 pence each.

source: Alliance News

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