Globalworth buys Warsaw office block for EUR 55m

The AIM-traded firm said Warta Tower, completed in 2000, comprises approximately 28,000 square metres of gross leasable area, and offered “outstanding” architectural qualities including an “iconic” lobby.

It said the 21-floor building was multi-tenanted, with TUiR Warta - an insurance and reinsurance company, being a subsidiary of Talanx International - as its largest tenant.

Warta Tower had a contracted rental income of €5.9m, occupancy of 92% and a weighted average lease length of 3.5 years.

The board said the transaction represented a “substantial transaction” pursuant to the AIM rules.

It said the acquisition was being financed by a €55m increase in the short-term bridging loan provided to GPRE by the company announced on 19 December, and which represented a substantial transaction pursuant to the AIM Rules.

Subsequent to that announcement on 19 December, the company agreed to extend the period whereby the loan could be increased from two months to the date of the acquisition, the board explained.

“Globalworth Poland is very excited to be growing its portfolio with the acquisition of this sizeable, landmark asset in Warsaw, following on from the high-quality offices in Wroclaw, Gdansk and Katowice acquired in December 2017,” said Globalworth’s deputy chief executive and chief investment officer Dimitris Raptis.

“In addition to an attractive current income, this property offers excellent asset management potential.”