Globalworth Real Estate Investments Limited · LSE:GWI

Globalworth Real Estate Investments — Investor Presentation (April 2014)

47 slides from Globalworth Real Estate Investments's investor presentation, April 2014

1. Slide 1: €144 million Capital Raise

   €144 million Capital Raise April 2014

2. Slide 2: Disclaimer

   Disclaimer IMPORTANT NOTICE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION. This do

3. Slide 3: Table of Contents

   Table of Contents: 1. Executive Summary / Transaction Overview 4. Proposed Capital Raise 2. The Company  Structure • Company Overview  Sources & Uses of Funds • Key Competitive Advantages 5. Appendices: • A Long Journey in a Short Time  Overview of Current Portfolio • Current Portfolio & Value Up

4. Slide 4: Executive Summary/Transaction Overview

   Section 1: Executive Summary/Transaction Overview

5. Slide 5: Executive Summary

   Executive Summary The Company  Globalworth Real Estate Investments Limited (“Globalworth” or “GWI”), is a Guernsey incorporated company, listed on London’s AIM market targeting real estate investment opportunities in the SEE/CEE region, with a primary focus on Romania.  GWI’s focus is to acquire a

6. Slide 6: Transaction Overview

   Transaction Overview Structure Comments Issuer  Globalworth Structure  c.€144m capital raise of which:  c.€79m in the form of new common equity  €65m in the form of a mandatory convertible loan already subscribed for Equity Offering  Equity raise of c.€79m through the issue of new shares to exi

7. Slide 7: The Company

   Section 2: The Company

8. Slide 8: Company Overview

   Company Overview  Globalworth, is an internally managed real estate investment company targeting investment opportunities in the SEE/CEE region, with a primary focus on Romania.  GWI was listed on London’s AIM market in July 2013 (ticker GWI:LN) and raised €53m of new capital.  Current issued sha

9. Slide 9: Key Competitive Advantages

   Key Competitive Advantages A highly experienced team, with a very focused strategy, that enables the acquisition of high quality assets at very competitive prices and value creation through active asset management and related activities Clear strategy and ability to Local platform with Access to Rea

10. Slide 10: A Long Journey in a Short Time

    A Long Journey in a Short Time 21 March 2014 Completion of September 2013 16 Dec. 2013 BOB, BOC & SPA signed for the Signed contracts for the Upground Towers. acquisition of TAP 12 February 2014 July 2013 acquisition of BOB & BOC. SPA signed for all Signed new Deutsche Publication of FY current port

11. Slide 11: Current Portfolio & Value Uplift

    Current Portfolio & Value Uplift  Current portfolio independently valued at €509m (as of December 31, 2013) vs. an acquisition cost of €358m  Following completion of all development projects, the value increases to c.€634(1)  Stabilised projected NOI of c.€49.6m representing a NOI yield of 11% Va

12. Slide 12: Current Portfolio & Value Uplift (cont'd)

    Current Portfolio & Value Uplift (cont’d) OMV of Current Portfolio & AM (€m) NOI of Current Portfolio (€m) 700 60 634 600 50 50 509 500 40 36 400 30 25 300 200 20 142(1) 100 10 3 (1) - - Y/E 2013 Q1 2014 Q1 2016(E) Y/E 2013 Q1 2014 Q1 2015(E) Q1 2016(E) (on completion) LTV (%) of Current Portfolio(3

13. Slide 13: Commercial Leases & Tenant Profile

    Commercial Leases & Tenant Profile Lease & Occupancy Details (Commercial assets) Lease Expiry based on Annualised Commercial NOI 50.0% 44.6% Weighted Average Lease Length (from Mar 1st 2014) 6.5 years Total Contracted Annualised NOI: €19.9m 40.0% Average Rent (completed): €14.0/sqm/m 30.0% 21.7% Off

14. Slide 14: Diversified Tenant Mix

    Diversified Tenant Mix Diversified tenant mix comprising c.55 different national and multinational corporates occupy the portfolio. Most of the space occupied and contracted NOI is derived by multinational companies and financial institutions. 14

15. Slide 15: Financial Highlights & Pro-forma

    Financial Highlights & Pro-forma Highlights from FY 2013 Highlights from Pro-forma(1) Audited Financial Results Unaudited Financial Results (Period Ended 31/12/2013) (Period Ended 31/12/2013)  Portfolio Open Market Value (“OMV”) of €121.3m  Portfolio OMV of €487.9 m  Globalworth Gross Asset Value

16. Slide 16: Current Portfolio: Debt Overview

    Current Portfolio: Debt Overview Key Statistics Pre-Capital Raise: Debt Maturities (€m) 120.0 111.8  Total outstanding debt as of March 2014 at c.€242.7m which represents an LTV of 49.9% 100.0 UBS Facility: €65m 77.4 80.0 €m  c.49% of current debt matures 2018 or later 60.0  Weighted average cost

17. Slide 17: Current Portfolio: 2014 Year-end Expected Debt Profile

    Current Portfolio: 2014 Year-end Expected Debt Profile The debt repayment profile of the company is expected to be significantly improved following the repayment of the UBS facility through the mandatory conversion of the loan by York and Oak Hill. Key Impact Existing Facilities by Debt Provider Mar

18. Slide 18: Investment Pipeline

    Section 3: Investment Pipeline

19. Slide 19: Investment Pipeline: Key Selected Metrics

    Investment Pipeline: Key Selected Metrics  In addition to the current portfolio, there are a number of other investments which have either been contracted or are currently under active, and in some cases advanced negotiations  Investments contracted or at a very advanced stage of negotiations, amo

20. Slide 20: Investment Pipeline: Selected Investments

    Investment Pipeline: Selected Investments UNICREDIT BANK HQ Modern office tower located in the Northern part of Bucharest which was delivered in 2012. The 15,500sqm (GLA) office building hosts the headquarters of UniCredit Bank, one of the largest financial institutions present in Romania. The prope

21. Slide 21: Investment Pipeline: Selected Investments (cont'd)

    Investment Pipeline: Selected Investments (cont’d) SMARDAN / SELARI PROJECT Retail project located in the old city center of Bucharest in an area that has significantly been upgraded in the last few years. The project consists of two adjacent properties (an existing building and a land for developme

22. Slide 22: Proposed Capital Raise

    Section 4: Proposed Capital Raise

23. Slide 23: Proposed Capital Raise: Structure

    Proposed Capital Raise: Structure GWI is undergoing a c.€144m capital raise of which €120m has already been committed  c.€79m new equity raised at 5.90 €/share resulting in the issue of c.13.3m new shares  York and Oak Hill participation in equity capital raise with €30m in total  Founder to part

24. Slide 24: Proposed Capital Raise: Sources & Uses of Funds

    Proposed Capital Raise: Sources & Uses of Funds Sources: Uses: Equity required for current portfolio Equity Raise € 79m € 23m (mainly development projects) Convertible Debt/Equity € 65m Acquisition and development of Investment Pipeline € 56m Repayment of UBS Facility through convertible instrument

25. Slide 25: Appendix

    Appendix: I. Overview of Current Portfolio II. Country and Market Overview III. Selected Financial Information IV. Other Selected Information: • Organisational Structure • Management Track Record • Contact Information

26. Slide 26: Overview of Current Portfolio

    Appendix I: Overview of Current Portfolio

27. Slide 27: Current Portfolio: Map of Assets

    Current Portfolio: Map of Assets Bucharest One BOB BOC Herastrau 1 7 5 1 23 Upground 6 Towers & Apartments TCI 4 Floreasca 1 City Offices 8 27

28. Slide 28: Overview of Current Portfolio

    Overview of Current Portfolio BOB (Office / Completed) BOC (Office / Completed) Description: “BOB” is a modern (“class A”) office building located in Description: “BOC” is a modern (“class A”) office building located in the the Northern part of Bucharest on Dimitrie Pompeiu Northern part of Buchares

29. Slide 29: Overview of Current Portfolio (cont'd)

    Overview of Current Portfolio (cont’d) City Offices (Office, Retail & Parking / Completed) Bucharest One (Office / Development) Description: “City Offices” is a mixed-use property comprising of two Description: “Bucharest One” is a flagship office development project connected buildings, a Commercia

30. Slide 30: Overview of Current Portfolio (cont'd)

    Overview of Current Portfolio (cont’d) Upground Towers (Residential & Retail / Completed) TCI (Office / Completed) Description: “Upground Towers” is a modern residential complex Description: Tower Center International (“TCI”) is a recently completed located in the Northern part of Bucharest on Fabri

31. Slide 31: Overview of Current Portfolio (cont'd)

    Overview of Current Portfolio (cont’d) Herastrau 1 (Office / Development) Floreasca 1 (Office / Development) Description: “Herastrau 1” is an office development project to be Description: “Floreasca 1” is an office development on the shore of the constructed in the northern part of Bucharest on Nord

32. Slide 32: Country and Market Overview

    Appendix II: Country and Market Overview

33. Slide 33: Why Romania?

    Why Romania?  Strong macroeconomic fundamentals  Increasing levels of international investment  Increasingly attractive real estate market 33

34. Slide 34: Strong Macroeconomic Fundamentals

    Strong Macroeconomic Fundamentals  Romania is the second largest country in the CEE and Latest Indicators* Romania EU CEE seventh largest in the EU with c.21m inhabitants. GDP growth (%) 3.5% 0.1% 2.7%  The economy has seen one of the highest growth rates in Inflation Rate 1.55% 1.5% 1.5% Europe w

35. Slide 35: Positive Momentum: Expected to Continue in 2014-2015

    Positive Momentum: Expected to Continue in 2014-2015  Strong investors’ confidence demonstrated by lower yields and oversubscription of recent bond issues by almost 6 times:  $1 bn 10 years sovereign offering at 4.875% coupon (vs 5.021%)  $1 bn 30 years sovereign offering at 6.125% coupon (vs 6.2

36. Slide 36: Positive Momentum: International Investment

    Positive Momentum: International Investment Numerous international corporates continue to invest in Romania, in many cases benefiting from subsidies offered Lufkin (the oil extraction equipment manufacturer Daimler (manufacturer of part of GE Oil & Gas) Deutsche Bank develops a Mercedes-Benz) throug

37. Slide 37: Increasingly Attractive Real Estate Market

    Increasingly Attractive Real Estate Market  Positive yield gap of 200-250 basis points between Romania and more 2,000 Romanian Real Estate Investment active markets such as Poland or the Czech Republic 1,500  Bucharest is the principal real estate market in Romania € million  Attractive yields in

38. Slide 38: Increasingly Attractive Real Estate Market (cont'd)

    Increasingly Attractive Real Estate Market (cont’d) Retail Shopping Center Rents in Romania 30  Food retailers and discount stores continue to expand with a particular € / Sqm / Month 25 20 focus in secondary cities in Romania 15  2013 saw the delivery of 130,000sqm of shopping centers thus the to

39. Slide 39: Selected Financial Information

    Appendix III: Selected Financial Information

40. Slide 40: NAV – IFRS

    NAV – IFRS Audited (FY) Unaudited Pro-forma (figures in Euro million) 31 December 2013 31 December 2013 Pro forma NAV Net assets as per the statement of financial position 120.3 226.1 Less: Non-controlling interests (0.6) (0.6) NAV attributable to ordinary equity holders of the parent 119.7 225.5 (1

41. Slide 41: Consolidated Balance Sheet – IFRS

    Consolidated Balance Sheet – IFRS Audited (FY) Unaudited Pro-forma (figures in Euro million) 31 December 2013 31 December 2013 Assets Investment Property 121.3 487.9 Goodwill 12.6 13.1 Advance For Investment Property 8.8 2.8 Other Long Term Assets 0.2 1.0 Trade And Other Receivables 11.3 8.7 Cash An

42. Slide 42: Consolidated Income Statement – IFRS

    Consolidated Income Statement – IFRS Audited (FY) (figures in Euro million) 31 December 2013 Rental Income And Property Management Fees/Asset Manager Recharges 8.1 Property Operating And Asset Management Expenses (2.8) Net Operating Income 5.3 Administrative Expenses (1.9) Acquisition Costs (0.1) Ch

43. Slide 43: Other Selected Information

    Appendix IV: Other Selected Information: • Organisational Structure • Management Track Record • Contact Information

44. Slide 44: Organisational Structure

    Organisational Structure  I. Papalekas (CEO) Executive  D. Raptis (Deputy CEO / CIO) Board of Directors  G. Miller (Chairman) Non-Executive  E. Alroy  J. Whittle Audit Committee Remuneration Committee  Exclusive provider of advisory services to the Board for the Investment Adviser implementati

45. Slide 45: Senior Management Team Track Record – Illustrative Examples

    Senior Management Team Track Record – Illustrative Examples Ioannis Papalekas Dimitris Raptis (Founder/CEO) (Deputy CEO/CIO) • Involved in multiple investments in Romania and SEE  MD and European Head of Portfolio Management over a 15 year period for DB’s RREEF Opportunistic Investments. • Successf

46. Slide 46: Contact Information

    Contact Information Key Contact People Company Contact Details Ioannis Papalekas Globalworth Real Estate Investments Limited • Title / Position: Founder & CEO PO Box 156 • Email: papalekas@globalworth.com Frances House • Tel: +40 (0) 21 319 35 66 / 67 Sir William Place St Peter Port Dimitris Raptis

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