THISDOCUMENTANDTHEENCLOSEDFORMOFPROXYAREIMPORTANTANDREQUIREYOURIMMEDIATE
ATTENTION.Ifyouareinanydoubtaboutthecontentsofthisdocumentortheactionyoushouldtake,you
should consult an independent financial adviser under the Financial Services and Markets Act 2000 (as
amended), if you are resident in the United Kingdom or, if not, another appropriately authorised
independentfinancialadviser.
IfyouhavesoldorotherwisetransferredallofyoursharesinGlobalworthRealEstateInvestmentsLimited
(the"Company"),pleaseforwardthisdocument,togetherwiththeaccompanyingFormofProxy,assoonas
possibletothepurchaserortransferee,ortotheagentthroughwhomthesaleortransferwaseffectedfor
onwardtransmissiontothepurchaserortransferee.Ifyouhavesoldpartofyourholding,pleaseconsultthe
stockbroker,bankerorotheragentthroughwhomthesalewasmade.
ThedistributionofthisdocumentandaccompanyingdocumentsinorintojurisdictionsotherthantheUnited
Kingdommayberestrictedbylocallawandthereforepersonsintowhosepossessionthisdocumentcomes
should inform themselves about and observe any such restrictions. Any failure to comply with any such
restrictionsmayconstituteaviolationofthesecuritieslawsorregulationsofsuchjurisdictions.
Thisdocumentisnotaprospectusbutashareholdercircularanddoesnotconstituteanofferorinvitationto
purchaseorsubscribeforanysecuritiesorasolicitationofanofferorinvitationtopurchaseorsubscribefor
anysecurities.
GLOBALWORTHREALESTATEINVESTMENTSLIMITED
(acompanyincorporatedinGuernseyandregisteredwithnumber56250)
PROPOSEDISSUEOF27,145,923NEWSHARESPURSUANTTOTHESUBSCRIPTIONAT€8PER
SHARE
PROPOSEDADOPTIONOFNEWARTICLESOFASSOCIATION
RELATEDPROPOSALS
ͲandͲ
NOTICEOFEXTRAORDINARYGENERALMEETING
SetoutattheendofthisdocumentisaNoticeofanExtraordinaryGeneralMeetingoftheCompany,tobe
held at the registered office of the Company at Ground Floor, Dorey Court, Admiral Park, St Peter Port,
GuernseyGY12HT,at9.30amon19December2016.AFormofProxyforuseattheExtraordinaryGeneral
Meetingisenclosedand,tobevalid,shouldbecompletedandreturned,inaccordancewiththeinstructions
printedonit,assoonaspossiblebutinanyeventsoastobereceivedbytheCompany'sregistrars,Capita
AssetServices,PXS1,34BeckenhamRoad,Beckenham,KentBR34TU,nolaterthan9.30amon15December
1
2016. The return of a completed Form of Proxy will not preclude a Shareholder from attending, speaking
and/orvotinginpersonattheExtraordinaryGeneralMeeting,shouldthatShareholderwishtodoso.
Thisdocumentshouldbereadasawhole.YourattentionisdrawntotheletterfromtheChairmansetout
in this document which contains an explanation of the background to, and a summary of, the Proposals
and the Directors' recommendation that you vote in favour of the Resolutions to be proposed at the
ExtraordinaryGeneralMeeting.
2
CONTENTS
ExpectedTimetableofPrincipalEvents................................................................................................................4
LetterFromtheChairman............................................................................................................................... .....5
Appendix1............................................................................................................................... ...........................27
Appendix2............................................................................................................................... ...........................30
Appendix3............................................................................................................................... ...........................34
Definitions............................................................................................................................... ............................44
NoticeofExtraordinaryGeneralMeeting..........................................................................................................49
FormofProxy............................................................................................................................... .......................54
IMPORTANTINFORMATION
DeutscheBank AG is authorised under German Banking Law (competent authority: European CentralBank)
and, in the United Kingdom, by the Prudential Regulation Authority. It is subject to supervision by the
European Central Bank and by BaFin, Germany’s Federal Financial Supervisory Authority, and is subject to
limited regulation in the United Kingdom by the Prudential Regulation Authority and Financial Conduct
Authority.DetailsabouttheextentofitsauthorisationandregulationbythePrudentialRegulationAuthority,
and regulation by the Financial Conduct Authority, are available on request or from
www.db.com/en/content/eu_disclosures.htm.
DeutscheBankAG,actingthroughitsLondonbranch(“DB”),isactingasfinancialadvisertotheCompanyand
no other person in connection with this document or its contents. DB will not be responsible to any person
otherthantheCompanyforprovidinganyoftheprotectionsaffordedtoclientsofDB,norforprovidingany
adviceinrelationtoanymatterreferredtoherein.Withoutlimitingaperson’sliabilityforfraud,neitherDB
nor any of its subsidiary undertakings, branches or affiliates nor any of its or their respective directors,
officers, representatives, employees, advisers or agents owes or accepts any duty, liability or responsibility
whatsoever(whetherdirectorindirect,whetherincontract,intort,understatuteorotherwise)toanyperson
whoisnotaclientofDBinconnectionwiththisdocument,anystatementcontainedhereinorotherwise.
3
EXPECTEDTIMETABLEOFPRINCIPALEVENTS
Eachofthedatessetoutbelowissubjecttochange.AlltimesareLondontimes.
2016
Publicationofthisdocument........................................................................................... 1December
LatesttimeanddateforreceiptofFormsofProxyfortheExtraordinaryGeneral
9.30amon15
Meeting............................................................................................................................ December
ExtraordinaryGeneralMeeting.......................................................................................
9.30amon19
December
ExpecteddateofAdmission(oftheSubscriptionSharesandthefirsttrancheofthe 7.00amon20
FeeSharestotradingonAIM)......................................................................................... December
4
LETTERFROMTHECHAIRMAN
GLOBALWORTHREALESTATEINVESTMENTSLIMITED
(acompanyincorporatedinGuernseyandregisteredwithnumber56250)
Directors:
GeoffMiller(nonͲexecutivechairman)
EliAlroy(nonͲexecutivedirector)
IoannisPapalekas(executivedirector)
DimitrisRaptis(executivedirector)
JohnWhittle(nonͲexecutivedirector)
AlexisAtteslis(nonͲexecutivedirector)
AkbarRafiq(nonͲexecutivedirector)
AndreeaPetreanu(nonͲexecutivedirector)
RegisteredOffice:
GroundFloor
DoreyCourt
AdmiralPark
StPeterPort
Guernsey
GY12HT
1December2016
DearShareholder
1.
Introductionandoverview
The Company announcedon 1December 2016that ithas agreed with GrowthpointPropertiesLimited
("GRT")andcertainfundsand/oraccountsmanagedbyOakHillAdvisors(Europe),LLPanditsaffiliates
("Oak Hill") the terms upon which GRT (through its wholly owned subsidiary Growthpoint Properties
InternationalProprietaryLimited)willsubscribefor23,300,000andOakHillwillsubscribefor1,700,000
Subscription Shares in each case at a price of €8 per Subscription Share to raise in total €200 million
before expenses. In connection with the Subscription, the Company has agreed to the Proposals
describedinthisCircular,subjecttoShareholderapproval.AnExtraordinaryGeneralMeetinghasbeen
convened tobeheldon19December2016 for thepurposeofseekingthatapproval. Asa term of the
Subscription, the Company is issuing an initial tranche of 1,000,000 Fee Shares to GRT and 72,961 Fee
SharestoOakHill,andafurthertrancheof1,000,000FeeSharestoGRTand72,962FeeSharestoOak
Hillbynolaterthan31December2017,ineachcasecreditedasfullypaidup.Immediatelyfollowingthe
issueoftheSubscriptionSharesandthefirsttrancheofFeeSharesandAdmission,theCompanywillhave
90,396,948SharesinissueandadmittedtotradingonAIM.
As a result of the Subscription and the related issue of the initial Fee Shares, GRT will initially own
approximately26.88%oftheenlargedissuedsharecapitaloftheCompany.Aftertakingintoaccountthe
remaining1,000,000FeeSharestobeissuedtoGRTandthe72,962FeeSharestobeissuedtoOakHillin
5
2017,GRTwillown27.66%,oftheenlargedissuedsharecapitaloftheCompany(assumingnootherissue
ofSharesandnootheracquisitionoranydisposalbyGRTofShares).
As a result of the Subscription and the related issue of the initial Fee Shares, Oak Hill will own
approximately11.25%oftheenlargedissuedsharecapitaloftheCompany.Aftertakingintoaccountthe
remaining1,000,000FeeSharestobeissuedtoGRTandthe72,962FeeSharestobeissuedtoOakHillin
2017, Oak Hill will own approximately 11.20%, of the enlarged issued share capital of the Company
(assuming no other issue of Shares and based on its current shareholding and assuming no other
acquisitionoranydisposalbyOakHillofShares).
IP's percentage interest will initially be reduced to approximately 25.72% of the enlarged issued share
capital of the Company and following the issue of the second tranche of Fee Shares, to approximately
25.41%oftheenlargedissuedsharecapitaloftheCompanyasaresultofShareissuancespursuanttothe
Proposals (assuming no issue of Shares other than the Subscription Shares and the Fee Shares or any
disposalbyIPorZakionoEnterpriseLimitedofShares).
TheissuepricefortheSubscriptionSharesrepresentsapremiumofapproximately58.42%totheClosing
Price on 30 November 2016, being the latest practicable date prior to the announcement of the
Proposals, before account is taken of the Fee Shares, and approximately a 12.57% discount to the 30
September 2016 periodͲend EPRA NAV of €9.15 (unaudited) published on 21 November 2016.
Application will be made to the London Stock Exchange for the 25,000,000 Subscription Shares and
1,072,961FeeShares(totaling26,072,961Shares),tobeadmittedtotradingonAIM,whichisexpected
tooccuron20December2016.Afurtherapplicationwillbemadeinduecourseforthesecondtranche
of Fee Shares to be issued in 2017 to be admitted to trading on AIM. The Subscription is conditional,
amongotherthings,on:(i)thepassingoftheResolutionssetoutintheNoticeofExtraordinaryGeneral
Meeting at the end of this document; (ii) the Subscription Agreement becoming wholly unconditional
(includingasaresultofapprovalfromtheFinancialSurveillanceDepartmentoftheSouthAfricanReserve
BankinrelationtotheinvestmentintheCompanybyGRT);and(iii)Admission.
As part of the Proposals, the Company proposes to adopt New Articles, make an adjustment to its
dividend policy and make a number of consequential alterations to its governance arrangements,
conditional upon Shareholder approval of the Resolutions and the Admission of the 25,000,000
SubscriptionSharesandthe1,072,961firsttrancheFeeShares,asdescribedinmoredetailinAppendix3.
RelatedcommitmentswillbereflectedintheRelationshipAgreemententeredintobetweenGRTandthe
Company,conditionalonAdmission,confirmingtheobjectivethattheCompanyshouldbemanagedfor
thebenefitofallshareholdersindependentlyofGRTandthatamajorityofDirectorsoftheCompanywill
be independent within the meaning of the Corporate Governance Code by and following the Annual
6
General Meeting in 2017. Similar provisions will be reflected in a replacement of the IP Relationship
AgreementasofAdmission.
The Company has announced that, subject to Admission, the Directors will be adapting the Dividend
Policy to distribute not less than 90% of the Company's FFO on a semiͲannual basis subject to any
solvencyorotherlegalrequirement.TheDirectorshavealsodeclaredthatadividendof€0.22perShare,
inrespectofthesixͲmonthfinancialperiodendingon30June2017,ispayableinQ32017toholdersof
SharesatthattimewhichwillincludetheSubscriptionSharesandfirsttrancheofFeeSharestobeissued
pursuanttotheProposals,assumingtheProposalsareapprovedbyShareholdersandAdmissionoccurs.
TheDirectorshavealsodeclaredthatadividendof€0.22perShare,inrespectofthesixͲmonthfinancial
periodendingon31December2017,ispayableinQ12018toholdersofSharesatthattimewhichwill
include the Subscription Shares and the Fee Shares to be issued pursuant to the Proposals, again
assuming the Proposals are approved by Shareholders and the second tranche of Fee Shares are
admitted to trading on AIM. Information regarding the record dates and payment dates for such
dividends will be announced in due course and are expected to occur in the period of three months
immediatelyfollowingtheexpiryoftherelevantfinancialperiodtowhichtherelevantdividendrelates.
The payment of each such dividend will be subject to customary reͲconfirmation of satisfaction of a
solvency test at the time of payment as required under Guernsey law as a result of the lapse of time
betweenthedeclarationandtheproposedpaymentofthesedividends.Theaggregateamountofsuch
dividendsisapproximately€40million(assumingnofurtherissueofSharesotherthantheSubscription
SharesandtheFeeShares).
The purpose of this document is to explain the background to and the reasons for the Proposals, to
explain why the Directors believe that the Proposals are in the best interests of the Company and its
Shareholdersasawhole,toprovidefurtherdetailinrelationtotheProposalsandtoseektherequired
Shareholderauthoritiesto implementthe Proposals atanExtraordinary GeneralMeeting convenedfor
19December2016.
2.
BackgroundtoandreasonsfortheProposals
SinceitsinitialpublicofferingandadmissiontoAIMinJuly2013,theCompanyhasbeenbroadeningits
sourcesofequitycapitalbyattractingsignificantinvestmentsfromanumberofinstitutionalandprivate
investors. The Company has raised approximately €355m through share issuances, principally in July
2013,April2014andOctober2015.
TheproposedSubscriptionrepresentsthesinglelargestequitycapitalraisingbytheCompanytodateand
will result in a sizeable institutional player in the global real estate industry becoming its largest
7
Shareholder,whichtheDirectorsbelievewillbringsignificantadditionalbenefitstotheCompanyandits
Shareholders,asfurtherdescribedbelow.
GRT was originally introduced to the Company by Deutsche Bank AG, London Branch, the Company's
financial adviser, as a potential investor. GRT sees its proposed investment in the Company as an
opportunitytopursueitsobjectiveofregionaldiversificationinCentralandEasternEurope("CEE")and
Southeast Europe ("SEE") with a focus on Romania. GRT is committed to investment in the Region
through its shareholding in the Company and will undertake not to hold any significant interest in a
competingbusinessintheRegionwithouttheagreementoftheCompany.Itwillalsoundertaketooffer
any real estate investment opportunities in the Region to the Company in priority and at no time to
invest in such opportunities for its own account in Romania. Further information about these
commitmentsisgivenbelowundertheheading'RelationshipAgreements'inAppendix3.
The Directors believe that the Subscription will bring the following significant benefits to the Company
anditsShareholders:
x
It provides a significant immediate capital injection (at a material premium to the current
share price) enabling the Company to fully develop the Globalworth Campus project and
pursueattractivepreͲidentifiedinvestmentopportunities,inlinewithitsinvestingpolicy.
x
GRTisalargepubliclylistedREITwithasignificantinstitutionalinvestorfollowingandalarge
anddiversifiedshareholderbase.ThiswillenabletheCompanytodrawonadeeperpoolof
equity and access alternative and potentially more costͲeffective sources of capital to
supportfuturegrowth.
x
It will result in further strengthening and diversification in its investor base, enhanced
governance and an active dividend policy, building on its institutional investment appeal
withtheprospectofgreaterliquidityfortheCompany'sshares.
x
TheCompany'sshareregisterwillbesignificantlymorebalancedthanatpresentasreflected
below,andwillresultinnopersonholdinga"control"position.
x
As a result of the significant capital injection, an improved financial position and the
potential acquisition of additional high quality assets, the size and profile of GRT, the
enhanced governance and more diversified equity base, the Company should have the
potentialtoraisefundsfromtheinternationaldebtcapitalmarketsatanattractivecostof
capital.
8
The following table provides a summary of the share register of the Company as at the date of this
document and following the Share issuances pursuant to the Proposals (for illustrative purposes,
assumingno changesintherelevantshareholdingsandnoissues ofSharesotherthanpursuanttothe
Proposals):
Numberof
Name
Sharesnowheld
GRT.......................................
Ͳ
I.Papalekas..........................
23,247,028
York.....................................
16,770,113
OakHill................................
8,396,613
GordelHold.Ltd...................
3,835,141
AltshulerGroup....................
2,645,603
Other....................................
9,429,489
Numberof
Sharesheld
immediately
followingthe
Subscription1
24,300,000
23,247,028
16,770,113
10,169,574
3,835,141
2,645,603
9,429,489
Percentage
interestin
current
issuedshare
capital
Ͳ
36.14
26.07
13.05
5.96
4.11
14.66
Percentage
interestinissued
sharecapital
immediately
followingthe
Subscription1
26.88
25.72
18.55
11.25
4.24
2.93
10.43
Note:
(1)
3.
IncludingtheinitialtrancheofFeeSharesbutexcludingthesecondtrancheofFeeShares.
SummaryoftheProposals
TheProposalscomprisethefollowingmainelements,eachconditionaluponAdmission:
x
theissueofSubscriptionSharesandtheFeeSharestoGRT;
x
theissueofSubscriptionSharesandtheFeeSharestoOakHill;
x
thetransferofwarrantsinrespectof,inaggregate,1,500,000Shares(approximately1.56%
oftheenlargedissuedsharecapitalimmediatelyfollowingimplementationoftheProposals)
heldbyZorvianiLimited(acompanybeneficiallyownedbyIP)toGRT;
x
entryintotheGRTRelationshipAgreement;
x
terminationoftheexistingIPRelationshipAgreementanditsreplacementbytheentryinto
the Zakiono Relationship Agreement between Zakiono Enterprises Limited (a company
beneficially owned by IP which holds 22,733,792 Shares in which IP is interested) and the
Company relating to the manner in which those Shares are voted or disposed of and a
separate New IP Relationship Agreement between IP and the Company relating to the
managementofcompetingbusinessinterests;
9
x
adoptionoftheNewArticlesandtheTermsofReference;and
x
adjustment of the Dividend Policy and the declaration of a dividend of €0.22 per Share,
payableinrespectofthesixmonthfinancialperiodendingon30June2017,toholdersof
Sharesat that timeincluding theSubscription Shares andfirsttranche of FeeShares to be
issuedpursuanttotheProposalsandadividendof€0.22perShare,payableinrespectofthe
six month financialperiodendingon 31December2017,to holders ofShares at thattime
includingtheSubscriptionSharesandtheFeeSharestobeissuedpursuanttotheProposals.
The Directors (other than IP who has taken no part in relation to the approval of the proposed
terminationoftheexistingIPRelationshipAgreementinviewofhisinteresttherein)considerthatthe
termination of the existing IP Relationship Agreement and its replacement with the New IP
RelationshipAgreementandtheZakionoRelationshipAgreementisfairandreasonableinsofarasthe
Shareholdersareconcerned.
FurtherdetailsoftheProposalsarecontainedinAppendix3tothisdocument.
4.
InvestingPolicy,DividendPolicyandGovernance
UndertheCompany'sInvestingPolicy,theCompany'sprimaryfocusistoinvestinadiversifiedportfolio
ofrealestateassetssituatedinRomania.TheCompanymayalsoinvestinrealestateassetslocatedin
other CEE and SEE countries. However, investments outside of Romania are subject to the restriction
that,unlesstheBoard(atitsabsolutediscretion)approvesotherwise,theCompanywillnotacquireany
assetwhereanysuchacquisitionwouldresultinmorethan50%oftheCompany'snetassetvalue(atthe
timeofinvestment)beingattributabletoassetslocatedoutsideRomania.
TheCompany'spropertyinvestmentstodatehavebeenfocusedonRomania.However,theCompany,in
discussionswithGRT,believesitappropriatewiththisinvestmentfromGRTandOakHilltobroadenits
property acquisition and investment focus to other CEE and SEE countries, as permitted by the
Company'sInvestingPolicy.
WhileinvestmentinadiversifiedportfolioofrealestateassetssituatedinRomaniaremainstheprimary
focus,theCompanywillthereforebemoreactiveinseekingopportunitiesinCEEandSEEwithaviewto
becomingamajorrealestateinvestorintheRegion.
TheCompanywillcontinuetofocusontheofficeandlogistic/lightͲindustrialrealestatesectorsandto
seekopportunitiesinvolvingassetswhicharecurrentlyorthroughactivemanagementcangeneratemost
10
of their income from reputable and financially sound local and multinational corporates on long, triple
netandannuallyindexedleases.
Under its Investing Policy, the Company is committed not to exceed a 60% loanͲtoͲvalue ratio on its
investments("LTV")althoughitistheCompany'sintentiontopursueatargetLTVofbetween40%and
50%.
IncludedwithintheCompany'sAdmissionDocumentatthetimeofadmissiontotradingonAIMinJuly
2013,theCompany'sdividendpolicywasstatedasfollows:
"Itisintendedthat90percent.oftheCompany'sdistributableprofitsrepresentedbyrecurringnetfree
cashͲflow will be distributed to Shareholders in cash on a semiͲannual basis. The determination as to
whetherornottoreinvestsomeoftheproceedsofdisposalofanasset,andthedeclarationofdividends,
shallbeatthediscretionoftheBoard."
To date the Board has not approved the payment of a dividend because it has concluded that the
Companyhasbeenbestservedbyretainingitscurrentcashreservestosupportitsinvestmentstrategy.
ThishasbeenlargelyasaresultoftheCompany'sinvestmentanddevelopmentactivityingrowingthe
Company'spropertyportfolio.TheCompanyhasdiscussedthedividendpolicyandapproachwithGRTas
partofitsproposedinvestmentintheCompany.
TheDirectorsbelievethattheproceedsfromtheSubscription,whichinpartwillbeusedtofullydevelop
theGlobalworthCampusprojectandthefurtherexpansionsinTAP,willsignificantlyaddresstheGroup's
currentdevelopmentfundingneeds.Inaddition,theCompanyhasmadesignificantimprovementsinthe
leasing of Globalworth Tower and Gara Herastrau which were delivered this year as well as in other
assets in its portfolio. Therefore, the Directors are satisfied that as of 2017 the Company can make
dividenddistributionsfromfreecashflow.
Accordingly,conditionalonShareholders'approvaloftheProposalsandAdmission,theBoardwilladjust
thedividendpolicysuchthatnotlessthan90%oftheCompany'sFFOwillbedistributedtoShareholders
onasemiͲannualbasissubjecttoanysolvencyorotherlegalrequirement.
TheDividendPolicyreferencedaboveisinsubstancethesameasthedividendpolicyintheCompany's
InvestingPolicy,savethatthelevelofdividendsundertheInvestingPolicyisstatedas"90percent.of
theCompany'sdistributableprofitsrepresentedbyrecurringnetfreecashͲflow"whichhasbeenreplaced
by"notlessthan90%oftheCompany'sFFO".
11
Under the New Articles, each of GRT and Zakiono Enterprises Limited will be entitled to nominate and
appointoneNonͲExecutiveDirectorforevery8%oftheissuedsharecapitaloftheCompanyheld.Such
appointment rights are scaled such that, taking the initial position as a starting point, if either of their
respectiveshareholdingsisreducedbelow16%thenGRTorZakionoEnterprisesLimitedasthecasemay
bewilllosetherighttoappointoneNonͲExecutiveDirector;ifeitheroftheirrespectiveshareholdingsis
reduced below 8% then GRT or Zakiono Enterprises Limited, as the case may be, will lose the right to
appoint one further NonͲExecutive Director, and if either of them disposes of all of their Shares, then
GRT’sorZakionoEnterprisesLimited’s,asthecasemaybe,righttoappointNonͲExecutiveDirectorsfalls
awayentirely.
Overall,theSubscriptionandrelatedProposalsmarkamajorstepintheprogressionoftheCompanyand
include enhanced governance of the Company with the Company in due course having a majority of
Independent Directors and intending to adopt additional governance standards consistent with the
Corporate Governance Code. The process is ongoing to identify potential appointees to the Board,
furtherdetailsofwhichwillbeannouncedinduecourse.Indeterminingtheindependenceofindividual
Directors,theBoardwilltakeintoaccounttherelevantfactorslaiddownintheCorporateGovernance
Code,inparticulartheirviewastothecapacityofeachindividualtoactindependentlyintheinterestsof
theCompanyandallShareholders.GiventhattheCompanydoesnothaveanominationcommittee,the
Board as a whole will engage in a process of selection and appointment of additional Independent
Directors,tostrengthenthelevelofindependentrepresentationontheBoard.
FurtherdetailsoftheProposalsareprovidedinAppendix3tothisdocument.
5.
AboutGRT
Growthpoint Properties Limited is the largest South African primary listed REIT with the vision to be a
leadinginternationalpropertycompanyprovidingspacetothrive.Itcreatesvalueforallitsstakeholders
through innovative and sustainable property solutions. GRT is the 35th largest company on the
JohannesburgStockExchangeandatop5constituentoftheFTSEEPRA/NAREITEmergingIndexandhas
been included in the FTSE/JSE Responsible Investment Index for seven years running. It owns and
managesadiversifiedportfolioof526propertyassetsspanningapproximately6.8millionsquaremetres.
This includes 467 properties in South Africa, 58 properties in Australia through its investment in
GrowthpointPropertiesAustraliaanda50%interestinthepropertiesatV&AWaterfront,CapeTown.
Pursuant to its international investment strategy, GRT continues to seek yieldͲenhancing investment
opportunitiesalongsidelocal,highlyexperiencedmanagementteams.GRThasidentifiedtheCompanyas
aplatformforGRTtopursueaninvestmentstrategyintheRegion.
12
Further information about GRT can be found in Appendix 2 to this document and at
www.growthpoint.co.za.
6.
TakeoverCodeimplicationsoftheProposals
As a Guernsey incorporated company, the Company is subject to the Takeover Code which is
promulgated,interpretedandenforcedbytheUKTakeoverPanel.TheprimarypurposeoftheTakeover
Codeistoregulatetheacquisitionandconsolidationofcontrolofcompanieswithinthejurisdictionofthe
TakeoverCodetoensurethatallshareholdersaretreatedequally.Consequentially,ifapersonaloneor
togetherwithanyofitsconcertparties(asdefinedintheTakeoverCode)acquiresinterestsinshares(as
definedintheTakeoverCode)carryingvotingrightsof30%ormoreexercisableatageneralmeeting,or
ifsuchpersonanditsconcertpartiesarealreadyinterestedinsharescarrying30%ormorebutlessthan
50%ofthetotalvotingrightsandacquiresanyfurtherinterests,suchperson(andpotentiallyitsconcert
parties)isnormallyrequiredbytheTakeoverCodetomakeamandatoryoffertoacquireallothershares
in the company for cash at a price no less than the highest price paid by the acquirer and its concert
partiesinthe12monthspriortotheannouncementoftheoffer.
AsaresultoftheProposals,eachofIPandGRTwillbeinterestedinShares(whichinterestsincludethe
right to subscribe to new Shares pursuant to the Warrants) carrying less than 30% of the votes
exercisable at a general meeting of the Company. Should either of IP or GRT acquire further interests
(includingpursuanttothepreͲemptionrightsondisposalofSharesdescribedundertheheading4.New
ArticlesͲPreͲemptionondisposalinAppendix3)whichresultineitherofthem,togetherwithanyoftheir
concert parties, being interested in shares carrying 30% or more of the votes exercisable at a general
meeting of the Company, absent a waiver from the UK Takeover Panel, a mandatory bid would be
required.
7.
UseofproceedsandfinancialeffectsoftheProposals
The net cash proceeds arising from the Subscription and related Proposals will be approximately €196
million.
The Company intends to use the proceeds to fund the entire development of its Globalworth Campus
project and the further expansions in TAP, making new acquisitions, including acquiring certain preͲ
identifiedassets(the"IdentifiedPipeline"–seebelow)andgeneralcorporatepurposes.
Globalworthhassignedmemorandaofunderstandingsorisinanadvancedstageofnegotiationforthe
potentialacquisitionoftheIdentifiedPipelinewhichconsistsofthreepropertyinvestmentsinRomania.
13
TheIdentifiedPipelineincludestwostandingpropertiesandadevelopment,ofwhichtwoarelocatedin
BucharestandoneisinaRomanianregionalcity.
Thestandingpropertiesareexpectedtocontributeapproximately€7.1millionperannumofadditional
rental income, while the project under development is expected to contribute an additional
approximately€5.4millionperannumoncecompleted.
TheIdentifiedPipelineincludeshighqualityofficeandlogisticspropertiespredominantlyleasedtowellͲ
known international corporates operating in Romania and abroad on the basis of longͲterm, tripleͲnet
Eurodenominatedandannualindexedleasecontracts.
Thetotalinvestmentforthethreeacquisitionsisestimatedatapproximately€136million.TheCompany
iscurrentlyundertakingthenecessaryduediligenceontheseassets.
IdentifiedPipeline
Class"A"Warehouse
Class"A"Office
Class"A"Office
TOTAL
Status
Standing
Standing
Development
GLA(sqm)
68,000
16,500
40,000
124,500
Estimated
Rent(€m)
4.1
3.0
5.4
12.5
AcquisitionPrice/
InvestmentCost(€m)
44.0
37.0
55.0
136.0
In addition to the above, the Company has identified approximately €150 million of further potential
acquisitionsthatitiscurrentlyanalysing.
8.
CompanyOperationalandTradingUpdate
GeneralOverview:2016HighlightsͲYTD
Globalworth, overthepast3years,has emergedasoneoftheoftheleadingrealestatecompaniesin
RomaniaandthewiderSEE/CEEregions.In2016theCompanycontinuedtomakesignificantstridesin
furtherstrengtheningitspositioninRomaniaandtheRegion,byprincipallyfocusingonorganicgrowth,
concentratingits efforts onits developmentprogramme, optimisingitscapital structure and improving
theoccupancyofitsportfolio.Inaddition,itcontinuedtoinvestinitsoperationalinfrastructureinorder
toallowittoserveitspartnersandshareholdersinanefficientandeffectiveway.
ProgresswithGlobalworth'sDevelopmentProgramme
Globalworth's real estate portfolio comprises 15 investments all located in Romania. Investments are
classifiedbystatusandincludestandingproperties,developmentsandlandforfuturedevelopment.The
14
total "Asis"1 value of theCompany's real estate portfolio asof30 September 2016was approximately
€962.9million.
Atthebeginningof2016,Globalworthwasintheprocessoffinalisingitsflagshipclass"A"Globalworth
Tower office property and had two other office buildings under construction, all located in the new
CentralBusinessDistrict("CBD")ofBucharest.Inaddition,inFebruary2016itagreedtofurtherexpand
itsTAPlightͲindustrialcomplexinTimisoara,withtheadditionofanewfacilitypreͲlettoValeo.
In the first half of the year, the Company delivered two office buildings, Globalworth Tower and Gara
Herastrau, thus increasing its total footprint of standing office GLA by approximately 66,700sqm. Both
class "A" office buildings were completed within their respective timelines and tenants have already
movedintotheirnewpremises.
Globalworth currently has two other active projects at different stages of development. Globalworth
Campus,theclass"A"officecomplexlocatedinBucharest,iscurrentlyunderconstructionwithTowerI
expectedtobecompletedinQ22017andTowerIIinQ42017.
In addition, a new approximately 13,500sqm lightͲindustrial facility is under construction, part of TAP
complex,whichisexpectedtobedeliveredinQ22017.
PortfolioHighOccupancyRatesupportedbyHighQualityLongͲTermLeases
Sincethebeginningof2016,GlobalworthhassuccessfullynegotiatedthetakeͲuporextensionofatotal
ofapproximately80,300sqmofcommercialgrossleasableareawithinitsbuildings,increasingthetotal
over the past 2 ½ years to approximately 220,300sqm and ranking the Group as one of the most
successfullandlordsintheRomanianrealestatemarket.
At the end of October 2016, the average occupancy rate of the standing commercial portfolio was
approximately80.8%,whiletheWALLofitsnewcommercialleases(excludingcontractextensions)was
approximately6.9years,inlinewiththeCompany'sstrategytoagreelongͲtermleasecontracts.
Theportfolioboastsadiversified,highͲqualitytenantmix,comprisingsome88nationalandmultinational
corporatesfrommorethan17differentcountries.
1
“AsIs”Valueasat30September2016;representsthe“AsIs”appraisedvaluationofthepropertiesasat30June2016,adjustedforvalue
accretive capital expenditure invested in Q3 ‘16 for GW Campus and the TAP developments less residential sales completed over the
period.
15
CapitalEfficiencyOptimisation
Globalworthisfocused on allocating capitalefficientlybothintermsofthe types of assets itinvests in
andbalancinghowitfundsitsinvestmentsbetweenequityandthirdͲpartydebt.
In 2016 the Company raised approximately €224 million from debt financing providers. In total, three
new facilities were completed involving either refinancing of existing facilities at improved terms or
raisingnewdebtagainstunencumberedproperties.
Themostnotabletransactionof2016wasthe€180millionseniorsecuredrealestatebond,whichwas
directly negotiated and subscribed to by the Canada Pension Plan Investment Board (CPPIB) and Cairn
CapitalandcompletedinMay2016.Apartoftheproceedswasusedtorepaya€100millionshortterm
corporate level facility expiring in 2016. Other financing transactions completed during the period
includedthereͲfinancingoftheTAPinvestmentandthefinancingoftheGaraHerastrauofficebuilding.
Thenewfacilitiescompletedin2016haveresultedinthereductionofGlobalworth'sweightedaverage
costofdebtfromapproximately6.2%asat31December2015toapproximately5.3%at30September
2016.Inaddition,theconsolidatedLTVratiohasremainedatthemoderatelevelofapproximately43.7%
asat30September2016(approximately43.9%at31December2015),wellbelowthe60%levelwhich
Globalworthiscommittedtomaintainatalltimes.
September302016YTDFinancialPerformance
Globalworth'srealestateportfolioofstanding/incomegeneratingpropertieshasincreasedsinceMarch
2015, with the addition of eight new properties which were either acquired from third parties or
developedbytheCompany.Thepositiveimpactoftheseadditionsisreflectedinthesignificantincrease
inNOI,whichforthefirstninemonthsof2016wasapproximately€33.8million,representinganincrease
of approximately 68% compared to the same period in 2015. The Company, in order to fund its
investment program, has accessed both the equity and debt capital markets during the same period,
which resulted in increased nonͲrecurring fees and costs which have negatively impacted EBITDA and
earningsbeforetax.EBITDA2reachedapproximately€36.1millionforthe9monthsended30September
2016 (down approximately 6% compared to the same period in 2015), though "Normalised EBITDA"3
fromongoingoperatingactivitieswasapproximately82%higherinthefirst9monthsof2016(compared
to2015)reachingapproximately€28.5million.
2
Calculatedasprofitbeforefinancecost,depreciation,amortisationofothernonͲcurrentassetsandgainonacquisitionofsubsidiaries.
Calculatedasprofitbeforefinancecost,depreciation,amortisationofothernonͲcurrentassets,gainonacquisitionofsubsidiaries,fair
valuegainoninvestmentproperty,andothernonͲoperationaland/ornonͲrecurringincomeandexpenseitems.
3
16
Earnings before tax were approximately €10.5 million for the 9 months ended 30 September 2016 (30
September2015:€39.3million)down73%comparedtothesameperiodin2015,mainlyimpactedbythe
significantgainonacquisitionofsubsidiariesin2015andthehigherleveloffairvaluegainoninvestment
propertyunderdevelopmentduringthe9monthsended30September2015,asaresultoftheincreased
level of capital expenditure on properties under development (mainly related to Globalworth Tower,
whichwascompletedinQ12016).
Globalworth's EPRA Net Asset Value was approximately €585.8 million at 30 September 2016,
representing an increase of approximately 3.1% and 20.3% compared to 31 December 2015 and 30
September2015respectively.EPRANAVpersharewasapproximately€9.15,representinganincreaseof
approximately0.8%ascomparedto31December2015and30September2015.IncreaseinEPRANAV
per share is more moderate than expected, as the metric has been impacted by the issue of
approximately€62millionofnewequitycapitalatanaverageofapproximately€6.0persharebetween
October2015andJune2016.
HighQualityTeamofProfessionalsBasedinBucharest&ImprovedInfrastructure
In2016,Globalworthcontinuedtoinvestinitsteamofskilledprofessionalsthroughselectedhiresmainly
withinpropertymanagement,aswellaswithincertainothersupportteams.Inaddition,itcontinuedto
implement the core modules of its new Enterprise Resource Planning system, with additional modules
expectedtobecomeoperationalbytheendoftheyear.
TheCompany'sstrategicdecisiontoinvestfurtherbothinitspropertymanagementteamandsoftware
has resulted from the fact that with more than 420,000sqm of GLA under management (expected to
increase further in the next 12 months) and an increasing number of suppliers and customers,
Globalworth'sbusinesshasreachedacriticalsize.Assuch,inordertobeabletoserviceitspartnersand
service providers in a more effective way and to improve economies of scale and the efficiency of its
operations, in 2015 the Company initiated this investment/buildͲup program which is expected to
continueinlinewiththegrowthintheGroup'sassetsandoperations.
PortfolioUpdate
Globalworth's real estate portfolio comprises 15 investments with a total of 19 assets. All real estate
propertiesarecurrentlylocatedintwoprincipalcitiesinRomania,Bucharest(thecapital)andTimisoara
(oneofthelargestlogisticshubsofthecountry),wheretheCompanyfocusesprimarilyonmanagingand
developingofficepropertieswhichaccountforapproximately81%ofthecarryingvalueofitsinvestment
17
properties. The majority of Globalworth's real estate portfolio is situated in the new CBD, with its
remainingassetsbeingpositionedinotherprimelocations.
PortfolioBreakdownbyClassification
31Dec.'15
(1)
30Sept.'16
(2)
"Completion"(1)
"AsIs"
"AsIs"
€931.1m
€962.9m
ofwhich:StandingProperties....................
74.7%
90.9%
98.3%
ofwhich:Developments............................
23.4%
7.3%
Ͳ
ofwhich:Landforfuturedevelopment.....
1.9%
1.8%
1.7%
TotalValuation
€1,082.6m
Notes:
(1)
"AsIs"and"Completion"valuationsasof31December2015and30June2016.
(2)
"AsIs"ValueforSep.'16;representsthe"AsIs"appraisedvaluationofthepropertiesasat30June2016,adjustedforvalueaccretive
capitalexpenditureinvestedinQ3'16forGWCampusandtheTAPdevelopmentslessresidentialsalescompletedovertheperiod.
StandingProperties
Globalworth'sportfolioofstandingassetsincreasedin2016withtheadditionoftheflagshipGlobalworth
TowerandthesmallerGaraHerastrauofficeproperties,whichweredeliveredinQ12016andQ22016
respectively.
As of 30 September 2016, the standing portfolio comprised 14 assets and had an appraised value of
approximately €874.9 million. In Bucharest, the Company owns 10 office properties and a residential
complexwhileinTimisoaraitownsalightindustrialparkcomprisingthreefacilities.
GlobalworthTowerisalandmarkofficepropertylocatedintheheartofthenewCBDofBucharest.Ata
height of approximately 120 metres, it is the second tallest office property in Romania and one of the
biggestintermsofspaceintheCEE/SEEregion.GlobalworthToweroffersapproximately54,700sqmof
Class"A"officespaceandasat31October2016wasapproximately71%lettohighqualitynationaland
international tenants including Vodafone (telecoms), Nestor Nestor Diculescu Kingston Petersen (law),
Huawei (telecoms), Delhaize / Mega Image (retailͲFMCG), Wipro (IT), Bunge (services), Ferrero
(confectionery), Anritsu Solutions (services) and Globalworth (real estate). The property has been preͲ
certifiedwiththeGreenCertificationofLEEDPlatinumand,onceobtained,itwillbethefirstbuildingin
RomaniaandthebroaderSEEregiontohavereceivedthehighestavailablegreenaccreditation.
18
Gara Herastrau was the second of Globalworth's projects to be delivered in 2016. This class "A" office
property is also situated in the new CBD and is adjacent to the Green Court Building complex and
approximately 200 metres from Globalworth Plaza and Globalworth Tower. It extends over 12 floors
(with an additional technical floor) and offers approximately 12,000sqm of GLA. The Gara Herastrau
officebuildingwasdeliveredinJune2016andasat31October2016hadanoccupancyofapproximately
69%. The property is anchored by ADP, the leading global provider of human capital management
solutions,withothertenantsincludingSaipem(oilandgas)andTripsta(services).
Globalworth's total standing GLA since 2015 yearͲend has increased by approximately 18.2% to
approximately 420,300sqm (as at 30 September 2016), of which approximately 370,000sqm is
commercial space, while the appraised value of the standing investment properties increased to
approximately €874.9 million (as at 30 September 2016), representing approximately a 25.9% increase
comparedto31December2015.
Allstandingpropertiesoftheportfoliohavebeencompletedorrefurbishedsince2008,withGlobalworth
continuously investing in the properties in order to maintain them as modern and in line with tenant
demand.
The numberof'green'properties owned bythe Company has also increased followingthe receipt of a
LEED Gold accreditation by the Green Court Building "B" property and BREEM Excellent by the Gara
Herastrauproperty.Theportfoliocurrentlycomprisessevengreenaccreditedproperties,withfiveother
currently under various stages of green certification. The Company expects to complete the green
certificationprocessinthenext12months.
GreenCertifiedProperties
BOB:
x BREEAMInͲuse/
ExcellentandLEEDGold
certifications(forpart
oftheproperty)
BOC:
x BREEAMInͲuse/
Excellentcertification
UniCreditHQ:
x BREEAMVERYGOOD
certification
CityOffices:
x LEEDGoldcertification
PropertiesUnderGreenCertificationProcess
Globalworth
x LEEDPlatinum
Tower:
TCI:
x BREEAMVeryGood/
Excellent
GlobalworthPlaza:
x BREEAMVeryGood/
Excellent
Globalworth
Campus:
x BREEAMVeryGood/
Excellent
GreenCourt"A":
x LEEDGoldcertification
GreenCourt"B":
x LEEDGoldcertification
UpgroundTowers: x BREEAMVeryGood/
Excellent(ongoing)
GaraHerastrau:
x BREEAMExcellent
19
In addition to the commercial portfolio, Globalworth owns 424 apartments at Upground Towers, a
moderntwoͲtowerresidentialcomplexwithatotalof571apartmentsbenefitingfromfineviewsofthe
nearbyTeilake.204apartmentsarecurrentlyleased,generatingannualrentalincomeofapproximately
€1.6million.
TotalStandingProperties
NumberofInvestments........................................................
NumberofAssets..................................................................
GLA(sqm)(1)...........................................................................
"AsIs"Valuation(2):...............................................................
TotalCommercialProperties
NumberofInvestments........................................................
NumberofAssets..................................................................
GLA(sqm)..............................................................................
"AsIs"Valuation(2)................................................................
Occupancy(3)..........................................................................
ContractedRent(3)(4).............................................................
WALL(3)..................................................................................
31Dec.'15
10
12
355,513
€695.1m
31Oct.'16
12
14
420,343
€874.9m
31Dec.'15
9
11
303,155
€595.6m
85.1%
€36.3m
6.0yrs
31Oct.'16
11
13
370,033
€779.3m
80.8%
€45.2m
6.6yrs
Notes:
(1)
Includes approximately 52,358sqm and approximately 50,310sqm of residential space in 31 December 2015 and 31 Oct 2016
respectively.
(2)
Appraised valuations as of 31 December 2015 and 30 September 2016 respectively (Note: 30 September 2016 "As Is" value,
representstheappraisedvaluationsofthepropertiesasof30June2016,adjustedforvalueaccretivecapitalexpenditureinvestedin
Q3'16forGWCampusandtheTAPdevelopmentslessresidentialsalescompletedovertheperiod).
(3)
Occupancy,ContractedRentandWALLrepresentonlyCommercialspacesandexcludeapproximately€1.6millionofrentalincome
receivedfromresidential.
(4)
ReductioninoveralloccupancymainlyimpactedbythedeliveryofGlobalworthTowerandGaraHerastrauwhichareintheleaseͲup
phase.
Developments
Following the delivery of the Globalworth Tower and Gara Herastrau office buildings in H1 2016, the
Company has two other projects under development, an office campus located in the new CBD of
BucharestandanewlightͲindustrialfacilityinTimisoara.
Bucharest
TheGlobalworthCampusproject,whichuponfinalcompletionwillofferthreeClass"A"officetowersand
total GLA of approximately 88,700sqm, is being developed in two phases. Phase "A" – currently under
20
construction – will comprise two side towers facing Dimitrie Pompeiu Street (main street) with a total
GLAofapproximately57,000sqmoncompletion,whilePhase"B"willcompriseonemiddletower,which
oncompletionwillcontributeadditionalGLAofapproximately31,800sqm.
ThedevelopmentofPhase"A"isprogressinginlinewiththeestimatedtimeline.InTowerIthestructural
concrete works have been completed, and the façade is currently being fitted out with approximately
85% completed with a glazed surface. For Tower II the Company has now completed the necessary
preparatoryactivities,includingexcavations,sitepreparationetc.Deliveryofbothtowersisexpectedin
2017.
GlobalworthiscurrentlyinnegotiationswithanumberoftenantsforthetakeͲupofspaceinbothtowers
underconstruction.TowerIwhichhasbeenleasedtoTelekomsinceOctober2014andkeptoutofthe
marketuntilSeptember2016,isnowavailable,asthetenanthasbreacheditscontractualobligationsand
unilaterally terminated the lease contract in place. Globalworth has taken all the necessary steps to
protectitslegalandcontractualrightsaspertheTelekomleaseandhasinitiatedlegalproceedingsinthe
courtstorecoveralldamagesgeneratedbyTelekom'sactions.
For both office buildings under development the Company has adopted a number of environmentally
friendly principles and as such anticipates being able to achieve Green certifications of BREEAM Very
GoodorExcellent.
Timisoara
InFebruary2016,ValeoexerciseditsoptiontoexpandfurtherintheTAPcomplex,withthedevelopment
ofanewapproximately13,500sqmlightͲindustrialfacility.
This will be the second time that Valeo has expanded within the park since its arrival in 2011 and on
delivery of the new facility in Q2 2017, it will occupy approximately 43% of the total standing GLA
(approximately94,900sqm)oftheparkatthetime.
TAP has proven to be a much sought after location by high quality multinational tenants, as this is
approximately the third time in the past 2 years that a tenant of a similar profile has decided to lease
spaceinthepark.
ContinentalAutomotiveandElsterRometrics,thetwoothertenantsinthecomplex,movedintoTAPin
2015followingthedeliveryoftwonewhighͲqualitylightindustrialfacilitieswithatotalofapproximately
53,900sqminQ1andQ3of2015.Asof31October2016,thecomplexofferedatotalofapproximately
81,349sqmofGLAandwasapproximately97.3%occupied.
21
TAPhasthepotentialforfurtherdevelopmentreachingtoatotalGLAofapproximately123,400sqmasa
resultoftheextensionoptionscurrentlyavailabletotheexistingtenantsofthepark.
The"AsIs"valueoftheDevelopmentProjects,asof30September2016wasapproximately€70.0million.
Oncompletion, the projects are expected todeliverapproximately130,680sqmofnew office and light
industrialspace,withanappraisedvalueofapproximately€189.7million.
DevelopmentProjects
NumberofInvestments...............................................................
NumberofAssetstobeDeveloped(1).........................................
GLA(sqm)(2).................................................................................
"Asis"Valuation(3).......................................................................
"Completion"Valuation(3)...........................................................
31Dec.'15
4
7
197,402
€217.8m
€370.5m
31Oct.'16
2
5
130,679
€70.0m
€189.7m
Notes:
(1)
NumberofAssetsrepresentthetotalnumberofbuildingstobedevelopedupondeliveryofallphasesofthedevelopments.
(2)
GLAassumingallphasesofdevelopmentprojectsarebeingconstructed.
(3)
Appraisedvaluationsasof31December2015and30September2016.30September2016"AsIs"value,representstheappraised
valuationsofthepropertiesasof30June2016,adjustedforvalueaccretivecapitalexpenditureinvestedinQ32016forGWCampus
andtheTAPdevelopments.
DevelopmentProjects–31
Oct.'16
NumberofInvestments............
NumberofAssetstobe
Developed.................................
GLA(sqm).................................
"Asis"Valuation(3)....................
"Completion"Valuation...........
Under
Construction(1)
Future
Development(2)
2
2
TotalDevelopment
2investmentsdeveloped
instages
3
70,450
€51.0m
€116.5m
2
60,229
€19.0m
€73.2m
5
130,679
€70.0m
€189.7m
Notes:
(1)
"UnderConstruction";dataasof31October2016comprises,GlobalworthCampusPhaseIandTAPexpansionforValeo.
(2)
"FutureDevelopment";dataasof31October2016comprises,GlobalworthCampusPhaseIIandotherexpansionoptionsavailable
atTAP.
(3)
"AsIs"Valuation;representsthe"AsIs"appraisedvaluationofthepropertiesasat30June2016,adjustedforvalueaccretivecapital
expenditureinvestedinQ32016forGWCampusandtheTAPdevelopments.
22
LandforFutureDevelopment
GlobalworthownslandplotsintwoprimelocationsinBucharest(HerastraulakeandthehistoricalCBD)
for future development. These plots represent further opportunities for office or mixedͲuse
developments,whichtheCompanyintendstotakeadvantageofinthefutureinordertofurthergrow
ourrealestateportfolio.
Thetotallandsizeforfuturedevelopmentinthesetwolocationsisapproximately9,767sqmwhichhave
anappraisedvalueofapproximately€18.1million.
LeasingUpdate
Globalworthoverthepast3yearshassuccessfullynegotiatedthetakeͲupofapproximately220,300sqm
ofcommercialGLAwithinitsbuildings,confirmingtheCompany'spositionasoneofthemostsuccessful
investorsanddevelopersintheRomanianrealestatemarket.
In2016theCompanysignedintotalapproximately80,300sqmofcommercialGLAinitsproperties.New
leases(GLA:approximately51,400sqm)signedinthefirstc.10monthsoftheyearareapproximately82%
morecomparedtothewholeof2015,andhavebeensignedataWALLofapproximately6.9years.
The Green Court Building "B" is now 100.0% leased (vs approximately 82.1% at yearͲend 2015), and
significant progress in lettings has been made in the recently completed Globalworth Tower and Gara
Herastrau office properties, which as of 31 October 2016 had occupancy of approximately 70.8% (vs
approximately66.7%asof30June2016andapproximately51.0%atyearͲend2015)andapproximately
68.9%(vsapproximately50.6%asof30June2016andvacantatyearͲend2015),respectively.
Inaddition,theCompanyhascontinuedtoimprovetheriskͲprofileofitsportfolio,throughtheextension
and/orexpansionofleaseswithsomeofitsprimetenants,suchasDeutscheBankinBOBandHoneywell
andHewlettPackardEnterprisesinBOC,andCegekaandHidroelecticainTCI.
Newcontractssignedin2016includedthosewithwellͲknownnationalandmultinationalcorporatessuch
as Valeo (TAP) for c.13,500sqm, Deutsche Bank (BOB) for c.6,200sqm, ADP (Gara Herastrau) for
c.6,100sqm, Honeywell (BOC) for c.3,800sqm, Hewlett Packard Enterprises (BOC) for c.2,500sqm,
Vodafone (Globalworth Tower) for c.2,000sqm, Wipro (Globalworth Tower) for c.1,980sqm, Ericsson
(GreenCourt"B")forc.1,900sqm,Bunge(GlobalworthTower)forc.1,800sqm,TripstaandSaipem(Gara
Herastrau) forc.2,200sqm,Ferreroand Anritsu(GlobalworthTower)for atotalofc.1,800sqm,while in
TCI the Company signed expansion contracts with existing tenants Cegeka, Hidroelectrica and EY for a
23
totalofc.3,100sqm.Inaddition,GlobalworthsuccessfullyrenegotiateditsleaseswithHoneywell(BOC),
HP(BOC)andCegeca(TCI)foratotalofc.28,900sqm.
TheaverageoccupancyrateoftheCompany'sstandingcommercialportfolioasof31October2016was
approximately80.8%.
Currently, the portfolio is occupied by 88 different national and multinational corporates from 17
differentcountries,includingsomeofthemostrecognisablecorporatesintheirrespectiveindustries.
The WALL remaining on the commercial lease space in the Company's portfolio was approximately 6.6
yearsat31October2016.
Year
%
CommercialContractedRentExpirationProfile(%oftotal)– 31Oct.'16
2016
2017
2018
2019
2020
4.5%
0.9%
1.4%
1.8%
18.5%
ш2021
72.9%
TenantOrigin:
%ofContractedRent
31Oct.16
Multinational
87.8%
National
6.7%
StateOwned
Entities
5.5%
SelectedTenantsofCommercialPortfolio
AbbottLaboratories,Adecco,ADP,AnritsuSolutions,
Bayer,Billa,BRD,Bunge,Carrefour,Cegeka,
Clearanswer,ColgateͲPalmolive,Continental,Credit
AgricoleBank,DelhaizeGroup,Telekom,Deutsche
Telekom,EADS,ElsterRometrics,Ericsson,EY,Ferrero,
GfK,Honeywell,HewlettPackardEnterprise,Huawei,
Intel,MoodMedia,NBGGroup,Nestle,Orange,Piraeus
Bank,Saipem,Sanofi,SchneiderElectric,Skanska,
Starbucks,Stefanini,Subway,Tripsta,UniCredit,Valeo,
Vodafone,Wipro,Worldclass
CITR,GlobalVision,NNDKP,NXData,RINF,Creative
Media
Hidroelectrica,MinistryofEuropeanFunds
Further information about the Company can be found in Appendix 1 to this document and at
www.globalworth.com.
9.
ExtraordinaryGeneralMeeting
AnoticeconveninganExtraordinaryGeneralMeetingoftheCompanytobeheldattheregisteredoffice
oftheCompanyatGroundFloor,DoreyCourt,AdmiralPark,StPeterPort,GuernseyGY12HT,at9.30am
on19December2016issetoutattheendofthisdocument.ThepurposeoftheExtraordinaryGeneral
Meeting is to seek the approval of Shareholders for the Proposals, the related authorities required to
24
implement the Proposals and authorities to issue Shares, which supersede unexercised preͲexisting
authoritiesasenvisagedintheshareissuanceprovisionsoftheNewArticles.
10.
Actiontobetaken
Shareholders will find enclosed with this document a Form of Proxy for use in connection with the
ExtraordinaryGeneralMeeting.
Shareholders,whetherornottheyproposetoattendtheExtraordinaryGeneralMeetinginperson,are
requestedtocomplete,signandreturntheenclosedFormofProxy,inaccordancewiththeinstructions
printed on it, so as to be received by the registrars of the Company, Capita Asset Services, PXS1, 34
BeckenhamRoad,Beckenham,KentBR34TU,notlessthan48hoursbeforethetimeappointedforthe
meeting(nottakingaccountofanypartofadaywhichisnotabusinessdayinLondonandGuernsey),
being9.30amon15December2016.CompletionandreturnofaFormofProxybyaShareholderwillnot
precludethatShareholderfromattending,speakingand/orvotinginpersonattheExtraordinaryGeneral
Meetingshouldtheysowish.
IrrevocableUndertakings
EachofZakionoEnterprisesLimited,IP,DimitrisRaptis,YorkandOakHillhasirrevocablyundertakento
vote in favour of the Resolutions to give effect to the Proposals as described in this document to be
proposed at the Extraordinary General Meeting in respect of in aggregate 48,766,161 Shares,
representingapproximately75.81%oftheexistingissuedShares.
11.
Furtherinformation
YourattentionisdrawntothefurtherinformationinAppendices1to3tothisdocument.
Youareadvisedtoreadthewholeofthisdocumentandnottorelysolelyontheinformationcontained
inthisletter.
12.
Recommendation
TheDirectorsconsiderthattheSubscription,theoverallProposalsandtheResolutionstobeproposed
attheExtraordinaryGeneralMeeting,arefairandreasonableandinthebestinterestsoftheCompany
anditsShareholdersasawhole.
Accordingly, the Directors unanimously recommend that Shareholders vote in favour of the
Resolutions as they intend to do so in respect of their shareholdings, noting that the Company has
25
received irrevocable commitments to vote in favour of the Resolutions in respect of in aggregate
48,766,161Shares,representingapproximately75.81%oftheCompany'sissuedsharecapital.
Yoursfaithfully
GeoffMiller
Chairman
26
APPENDIX1
ADDITIONALINFORMATIONABOUTTHECOMPANY
1.
Companyaddress
The registered office of the Company, which is incorporated in Guernsey, is located at Ground Floor,
DoreyCourt,AdmiralPark,StPeterPort,GuernseyGY12HT.
2.
Directors
TheDirectorsoftheCompanyare:
Name
Title/Position
Geoff
Miller
x NonͲExecutive
Director
x Chairman of the
Board
Ioannis
Papalekas
x Founder
x Chief Executive
Officer
Dimitris
Raptis
x Deputy
Chief
ExecutiveOfficer
x Chief
Investment
Officer
Commentary
GeoffMillerspentover20yearsinresearchandfundmanagementinthe
UK, specialising in the finance sector, before moving offshore, firstly to
MoscowandthentoSingaporebeforebecomingaGuernseyresidentin
2011.
He was formerly a number one rated UK mid and small cap financial
analyst covering investment banks, asset managers, insurance vehicles,
investmentcompaniesandrealestatecompanies.
Geoff is Chief Executive Officer and CoͲFounder of Afaafa, a business
which provides investment and consultancy services to early stage
companiesfocusedinthefinancialsandtechnologysectors.Heisalsoa
Directorofanumberofprivatecompanies.
Founder of Globalworth, Ioannis Papalekas has over 17 years of real
estate investment and development experience, 15 of which were in
Romania, having created one of the most successful real estate
developmentandinvestmentgroupsintheRomanianrealestatemarket.
He is experienced in the acquisition, master planning, development,
reconstruction,refurbishment,operationandassetmanagementofland
andbuildingsacrossallmajorassetclassesinRomania.Ioannishasbeen
responsible for the development of more than 400,000sqm of
commercial(office,retailandlogistics)spaceand1,000residentialunits
in Romania, realising an IRR of 175% and an equity multiple of 4.7x on
investedcapital.
DimitrisRaptisjoinedGlobalworthinNovember2012,following16years
of experience in the financial services and real estate investment
managementindustrieswithDeutscheBank,thelast12yearsasasenior
member of the real estate investment management group of Deutsche
Bank'sAssetandWealthManagementdivision("RREEF").
From2008to2012,DimitriswasManagingDirectorandEuropeanHead
of Portfolio Management for RREEF Opportunistic Investments ("ROI").
In this role he was responsible for overseeing ROI's acquisitions across
Europe as well as managing ROI's panͲEuropean real estate investment
portfolioconsistingof40investmentswithagrossassetvalueinexcess
of€6bn.From2000to2008,Dimitriswasaseniormemberoftheteam
27
EliAlroy
John
Whittle
responsible for originating, structuring and executing real estate
investments,withamainfocusontheFrench,ItalianandSouthͲEastern
Europeanmarketswithanenterprisevalueinexcessof€5.5bnacrossall
majorassetclasses.
EliAlroyhasextensiveinternationalexperienceinrealestateinvestment
and project management. From 1994 to 2012 Eli was Chairman of the
Supervisory Board of Globe Trade Centre S.A. ("GTC"), traded on the
Warsawstockexchange.Duringpartofthisperiod(from1994to1997)
ElialsoservedastheCEOofKardanRealEstate.
x NonͲExecutive
ElireceivedaBScincivilengineeringfromtheTechniconinIsraelandan
Director
MScfromStanfordUniversityintheUSA.
In2010EliwashonouredwiththeprestigiousCEEQARealEstateLifetime
Achievement award, sponsored by the Financial Times, for his
commitmenttotherealestateindustryinCentralandEasternEurope.
John Whittle is a Chartered Accountant and holds the IoD Diploma in
CompanyDirection.
He is a NonͲExecutive Director of International Public Partnerships Ltd2
(FTSE250),StarwoodEuropeanRealEstateFinanceLtd1(LSE),ToroLtd1
(SFM), India Capital Growth Fund Ltd, Globalworth Real Estate
Investments Ltd and Aberdeen Frontier Markets Investment Company
Ltd3(AIM)andisalternateDirectorofGLIFinanceLtd(AIM).
x NonͲExecutive
He also acts as NonͲExecutive Director to several other, mainly PE,
Director
GuernseyinvestmentfundsandB&QChannelIslands.
x Chairman of the John'sexperiencealsoincludespositionsastheFinanceDirectorofClose
Audit
and FundServices(alargeindependentfundadministrator),andheldvarious
Remuneration
positionsatPriceWaterhouseCoopersinLondon.HecoͲledthebusiness
Committees
turnaround of Talkland International (now Vodafone Retail) and was
directly responsible for the strategic shift into retail distribution and its
subsequentimplementation.JohnwaspreviouslyatJohnLewisandwas
CFO of Windsmoor (London LSE). He is also the Chairman of the NED
committeeoftheGuernseyInvestmentFundAssociation.
Notes:
(1) Audit Committee Chair, (2) Audit Committee Chair and Senior Independent Director, (3)
Chairman.
Akbar
Rafiq
Alexis
Atteslis
x NonͲExecutive
Director
x NonͲExecutive
Director
AkbarRafiqservesas a Partner, Portfolio Manager and Head of Europe
Credit at York Capital Management. Akbar joined York Capital
ManagementinJune2011andisaPartnerofYorkCapitalManagement
Europe (UK) Advisors LLP. Akbar is a CoͲPortfolio Manager of the York
EuropeanDistressedCreditfunds.From2007to2011,Akbarworkedasa
VicePresidentandSeniorDistressedDebtAnalystatDeutscheBankAG,
London. Previously, Akbar held various positions in the investment
bankingdivisionatBear,StearnsandCo.Inc.From2000to2003,Akbar
workedasanAssociateforaprivateequityfirm,AltaCommunications.
Alexis Atteslis serves as a Managing Director at Oak Hill Advisors with
seniorresponsibilityforEuropeaninvestments.Hepreviouslyworkedat
Deutsche Bank and PricewaterhouseCoopers. He received an MA from
28
Andreea
Petreanu
the University of Cambridge and has earned a Chartered Accountant
qualificationwiththeInstituteofCharteredAccountantsinEnglandand
Wales.
Andreea Petreanu is currently Head of Credit Risk Management at
MizuhoInternationalinLondon.Overthepast15years,Andreeahashad
various risk management roles with global investment banks such as
MorganStanley,HSBC,MerrillLynch,BankofAmericaandVTBCapital.
Andreea's educational background includes an Executive MBA from the
UniversityofCambridge,JudgeBusinessSchoolandanMScinInsurance
andRiskManagementfromCityUniversity,CASSBusinessSchool.Sheis
alsoanAssociateoftheCharteredInsuranceInstituteinLondon.
x NonͲExecutive
Director
3.
Directorsinterestsinshares
As at 30 November 2016 the latest practicable date prior to the publication of this document, the
Directors (Executive and NonͲexecutive) held interests in a total 24,018,249 shares of the Company
representingapproximately37.34%ofthecurrentissuedsharecapital.
Name:
Title/Position
IoannisPapalekas............... x Founder
x ChiefExecutiveOfficer
EliAlroy.............................. x NonͲExecutiveDirector
DimitrisRaptis.................... x DeputyChiefExecutiveOfficer
x
GeoffMiller........................ x
x
JohnWhittle....................... x
x
ChiefInvestmentOfficer
NonͲExecutiveDirector
ChairmanoftheBoard
NonͲExecutiveDirector
Chairman of the Audit and
RemunerationCommittees
TOTAL.............................. Number
of
Shares in which Percentage of
interested
TotalShares
23,247,028
36.14%
398,814
0.62%
352,407
0.55%
11,000
0.02%
9,000
24,018,249
0.01%
37.34%
Asat30November2016thelatestpracticabledatepriortothepublicationofthisdocument,noneofthe
DirectorsholdsanyinterestinthesharecapitalofGRT.
4.
Significantchange
TherehasbeennosignificantchangeinthefinancialortradingpositionoftheGroupsince30June2016,
beingthelastdateofthelastfinancialperiodforwhichfinancialinformationhasbeenpublished.
29
APPENDIX2
ADDITIONALINFORMATIONABOUTGRT
ThefollowinginformationhasbeenderivedfrominformationpublishedbyGRT.
1.
GRTaddress
TheregisteredofficeofGRT,whichisincorporatedintheRepublicofSouthAfrica,is1SandtonDrive,The
Place,Sandton,2196,RepublicofSouthAfrica.
2.
Directors
TheDirectorsofGRTare:
Name
Title/Position
FrancoisMarais............... Chairman
Commentary
AppointedtotheBoardin2003
IndependentnonͲexecutive
BCom,LLB,HDip(CompanyLaw)
Career: A founding member of Glyn Marais Inc., a legal
firm, a director of Growthpoint Properties Australia
LimitedandV&AWaterfrontHoldings(Pty)Ltd
Skills and expertise: Legal as applies to corporate finance
in general and dispute resolution, particularly alternative
disputeresolution
NorbertSasse.................. Chief Executive AppointedtotheBoardin2003
Officer
ChiefExecutiveOfficer
BCom(Hons)(Acc),CA(SA)
Career: Experience in corporate finance dealing with
listings, deͲlistings, mergers, acquisitions and capital
raising.
Director of major Group subsidiaries, Growthpoint
Properties Australia Limited, V&A Waterfront Holdings
(Pty)Ltdandsubsidiaries,AfricanRealEstateManagement
Company Limited and Growthpoint Investec Africa
PropertyManagementLimited
Skills and expertise: Experience in corporate finance,
propertyandgeneralmanagement
GeraldVölkel................... Financial
AppointedtotheBoardin2013
Director
BAcc,CA(SA)
Career: Ended 15 years in the auditing profession as an
auditpartnerwiththeformerErnst&Youngbeforejoining
the JD Group Limited in November 1995, where he was
appointedtoitsBoardinApril2001astheChiefFinancial
Officer having fulfilled that role for 12 years. Director of
majorGroupsubsidiaries
Skills and expertise: Financial, tax and general
management
30
MzolisiDiliza................... NonͲexecutive
EstiennedeKlerk............ Managing
Director
PeterFechter.................. Independent
nonͲexecutive
JohnHayward................. Independent
nonͲexecutive
PatrickMngconkola........ NonͲexecutive
AppointedtotheBoardin2001
BCom,BBAinManagement(Hons)
Career:ExecutiveChairmanofStrategicPartnershipGroup
(Pty) Ltd, Director of Bombela Concession Company,
Director of Bombela Operating Company Proprietary
Limited,ChairmanofMegaExpress(Pty)Ltd,Chairmanof
Teba Fund Trust, Board member of NWUͲPotchefstroom
BusinessSchool,formerChiefExecutiveoftheChamberof
MinesofSouthAfrica.
Skills and expertise: Expertise in the mining, investments,
consulting engineering and property and infrastructural
developmentsectors
AppointedtotheBoardin2008
BCom (Industrial Psych), BCom (Hons) (Marketing), BCom
(Hons)(Acc),CA(SA)
Career:Extensiveexperienceinlistedproperty,involvedin
BEE transactions, mergers and acquisitions. Director of
major Group subsidiaries, Growthpoint Properties
Australia Limited and V&A Waterfront Holdings (Pty) Ltd
andsubsidiaries.
Past President of SAPOA and Chairman of SA Reit
Associationtaxandregulatorycommittee
Skills and expertise: Financial, general management and
property
AppointedtotheBoardin2003
BSc(Eng)
Career: Lifelong management and direction of businesses
in the Building Construction, Commercial and Industrial
Property Development arena, resulting in broader
directionofassociatedinvestmentcompanies.
Skills and expertise: Lifelong expertise in the building
construction,propertydevelopmentandinvestmentarena
AppointedtotheBoardin2001
BSc (Hons), Fellow of the Institute of Actuaries and
ActuarialSocietyofSouthAfrica
Career: Actuary and consultant, mainly in the investment
andretirementfundfields
Skillsandexpertise:Financeandrisk
AppointedtotheBoardin2012
BTech (Business Administration), BA (Human Resources
Management), National Diploma Police Administration,
Certificate:ForensicInvestigativeAuditing(Unisa)
Career: NonͲexecutive director of the Public Investment
Corporation (SOC) Limited and former trustee of the
Government Employees Pension Fund, Director of V&A
31
HughHerman.................. Independent
nonͲexecutive
LynetteFinlay.................. Independent
nonͲexecutive
RagavanMoonsamy........ Independent
nonͲexecutive
MpumeNkabinde........... Independent
nonͲexecutive
WaterfrontHoldings(Pty)Ltdanditssubsidiaries
Skills and expertise: Broad experience with numerous
yearsofstudiesinbusinessoversightandascivil servant,
particularlyinfinanceandpeoplemanagementskills
AppointedtotheBoardin1995
BA,LLB
Career: Chairman of Investec Asset Management Limited
andInvestecAssetManagementHoldingsLimited.Former
Chairman of Investec Bank (UK) Limited, Investec plc and
Investec Limited. Director of Investec USA Holdings Corp,
Investec Securities (US) LLC, Pick n Pay Holdings Limited,
Pick n Pay Stores Limited, Freddy Hirsch Group (Pty) Ltd
andMelbroWholesale(Pty)Ltd
Skills and expertise: Broad legal and business experience,
includingpropertydevelopment
AppointedtotheBoardin2009
BCompt(Hons),CA(SA)
Career:ChiefExecutiveOfficerofFinlayMallLeasing(Pty)
Ltd, first female President of South African Property
OwnersAssociation(SAPOA),cofoundingmemberofNoah
Skills and expertise: Every aspect of commercial property
encompassing management, development and leasing in
offices, industrial and retail including rural shopping
centres
AppointedtotheBoardin2005
Career: Founder of Kascara Financial Services (Pty) Ltd,
Managing Director of UniPalm Investment Holdings (Pty)
LtdandDirectorofQmuzikTechnologies(Pty)Ltd
Skills and expertise: Over 30 years of experience in
investments and finance and has successfully applied his
abilities to drive significant value to sustain 2016
performance
AppointedtotheBoardin2009
MBA, Honours in HRD, Diploma in Adult Education,
Postgraduate Diploma in Property Development and
Management
Career: CoͲfounder and Managing Director of Sigma Lifts
and Escalators (Pty) Ltd and founder of the Engineering
Partner'sGroup.Heldseniormanagementpositionsinthe
field of business development, human resources,
communication,aswellastraininganddevelopmentwith
reputableorganisationsincludingP.GBisonandOtis(Pty)
Ltd
Skills and expertise: Expertise in business development
andgeneralmanagement,whichhavebeenacquiredover
32
EricVisser........................ Independent
nonͲexecutive
a20Ͳyearperiodinlocalandinternationalcompanies
BCom(Hons)
AppointedtotheBoardin2001
Career:ChiefExecutiveOfficeroftheSentinelRetirement
Fund
Skills and expertise: Has been in the asset management
industry for the past 20 years, with large investments,
amongst others, in development, direct and listed
propertybothlocallyandoffshore(includingAfrica)
3.
DirectorsinterestsinShares
NoneoftheGRTdirectorsortheirassociatesholdaninterestinsharesoftheCompany.
4.
ShareholdingsinGRT
ThefollowingtableprovidesasummaryoftheshareregisterofGRTasat30September2016,thelatest
practicabledatepriortothepublicationofthisdocument:
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
PublicInvestmentCorporationLimited
InvestecAssetManagement(Pty)Ltd.
STANLIBAssetManagementLtd.
SouthernPalaceProperties(Pty)Ltd.
OldMutualInvestmentGroup(SouthAfrica)(Pty)Limited
TheVanguardGroup,Inc.
PrudentialPortfolioManagers(SouthAfrica)(Pty)Ltd.
CoronationFundManagersLimited
MondrianInvestmentPartnersLtd.
SesfikileCapital(Pty)Ltd.
BEEConsortium
SanlamInvestmentManagement(Pty)Ltd.
MomentumAssetManagement(Pty)Ltd.
MeagoAssetManagers(Pty)Ltd.
BlackRockInstitutionalTrustCompany,N.A.
EskomPensionandProvidentFund
StateStreetGlobalAdvisors(US)
GICPrivateLimited
AbsaAssetManagement(Pty)Limited
CatalystFundManagers(Pty)Ltd.
33
13.1%
6.9%
6.4%
5.9%
4.0%
3.4%
3.2%
2.9%
2.9%
2.8%
2.7%
2.5%
2.3%
2.1%
1.8%
1.5%
1.3%
1.2%
1.1%
0.8%
APPENDIX3
DESCRIPTIONOFTHEPROPOSALS
SummaryoftheProposals
TheProposalscomprisethefollowingmainelements,eachconditionaluponAdmission:
x
theissueofSubscriptionSharesandtheFeeSharestoGRT;
x
theissueofSubscriptionSharesandtheFeeSharestoOakHill;
x
thetransferofwarrantsinrespectofinaggregate1,500,000Shares(approximately1.56%ofthe
enlarged issued share capital immediately following implementation of the Proposals) held by
ZorvianiLimited(acompanybeneficiallyownedbyIP)toGRT;
x
entryintotheGRTRelationshipAgreement;
x
terminationoftheIPRelationshipAgreementanditsreplacementbyaRelationshipAgreement
between Zakiono Enterprises Limited (a company beneficially owned by IP which holds
22,733,792SharesinwhichIPisinterested)andtheCompanyrelatingtothemannerinwhich
those Shares arevoted ordisposedofanda separate RelationshipAgreement betweenIP and
theCompanyrelatingtothemanagementofcompetingbusinessinterests;
x
adoptionoftheNewArticlesandtheTermsofReference;and
x
adjustmentoftheDividendPolicyandthedeclarationofadividendof€0.22perShare,payable
inrespectofthesixmonthfinancialperiodendingon30June2017,toholdersofSharesatthat
timeincludingtheSubscriptionSharesandfirsttrancheofFeeSharestobeissuedpursuantto
the Proposals and a dividend of €0.22 per Share, payable in respect of the six month financial
periodendingon31December2017,toholdersofSharesatthattimeincludingtheSubscription
SharesandtheFeeSharestobeissuedpursuanttotheProposals.
Eachofthoseelementsisdescribedinmoredetailbelow.
1.
Subscription
Under the terms of the Subscription Agreements, GRT has agreed to subscribe for 23,300,000
SubscriptionShares,inaggregate,andOakHillhasagreedtosubscribefor1,700,000SubscriptionShares,
ineachcaseatapriceof€8perShare,raising€200millionbeforeexpenses.
34
TheCompanyisissuinganinitial1,000,000FeeSharestoGRTand72,961FeeSharestoOakHill,anda
further 1,000,000 Fee Shares to GRT and 72,962 Fee Shares to Oak Hill by no later than 31 December
2017.
TheSubscriptionisconditional,interalia,uponthepassingoftheResolutionsandAdmission.
The Subscription Shares and the first tranche of Fee Shares, when issued, will rank pari passu in all
respects with, and will be identical to, the existing Shares in issue, including the right to receive the
dividendof€0.22perShare,payableinrespectofthesixͲmonthfinancialperiodendingon30June2017
and all other dividends and other distributions declared, made or paid after Admission. The second
trancheofFeeShareswill,whenissued,rankparipassuinallrespectswith,andwillbeidenticalto,the
then existing Shares in issue, including the right to receive the dividend of €0.22 per Share, payable in
respectofthesixmonthfinancialperiodendingon31December2017andallotherdividendsandother
distributionsdeclared,madeorpaidafterthedateofissueofthoseshares.
ItisexpectedthatAdmissionwillbecomeeffectiveanddealingsintheSubscriptionSharesandthefirst
tranche of Fee Shares will commence on 20 December 2016. Application will be made to admit the
secondtrancheofFeeSharestotradingonAIMwhenissued.
Following the issue of the Subscription Shares and the first tranche of Fee Shares and Admission, the
Companywillhave90,396,948SharesinissueandadmittedtotradingonAIM.AstheCompanyholdsno
shares in treasury, this is the total number of the voting rights in the Company which may be used by
Shareholders as the denominator for the calculations by which they determine if they are required to
notifytheirinterest,orachangeintheirinterest,inthesharecapitaloftheCompanyunderChapter5of
the FCA's Disclosure Guidance and Transparency Rules as reflected in the Company's articles of
incorporation(asiftheCompanywerean"issuer"andnota"nonͲUKissuer").
2.
WarrantTransferAgreement
ZorvianiLimited(acompanybeneficiallyownedbyIP)iscurrentlytheholderofwarrantstosubscribefor
4,245,030SharesintheCompany(representingapproximately4.42%ofenlargedissuedsharecapitalof
the Company immediately following the issue of the Subscription Shares and the Fee Shares and
assuming no further issue of Shares) (the "Zorviani Warrants"), pursuant to the Zorviani Warrant
Agreement.ZorvianiLimitedandGRThaveenteredintotheWarrantTransferAgreementwhichprovides
that,conditionaluponcompletionoftheSubscriptionAgreements,GRTwillacquireZorvianiWarrantsin
respectof1.5millionShares(representingapproximately1.56%oftheenlargedissuedsharecapitalof
theCompanyfollowingtheissueoftheSubscriptionSharesandtheFeeSharesandassumingnofurther
35
issue of Shares), leaving Zorviani Limited holding warrants to subscribe for 2,745,030 Shares in the
Company (representing approximately 2.86% of enlarged issued share capital of the Company
immediatelyfollowingissueoftheSubscriptionSharesandtheFeeSharesandassumingnofurtherissue
ofShares).
3.
RelationshipAgreements
The Company has entered into the GRT Relationship Agreement, the Zakiono Relationship Agreement
andtheNewIPRelationshipAgreement.Theobligationsundertheseagreementsareconditionalupon
Admission.
The GRT Relationship Agreement and Zakiono Relationship Agreement contain the following key
provisions,totheeffectthat:
a.
eachofGRTandZakionoEnterprisesLimitedhaveagreedtoexercisetheirvotingrights
intheCompanyinamannerwhichseekstoensuretheindependenceoftheCompany
fromeachofthemandtheirrespectiveassociates;
b.
each of GRT and Zakiono Enterprises Limited have separately agreed that, at all times
when it and its associates are, in aggregate, entitled to exercise at least 10% but less
than 50% of the voting power entitled to be exercised at a general meeting of the
Company,itwill(andineachcaseshallseektoprocurethatitsassociateswill):
i.
exerciseitsvotingrightsinamannerwhichseekstoensurethattheGroupand
the business of the Company will be managed for the benefit of the
Shareholders as a whole and that a majority of Directors will be independent
withinthemeaningoftheCorporateGovernanceCodeandasrequiredbythe
NewArticles;
ii.
notexerciseanyvotingrightsinfavourofanyresolutiontoamendtheArticles
inamannerinconsistentwiththeRelationshipAgreements;
iii.
nottakeanyactionthatwouldhavetheeffectofpreventinganymemberofthe
Group from complying with its obligations under any applicable laws or
regulations;
iv.
abstain from voting on any matter in which the relevant Shareholder, or any
associateoftherelevantShareholder,isinterestedorwherethereisanactual
36
or potential conflict with the interests of the relevant Shareholder and the
interestsofanymemberoftheGroup;and
v.
exerciseitsvotingrightsinamannerwhichseekstoensurethatalltransactions,
agreements and arrangements between any member of the Group and the
relevantShareholderoranyofitsassociatesshallbeonanarm'slengthbasison
normalcommercialterms;
c.
until the second anniversary of the date of the GRT Relationship Agreement or the
Zakiono Relationship Agreement (as applicable), the relevant Shareholder shall not
transferorotherwisedisposeofmorethanthePermittedMaximumoftheShares.
TheGRTRelationshipAgreementcontainsthefollowingadditionalkeyprovisions,totheeffectthatatall
times when GRT and GRT's associates are, in aggregate, entitled to exercise at least 15% of the voting
rightsentitledtobeexercisedatageneralmeetingoftheCompany,theCompanyshallaffordGRTthe
rightonafirstrefusalbasisandinprioritytoothers:
i.
to underwrite any offer of new equity securities of the Company by way of
rightsissueorotherpreͲemptiveoffertotheholdersofShares;
ii.
to participate as the placee pursuant to a vendor placement (or similar)
arrangement made by or at the direction of the Company that is designed to
place equity securities of the Company for cash in connection with an
acquisition by the Company, subject to any clawͲback participation offered to
ShareholderspursuanttotheStatementofPrinciples;and
iii.
toparticipateastheplaceepursuanttoanyplacementofnewequitysecurities
issuedbytheCompanyforcash(includinganypursuanttoArticle5.2.4ofthe
Articles or any resolution varying, renewing or replacing the authority therein
contained under arrangementspursuanttowhichtheCompanywouldreceive
cash as the consideration for the new equity securities proposed to be issued
but excluding any issue pursuant to Articles 5.2.2 or 5.2.3 or any resolution
varying,renewingorreplacingtheauthoritiesthereincontained),
itbeingunderstoodthatthedecisiontoproceedwithanysuchissueorplacementorarrangementand
thetermsthereofwillbedeterminedbytheBoardinitsabsolutediscretion.Inorderfortheserightsto
apply,thetermsproposedbyGRTmustbeatleastcomparablewithorontermsmorefavourabletothe
Companyorthevendorasthoseotherwiseavailable.
37
TheGRTRelationshipAgreementandtheNewIPRelationshipAgreementalsocontain,thefollowingkey
provisions,totheeffectthat:
a.
unlessanduntilanypersonacquiresmorethan50%oftheShares,intheeventthatGRT
or IP, orany of theirrespective associates, identifies a propertyͲrelatedopportunity in
the Region, that shareholder will notify the Company of the opportunity and will not
pursue that opportunity without first referring it to the Company for consideration. If
the Board, or the investment committee of the Board, decides not to pursue the
opportunity,unlesstheopportunityisinRomania,therelevantshareholderwill,ifithas
expressed such an intention at the time of the referral, be entitled to pursue that
opportunityonthesameornobetterterms;
b.
unlessotherwiseagreedinwriting,andsubjecttoexceptionsfordeͲminimisholdingsof
less than 5%, each of GRT and IP will not become interested in any business in the
RegionwhichwouldcompetewithanypartofthebusinessoftheCompanyotherthan
preͲexistingpermittedinterests.
TheRelationshipAgreementswillcontinueforsolongas:
a.
the Shares are admitted to trading on AIM or to trading on any recognized stock
exchange or multilateral trading facility (which includes any period of suspension of
trading);
b.
therelevantpartyanditsassociatesare,inaggregate,entitledtoexerciseatleast10%
ofthevotingrightsentitledtobeexercisedatageneralmeetingoftheCompany;and
c.
noperson(togetherwithitsassociates)hasaninterestinShareswhichcarrymorethan
50%ofthevotingrightsentitledtobeexercisedatageneralmeetingoftheCompany.
4.
NewArticles
The Proposals envisage that the New Articles be adopted, conditional upon Shareholder approval and
Admission.
The main changes in the New Articles as compared with the existing articles of incorporation of the
Companyareasfollows:
38
BoardGovernance
ThemanagementoftheCompanyistobeconductedonthebasisofanagreeddelegatedauthoritywhich
makescleartherespectivelevelsofauthorityofmanagementandthecommitteesoftheBoard.TheNew
ArticlesrequiretheBoardtocompriseatleasttwoIndependentDirectorsresidentinGuernsey,oneas
nominated by GRT and one as nominated by Zakiono Enterprises Limited from time to time (such
nomination rights to continue for so long as each of GRT or Zakiono Enterprises Limited (respectively)
holdShares).TheNewArticlesdonotspecifyanupperlimitonthenumberofDirectorsandwillrequire
thataslongasnoShareholderholdsdirectlyorindirectlymorethan50%oftheissuedSharesintheshare
capital of the Company, as soon as reasonably practical and in any event by and following the Annual
GeneralMeetingin2017,amajorityshouldcompriseDirectorswhoareindependentwithinthemeaning
oftheCorporateGovernanceCode.
Inadditiontotheexistingauditandriskcommitteeandtheremunerationcommittee,theBoardwillalso
establish an investment committee. All committees will operate in accordance with international
standard practice mandates for corporate governance. The Terms of Reference will govern such
committeesandmaybeamendedonlybyamajoritydecisionoftheDirectors.
PursuanttotheTermsofReference:
(a)
theinvestmentcommitteeshallcomprisefiveDirectorsmadeupoftworepresentatives
ofeachMajorShareholder(GRTandZakionoEnterprisesLimited)andoneIndependent
Director. Initially, IP and Mr. Dimitris Raptis will be deemed the appointed
representatives on the investment committee for Zakiono Enterprises Limited in its
capacity as aMajor Shareholder. The investment committee will consider acquisitions,
disposals and developments or redevelopments above an agreed monetary threshold
beforemakingrecommendationstotheBoard.Theinvestmentcommitteewillonlybe
permittedtomakepositiverecommendationstotheBoard;and
(b)
the remuneration committee and the audit and risk committee will comprise
Independent Directors. Each of the Major Shareholders may appoint an observer to
attend meetings of these committees. For as long as IP and Mr. Dimitris Raptis are
respectively executive Directors, IP and Mr. Dimitris Raptis may attend meetings of
thesecommittees,butwillnotbepermittedtovotethereat.
39
BoardAppointments
Under the New Articles, each Major Shareholder will be entitled to nominate and appoint one NonͲ
ExecutiveDirectorforevery8%oftheissuedsharecapitaloftheCompanyheld.Suchappointmentrights
arescaledsuchthat,takingtheinitialpositionasastartingpoint,iftheMajorShareholder'sshareholding
is reduced below 16% then the Major Shareholder will lose the right to appoint one NonͲExecutive
Director;iftheMajorShareholder'sshareholdingisreducedbelow8%thentheMajorShareholderwill
losetherighttoappointonefurtherNonͲExecutiveDirector,andiftheMajorShareholderdisposesofall
ofitsShares,theMajorShareholder'srighttoappointNonͲExecutiveDirectorsfallsawayentirely.
Inaddition,YorkandOakHilleachhavetherighttoappointaNonͲExecutiveDirectortotheBoardwhile
theirrespectiveshareholdingsareatleast8%ormoreoftheissuedSharesor,totheextentdilutedby
theissueofnewSharesatanytimeincludingtheSubscription,atleast5%.
IPandDimitrisRaptiswillnotberequiredtosubmitthemselvestoreͲelectionbytheShareholdersunless
requiredtodosobyaTwoThirdsVoteoftheDirectors.
Directors appointed pursuant to the nomination rights of the Major Shareholders and each of Oak Hill
andYorkwillnotberequiredtosubmitthemselvestoreͲelectionbytheShareholders.
AuthoritytoIssueShares
TheDirectorswillbegenerallyandunconditionallyauthorisedtoexerciseallpowersoftheCompanyto
issueSharespursuanttothePlanandotherwiseinsuchamountandduringsuchperiodasmayfromtime
totimebeauthorisedbyOrdinaryResolutionoftheShareholdersincluding,priortotheexpiryofsuch
authority,tomakeorconcludeanofferrequiringSharestobeissuedaftertheexpiryofsuchauthorityas
ifsuchauthorityhadnotexpired.InconnectionwithanyacquisitionbytheCompanyoranymemberof
theGroup(includinganyvendorplacingtobecarriedoutinconnectionwithsuchacquisition),saveto
the extent clawͲback participation is offered to Shareholders pursuant to and consistent with the
Statement of Principles (the “Acquisition Share Authority”), the Directors may only exercise this
authoritytoissueSharesuptoamaximumaggregateof6,779,771Shares(orifgreatersuchnumberas
shallrepresent7.5percent.ofthesharecapitaloftheCompanyinissueimmediatelybeforethedateof
the notice convening each annual general meeting of the Company), unless otherwise authorised by
OrdinaryResolution.Inaddition,theDirectorsmayonlyexercisetheauthoritytoissueSharespursuant
toanysuchOrdinaryResolution(whetherforcashornonͲcashconsideration)forthepurposesandtothe
extentdescribedinparagraphs(c)to(f)(inclusive)undertheheading'PreͲemptiononIssueofShares'or
otherwiseasauthorisedbySpecialResolution.
40
PreͲemptiononIssueofShares
UnderArticle5,Shareholderswillbeentitledtoparticipateinanyissueofnewequitysecuritiesforcash
otherthan:
(a)
anissueofSharesinconnectionwithanyacquisitionbytheCompanyoranymemberof
theGroup(i)totheextentthatclawbackparticipationisofferedtoMemberspursuant
toandconsistentwiththeStatementofPrinciplesor(ii)uptoamaximumaggregateof
6,779,771Sharesor,ifgreater,themaximumnumberofSharesequaltothatcomprised
withintheAcquisitionShareAuthority,ineithercaseduringsuchperiodandsubjectto
such variation as shall from time to time be authorised by Special Resolution (Article
5.2.1);
(b)
anissueofSharespursuanttothePlan(Article5.2.2);
(c)
an issue otherwise than pursuant to (b) above pursuant to any other employee
emolument arrangements of the Company up to a maximum aggregate of 6,779,771
Shares during such period and subject to such variation as shall from time to time be
authorisedbySpecialResolution(Article5.2.3);
(d)
an issue of Shares up to a maximum aggregate of 6,779,771 Shares or, if greater, the
maximum number of Shares equal to that comprised within the Acquisition Share
Authority, for any other purpose during such period and subject to such variation as
shallfromtimetotimebeauthorisedbySpecialResolution(Article5.2.4);
(e)
the issue of any Shares pursuant to the exercise of any equity securities issued or
grantedinaccordancewiththewarrantinstrumentexecutedbytheCompanyasadeed
polldated24July2013(Article5.2.5);and
(f)
the issue of any Shares pursuant to any scrip dividend scheme implemented by the
CompanyinaccordancewiththeArticles,oranyproratabonusissueofShares(Article
5.2.6).
PreͲemptionondisposal
IfaMajorShareholder(the"OfferorMajorShareholder")wishestodisposeofmoreSharesthanthePreͲ
emptionThresholdinany12monthperiod,therelevantMajorShareholdermustfirstoffertheShares
that are subject to the proposed disposal to the other Major Shareholder (the "Offeree Major
41
Shareholder")forpurchasetotheextentthattheyexceedthePreͲemptionThreshold(the"PreͲemption
Offered Shares"). The Offeree Major Shareholder may, within a specified period, accept the offer to
purchasethePreͲemptionOfferedShares,inwhicheventtheotherMajorShareholderwillberequiredto
completethesalewithinaspecifiedperiod.
In the event that the PreͲEmption Offered Shares are not disposed of pursuant to the preͲemption
arrangementsdescribedabove,theOfferorMajorShareholderwillbeentitledtodisposeofall(butnot
some only) of the PreͲemption Offered Shares to a third party on financial terms that are no less
favourablethanthoseofferedtotheOffereeMajorShareholder,withinaspecifiedperiod.
The preͲemption procedure does not apply to any acceptance of an offer for the Company's shares to
whichtheTakeoverCodeappliesatanystageoranyagreementtoacceptanysuchoffereitherbeforeor
afteritsannouncement.
ContractualSqueezeͲout
Ifapersonhas,byvirtueofacceptancesofanOfferorthepurchaseofSharestowhichanOfferrelates,
acquiredorunconditionallycontractedtoacquire50%ormoreoftheSharestowhichtheOfferrelates
(excludingthoseSharesheldbytheofferoranditsaffiliates)andthetermsofsuchanOfferrepresenta
minimumof€10.80perShare,suchpersonmay,withinaperiodof3months,givenoticeinwritingtoany
holderofSharestowhichtheOfferrelateswhohasnotacceptedtheOffer,orwhohasfailedorrefused
totransfertheirSharespursuanttotheOffer,toacquiretheirSharescompulsorily.
ThereisacorrespondingrightofminorityShareholderstorequiretheirSharestobepurchasedonthe
sametermsasthesaleofSharespursuanttoanOfferifthecontractualsqueezeͲoutrequirementsare
satisfiedandarenotexercisedbytheofferor.
General
TheopportunityhasbeentakentoupdatesomeofthelanguageanddraftingintheNewArticleswiththe
intention of making the drafting of a number of the existing provisions clearer and to make the New
ArticlesconsistentwiththemostrecentamendmentstotheCompaniesLaw.AcopyoftheNewArticles
showing all proposed changes will be available free of charge by written request to the Company's
registeredofficeupuntilthedateoftheExtraordinaryGeneralMeeting.Theywillalsobeavailablefor
inspectionontheCompany'swebsiteatwww.globalworth.com.
42
5.
ComeAlongAgreement
Pursuant to an agreement between Zakiono Enterprises Limited and GRT, while Zakiono Enterprises
Limitedandcertainofitsaffiliatesholdaninterestinatleast15%ormoreoftheissuedsharecapitalof
theCompany,GRTwillhavetherightonanydisposalbyZakionoEnterprisesLimitedandcertainof its
affiliatesof75%ormoreoftheirshareholdingintheCompanytodisposeofacorrespondingportionof
theGRTShareholdingtothepersonacquiringtheSharesdisposedofbyZakionoEnterprisesLimitedand
certainofitsaffiliates.
43
DEFINITIONS
InadditiontothetermsdefinedintheChairman'sletter,thefollowingtermsshallhavethemeaningsset
out next to them when used in this document (including the Chairman's letter), unless the context
otherwiserequires:
"Admission"
the admission of the Subscription Shares and the first
tranche of the Fee Shares to trading on AIM becoming
effectiveinaccordancewiththeAIMRules;
"AdmissionDate"
thedateofAdmission;
"AIM"
the market of that name operated by the London Stock
Exchange;
"AIMRules"
theAIMRulesforCompaniesissuedbytheLondonStock
Exchangeasamendedfromtimetotime;
"Articles"
thearticlesofincorporationoftheCompany;
"Board"or"Directors"
theboardofdirectorsoftheCompanyfromtimetotime;
"CentralandEasternEurope"or"CEE"
Poland,theCzechRepublicandHungary;
"ClosingPrice"
theclosingmiddlemarketquotationofaShareasderived
from the AIM Appendix to the Daily Official List of the
LondonStockExchange;
"CompaniesLaw"
theCompanies(Guernsey)Law2008;
"Company"or"Globalworth"
GlobalworthRealEstateInvestmentsLimited;
"CorporateGovernanceCode"
the UK Corporate Governance Code, as in force at the
date of this document, or, subject to approval by the
Board,asamendedfromtimetotime;
"CRESTManual"
the compendium of documents entitled CREST Manual
issued by EUI from time to time and comprising the
CRESTReferenceManual,theCRESTCentralCounterparty
Service Manual, the CREST International Manual, CREST
Rules,CCSSOperationsManualandtheCRESTGlossaryof
Terms;
"DeutscheBank"
DeutscheBankgroup;
"DividendPolicy"
thedividendpolicyoftheCompany,detailsofwhichare
setoutinthisdocument,adaptedsubjecttoAdmission;
44
"ExecutiveDirectors"
the executive Directors of the Company for the time
being;
"FeeShares"
2,000,000SharestobeissuedtoGRTand145,923Shares
tobeissuedtoOakHillpursuanttotheequityraisingfee
arrangements described under the heading 1.
SubscriptioninAppendix3,tobeissuedintwotranches
as there described and 'tranche' shall be a reference to
therelevanttranche;
"FFO"
theCompany’s freefundsfrom operations,estimatedas
theEPRAEarningsfortherelevantperiod.EPRAEarnings
should be calculated in accordance with EPRA Best
Practices Recommendations for the calculation of the
EPRAEarningsmeasureineffectatthedateofadoption
oftheNewArticlesorsuchupdatedorrevisedversionas
approved for this purpose by the Board from time to
time;
"FirstPeriod"
theperiodfromtheAdmissionDateuntil(butexcluding)
thedateofthefirstanniversaryoftheAdmissionDate;
"FirstYearMaximum"
4,000,000Shares;
"FormofProxy"
theform of proxy for use byShareholders inconnection
withtheExtraordinaryGeneralMeeting;
"GLA"
grossleasablearea;
"Group"
theCompanyanditssubsidiariesfromtimetotime;
"GRT"
GrowthpointPropertiesLimited or oneofitssubsidiaries;
"GRTRelationshipAgreement"
theagreementbetweenGRTandtheCompany,detailsof
whicharesetoutinthisdocument;
"IndependentDirector"
a Director who is deemed to be independent under the
CorporateGovernanceCode;
"InvestingPolicy"
theCompany'scurrentinvestingpolicyassetoutinpart4
oftheChairman'sletter;
"IP"
MrIoannisPapalekas,thefounderoftheCompany;
"IPRelationshipAgreement"
the agreement dated 24 July 2013 between IP, the
CompanyandPanmureGordon(UK)Limited;
45
"JohannesburgStockExchange"
JSELimited;
"LondonStockExchange"
theLondonStockExchangeGroupplc;
"MajorShareholder"
Zakiono Enterprises Limited (a company beneficially
ownedbyIPwhichholds22,733,792SharesinwhichIPis
interested) and certain of its affiliates and GRT and
certainofitsaffiliates;
"NOI"
netoperatingincome,beinggrossoperatingincomeless
operatingexpensesthatisnotpaidbyorrechargeableto
tenants,excludingfundingcosts,depreciationandcapital
expenditure;
"NewArticles"
the amended articles of incorporation which it is
proposedareadoptedpursuanttotheProposals;
"NewIPRelationshipAgreement"
the agreement between IP and the Company, details of
whicharesetoutinthisdocument;
"NonͲExecutiveDirectors"
thenonͲexecutiveDirectorsoftheCompanyforthetime
being;
"OakHill"
certain funds and/or accounts managed by Oak Hill
Advisors(Europe),LLPanditsaffiliates;
"Offer"
anofferforSharesgovernedbytheTakeoverCode;
"PermittedMaximum"
(i)theFirstYearMaximumintheFirstPeriod;and
(ii) 4,000,000 Shares in the period between (and
including) the dates of the first and the second
anniversariesoftheAdmissionDateandinaddition,ifthe
Major Shareholder does not transfer or dispose of an
interest in the full amount of Shares comprised in the
First Year Maximum in the First Period, such number of
Shares comprised in the First Year Maximum after
deducting the number of Shares in which the Major
Shareholdertransferredordisposedofaninterestinthe
First Period, together not to exceed in aggregate
8,000,000;
"Plan"
the new Investment Advisor fee arrangement described
intheCompany'scirculardated31October2016;
"PreͲemptionThreshold"
up to and including 1,000,000 Shares (or such other
number after adjustments for variation in the share
capital of the Company resulting from a subͲdivision or
46
capitalisation of profits or reserves to the holders of
Shares);
"Proposals"
the proposed Subscription and issue of the Fee Shares,
adoption of the New Articles and entry into or adoption
oftheTransactionDocuments;
"Region"
CentralandEasternEuropeandSoutheastEurope;
"RelationshipAgreements"
the GRT Relationship Agreement, the Zakiono
Relationship Agreement and the New IP Relationship
Agreement;
"Resolutions"
the resolutions to be proposed at the Extraordinary
General Meeting and set out in the Notice of
Extraordinary General Meeting at the end of this
document;
"Shareholders"
the holders of any shares in the issued share capital of
theCompanyfromtimetotime;
"Shares"
the ordinary shares of no par value in the capital of the
Company;
"SoutheastEurope"or"SEE"
Romania, Greece, Serbia, Bulgaria, Slovenia, Slovakia,
CroatiaandCyprus;
"StatementofPrinciples"
The Statement of Principles issued by The PreͲEmption
GroupatthedateofadoptionoftheNewArticlesorsuch
updated or revised version as approved for this purpose
bytheBoardfromtimetotime;
"Subscription"
the conditional subscriptions by GRT and by Oak Hill
respectivelyforSubscriptionShares,asfurtherdescribed
inthisdocument;
"SubscriptionAgreements"
theagreementsdated1 December 2016inrespectofthe
Subscription, entered into between GRT and the
Company and separately between Oak Hill and the
Company,detailsofwhicharesetoutinthisdocument;
"SubscriptionPrice"
€8perShare;
"SubscriptionShares"
25,000,000 Shares to be issued pursuant to the
Subscription;
"TakeoverCode"
theUKCity CodeonTakeoversandMergers;
47
"TAP"
theTimisoaraAirportPark;
"TransactionDocuments"
eachoftheSubscriptionAgreements,Relationship
AgreementsandtheTerminationAgreement;
"TransactionShares"
theSubscriptionSharesandtheFeeShares;
"TerminationAgreement"
the agreement terminating the IP Relationship
Agreement,detailsofwhicharesetoutinthisdocument;
"TermsofReference"
the terms of reference of the Board and committees of
theBoard,asamended;
"TwoThirdsVote"
the approval of a matter by at least twoͲthirds of the
Directorsentitledtovote;
"UKTakeoverPanel"
theUKPanelonTakeoversandMergers;
"WALL"
the remaining weighted average lease length of a
contracted lease as of the date of signing or reference
date of such lease contract until the lease contract's full
expiration;
"WarrantTransferAgreement"
the agreement between Zorviani Limited (a company
beneficially owned by IP) and GRT, details of which are
setoutinthisdocument;
"York"
certain funds and accounts managed or advised by York
Capital Management Global Advisors, LLC or any of its
affiliates;
"ZakionoRelationshipAgreement"
theagreementbetweenZakionoEnterprisesLimitedand
the Company, details of which are set out in this
document;and
"ZorvianiWarrantAgreement"
the warrant agreement dated 24 July 2013 between IP,
ZorvianiLimitedandtheCompany.
48
GLOBALWORTHREALESTATEINVESTMENTSLIMITED
(acompanyincorporatedinGuernseyandregisteredwithnumber56250)
NOTICEOFEXTRAORDINARYGENERALMEETING
NOTICEISHEREBYGIVENthatanExtraordinaryGeneralMeetingofGlobalworthRealEstateInvestments
Limited (the "Company") will be held at the registered office of the Company at Ground Floor, Dorey
Court,AdmiralPark,StPeterPort,GuernseyGY12HTat9.30amon19December2016.Youwillbeasked
to consider and vote on the resolutions below. Resolutions 1, 2, 4 and 5 will be proposed as special
resolutionsandResolution3willbeproposedasanordinaryresolution.Wordsandexpressionsdefined
in the circular of the Company of which this Notice forms part (the "Circular") shall have the same
meaninginthefollowingresolutions.
SPECIALRESOLUTIONS
(1)
THATtheProposalsandentryinto,adoptionandperformanceoftheTransactionDocumentsby
theCompanybeapproved.
(2)
THAT,subjecttothepassingofresolution1 above,theNewArticlesoftheCompany(acopyof
which were produced to the meeting and signed by the chairman of the meeting for the
purposes of identification) be approved and adopted and shall take effect as the Articles of
IncorporationoftheCompanyinsubstitutionforandtotheexclusionofalltheexistingArticlesof
theCompanyautomaticallyatthetimeimmediatelypriortoAdmission.
(3)
ORDINARYRESOLUTION
THAT,subjecttothepassingofresolutions1and2aboveandwitheffect atandfromAdmission,
theDirectorsbegenerallyandunconditionallyauthorisedforthepurposesofsection291ofthe
Companies(Guernsey)Law2008,asamended,(the"Law")andArticle4.4oftheNewArticles(in
additiontotheauthorityconferredbyArticle4.4inrelationtothePlan)toexerciseallthepower
oftheCompanytoissuesharesintheCompanyandgrantrightstosubscribefor,orconvertany
securityinto,sharesintheCompanyuptoamaximumaggregateof55,903,954shares,provided
thatthisauthorityshallexpireattheconclusionoftheAnnualGeneralMeetingoftheCompany
next following the passing of this resolution, save that the Directors may, before such expiry,
make an offer or agreement which would or might require Shares to be issued or rights to
subscribe for or to convert any securities into Shares to be granted after such expiry and the
Directors may issue Shares or grant such rights under any such offer or agreement as if the
authorityconferredbythisresolutionhadnotexpired.
SPECIALRESOLUTIONS
(4)
THAT, subject to the passing of resolutions 1, 2 and 3 above and with effect at and from
Admission,theDirectorsbeauthorised,forthepurposesofparagraphs5.2.1,5.2.3and5.2.4of
Article 5 of the New Articles, to issue shares pursuant to the authority given by resolution 3
above,asifArticle5.1oftheNewArticlesdidnotapplyinrespectofanyissueofsharesreferred
to in paragraphs 5.2.1, 5.2.3 or 5.2.4 of Article 5 of the New Articles in each case up to the
maximum aggregate of 6,779,771 Shares provided that such authorities for the purposes of
paragraphs5.2.1,5.2.3and5.2.4ofArticle5oftheNewArticlesshallexpireattheconclusionof
49
theAnnualGeneralMeetingoftheCompanynextfollowingthepassingofthisresolution,save
thatthe Directors may, before such expiry, make an offer or agreement which would or might
requireSharestobeissuedorrightstosubscribeforortoconvertanysecuritiesintoSharestobe
grantedaftersuchexpiryandtheDirectorsmayissueSharesorgrantsuchrightsunderanysuch
offeroragreementasiftheauthoritiesconferredbythisresolutionhadnotexpired.
(5)
THAT, subject to the passing of resolutions 1, 2 and 3 above and with effect at and from
Admission,theDirectorsbeauthorised,forthepurposesofsection291oftheLawandArticles
4.4and5oftheNewArticlestoissueSharesuptoamaximumof27,145,923Sharespursuantto
thetermsoftheSubscriptionAgreements,asifArticle5.1oftheNewArticlesdidnotapplyto
suchissue.
ByorderoftheBoard
Yoursfaithfully
Forandonbehalfof
JTC(Guernsey)Limited
asSecretaryof
GlobalworthRealEstateInvestmentsLimited
RegisteredOffice
GroundFloor
DoreyCourt
AdmiralPark
StPeterPort
GuernseyGY12HT
Dated:1December2016
50
ExplanatoryNotestotheNoticeofExtraordinaryGeneralMeeting:
1.
The Notice sets out theResolutionsto be proposedat the Extraordinary General Meeting(the
"Meeting").ItisanticipatedthattheChairmanoftheMeetingwillbeMrGeoffMillerorinhis
absence, Mr John Whittle. If you are in any doubt as to the action you should take, you are
recommendedtoseekadvicefromyourownstockbroker,bankmanager,solicitor,accountantor
theirfinancialadviserauthorisedpursuanttotheFinancialServicesandMarketsAct2000ifyou
are in the United Kingdom or, if not, from another appropriately authorised independent
financialadviser.
2.
AllpersonsrecordedontheregisterofShareholdersasholdingsharesintheCompanyasatthe
closeofbusinesson15December2016or,iftheMeetingisadjourned,asat48hoursbeforethe
timeofanyadjournedMeeting(nottakingaccountofanypartofadaythatisnotabusinessday
inLondonandGuernsey),shallbeentitledtoattendandvote(eitherinpersonorbyproxy)at
the Meeting and shall be entitled to one vote per share held. Changes to the register of
Shareholders after the relevant deadline shall be disregarded in determining the rights of any
persontoattendandvoteattheMeeting.
3.
Wheretherearejointregisteredholdersofanysharessuchpersonsshallnothavetherightof
votingindividuallyinrespectofsuchsharesbutshallelectoneofthenumbertorepresentthem
andtovotewhetherinpersonorbyproxyintheirname.Indefaultofsuchelectiontheperson
whosenamestandsfirstontheregisterofShareholdersshallalonebeentitledtovote.Where
therearejointparticipantsinrespectofanysharesuchpersonsshallnothavetherightofvoting
individuallyinrespectofsuchsharebutshallelectoneoftheirnumbertorepresentthemandto
vote whether in person or by proxy in their name. In default of such election the participant
whoseinterestsarefirstnotifiedtotheCompanyshallalonebeentitledtovote.
4.
A Shareholder entitled to attend and vote at the Meeting is entitled to appoint one or more
proxiestoattend,speakand,onapoll,tovoteinhisstead.AproxyneednotbeaShareholderof
theCompany.YoushouldhavereceivedaproxyformwiththisnoticeofMeeting.Youcanonly
appointaproxyusingtheproceduresetoutinthesenotesandthenotestotheproxyform.
5.
A proxy does not need to be a Shareholder of the Company but must attend the Meeting to
represent you. You may appoint more than one proxy provided each proxy is appointed to
exercise rights attached to different shares. You may not appoint more than one proxy to
exerciserightsattachedtoanyoneshare.
6.
Tobevalid,acompletedformofproxyandthepowerofattorneyorotherauthorityunderwhich
theformofproxyissigned(ifany)mustbereturnedtotheregistrarsoftheCompanyatCapita
AssetServices,PXS1,34BeckenhamRoad,Beckenham,Kent,BR34TUnotlessthanfortyͲeight
hours before the time appointed for holding the Extraordinary General Meeting (or any
adjourned Meeting) (not taking account of any part of a day which is not a business day in
LondonandGuernsey),being9.30amon15December2016.
7.
Shareholders maychangeproxyinstructionsbysubmittinganewproxyappointmentusingthe
methodssetoutabove.NotethatthecutͲofftimeforreceiptofproxyappointments(seenote6
above) also applies in relation to amended instructions; any amended proxy appointment
receivedaftertherelevantcutͲofftimewillbedisregarded.Ifyousubmitmorethanonevalidly
proxy appointment, the appointment received last before the latest time for the receipt of
proxieswilltakeprecedence.
8.
ThecompletionandreturnofaproxywillnotprecludeaShareholderfromattending,speaking
and voting at the Meeting in person, should he wish to do so. If you appointed a proxy and
51
attend the Meeting and vote in person, your proxy appointment will automatically be
terminated.
9.
OrdinaryResolution:Tobepassed,thistypeofresolutionrequiresasimplemajorityofthevotes
castbythoseShareholdersvotinginpersonorbyproxyattheMeetingtobevotedinfavourof
theresolution.
10.
SpecialResolution:Tobepassed,thistypeofresolutionrequiresa75%majorityofthevotescast
bythoseShareholdersvotinginpersonorbyproxyattheMeetingtobevotedinfavourofthe
resolution.
11
Onapoll,votesmaybegiveneitherpersonallyorbyproxyandaShareholderentitledtomore
thanonevoteneednotuseallhisvotesheusesinthesameway.
12.
Any corporation which is a Shareholder may by resolution of its directors or other governing
bodyauthorisesuchpersonasitthinksfittoactasitsrepresentativeattheMeeting.Anyperson
soauthorisedshallbeentitledtoexerciseonbehalfofthecorporationwhichherepresentsthe
same powers (other than to appoint a proxy) as that corporation could exercise if it were an
individualShareholder.
13.
To allow effective constitution of the Meeting, if it is apparent to the Chairman that no
Shareholderswillbepresentinpersonorbyproxy,otherthanbyproxyintheChairman'sfavour,
theChairmanmayappointasubstitutetoactasproxyinhissteadforanyShareholder,provided
thatsuchsubstituteproxyshallvoteonthesamebasisastheChairman.
14.
CREST members who wish to appoint a proxy or proxies through the CREST electronic proxy
appointmentservicemaydosobyusingtheproceduresdescribedintheCRESTManual.CREST
personal members or other CREST sponsored members and those CREST members who have
appointed voting service provider(s), should refer to their CREST sponsor or voting service
provider(s)whowillbeabletotaketheappropriateactionontheirbehalf.
InorderforaproxyappointmentorinstructionmadeusingtheCRESTservicetobevalid,theappropriate
CREST message (a "CREST Proxy Instruction") must be properly authenticated in accordance with
Euroclear UK & Ireland Limited's (formerly CRESTCo's) ("EUI") specifications and must contain the
informationrequiredforsuchinstructions,asdescribedintheCRESTManual.Themessage,regardlessof
whether it constitutes the appointment of a proxy or an amendment to the instruction given to a
previouslyappointedproxy,mustinordertobevalid,betransmittedsoastobereceivedbyCapita(ID
RA10)by9.30amon15December2016.NosuchmessagereceivedthroughtheCRESTnetworkafterthis
timewillbeaccepted.Forthispurpose,thetimeofreceiptwillbetakentobethetime(asdeterminedby
thetimestampappliedtothemessagebytheCRESTApplicationsHost)fromwhichtheregistrarsareable
to retrieve the message by enquiry to CREST in the manner prescribed by CREST. After this time, any
change of instructions to proxies appointed through CREST should be communicated to the appointee
throughothermeans.
CREST members and, where applicable, their CREST sponsors or voting service provider(s) should note
thatEUIdoesnotmakeavailablespecialproceduresinCRESTforanyparticularmessage.Normalsystem
timingsandlimitationswillthereforeapplyinrelationtotheinputofCRESTProxyInstructions.Itisthe
responsibility of the CREST member concerned to take (or, if the CREST member is a CREST personal
memberorsponsoredmemberorhasappointedavotingserviceprovider(s),toprocurethathisCREST
sponsororvotingserviceprovider(s)take(s))suchactionasshallbenecessarytoensurethatamessageis
transmitted by means of the CREST system by any particular time. In this connection, CREST members
and, where applicable, their CREST sponsors or voting service providers are referred, in particular, to
thosesectionsoftheCRESTManualconcerningpracticallimitationsoftheCRESTsystemandtimings.The
52
CompanymaytreatasinvalidaCRESTProxyInstructioninthecircumstancessetoutinRegulation34of
theUncertificatedSecurities(Guernsey)Regulations2009.
53
(This page has intentionally been left blank)
FORMOFPROXY
GlobalworthRealEstateInvestmentsLimited
Form of Proxy for use by holders of Shares at the Extraordinary General Meeting of the Company
convenedon19December2016at9.30am.
Beforecompletingthisform,pleasereadtheexplanatorynotesoverleaf.
I/We (fullname(s)inblockcapitals)
of
(addressinblockcapitals)
herebyappointtheChairmanofthemeeting(seenote1below)or
(nameandaddressofproxyinblockcapitals)
as my/our proxy to attend, speak, and on a poll, vote for me/us and on my/our behalf at the
ExtraordinaryGeneralMeetingoftheCompanytobeheldon19December2016at9.30amandatany
adjournmentthereof.
I/Wewishmy/ourproxytovoteasindicatedbelowbymarkingtheappropriateboxwithan'X'inrespect
ofthefollowingresolutionstobeproposedattheExtraordinaryGeneralMeeting.Toabstainfromvoting
onaresolution,selecttherelevant'votewithheld'box.Avotewithheldisnotavoteinlaw,whichmeans
thatthevotewillnotbecountedinthecalculationofvotesfororagainsttheresolution.Ifnoindication
isgiven,my/ourproxywillvoteorabstainfromvotingathisorherdiscretionandI/weauthorisemy/our
proxy to vote (or abstain from voting) as he or she thinks fit in relation to any other matter which is
properlyputbeforetheExtraordinaryGeneralMeeting.
FOR
1
2
3
4
5
SPECIALRESOLUTION:ApprovalofProposals
SPECIALRESOLUTION:AdoptionofNewArticles
ORDINARYRESOLUTION:GeneralauthoritytoissueShares
SPECIALRESOLUTION:DisapplicationofgeneralpreͲemption
SPECIALRESOLUTION:DisapplicationofpreͲemptioninrespectof
theSubscriptionandtheFeeShares
Signature
Date
…………………………….........……(SeeNotes4and5below)
................................…………………….2016

VOTE
WITHHELD
AGAINST
Notes:
1.
As a Shareholder of the Company you are entitled to appoint a proxy to exercise all or any of
yourrightstoattend,speakandvoteatageneralmeetingoftheCompany.Youcanonlyappoint
aproxyusingtheproceduressetoutinthesenotes.
2.
Ifanyotherproxyispreferred,strikeoutthewords"theChairmanoftheMeeting"andaddthe
nameandaddressoftheproxyyouwishtoappointandinitialthealteration.Theproxyneednot
beaShareholder.WhereyouappointasyourproxysomeoneotherthantheChairman,youare
responsibleforensuringthattheyattendthemeetingandareawareofyourvotingintentions.
3.
Iftheappointerisacorporationthisformmustbecompletedunderitscommonsealorunder
thehandofsomeofficerorattorneydulyauthorisedinwriting.
4.
Wheretherearejointregisteredholdersofanysharessuchpersonsshallnothavetherightof
votingindividuallyinrespectofsuchsharesbutshallelectoneofthenumbertorepresentthem
andtovotewhetherinpersonorbyproxyintheirname.Indefaultofsuchelectiontheperson
whosenamestandsfirstontheregisterofShareholdersshallalonebeentitledtovote.Where
therearejointparticipantsinrespectofanysharesuchpersonsshallnothavetherightofvoting
individuallyinrespectofsuchsharebutshallelectoneoftheirnumbertorepresentthemandto
vote whether in person or by proxy in their name. In default of such election the participant
whoseinterestsarefirstnotifiedtotheCompanyshallalonebeentitledtovote.
5.
To be valid, this form and the power of attorney or other authority (if any) under which it is
signed, or a notarially certified copy of such power must be completed and signed and must
reach the registrars of the Company at Capita Asset Services, PXS1, 34 Beckenham Road,
Beckenham,Kent,BR34TUnotlessthanfortyͲeighthoursbeforethetimeappointedforholding
theExtraordinaryGeneralMeeting,being9.30amon15December2016,oradjournmentasthe
casemaybe.
6.
ThecompletionofthisformwillnotprecludeaShareholderfromattending,speakingorvoting
at themeetingin person. If you haveappointed aproxyandattend a meetinginperson,your
proxyappointmentwillautomaticallybeterminated.
7.
Anyalterationofthisformmustbeinitialed.
8.
You may appoint more than one proxy provided each proxy is appointed to exercise rights
attached to different shares. You may not appoint more than one proxy to exercise rights
attachedtoanyoneshare.Toappointmorethanoneproxyyoumayphotocopythisform.Please
indicate the proxy holder's name and the number of shares in relation to which they are
authorised to act as your proxy (which, in aggregate, should not exceed the number of shares
held by you). Please also indicate if the proxy instruction is one of multiple instructions being
given.Allformsmustbesignedandshouldbereturnedtogetherinthesameenvelope.
9.
CREST members who wish to appoint a proxy or proxies by using the CREST electronic
appointment service may do so by using the procedures described in the Crest Manual. To be
valid,theappropriateCRESTmessage,regardlessofwhetheritconstitutestheappointmentofa
proxy or an amendment to the instructions given to a previously appointed proxy, must be
transmittedsoastobereceivedbyouragentCapita(IDRA10)by9.30amon15December2016.
10.
If you submit more than one valid proxy appointment in respect of the same share, the
appointmentreceivedlastbeforethelatesttimeforthereceiptofproxieswilltakeprecedence.
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