US debt investors Oak Hill Advisors and York Capital Management have provided a €55m short term debt facility to AIM-listed Globalworth Real Estate Investments, to help finance its acquisition of two office buildings in Bucharest.
Romanian real estate specialist Globalworth has bought Unicredit Building and Nusco Tower, for approximately €43m and €46m respectively. The corporate facility, which is secured, will fund the equity portion of these two acquisitions, and can also be used for general corporate purposes, including funding ongoing development projects. Unicredit is providing the debt for the acquisitions.
Oak Hill has approximately $4bn of total European assets under management, including real estate, and sees current opportunities in both distressed and performing debt markets in Europe. It is providing €36.7m of the facility, with York Capital Management Global Advisors providing €18.3m.
Globalworth said it believes it “will be able to conclude negotiations in the near term in relation to raising further long term finance which, amongst other things will be used to repay the (short-term) facility and fund the company’s ongoing development projects, operating costs and currently uncompleted and future potential acquisitions”.
The Unicredit Building, a class-A office property, is let to Unicredit Tiriac Bank, while Nusco Tower, a modern office building in Bucharest’s new central business district, is occupied by multinational tenants including Oracle, Bayer and Volksbank.
The November 2014 issue of our sister publication, Private Debt Investor, carries a profile of Oak Hill Advisors