JOHANNESBURG - Listed Growthpoint Properties plans to issue a euro-denominated bond to partly use to participate in a proposed non pre-emptive issue of new ordinary shares by Globalworth Real Estate Investments. 

Growthpoint invested 186.4million (R3.13bn) almost a year ago to acquire an initial 26.9percent in Globalworth, which owns a 1bn property portfolio, is the largest office-space owner in Romania and is listed on the Alternative Investment Market of the London Stock Exchange. The initial investment in Globalworth was in line with the aggressive inter­nationalisation strategy embarked upon by Growthpoint earlier this year. 

The strategy aims to double Growthpoint’s bottom line distributable income contribution from its non-South African investments over the next three to five years. Growthpoint said that it had agreed to subscribe in cash for such number of new Globalworth shares that it would result in an increase in its total direct or indirect holding to about 29.5percent. 

- BUSINESS REPORT