Globalworth signed an agreement to sell €180m in real estate secured bonds, of which €150m will be subscribed by the Canada Pension Plan Investment Board (CPPIB) and the remaining €30m by funds managed by Cairn Capital (Cairn). Colliers International Romania acted as real estate advisor to the investors.
The proceeds of the bond transaction will go towards refinancing the €100m corporate level facility granted by funds managed by York Capital and Oak Hill Advisors in 2015 as well as three facilities at the level of three of Globalworth’s Romanian property-owning subsidiaries.
Cairn Capital privately arranged the bond on behalf of Globalworth. This transaction was agreed directly between the investors and Globalworth, enabling the creation of a customized capital market financing that satisfied each party’s requirements.
“This investment led by CPPIB, Canada’s largest pension fund and one of the world’s most prestigious investors, is a testament to the level of progress achieved and the attractive risk/return profile offered by the Romanian real estate market at present. We expect that this transaction will amplify the positive sentiment already present and likely effect a momentum that will lead to further increases in market liquidity,” said Robert Miklo, associate director of investment services at Colliers International.
