NEPI raises 50 mln euro for three potential acquisitions - two, in Romania

One of the most dynamic investor on Romania’s real estate market, NEPI, increases its capital by approximately 50 million euro, amount needed for three possible acquisitions. The capital increase is supported through an accelerated book build process set for today and that recently closed according to an informing the company sent to Bucharest Stock Exchange (BVB).

The Book Build was designated only to public investors which in order to be eligible, were required to place subscription orders worth at least some 13.9 million euro. The amount raised exceeds the 35 million euro initially planned: ‘In light of strong demand, the quantum to be raised was increased to ZAR695 million (approximately €50 million). At this level, the book was substantially oversubscribed. The new NEPI shares to be issued pursuant to the Book Build process have been priced at ZAR77.00 per share, a 3.6% discount to the 5-day volume weighted average price and a 3.8% discount to the previous closing price as at Wednesday, 27 November 2013.’ is stated by the respective announcement. 

According to the group’s previous notification, pricing and allocations should be announced no later than tomorrow morning, while the approximately 9 million shares are expected to be issued and listed one week later, on December 6, 2014. 

The South African investment group is interested in three new projects, two of them in Romania – a shopping center and a plot where to build a shopping center, in major cities, undisclosed yet – and another, a shopping center, as well, to be developed in an Eastern Europe capital. These three potential acquisitions have a total gross market value of 170 million euro and it is expected to commit and possibly complete some or all of them before the group releases the financial results for the current year.

NEPI is one of the major investors in its sector in Romania and recently announced that will proceed with two other projects that will significantly increase the leasable area it holds. The group is going to start the construction of Targu-Jiu Shopping City by the end of this year, this project having already got the required permit and in early 2014 it is planned to start the construction for Vulcan Value Centre in Bucharest, following the takeover of its former partner’s participation.

NEPI manages several real estate properties in Romania both from the retail sector – Promenada Mall Braila, Ploiesti Shopping City, Retail Park Auchan Ploiesti, Aupark Zilina, Deva Shopping Centre, Severin Shopping Center, and from the office building area – Floreasca Business Park, The Lakeview – in Bucharest and City Business Centre which is located in Timisoara.