Largest real estate deal in 2009

For the UK-based buyout firm, New Europe Property Investments, 2009 was a good year for making acquisitions, even if their previous attempts in spring stalled because of the financial crisis. In May this year, the company said Carpathian talks had terminated after Carpathian rejected the bid of €0.2/share.

Even if the acquisition of Carpathian had failed, Martin Slabbert (photo), managing director of NEPI said few weeks later that several acquisitions were in the pipeline, and that transactions would end before year-end, target being retail parks across the country.

Yesterday, the company said it had bought European Retail Park Braila, a retail park opened in last year’s summer by the Belgian-based BelRom Real Estate, and that this acquisition would be succeeded by two similar projects from the same developer.

NEPI paid €3 million more than BelRoms’s initial investment in the development of the retail park.

“NEPI has also agreed an acquisition debt funding facility from KBC Bank for an amount of €113 million of which €40 million will be used to pay down existing debt on ERP Braila”, according to a press release remitted by the buyout firm.

The balance of the consideration payable for the shares is approximately €23 million, comprising a mixture of cash payable from the company's own resources and the issue of vendor shares at a price of €2.026 per share. NEPI is listed on the London Stock Exchange and on the Alternative Exchange of the JSE Limited. Two representatives of BelRom Real Estate will become members of NEPI board.

Reff & Asociatii, the law firm affiliated to Deloitte Romania, Deloitte Tax and Optim PM were lead advisers in the deal. Intermediation services were provided by DTZ Echinox.