NEPI pays 63 million for European Retail Park

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.

Who sold what to whom in local retail in 2009?

Who sold what to whom in local retail in 2009?This year, transactions in the local retail market proved unattractive to most investors. However, the few deals concluded year-to-date were centered on share sell-off.

UK-based investment fund Lewis Charles Romania Property Fund Ltd (LCSR) sold this summer its S.C. Retail Park Magnolia S.R.L together with its €3.63 debt load to Blackpearl Property, owned by various investors from Ireland.

Another deal was sealed by Austrian-based investment fund Immoeast that has reportedly relinquished its partnership with S+B Gruppe, according to Ziarul Financiar. S+B Gruppe bought the shares held in all the projects that were underway, namely four Stop.Shop commercial centers.

The largest deal in the local retail market in 2008 was the takeover of the 15-outlet Winmarkt chain and a retail property up for lease from NCH Advisors by Immobiliare Grande Distribuzione (IGD), for €182.5 mln.

NEPIs acquisitions in Romania

Last year, the UK firm New Europe Property Investments (NEPI) acquired two companies that hold 18 properties in different cities across the country, from a company affiliated to Avrig 35, for €46.3 mln.

“The buildings are those that ‘accommodate’ Raiffeisen Bank’s county subsidiaries, so approximately 90% of the 18 properties are leased to Raiffeisen. NEPI analyzed these properties in autumn 2007”, said Georgiana Anghelus, consultant of Colliers International.

In 2007, NEPI also acquired four properties owned by Flamingo in Bucharest, Iasi, Bacau and Brasov for €4 million.

The total value of NEPI properties stood at €99.79mln at the end of first half, from €93.72mln at the end of 2008, according to the company’s financial report. The net rental and related income amounted to €3.52 mln at June 30 versus €6.31mln at the end of last year.