New Europe Property Investments PLC Update on Acquisitions and Developments (4139C)

TIDMNEPI

RNS Number : 4139C

New Europe Property Investments PLC

28 June 2016

NEW EUROPE PROPERTY INVESTMENTS PLC

Incorporated and registered in the Isle of Man with registered number 001211V

Registered as an external company with limited liability under the laws of South Africa, registration number 2009/000025/10

   AIM share code: NEPI    JSE share code: NEP    BVB share code: NEP 
   ISIN:   IM00B23XCH02 

("NEPI" or "the Group")

UPDATE ON ACQUISITIONS AND DEVELOPMENTS

ACQUISITION OF SHOPPING CITY SIBIU (ROMANIA)

NEPI has concluded an agreement to acquire Shopping City Sibiu, in Romania, from the Argo Group. The shopping centre currently has a Gross Lettable Area ("GLA") of 79,100m(2) . It opened for trading in November 2006 with 41,100m(2) of GLA that comprised an Auchan hypermarket and adjacent gallery, and a DIY store, Leroy Merlin. Shopping City Sibiu was subsequently extended by adding a Carrefour hypermarket, fashion and sport brands, a large furniture store and white goods retailers.

Sibiu has a population of approximately 170,000 and is the capital of Sibiu county which has over 400,200 inhabitants. The city is an important cultural centre and also benefits from its modern infrastructure that includes three rail stations and an international airport with direct connections to many European countries and various national destinations.

Shopping City Sibiu is the first, and only, modern retail centre in Sibiu, and the largest retail park in Romania, with a diverse tenant mix, dominating retail in the region. It is located on the main Brasov artery, and is an eight-minute drive from the city centre.

The mall is anchored by two hypermarkets, Carrefour and Auchan, and includes numerous international brands, such as Adidas, Altex, Benvenuti, BSB, C&A, CCC, Coccodrillo, Decathlon, Deichmann, Diverta, dm, Douglas, Flanco, H&M, Hervis, Humanic, Kendra, Kenvelo, KFC, Lee Cooper, Marionnaud, New Yorker, Noriel, Orsay, Pepco, Salamander, Takko, Yves Rocher, and a wide selection of furniture and DIY stores including Jysk, Lems, Leroy Merlin, Mobexpert, Nobila Casa and Rovere Mobili.

The transaction value was EUR 100 million. The acquisition was completed on 24 June 2016. The commercial effective date is 31 March 2016.

ACQUISITION OF MINORITY INTEREST IN MEGA MALL (ROMANIA)

The Group has concluded an agreement with the Austrian development group Real4You to purchase its 30% interest in Mega Mall, Bucharest. NEPI currently owns 70% of Mega Mall.

Mega Mall has 75,500m(2) GLA and is the Group's largest development to date. It commenced trading in May 2015 and dominates retail in the heavily-populated, eastern Bucharest, with a catchment area of 600,000 within a 15-minute drive.

The completion of the acquisition is pending the approval of the Competition Council.

ACQUISITION OF LAND FOR DEVELOPMENT IN NOVI SAD (SERBIA)

NEPI has acquired a land plot of 3.3ha in Novi Sad, Serbia's second largest city and capital of Vojvodina, which is located on the Danube. The city has a population of 250,000, and a metropolitan area of 340,000 inhabitants. Novi Sad is located 70km from the capital Belgrade, and connected by international motorways to Belgrade, Budapest, Skopje and Zagreb.

Novi Sad is the administrative and economic centre of Vojvodina, Serbia's largest agricultural region. It is one of the country's largest cultural centres, combining great historical heritage with modern festivals, and is the country's second largest university centre. Novi Sad is also home to one of Serbia's largest oil and gas companies, Naftna Industrija Srbije, as well as a growing industrial zone, where 18,000m(2) of production facilities have been long-term leased to the Delphi Packard group in December 2015.

The site has a prime location, with excellent visibility from two large boulevards, with exposure frontage of over 300 linear metres. Its location offers access to local infrastructure either through very good traffic connections or public transportation on the city bus lines, with three bus stops near the plot.

The Group plans to develop a shopping mall of approximately 50,000m(2) of GLA, including international fashion brands and diverse entertainment facilities, depending on permitting. NEPI has initiated permitting efforts and targets opening in 2018. Given the shortage of modern retail offering in Novi Sad, the Group is confident that the envisioned development will be the dominant scheme in the city.

The transactions presented above are not categorisable in terms of the JSE Listings Requirements and are not classified as substantial transactions under the AIM Rules for Companies.

This announcement is for information purposes only.

28 June 2016

For further information please contact:

 
 New Europe Property Investments 
  plc 
 Alex Morar                          [phone] 
 
 AIM Nominated Advisor and Broker 
 Smith & Williamson Corporate 
  Finance Limited 
 Azhic Basirov/Katy Birkin           [phone] 
 
 JSE sponsor 
 Java Capital                        [phone] 
 
 BVB advisor 
 SSIF Intercapital Invest SA 
 Razvan Pasol                        [phone] 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

ACQPGUQUQUPQGMM

(END) Dow Jones Newswires

June 28, 2016 02:00 ET (06:00 GMT)