Another day, another NEPI Rockcastle deal


Another day, another NEPI Rockcastle deal

Published Date: 2017-10-16 | Source: Stephen Gunnion | Author: Stephen Gunnion

Another day, another NEPI Rockcastle deal

The Serenada centre will consolidate the group's position as a dominant retail owner in Poland

NEPI Rockcastle says it's buying the Serenada shopping centre and the adjacent Krokus centre in Poland's second-largest city, Krakow, for €249.4 million through subsidiary Tuvalu. It will pay a further €212 million, dependant on the completion of an extension which will result in a single integrated shopping centre with a gross leasable area of over 100 000 square metres.

The Eastern and Central European-focused property group says the deal fits with its strategy to acquire and develop dominant retail centres in cities with attractive macroeconomic fundamentals. It says the centres have the potential to become a top 10 super-regional shopping mall in Poland and consolidate its position as one of the largest dominant retail owners in the country. It will initially fund the deal with a combination of existing cash and debt resources.

Related article: NEPI Rockcastle goes to market to fund acquisitions

Earlier this month, NEPI Rockcastle raised R5.2 billion through an accelerated bookbuild. It said the cash raised would the used partly to refinance the recent acquisitions of the Serdika Center and Office in Sofia, Bulgaria and the Arena Plaza shopping centre in Budapest, Hungary.

Last month it also bought Bulfled EOOD, the owner of Paradise Center in Sofia, in a €252.9 million deal that it said strengthened its position as the largest listed retail real estate company in the region.

The company's shares gained 4.1% on Friday to close at R189.21.

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