NEPI and Real4You reach agreement on Mega Mall development in Bucharest

South African Investment Fund New Europe Property Investments (NEPI) has concluded a framework agreement with Real4You from Austria to implement the acquisition by the NEPI group of a 70 percent interest in ELJ VATRA SRL, a Romanian limited liability company that owns the Electroaparataj site where the Mega Mall, Bucharest’ newest shopping center is to be built, announced NEPI in a press release.

The agreement was assisted with respect to due diligence and contractual documentation by Reff & Associates (Deloitte Legal) and Deloitte Tax.

The developers plan to develop a 70,000 square meters GLA (gross leasable area) shopping mall to be opened by mid-2015.

According to the press release, the site is located in a densely populated part of Eastern Bucharest in close proximity to the Romanian national football stadium in an area that is under serviced with retail space. Also, the site has excellent visibility from major motor vehicle arteries (Iancului Road, Pantelimon Road and Pierre de Coubertin Street) and has access to public transport, in the form of trams, busses and trolley busses. A metro stop is planned in front of the site and the planning of the public transportation services allows for direct access to the mall, say NEPI representatives.

Approximately 30 percent of the planned GLA is already subject to tenant commitments, including Carrefour, C&A and H&M.

The building permit has been obtained and construction of the development will commence in 2013, with the opening of the shopping mall expected by mid-2015.

“Along with a wide tenant mix which will provide visitors with an affordable high-quality shopping experience, the Mega Mall will be developed with the latest in city mall design and lay-out, entertainment, leisure and lifestyle concepts in mind. Given its size and variety, it will be a top shopping and leisure destination in Bucharest” said Martin Slabbert, NEPI CEO.

NEPI’s most recent projects in Romania include the Ploiesti Shopping City mall developed in partnership with Carrefour Property, Pitesti Retail Park and Promenada Mall in Braila.

On the office segment, NEPI has taken over the Lakeview office building in Bucharest this February and has begun work on The Office project in Cluj Napoca earlier this year.

The fund is listed on the Main Board of the Johannesburg Stock Exchange, the regulated market of the Bucharest Stock Exchange and the AIM market of the London Stock Exchange.

The Group focuses on investments in dominant or potentially dominant retail assets but invests opportunistically in office and industrial properties as well.

Real4You is a privately owned Austrian investment and development company with special focus on the CEE.

Otilia Haraga

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