NEPI Rockcastle has purchased the Festival Shopping City project in Sibiu in order to avoid confrontation with a potential competitor on the regional market and now owns two malls in the city – one currently in construction and the other undergoing expansion works – both scheduled for completion in the final quarter of 2019.
Sibiu has around 170,000 inhabitants and a catchment area of about 286,000 people, and NEPI wanted to avoid market competition with Primavera Development, who was the owner of the Festival mall until now. NEPI paid EUR 21 million to take over the mall.
Festival Sibiu will have a surface area of 42.200 sqm and the first Kaufland hypermarket to be part of a shopping centre. NEPI Rockcastle also owns Sibiu Shopping City, with a surface area of 83,100 sqm, which will be the first mall in the country to have two hypermarkets – Auchan and Carrefour.
When upgrade and expansion works will be completed for Shopping City Sibiu, the mall will feature around 180 brands, 60 percent of which will be anchors for the fashion, home&deco and sports product segments. Upgrade works will be carried out in phases and in different areas, so that the centre can remain open to visitors.
NEPI Rockcastle owns a total of 736,000 sqm of retail space in 24 malls, with a total value of EUR 1.7 billion. The company makes EUR 125 million per year in rent from its retail properties and will soon sell the four office buildings it owns in Romania, estimated to be worth about EUR 380 million.
According to the company’s latest financial report, its net revenues from rent went up 4.9 percent in 2018, to EUR 346 million.
The largest tenants in the company’s malls are Auchan (3.6 percent of the surface), Polish retailer LLP (3.5 percent), Inditex (3.2 percent) and Carrefour (2.9 percent).