NEPI raises EUR40 million in underwritten rights issue to fund further acquisitions in Romania

New Europe Property Investments plc (NEPI), the real estate investment group listed on the Bucharest Stock Exchange, has announced it was in the process of raising EUR40 million in a rights issue to existing shareholders. The rights issue is underwritten, which means that is guaranteed to be successful. The money will be used to finance further acquisitions and investments in Romania.

“The fact that we were able to agree an underwriting agreement for our rights issue at a premium to net asset value per share illustrates confidence in NEPI to continue to perform well in the execution of its strategy to provide above market growth in cash dividends to shareholders in difficult economic circumstances.  Funds raised will be used for further acquisitions and investments in Romania,” said Martin Slabbert, CEO of NEPI.

On 20 June 2011, NEPI was admitted to trade on the regulated market of the Bucharest Stock Exchange. The Bucharest Stock Exchange is a regulated European market that makes the Company’s shares accessible to Romanian investors.

New Europe Property Investments plc is the holding company of an actively managed group of companies established to invest primarily in the high quality office, retail and industrial property market mainly in Romania, where the fund is active since its launch in 2007.

The South-African investment group’s portfolio in Romania includes 27 properties and is focused onacquiring properties with reliable multinational tenants generating euro based income.

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The most recent investments of NEPI are Floreasca Business Park (December 2010), the remaining part of the Auchan Shopping Center in Pitesti (May 2011), an extension of Promenada Mall Braila (April 2011), the completion of a refurbishment of an office building in Brasov (June 2011) and the acquisition of retail development land in Ploiesti and Brasov (1^st quarter of 2011).

NEPI recently acquired a land adjacent to Carrefour property in Ploiesti and has reached an agreement with the retailer to redevelop the combined properties into a 50,000 sqm regional shopping centre.

The Group is currently listed on the main board of the Johannesburg Stock Exchange (South Africa) and the AIM market of the London Stock Exchange and as mentioned above, starting with June 2011, is also listed to Bucharest Stock Exchange.