Shareholders are advised that NEPI has, through two of its subsidiaries, concluded a settlement agreement with the vendors (the “Vendors”) of Promenada Mall Braila, situated in Romania (the “BelRom Settlement”). Under the terms of the BelRom Settlement, the Group will receive an early settlement amount of € 11,478,874 (the “Settlement Amount”), payable in cash, from the Vendors. The Settlement Amount represents amounts owed to the Group by the Vendors in relation to the completion of the Cinema City premises being delayed beyond the agreed timetable and exceeding the agreed budget and amounts owed or expected to be owed to the Group by the Vendors as a result of net operating income warranties, made by the Vendors, being breached. The Settlement Amount will be recognised in the financial statements of the Group for the six-month period ending 30 June 2012.
Shareholders are advised that Promenada Mall Braila is performing well and in accordance with the Company’s expectations. The expansion referred to in NEPI’s 2011 annual report was completed on 10 May 2012 with the opening of H&M and C&A. The Company is considering a further expansion phase to accommodate increasing demand for retail space from tenants.
The BelRom Settlement is not categorisable as a transaction in terms of the Listings Requirements of the JSE Limited.