Acquisition of an interest in the Mega Mall development in Bucharest
Shareholders are advised that NEPI has concluded, via its subsidiaries NE Property Cooperatief U.A. and NEPIOM Limited, a framework agreement with Real Holding Lithium Kft., a Hungarian company, and Real4You Holding GmbH, its Austrian holding company (“Real4You”). In terms of the framework agreement, the parties are obliged to perform various actions and conclude various separate agreements to implement the acquisition by the NEPI group of a 70% interest in ELJ VATRA SRL, a limited liability company duly incorporated and organised under the laws of Romania (“ELJ”). The framework agreement is subject to various conditions precedent to be fulfilled or waived by the end of August 2013 and includes the right for NEPI to perform its payment obligations fully or partially by means of a vendor consideration placement.
Real4You is an Austrian property developer and investor with property interest in various central European countries. ELJ is the owner of a permitted development site called Mega Mall, in Bucharest, Romania. The site, which is the location of the former ElectroAparataj factory consists of 5.1 hectares, has good visibility and access to public transport and is located in a very densely populated part of Eastern Bucharest in close proximity to the Romanian national football stadium. The building permit allows for the development of a shopping centre of up to 70 000 square metres of GLA and it is the intention of the parties to the framework agreement to develop a dominant shopping centre on this site and open it by mid 2015. Tenant commitments of approximately 30% of the planned GLA have already been received.
Other highlights
NEPI has also concluded and/or committed to a number of other acquisitions in the past few days, following the successful closure of the recent approximately EUR100 million rights issue in July 2013.
None of the transactions mentioned within this announcement are individually categorisable in terms of the Listings Requirements of the JSE Limited. However, NEPI intends to present further details of these acquisitions, including the pro forma financial effects thereof, shortly after the issue of its 30 June 2013 interim results, scheduled for release on 6 August 2013.
