UK's New Europe Property Investments (NEPI) investment fund is set to take over a retail park developed by BelRom Belgian company in Braila, in a 63m-euro deal. The first deal involving a shopping centre this year is taking place in the city where the first mall ever, Armonia Center, was closed.
NEPI plans to also buy the projects BelRom developed in Focsani and Bacau, with total investments in the three projects due to go beyond 160m euros, Martin Slabbert, managing director with NEPI, told ZF.
The British fund is now investing its money on a market that is diving, in which investments have plummeted by more than 90%, and which has not witnessed any significant deal for more than a year.
The project in Braila has a 53,000 square-metre lettable area, tenants such as Carrefour, Bricostore or Staer and would generate revenues worth 5.88m euros from rents, namely an initial investment return of 9.3%, in euros, per year.
BelRom announced it planned to sell the project as early as April 2008, but talks with NEPI, the only interested buyer, started this January.
NEPI last week signed the agreement to take over European Retail Park of Braila from BelRom in a 63m-euro deal that includes the payment of debts and shares in the British fund.
"We had to start somewhere. Nobody can ever know when there is a good time to buy. You look at the value and if it seems right to you, you sign. Even Warren Buffett has made mistakes." This is how Slabbert accounts for the decision to take over the centre in Braila.
The acquisition of the three projects is partially financed by Belgian bank KBC through an 113m-euro financing line. The deal is also financed through a stock issue, with BelRom shareholders getting 3.5 million shares worth 7.5-8m euros. The rest is the cash contribution by NEPI.
BelRom sells the centre for 63m euros, after developmen
