May 21 (SeeNews) - NEPI Rockcastle, a property investment and development group incorporated in the Isle of Man, said on Thursday that it has decided to postpone the opening of a 70 million euro ($76.7 million) mall in Romania's Targu Mures for the third quarter, after trading restrictions imposed due to Covid-19 outbreak are expected to be lifted.
Some 39,800 sq m of the shopping mall was completed in the first quarter of 2020, and the opening was initially scheduled for end of March, NEPI said in its first-quarter financial statement.
NEPI also said it will not launch new construction projects until there is more clarity on the impact of Covid-19 on its operations. Consequently, the group estimates to incur further development and capital expenditure of only 70 million euro in 2020.
"Covid-19 had limited impact on revenues during the first quarter with social distancing measures causing closure of most shops starting mid-March," NEPI Rockcastle CEO Alex Morar said. Over the last few weeks, in the context of easing of restrictions, a large proportion of retailers have resumed heir operations and 63% of the group’s Gross Leasable Area is currently open, the CEO added.
NEPI also said that it expects reopening of non-essential shops and entertainment facilities located in larger malls in Romania to take place in June.
The Romanian government has announced gradual easing of lockdown measures, allowing reopening of shops with street access and those located in retail parks up to 15,000 sq m starting May 15.
NEPI also said that it has started procedures to recover the contractual guarantee from AFI Europe after cancelling a deal to dispose of its office portfolio in April.
The disposal of the portfolio was terminated after the buyer - AFI Europe - failed to fulfill some procedures, leading to a breach in the agreement, NEPI said at the time.
NEPI Rockcastle is listed on the Johannesburg Stock Exchange and Euronext Amsterdam. The company is focused on acquiring, developing and managing retail assets in Central and Eastern Europe. Its property portfolio is focused in Romania, Poland and Slovakia. The group has strong presence in Croatia, Bulgaria, Hungary, the Czech Republic, Serbia and Lithuania.
($= 0.9132 euro)