April 10 (SeeNews) - Bucharest-listed real estate investment trust (REIT) New Europe Property Investments [BSE:NEP] said on Monday it plans to invest 40 million euro ($42.3 million) in a shopping mall in the northwestern city of Satu Mare.
The 28,000 sq m shopping mall will be inaugurated at the end of 2018, NEPI said in a press release.
"The main goal on this investment is to bring all necessary services and products directly to inhabitants of Satu Mare, so that their time and money will be reinvested locally and not in other counties, " NEPI group asset manager Sebastian Mahu said.
In addition to the construction works for the shopping center, NEPI aims to improve local infrastructure by building a roundabout road. To that end, NEPI will rehabilitate two streets adjacent to the future shopping mall and contribute to the construction of a footbridge over Somes river, which will help transit between the two parts of the city.
At the end of 2016, NEPI said it will merge with South African commercial property investor and developer Rockcastle and create the largest listed real estate player in CEE, NEPI Rockcastle PLC, registered in the Isle of Man.
NEPI is an Isle of Man-based company investing primarily in the high quality office, retail and industrial property market initially in Romania and thereafter in other Central and Eastern European countries. Its total investment property portfolio was valued at approximately 2.5 billion euro at end-November.
NEPI’s portfolio in Romania includes projects such as Mega Mall, Iris Titan Shopping Center, Promenada Mall and Vulcan value Centre in Bucharest. The company has also developed projects in the industrial sector, such as Rasnov Industrial Facility and Otopeni Warehouse. In the office real estate market NEPI owns Floreasca Business park, The Office and Lakeview.
Rockcastle is a commercial property investor and developer that owns, develops and manages dominant retail assets in the CEE region and invests in global real estate listed securities. As of September 30, its portfolio was valued at 878.6 million euro and included assets in Poland, the Czech Republic and Zambia.
NEPI is listed on the Johannesburg Stock Exchange (JSE) and on the Bucharest Stock Exchange (BVB). Its shares were traded 0.22% higher at 46.1 lei at 1237 CET on the BVB.
Rockastle is listed on JSE and the Mauritius Stock Exchange (SEM).
($ = 0.9452 euro)