NEW EUROPE PROPERTY INVESTMENTS PLC - Acquisition of Promenada Mall

Acquisition of Promenada Mall

NEW EUROPE PROPERTY INVESTMENTS PLC
Incorporated and registered in the Isle of Man with registration number 001211V
Registered as an external company with limited liability under the laws of South Africa,
registration number 2009/000025/10
AIM share code: NEPI; JSE share code: NEP; BVB share code: NEP
ISIN: IM00B23XCH02
(“NEPI” or “the Company”)




ACQUISITION OF PROMENADA MALL



INTRODUCTION

Shareholders are advised that, on 31 October 2014, NEPI, through its subsidiary NE Property Cooperatief UA (“the
Buyer”), concluded an agreement to acquire all the issued shares in, and shareholders’ claims against, Floreasca City
Center SRL (“Floreasca”) from RE Project Development SRL and Manierita Limited (collectively “the Sellers”) and
repay Floreasca’s entire outstanding debt (“the Transaction”).

Floreasca wholly owns a shopping mall of 40,300 m2 of GLA situated in Bucharest, Romania, that opened in October
2013, known as Promenada Mall (“the Property”).


RATIONALE FOR THE TRANSACTION

Promenada Mall is located close to the Floreasca Business Park and the Lakeview office buildings, both owned by
NEPI, in Bucharest’s emerging business district. This area has seen significant development in recent years including
new A-grade office buildings and infrastructure, and the Property is expected to benefit further from a substantial
office development pipeline. The Property has excellent visibility and public transport connections: metro, bus and
tram lines, and is linked to the city centre by two major boulevards.

The Property contains numerous international fashion brands, such as Adidas, Bershka, C&A, Deichmann, H&M,
Hervis, Intersport, Lacoste, Massimo Dutti, Oysho, Peek & Cloppenburg, Promod, Stradivarius, Tommy Hilfiger and
Zara. Other tenants include a Billa supermarket, a World Class gym, several international fast food brands, including
KFC and McDonalds, and various other international and national tenants.


SALIENT TERMS OF THE TRANSACTION

The Transaction was completed on 31 October 2014 (“Effective Date”).

The aggregate purchase price for the Transaction is EUR148 million (“Purchase Price”) and was settled from NEPI’s
existing cash resources.

The purchase agreement for the Transaction contains typical warranties.

There are no outstanding conditions precedent.


DETAILS OF THE PROPERTY

The details of the Property, including the valuation, effective as at 31 October 2014, attributed by NEPI, are as
follows:
                                                                                                                       2

                                               Monthly
                                                             Rentable                                      Estimated
 Property                                      weighted                      Purchase
             Location         Sector                             area                       Valuation        passing
 description                              average rental                        price
                                                               (GLA)                                            rent
                                                 per m2

                                                                                (EUR'          (EUR'          (EUR'
                                                  (EUR)           (m2)
                                                                               million)       million)       million)

 Promenada     Bucharest,     Retail                 22         40 300             148             148             10
 Mall          Romania

*The purchase price reflects the price for the acquisition of the issued shares in and shareholder’s claims against
Floreasca and settlement of debt, as noted above, whilst the valuation amount reflects the value attributed to the
Property by the directors of the Company. The directors of the Company are not independent and are not registered as
professional valuers or as professional associate valuers in terms of the Property Valuers Profession Act, No 47 of
2000.

As required by the AIM Rules for Companies, NEPI reports that Floreasca registered a statutory profit of RON
13,756,631 for the six months ended 30 June 2014 based on the Romanian accounting standards.

CATEGORISATION OF THE TRANSACTION

The Transaction is classified as a category 2 transaction in terms of paragraph 9.5(a) of the Listings Requirements of
the JSE Limited (and accordingly does not require approval by NEPI’s shareholders) and a substantial transaction
under the AIM rules.

31 October 2014

For further information please contact:

New Europe Property Investments plc
Martin Slabbert                                                      +40 74 432 8882

Nominated Adviser and Broker
Smith & Williamson Corporate Finance Limited
Azhic Basirov                                                        +44 20 7131 4000

JSE sponsor and South African corporate advisor
Java Capital                                                         +27 11 283 0042

Romanian advisor
SSIF Intercapital Invest SA
Razvan Pasol                                                         +40 21 222 8731

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