NEW EUROPE PROPERTY INVESTMENTS PLC - NEPI/Rockcastle - Improved credit rating reflecting the planned merger between NEPI and Rockcastle

NEPI/Rockcastle - Improved credit rating reflecting the planned merger between NEPI and Rockcastle

NEW EUROPE PROPERTY INVESTMENTS PLC                               ROCKCASTLE GLOBAL REAL ESTATE COMPANY
Incorporated and registered in the Isle of Man with registered    LIMITED
number 001211V                                                    Incorporated in the Republic of Mauritius
Registered as an external company with limited liability under    Registration number: 108869 C1/GBL
the laws of South Africa, registration number 2009/000025/10      JSE share code: ROC
JSE share code: NEP BVB share code: NEP                           SEM share code: ROCK.N0000
ISIN: IM00B23XCH02                                                ISIN: MU0364N00003
(“NEPI”)                                                          (“Rockcastle”)


IMPROVED CREDIT RATING REFLECTING THE PLANNED MERGER BETWEEN NEPI AND ROCKCASTLE


MOODY’S CHANGES THE OUTLOOK ON NEPI’S ‘BAA3’RATING FROM STABLE TO POSITIVE, AND S&P
ASSIGNS A ‘BBB’ CREDIT RATING WITH A STABLE OUTLOOK TO NEPI ROCKCASTLE

On 31 May 2017, Moody's Investors Service (“Moody's”) changed the outlook on NEPI’s Baa3 long-term issuer rating and senior
unsecured bond rating from stable to positive, considering NEPI’s planned merger with Rockcastle. The positive outlook primarily
reflects the significantly larger property portfolio and improved geographical diversification of the envisaged merged entity, NEPI
Rockcastle plc (“NEPI Rockcastle” or “the company”), which will own a portfolio of direct properties valued at approximately
EUR3.9 billion, with strong market positions in Romania, Poland and Slovakia. The positive outlook also reflects Moody’s view
that the rating of NEPI pro forma for the merger could be a notch higher than that of the Romanian government (Baa3/Stable), as
the concentration of properties in Romania will decrease significantly. Additionally, Moody’s expects the proceeds from the disposal
of Rockcastle’s large holdings in listed securities to be reinvested in acquisitions of shopping centres in Central and Eastern Europe
(CEE). In Moody’s view, NEPI Rockcastle will become a leading owner of shopping centres in Eastern Europe.

On 1 June 2017, S&P Global Ratings (“S&P”) assigned NEPI Rockcastle a 'BBB' preliminary long-term corporate credit rating
with a stable outlook. S&P noted that NEPI Rockcastle should emerge as a leading real estate investment group in CEE following
the merger of NEPI and Rockcastle. Upon completion of the merger transaction, the company will own and manage a large asset
portfolio, mostly comprising prime quality shopping centers in Romania and Poland, as well as a significant portfolio of listed
securities. NEPI Rockcastle will also exhibit very low debt leverage and enough liquidity resources to absorb an economic stress
scenario in Romania. S&P’s assessment of NEPI Rockcastle's financial risk profile is underpinned by the company's prudent
financial policy. The stable outlook reflects S&P’s view that NEPI Rockcastle should continue to benefit from the healthy economic
trends in Romania and Poland, thanks to its good quality assets.

Both rating actions depend on the successful completion of the envisaged merger. The reports issued by Moody’s and S&P are
available on NEPI’s website, www.nepinvest.com.

This announcement is for information purposes only.

NEPI is listed on the JSE and the BVB. Rockcastle has its primary listings on the JSE and the SEM.

If you are a NEPI shareholder, for further information please contact:


JSE sponsor
Java Capital
Andrew Brooking                                                                +27 11 722 3052

Bucharest Stock Exchange advisor
SSIF Intercapital Invest SA
Razvan Pasol                                                                   +40 21 222 8731

If you are a Rockcastle shareholder, for further information please contact:

JSE sponsor
Java Capital
Andrew Brooking                                                                +27 11 722 3052

SEM authorised representative and sponsor
Perigeum Capital Ltd                                                           +230 402 0890
Shamin A. Sookia

5 June 2017

This notice is issued pursuant to the JSE Listings Requirements, the SEM Listing Rule 11.3, the Mauritian Securities Act 2005 and
the Listing Rules of the Bucharest Stock Exchange.

The boards of directors of NEPI and Rockcastle accept full responsibility for the accuracy of the information contained in this
announcement.

JSE sponsor to NEPI and Rockcastle                         SEM authorised representative and sponsor to Rockcastle
Java Capital                                               Perigeum Capital

Date: 05/06/2017 02:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.