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Acquisition of Paradise Center, Bulgaria
NEPI ROCKCASTLE PLC
(Incorporated and registered in the Isle of Man)
(Registered number 014178V)
JSE share code: NRP
Euronext share code: NRP
ISIN: IM00BDD7WV31
(“NEPI Rockcastle” or “the Company”)
ACQUISITION OF PARADISE CENTER, BULGARIA
INTRODUCTION
NEPI Rockcastle is pleased to announce that, on 21 September 2017, through its subsidiary NEPI Project two EOOD, it has
acquired all the issued shares in, and claims against, BULFELD EOOD, the owner of Paradise Center in Sofia, Bulgaria (“the
Transaction”). The Transaction will be effective upon obtaining approval of the Bulgarian Competition Authority.
This acquisition strengthens NEPI Rockcastle’s position as the largest listed retail real estate company in Central and Eastern
Europe (“CEE”), and together with the acquisition of Serdika Center earlier this year, its presence in the Bulgarian market.
RATIONALE FOR THE TRANSACTION
With a gross lettable area of 82,000m2, Paradise Center is the largest retail centre in Sofia, the capital city of Bulgaria. The
centre is located in the wealthy southern part of the city, which is undergoing strong development. Opened in 2013 and benefitting
from a corner location at the intersection between two main traffic arteries and direct access to the newly built M2 metro line,
Paradise Center has an annual footfall in excess of 10 million visitors. The mall is let to major national and international tenants
such as Bershka, Cinema City, Forever 21, H&M, LC Waikiki, Massimo Dutti, New Yorker, Pull & Bear, Reserved, Sephora, Sport
Vision, Sofia Event Center (a conference facility), Stradivarius, Technopolis and Zara. The centre has a strong food and
entertainment area, which includes both a complete fast and slow food line up, a fitness facility with a 25m swimming pool, as
well as a playground. Several asset management initiatives, including major improvements to the basement and the terrace level
together with enhancements to the tenant mix, will further strengthen its dominant market position.
With a growing population of over 1.32 million inhabitants, Sofia is the economic and cultural centre of Bulgaria and an attractive
head office destination for international companies. Benefitting from a developing infrastructure and strategic location, Sofia is a
major hub for international railway and automobile transport, with three Pan-European corridors crossing the city. During the last
couple of years, Bulgaria’s economy has shown robust growth, with GDP growth of 3.6% in 2015 and 3.3% in 2016. Growth is
forecast to remain strong at 2.8%-2.9% per year in 2017-21 (compared to a forecast growth of 1.4%-1.5% in the European Union),
as domestic and external demand continues to increase (according to the Economist Intelligence Unit).
PURCHASE CONSIDERATION
The aggregate purchase price for the Transaction is EUR 252.9 million, resulting in an acquisition yield of approximately 7%. The
acquisition has initially been funded by a combination of the Company’s existing cash resources and debt facilities, combined
with sale of listed securities held, in line with management’s strategy of decreasing this exposure.
CATEGORISATION
The transaction is not categorisable in terms of the JSE Listings Requirements and the information in this announcement is
presented for information purposes only.
For further information please contact:
NEPI Rockcastle Plc
Alex Morar +4021 232 1398
JSE sponsor
Java Capital +27 11 722 3050
Euronext Listing Agent
ING Bank +31 20 57 67 261
21 September 2017
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