Wrap Text
Update on acquisitions and developments
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")
UPDATE ON ACQUISITIONS AND DEVELOPMENTS
ACQUISITION OF AURA SHOPPING CENTRE IN OLSZTYN, POLAND
NEPI Rockcastle is pleased to announce that, on 30 May 2018, through its subsidiary Rockcastle Global Real
Estate Holdings B.V, it acquired 100% of the shares in Milvus sp. z o.o., which owns Aura shopping centre
in the city of Olsztyn in Poland ("Aura Centrum"), from Rockspring NPS European Alfa B.V.
Aura Centrum is a prominent shopping and entertainment destination in the heart of Olsztyn city centre with
a gross lettable area ("GLA") of over 25,000m2 and annual footfall of 5.5 million people. Opened in 2005, the
centre was extended in 2009 and was further modernised in 2013 and 2016 to keep it at the forefront of modern
shopping. Aura Centrum is 94.2% let, including key anchors such as Carrefour, H&M, Helios cinema, LPP
brands (Reserved, Cropp, House, Mohito, Sinsay, Home & You), Martes Sport, New Yorker, RTV Euro AGD
and Smyk.
Olsztyn is a city of 173,000 people in north-eastern Poland and the capital of the Warminsko-Mazurskie
province, which has a population of over 1.4 million. Olsztyn has large regional importance as it is the only
major city in a c.100km radius. It hosts a wide range of administrative functions and is the only city in the
province with developed industry, including manufacturers that supply the automobile industry. With
35,000 students currently enrolled at the university in Olsztyn and entering the job market over time, the city
is also well-positioned to become a hub for high-tech industry in the region. Olsztyn has recently undergone
a major infrastructure upgrade, aimed at modernising the city and marked by the introduction of an 11km tram
line as well as a vast road and public infrastructure redevelopment.
The acquisition of Aura Centrum creates regional synergies for NEPI Rockcastle, which also owns Galeria
Warminska, the dominant shopping centre in Olsztyn. Consolidation of both properties in the Company's
portfolio allows for a more bespoke positioning of the two centres and a tailoring of the offering to their
respective customers in the regional catchment area, thereby creating a more diversified shopping and leisure
selection.
The aggregate purchase price for Aura Centrum was EUR 64.9 million. The centre has a current net operating
income of EUR 5.3 million per annum, excluding potential income from vacancies.
ACQUISITION OF OZAS SHOPPING AND ENTERTAINMENT CENTRE
NEPI Rockcastle is also pleased to announce that, on 31 May 2018, through its subsidiary UAB "Ozas
property", it acquired 100% of the shares in Uzdaroji akcine bendrove "Ozantis", which owns Ozas Shopping
and Entertainment Centre ("Ozas") in Vilnius, Lithuania, from ARENA Zweite Verwaltungs GmbH.
Ozas is located in Vilnius, the capital city of Lithuania, and has a GLA of over 60,000m2. The centre has a
strong fashion and entertainment-oriented tenant mix and attracts an affluent customer base with above
average disposable income. Ozas opened in 2009 and benefits from a simple and effective layout. It has a
wide retail offering, including numerous international tenants such as Adidas, Bershka, CCC, Deichmann,
Gant, H&M, Karen Millen, Jack&Jones, Lindex, LPP brands (Reserved, Cropp, House, Mohito, Sinsay),
Maxima, Multikino, New Yorker, Peek & Cloppenburg, Pierre Cardin, Salamander, Swarovski, Timberland,
Tommy Hilfiger, Top Shop, and Zara.
The catchment area of 432,000 inhabitants within 30 minutes includes residential districts and the main office
area of Vilnius. The centre is located at the crossing of two highly frequented north-south traffic axes,
benefitting from excellent transportation links within its catchment area.
With 574,000 inhabitants, Vilnius is the economic and cultural centre of Lithuania. Lithuania is an investment
grade country (A3/A/A-) that has recently shown robust development, with GDP growth of 2.3% in 2016 and
3.8% in 2017. According to European Commission forecast data, growth in GDP for 2018 and 2019 is
expected to be 3.1% and 2.7%, respectively.
The acquisition of Ozas marks the Company's entry point into the Baltic region, one of the most developed
areas in Central and Eastern Europe ("CEE") with an affluent and highly educated population. It also
consolidates NEPI Rockcastle's market position in the CEE and its ability to leverage off its best-in-class
operating platform. A presence in the Baltics provides the Company's stakeholders with additional geographic
diversification and further strengthens the Company's offering as CEE's leading retail-focused landlord.
The aggregate purchase price for Ozas was EUR 124.6 million. The centre has a current net operating income
of EUR 8.8 million per annum, excluding potential income from vacancies.
FUNDING OF THE TRANSACTIONS, WARRANTIES AND CONDITIONS PRECEDENT
The acquisitions of Aura Centrum and Ozas have been funded by divestments from various listed security
positions (consistent with management's strategy of decreasing this exposure), supplemented by existing
liquidity resources.
The purchase agreements for the acquisitions contain warranties typically associated with transactions of this
nature and there are no outstanding conditions precedent.
CATEGORISATION
The acquisitions of Aura Centrum and Ozas are not categorisable in terms of the JSE Listings Requirements.
OTHER UPDATES
The Company is well advanced with several transactions at various stages of the due diligence process. Further
announcements in this regard will be made in due course.
For further information please contact:
NEPI Rockcastle plc
Alex Morar +40 21 232 1398
Spiro Noussis +44 208 546 0133
JSE sponsor
Java Capital +27 11 722 3050
Euronext Listing Agent
ING Bank +31 20 576 7261
1 June 2018
Date: 01/06/2018 08:00:00 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.
Sharenet Sites 
