Real estate investment fund New Europe Property Investments (NEPI) is in discussions for the acquisition of a small logistics facility in Bucharest, while having reached an agreement in relation to the development of a shopping centre in Bucharest. “This project is currently in due diligence,” writes the group's most recent financial report. “In view of existing market opportunities and the group`s growing foothold in Romania, the group has also pursued development opportunities through joint ventures with strong partners. One of these opportunities led to an agreement in relation to the development of a shopping centre in Bucharest,” reads the report.

Local media reports, quoting unnamed sources, point out to the Pallady Shopping Center, which is being developed by Avrig 35 and Cascade Group on a plot bought from pharmaceutical company Zentiva.

“The group continued expanding its retail asset base in Romania through the acquisition of a retail park located in Pitesti, Romania Retail Park Auchan Pitesti, leased to Auchan and Bricostore,” NEPI went on.

The fund refinanced a loan facility of EUR 28.8 million for Retail Park Auchan Pitesti from Unicredit Bank and Banca Romaneasca. The new loan facility matures in December 2014 and carries an interest rate of 1 month Euribor plus 4.0 percent.

The fund owns assets worth 239 million in total- this includes EUR 23 million in cash and cash equivalents. The group's net income from rents stood at EUR 7.7 million in the first six months of the year, down on EUR 8.2 million the same period of last year. Its profit before tax was of EUR 2.9 million, down on EUR 4.8 million during the first half of 2009.

NEPI's board of directors include Dan Pascariu, chairman of the board with UniCredit Tiriac Bank, Desmond de Beer of the Resilient Property Income Fund, Dewald Joubert of Maitland Group, Michael Mills, Victor Semionov, co-founder of the fund, Martin Slabbert, director with NEPI, Steven Van Den Bossche, one of the shareholders in Belrom and Jeff Zidel, non-executive director of the Resilient Property Income Fund, which is one of the investors in NEPI.