NEPI Rockcastle, a leading investor and developer of commercial property in Central and Eastern Europe, acquired 17 hectares of land in the city of Galati, eastern Romania, for a mixed-use real estate project.

The transaction, whose value was not disclosed, was brokered by the real estate consultancy company Colliers. It is part of NEPI Rockcastle’s medium and long-term local expansion strategy, focused on developing mixed-use projects (where the anchor remains the commercial centre and is enhanced by complementary functions, mainly residential).

“The new transaction further emphasizes the group’s confidence in the attractiveness of mixed projects - retail and residential. We estimate that the works for the project in Galati will start in 2023, after obtaining the necessary authorizations,” said Marius Barbu, Asset Director of NEPI Rockcastle.

Eversheds Sutherland Romania advised NEPI Rockcastle on all stages of the deal.

With a property portfolio valued at around EUR 6.1 billion, NEPI is thus consolidating its position in the city, where it also owns the Galati Shopping City shopping centre.

According to Colliers, 2021 was a record year for the land market in the last 15 years. Transactions exceeded EUR 800 million, increasing more than two and a half times compared to the estimated volume in 2020. Retailers and residential developers have been highly active, with land for such projects accounting for about 90% of the total.

“The outlook is also good for 2022, as it benefits from a good deal flow right from the start. Colliers consultants expect a volume of the land market that could very well turn out similar to that of 2021, in a context in which residential and retail developers will remain very active. Assuming the expected recovery of the office market starts to take shape, Colliers consultants will expect these developers to return to the table in much higher numbers than in 2021,” the company said.

irina.marica@romania-insider.com

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