South-African investment fund New Europe Property Investment (NEPI), one of the biggest real estate investors in Romania, made EUR 111 million gross rental income in 2015, 65% more compared to 2014, due to new mall openings and acquisitions.

The fund opened one of the biggest shopping centers in Bucharest, Mega Mall, in May last year, and finalized mall extensions in Constanta, Deva, and Drobeta Turnu Severin. It also purchased the Iris Titan Shopping Center in Bucharest, which hosts the largest Auchan hypermarket in Romania. NEPI’s full year results for 2015 were also fully reflected the Promenada mall acquisition in late 2014.

The fund’s total assets went up by 45% last year, reaching EUR 2.27 billion. Most of the fund’s assets are in Romania. The net asset value (NAV) was close to EUR 1.5 billion, at December 31, 2015, up by 21% compared to end-2014.

Unlike in the previous years, when NEPI financed its new acquisitions and developments mostly with new share issues, in 2015 the fund borrowed EUR 400 million via an unsecured bond issue with a maturity of 5.25 years. The fund also got an investment grade rating (BBB-) from the rating agency Standard & Poor’s. NEPI also raised EUR 179 million last year via new share issues.

NEPI had a net operating income of EUR 108 million, compared to EUR 65.7 million in 2014. The fund’s distributable earnings were EUR 102.5 million, up by a third compared to 2014.

NEPI currently has a market capitalization of EUR 2.6 billion (as of February 9, 2016). The fund’s shares, which are trading on the Johannesburg Stock Exchange, London Stock Exchange, and Bucharest Stock Exchange, are up by 8% in the past 12 months.

NEPI raises EUR 130 mln for investments in Romania

Andrei Chirileasa, andrei@romania-insider.com