New Europe Property plans R1.3 billion rights offer

New Europe Property Investments (Nepi) CEO Martin Slabbert

Romanian-focused property fund New Europe Property Investments (NEPI‚ NEP) is to undertake a rights offer to raise approximately R1.3 billion (approx. EUR100 million)‚ it said on Thursday.

The proceeds from the rights offer are expected to be used to fund potential acquisitions which NEPI is in the process of negotiating.

NEPI shareholders will be offered a total of 20.833 million new NEPI shares at the subscription price of EUR4.80 per rights offer share and in the ratio of 13.07987 new NEPI shares for every 100 ordinary shares held by them on Friday‚ 5 July 2013 for shareholders on either the South African share register or the UK share register‚ or 13.07987 pre-emptive rights for every 100 NEPI shares held on Friday‚ 28 June 2013 for shareholders registered in Romania.

For shareholders on the SA share register‚ the rand equivalent subscription price will be announced on or before 21 June 2013‚ it said.

About New Europe Property Investments (NEPI‚ NEP)

While their SA-listed peers, like Redefine Properties and Growthpoint Properties, branched into conventional offshore markets like Australia, the UK and Germany, Resilient opted for the former communist country because it was one of Europe's least developed in terms of formal shopping centres.

Nepi has over the past six years become a major player in Romania's real estate market. It started in 2007 with three employees under CEO Martin Slabbert. Nepi's staff has since grown to over 60. Its portfolio of more than 40 properties, worth around R5bn, consists mostly of shopping centres and office blocks.