| Thu 9 Nov 2017, 15:10 | | NEPI ROCKCASTLE PLC - Acquisition of Alfa Centrum Bialystok Poland |
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NRP 201711090049A
Acquisition of Alfa Centrum Bialystok, Poland
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”)
ACQUISITION OF ALFA CENTRUM BIALYSTOK, POLAND
NEPI Rockcastle is pleased to announce that it has acquired Alfa Centrum shopping centre in the city of
Bialystok in Poland (“Alfa Bialystok”) from A-JWK Management sp. z o.o., effective from
9 November 2017.
RATIONALE FOR THE TRANSACTION
With a gross lettable area of 37,000m2, Alfa Bialystok is the largest, most dominant fashion destination in
Bialystok, Poland. The city is inhabited by approximately 290,000 people and is the most populous urban area
within a radius of 200km in the north-east region of the country. Bialystok has strong local macro-economic
fundamentals and benefits from cross-border retail trade due to its proximity to the Belarussian border. Alfa
Bialystok is located near the city centre and is close to the internal ring road, ensuring connectivity to the
immediate catchment from central areas and the densely inhabited districts of the city.
Alfa Bialystok was opened in 2008 and is a modern three-level shopping mall with 150 retail units including
key tenants such as C&A, CCC, Euro RTV AGD, H&M, Helios Cinema, Inditex brands (Zara, Stradivarius,
Bershka, Pull & Bear, Oysho, Zara Home), LPP brands (Reserved, Cropp, House, Mohito, Sinsay, Home &
You) and Piotr i Pawel supermarket. A positive economic environment has contributed to average tenants’
turnover growth exceeding 10% and a footfall increase of over 7% to 5.5 million in the last 12 months. Planned
future asset management initiatives by NEPI Rockcastle include improvements to the food court, the leisure
and entertainment offering and tenant diversity.
The acquisition of Alfa Bialystok reflects NEPI Rockcastle’s strategy of establishing the company’s presence
in the largest Central Eastern European cities by acquiring or developing dominant shopping centres in these
markets.
PURCHASE CONSIDERATION
The aggregate purchase price for Alfa Bialystok was EUR 92.3 million, representing an acquisition yield of
approximately 6.7%.
FUNDING
The acquisition of Alfa Bialystok was funded by a combination of the sale of various listed securities held by
NEPI Rockcastle, in line with management’s strategy of decreasing this exposure, as well as a drawdown of
the EUR76 million, 7-year secured investment facility provided by Berlin Hyp for the purposes of refinancing
Galeria Warminska at a rate consistent with the company’s other secured funding for similar assets.
CATEGORISATION
The acquisition of Alfa Bialystok is not categorisable in terms of the JSE Listings Requirements and the
information in this announcement is accordingly presented for information purposes only.
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
9 November 2017
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