Johannesburg-listed real estate investor MAS (JSE: MSP), backed by Africa's largest pension fund, announced it has completed the transaction with AFI Europe, controlled by Israeli billionaires Roni and Yehuda Naftali, through which it sold 6 open-air shopping centres in Romania for a price of almost EUR 200 million. At an asset value of around EUR 281 million, this becomes the largest transaction ever signed in the retail sector of the local real estate market. 

Specifically, the South African investor sold its shopping centres in Ploiești, Zalău, Roman, Baia Mare, Sfântu Gheorghe, and Bârlad. The shopping centres generate EUR 22.7 million annually from the rental of the spaces. 

In May this year, MAS announced it reached a binding agreement to sell the malls in Romania, with a combined gross leasable area (GLA) of 125,000 square metres, at a value of EUR 281 million to AFI Europe.

The transaction value is EUR 281.8 million, including bank loans related to the properties estimated at EUR 84.5 million, the announcement also stated. The company will thus collect EUR 197.7 million in cash from the eight companies that own the six malls and two extensions of the same malls.

The six malls, with all their extensions, have a total area of ​​125,000 square meters GLA and have an accounting valuation of EUR 311 million.

The transaction will propel AFI Romania directly to second place among the largest shopping centre owners in Romania, after NEPI Rockcastle and surpassing Iulius Group of local entrepreneur Iulian Dascălu, according to Profit.ro.

Also in May, MAS announced it entered into an agreement to sell the enclosed mall Galleria Burgas in Bulgaria, estimated at EUR 125 million at fair value.

AFI announced that the six projects will operate under the AFI Value Park identity, while retaining their local designation: AFI Value Park Baia Mare, AFI Value Park Bârlad, AFI Value Park Ploiești, AFI Value Park Roman, AFI Value Park Sfântu Gheorghe, and AFI Value Park Zalău. Together with AFI Value Park Arad, inaugurated in 2023, they form the AFI Value Park national network. 

"The completion of this transaction marks a new chapter for AFI in Romania. By integrating these projects under the AFI Value Park brand, we are developing a nationwide retail park platform that now brings together seven projects and leverages AFI’s expertise and proven operational standards in managing retail assets. We will continue to invest in strengthening the tenant mix, continuously upgrading the properties, and supporting their long-term development, ensuring that every AFI Value Park becomes the preferred shopping destination for its local community,” said Doron Klein, Group Deputy CEO & CEO of AFI Romania.

AFI said it continues to expand its portfolio in Romania, which includes shopping centers, retail parks, mixed-use developments, office buildings, and residential projects.

iulian@romania-insider.com

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