NEPI Rockcastle cuts investments in RO and migrates to residential
NEPI Rockcastle, the largest shopping mall owner in Romania, will halve investments in 2021 compared to the past years' annual average.
The group will direct the money to projects already started and shift its attention to the residential segment, Economica.net reported.
NEPI estimates that it will invest EUR 95 million in 2021 in development and capital expenditures related to ongoing projects and will consider engaging in further development opportunities depending on market developments.
The developer owns land near the shopping centers already built, both in Bucharest and in the country, where it wants to build hundreds of apartments.
The plans to enter the residential segment date from before the pandemic, but the latest developments must have accelerated the process.
In Bucharest, the developer plans 250 apartments near the Vulcan Value Center (pictured) and another 250 near the Mega Mall. Other cities where it could develop residential projects are Satu Mare, Brasov, Ramnicu Valcea, Craiova, and Timisoara.
The development strategy targets diversification with an emphasis on mixed-use and residential projects, according to the company's financial report for 2020.
In 2017, NEPI Rockcastle invested EUR 190 mln in Romania. In 2018, the investments rose to EUR 200 mln, followed by a marginal increase in 2019 to EUR 201 mln. In 2020, the developer directed its investments into ongoing projects and reduced them to only EUR 143 mln, according to company data.
NEPI's portfolio in Romania was valued at just over EUR 2 bln and represented 35% of the group's total portfolio at the end of 2020.
(Photo courtesy of NEPI)