UPDATE: Real estate fund NEPI buys Promenada mall in Bucharest

South-African investment fund New Europe Property Investments (NEPI) has agreed to buy the Promenada mall in Bucharest, from Austrian developer Raiffeisen Evolution, the fund announced on Friday. The value of the transaction was EUR 148 million, which NEPI paid from its own funds. Romanian media first wrote about NEPI’s interest in taking over Promenada mall at the end of September. The Promenada mall was inaugurated in October 2013, following a EUR 130 million, of which EUR 95 million was financed with a loan from Raiffeisen Bank. The mall has a leasable area of 40,300 sqm and generates annual rent revenues of about EUR 10 million. The average monthly rent is EUR 22 per sqm. “The property contains numerous international fashion brands, such as Adidas, Bershka, C&A, Deichmann, H&M, Hervis, Intersport, Lacoste, Massimo Dutti, Oysho, Peek & Cloppenburg, Promod, Stradivarius, Tommy Hilfiger and Zara. Other tenants include a Billa supermarket, a World Class gym, several international fast food brands, including KFC and McDonalds, and various other international and national tenants,” according to NEPI. The mall is located at the intersection of Calea Floreasca, Barbu Vacarescu boulevard and Pipera street, which is currently the hot spot for offices in Bucharest. Several large office projects have been opened there in recent years, including Raiffesen Evolution’s Sky Tower and Skanska’s Green Court. Floreasca Business Park and the Lakeview office buildings, both owned by NEPI, are also in the vicinity. NEPI recently raised EUR 100 million from investors on the Johannesburg Stock Exchange for new investments in Romania and in the region. The fund currently has a market capitalization of EUR 2.16 billion. editor@romania-insider.com