NEPI Rockcastle enters Lithuania’s retail property market

Aura shopping centre in the city of Olsztyn in Poland.
Aura shopping centre in the city of Olsztyn in Poland.

NEPI Rockcastle has acquired 100% of the shares in Mivus sp. z.o.o from Rockspring NPS European Alfa B.V. through its subsidiary, Rockcastle Global Real Estate Holdings. 

Milvus sp. z.o.o owns Aura shopping centre in the city of Olsztyn in Poland. Aura Centrum is a prominent shopping and entertainment destination in the heart of Olsztyn city centre with a gross lettable area over 25 000 square meters and annual footfall of 5.5 million people.

Opened in 2005, the centre was extended in 2009 and further modernized in 2013 and 2016 to keep it at the forefront of modern shopping. Auru Centrum is 94.2% let, including key anchors such as Carrefour, H&M, Helios Cinema, LPP brands, Martes Sport, New Yorker, RTV Euro AGD and Smyk.

The acquisition of Aura Centrum creates regional synergies for the group which also owns the dominant centre in Olsztyn, Galeria Warmińska. Consolidation of both properties in NEPI’s portfolio will allow for a more bespoke positioning of the two centres and a tailoring of the offering to their respective customers in the regional catchment area, creating a more diversified shopping and leisure selection.

Aura Centrum’s aggregate purchase price was 64.9 million Euros, with a current net operating income of 5.3 million Euros per annum, excluding potential income from vacancies.

Further to the acquisition of Aura Centrum, NEPI acquires 100% of the shares in Uždaroji akcinė bendrovė “Ozantis”, which owns Ozas Shopping and Entertainment Centre in Vilnius, Lithuania. NEPI acquired the shopping centre from ARENA Zweite Verwaltungs GmbH. The centre has a gross lettable area over 60 000 square meters.

The centre focuses on strong fashion and entertainment which attracts an affluent customer base with above average disposable income. Ozas opened in 2009 and it benefits from a simple and effective layout. It has a wide retail offering including international tenants such as Adidas, Bershka, CCC, Deichmann, Gant, H&M, Karen Millen, Jack&Jones, Lindex and the LPP brands, to name a few.

The Ozas acquisition marks the group’s entry point into the Baltic region, one of the most developed areas in Central and Eastern Europe with an affluent and highly educated population. It consolidates NEPI Rockcastle’s market position in Central Eastern Europe and its ability to leverage off its best-in-class operating platform. A presence in the Baltics provides the company’s stakeholders with additional geographic diversification and further strenthens the company’s offering as Central Eastern Europe’s leading retail-focused landlord.

The aggregate purchase price for Ozas was 124.6 million Euros. The centre has a current net operating income
of 8.8 million Euros per annum, excluding potential income from vacancies.

The acquisitions of Aura Centrum and Ozas have been funded by divestments from various listed security positions (consistent with management’s strategy of decreasing this exposure), supplemented by existing liquidity resources.

The purchase agreements for the acquisitions contain warranties typically associated with transactions of this
nature and there are no outstanding conditions precedent.

The acquisitions of Aura Centrum and Ozas are not categorisable in terms of the JSE Listings Requirements.

The company is well advanced with several transactions at various stages of the due diligence process. Further
announcements in this regard will be made in due course.