Two highly rated property companies focused on Eastern Europe appear ready to merge operations into a R85.4bn fund. Romanian shopping centre owner New Europe Property investments (Nepi), with a market capitalisation of nearly R51.7bn, and Rockcastle Global Real Estate, which is worth close to R33.7bn, on Thursday published a joint cautionary announcement in which they said they were in talks to explore the possibility of a transaction. Nepi and Rockcastle have recently invested in markets other than their main focuses including the Czech Republic, and commentators said in August that a merger would benefit each other to find new opportunities. The two companies were launched by professionals from SA’s Resilient. A merger would create a company which was attractive to a wider spread of investors, said Ron Klipin, a money manager at Cratos Capital. "We’d end up with a large, liquid company that would be able to share very strong management teams and realise cost savings. Investors who...
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