Nepi Rockcastle, which owns shopping malls in Central and Eastern Europe, said on Friday that the sale of its Romanian office portfolio for a cash consideration of €290m (R6bn) will proceed.
The transaction with AFI Europe was announced in December, and was meant to have been completed in March, but the parties entered arbitration after a breach of agreement on the sale of the portfolio.
Under the new agreement, the completion of the disposal is expected to occur within no more than four months, with the completion date to be set by the purchaser, Nepi said on Friday.
The disposal consideration remains unchanged, with the €290m to be adjusted based on the subsidiaries’ financial statements as of the date of completion.
Nepi said in April that the disposal of the Romanian office portfolio had not been completed as AFI Europe’s “obligations related to the completion procedures were not fulfilled”.
Discussions on extending the completion date took place, but consensus was not reached, the group said at the time.
In afternoon trade on Friday, Nepi’s share was little changed at R89.02, having fallen 28.11% in the year to date.
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