Nepi Rockcastle expects strong growth in tenant sales
Management has embarked on strategic plan to take advantage of market opportunities
20 November 2024 - 10:49
byJacqueline Mackenzie
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Forum Gdansk: Bought by Nepi Rockcastle in 2022. Picture: Supplied
Nepi Rockcastle, which owns premier shopping centres in Central and Eastern Europe, has grown tenant sales by 9% in the nine months to end-September amid what it describes as solid growth across its markets.
The group achieved a 12.3% growth in net operating income to €411m in the first nine months.
The growth was driven by higher rents and short-term income as well as the disciplined management of operating costs, it said in a business update on Wednesday. Footfall was up 1.4% on a like-for-like basis.
The European Public Real Estate Association (Epra) vacancy rate dropped to 2.3% at the end of the third quarter, from 2.7% at end-June, due to strong tenant performance supporting leasing activity. Rent collection for the period was 99% at end-October.
Nepi Rockcastle’s management had embarked on a major strategic plan to take advantage of current market opportunities and position the group for long-run sustainable growth, said CEO Rudiger Dany.
In September and October, the company completed a €300m equity raise, a €500m green bond issue, the largest single asset acquisition of a retail property in CEE (central and Eastern Europe) in recent years, and the disposal of its last remaining property in Serbia, he said.
“More is yet to come, as we are looking at a very promising acquisition and development pipeline — including green energy production — while capital markets are growing ever more supportive of our strategy.”
The group recently announced several major events that occurred after September that would affect its position at year-end, including the acquisition of Magnolia Park, a 100,000m2 gross lettable area shopping centre in Wroclaw, Poland, for €353m.
On October 7, it disposed of its last remaining property in Serbia, Promenada Novi Sad for €177m. The group also raised €300m through an issue of new shares, for a price per share of R137.85.
The net additional funds raised from the combined effect of these actions, together with the existing cash, led to a loan-to-value ratio of 29.2% at end-October. The funds would be used to repay a €500m bond maturing in November and to finance the group’s acquisitions and development pipeline, it said.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Nepi Rockcastle expects strong growth in tenant sales
Management has embarked on strategic plan to take advantage of market opportunities
Nepi Rockcastle, which owns premier shopping centres in Central and Eastern Europe, has grown tenant sales by 9% in the nine months to end-September amid what it describes as solid growth across its markets.
The group achieved a 12.3% growth in net operating income to €411m in the first nine months.
The growth was driven by higher rents and short-term income as well as the disciplined management of operating costs, it said in a business update on Wednesday. Footfall was up 1.4% on a like-for-like basis.
The European Public Real Estate Association (Epra) vacancy rate dropped to 2.3% at the end of the third quarter, from 2.7% at end-June, due to strong tenant performance supporting leasing activity. Rent collection for the period was 99% at end-October.
Nepi Rockcastle’s management had embarked on a major strategic plan to take advantage of current market opportunities and position the group for long-run sustainable growth, said CEO Rudiger Dany.
In September and October, the company completed a €300m equity raise, a €500m green bond issue, the largest single asset acquisition of a retail property in CEE (central and Eastern Europe) in recent years, and the disposal of its last remaining property in Serbia, he said.
“More is yet to come, as we are looking at a very promising acquisition and development pipeline — including green energy production — while capital markets are growing ever more supportive of our strategy.”
The group recently announced several major events that occurred after September that would affect its position at year-end, including the acquisition of Magnolia Park, a 100,000m2 gross lettable area shopping centre in Wroclaw, Poland, for €353m.
On October 7, it disposed of its last remaining property in Serbia, Promenada Novi Sad for €177m. The group also raised €300m through an issue of new shares, for a price per share of R137.85.
The net additional funds raised from the combined effect of these actions, together with the existing cash, led to a loan-to-value ratio of 29.2% at end-October. The funds would be used to repay a €500m bond maturing in November and to finance the group’s acquisitions and development pipeline, it said.
mackenziej@arena.africa
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