Shopping centre developer Nepi Rockastle has completed the sale of the Serbian retail property Promenada Novi Sad to CEE BIG, a Serbian subsidiary of BIG Shopping Centres.
The €177 mln deal, originally announced in July 2024, marks the largest transaction in the Serbian retail sector.
BIG CEE financed the acquisition with a €105 mln bank loan from leading European financial institutions. Uzi Eli, VP for International Business Development at BIG Group, led the transaction.
Based in Serbia’s second largest city Novi Sad, Promenada boasts a fully leased area of 49,200 m2 and attracts over 10 million visitors annually. Opened in November 2018, the centre houses renowned brands like Zara, Nike, Adidas, Tommy Hilfiger, and many others, along with a supermarket, cinema, and entertainment complex.
Lev Weiss, CEO of BIG CEE, said: ‘This acquisition represents a step forward in our long-term plan to expand and invest in significant commercial properties that contribute to the local community and economic development. I am confident that Promenada, as the largest shopping centre in our portfolio, will continue to provide outstanding experiences to visitors, while we, as a company, we will continue to invest in its improvement and further growth.’
The divestment aligns with Nepi Rockcastle's strategy of focusing on core dominant assets in investment-grade countries. The proceeds will be used to fund future acquisitions and developments. Following the sale, Nepi Rockcastle no longer has operations in Serbia.
According to Nepi Rockcastle's 2023 financial report, net rental income from the Promenada shopping centre rose by approximately 10% year-over-year to €13.32 mln. The EBIT indicator improved by 11% to €13.26 mln, while profit before net financing costs and other items surged by over 30% to €21.54 mln.
BIG CEE, a subsidiary of BIG Shopping Centres Israel, owns and manages 13 shopping centres in Serbia. In the Balkan country, it also operates 9 BIG-branded retail parks, 2 shopping centres branded as BIG Fashion, and the country's only designer outlet branded as BIG Fashion Outlet.
