AIM-listed Central and Eastern European property investor New Europe Property Investments (NEPI) has acquired a portfolio of 18 properties located throughout Romania through the purchase of two companies, General Investment and General Building Management. The total estimated cost of the transaction was EUR 46.3 mln although the final purchase price will be determined by the amount of net rental income generated by the properties. The vendor of the companies was Central Eastern European Real Estate Shareholdings, part of the Bucharest-based Avrig 35 Group.
AIM-listed Central and Eastern European property investor New Europe Property Investments (NEPI) has acquired a portfolio of 18 properties located throughout Romania through the purchase of two companies, General Investment and General Building Management. The total estimated cost of the transaction was EUR 46.3 mln although the final purchase price will be determined by the amount of net rental income generated by the properties. The vendor of the companies was Central Eastern European Real Estate Shareholdings, part of the Bucharest-based Avrig 35 Group.
The portfolio consists of a total of 47,379 m2 of lettable space. Currently, 32,352 m2 is under rental contract while 4,800 m2 is being refurbished. Assuming full rental of the properties, operating income is estimated at approximately EUR 3.6 mln. The purchased companies reported losses of EUR 700,000 for 2007 and as of 31 December 2007 the companies’ net asset value was approximately EUR 9.85 mln.
Legal adviser for NEPI was Radu Taracila Padurari Retevoescu, with Mazars Consulting conducting tax due diligence on the transaction. NEPI is further receiving tax advice on the transaction from KPMG Romania.
