The total lettable area upon completion is estimated at over 250,000 square meters.
After the completion of all projects, NEPI, the most active real estate investor on the Romanian market over the last years, will have reached a portfolio of real estate assets covering a total 660,000 sqm, considering that the fund already owns in Romania projects stretching onto nearly 380,000 sqm, valued at EUR656 million.
Most projects under development target retail spaces, in Bucharest and across the country, and most of them are due for completion in 2014-2015, NEPI said in a presentation.
For 2014, NEPI aims to complete in Rahova district, in the third quarter of the year, the Vulcan Value Centre, which covers 25,200 sqm and is 93% leased. The shopping center will engulf EUR47 million and is expected to generate annual rental income of EUR4.1 million. In the fourth quarter of the year, NEPI aims to complete the first phase of the Shopping City Targu Jiu, which covers 26,800 sqm and is 85% leased. The investment in the shopping center, the first of this type in Targu Jiu, amounts to EUR30.1 million and the mall is expected to generate annual rental income of EUR2.95 million.
NEPI’s biggest investment under development is the shopping center Mega Mall in Bucharest, which engulfs EUR165 million. The mall will cover 70,700 sqm and NEPI, which owns 70% in the project, expects it will generate annual rental income of EUR16.5 million upon completion due in the second quarter of 2015. The mall is 85% leased. All these projects are under development.
NEPI also plans to complete, toward the end of 2015, the first phase of a retail project in Timisoara, western Romania, (on the land recently bought from the Cristescu brothers). The investment is estimated at EUR78 million and targets the construction of retail spaces totaling 50,000 sqm.
On the retail segment, NEPI targets the expansion of three shopping centers, namely, the City Park Mall in Constanta (21,000 sqm, a EUR36 million investment), Shopping City Deva (10,000 sqm, a EUR14 million investment) and Severin Mall (10,000 sqm, a EUR9 million investment), which are due for completion in 2015. NEPI expects to get permits for the planned extensions and the project in Timisoara.
NEPI also plans to develop an office building in Bucharest’s Victoriei Square, which will cover 8,000 sqm and engulf EUR32 million. The project is due for completion in 2015 as well.
In 2015-2016, NEPI expects to complete the development of the next two buildings of the Cluj-based office compound The Office, which will engulf EUR47 million. The two buildings will cover a total 33,000 sqm and are expected to generate annual rental income of EUR5.8 million, which will add to the EUR3.3 million generated by the first building (21,358 sqm) of the compound, which engulfed EUR22.5 million and was delivered in May 2014.
The projects held by NEPI on the Romanian market include, among others, the City Park Mall Constanta, the Ploiesti Shopping City, the Retail Park Pitesti, the Floreasca Business Park, the Lakeview (Bucharest) and the City Business Centre Timisoara.