NEPI ROCKCASTLE Expands Retail Development Pipeline to €650 Million in 2024

NEPI Rockcastle Elevates 2024 Retail Development Pipeline to €650 Million

NEPI Rockcastle, recognized as Europe’s third largest listed retail real estate company, has amplified its development and refurbishment initiatives in 2024, now exceeding €650 million across the Central and Eastern European markets (CEE). This marks the most substantial retail investment program within the region.

The robust economic growth coupled with burgeoning household consumption in CEE countries has surpassed that of Western European counterparts. This trend propels consumers towards NEPI Rockcastle’s shopping centers, attracting a surge of international retailers alongside local enterprises eager to secure space within its extensive portfolios. Notably, Romania and Poland serve as the epicenter of NEPI Rockcastle’s largest portfolios, supported by seven additional regional markets.

Rüdiger Dany, CEO of NEPI Rockcastle, underscores the strategic alignment of the company’s development pipeline and financing with the escalating demand for retail space across CEE. This heightened interest extends beyond retailers to encompass sectors such as entertainment and hospitality. While retail space in CEE remains comparatively undersupplied in contrast to Western Europe, the region’s economies are witnessing exponential growth rates, presenting abundant opportunities for investment and expansion.

Combining the significant economic and social impact of our leading shopping centers within their respective markets, which notably exceeds that of counterparts in the EU, illuminates the driving forces behind NEPI’s remarkable financial performance in the previous year. This is further underscored by our ambitious development and refurbishment agenda, complemented by substantial acquisitions executed towards the close of 2022. With these initiatives in motion, we anticipate a notable enhancement in earnings attributable to the ongoing development pipeline, anticipated to manifest by 2027.

NEPI Rockcastle, renowned as the largest proprietor, operator, and developer of shopping centers in the CEE region, is actively engaged in the execution of 168,800 square meters of development and refurbishment endeavors across Bulgaria, Hungary, Poland, and Romania throughout the current year. Among the notable projects in progress are:

NEPI Rockcastle’s Dynamic Retail Development Initiatives Unveiled

As NEPI Rockcastle continues its strategic expansion across the Central and Eastern European (CEE) region, a series of transformative development projects are poised to reshape the retail landscape. These initiatives, representing a culmination of innovative design, meticulous planning, and substantial investment, are set to redefine the shopping experience while catalyzing economic growth and job creation within their respective communities.

Promenada Mall Extension, Bucharest: A monumental endeavor, valued at approximately €282 million, encompasses the construction of a 55,400 square meter mixed-use extension adjacent to the Promenada Mall in Bucharest’s bustling central business district. Scheduled for completion by the end of 2026, this ambitious project entails the excavation of the deepest building basement in CEE, plunging 26 meters beneath the surface to accommodate a multi-level parking facility with 2,400 car spaces. Overcoming the complex geological profile of the construction site, characterized by sand, clay, and gravel, presents a formidable engineering challenge.

Promenada Plovdiv, Bulgaria: With a projected investment of €173 million, NEPI Rockcastle is poised to introduce a transformative greenfield development spanning 60,500 square meters in Plovdiv, Bulgaria’s second-largest city. Pending final permitting approval from the local municipality, this dynamic project is anticipated to invigorate the local economy, generating an estimated 1,500 new jobs upon completion in 2026.

Bonarka City Center Mall, Krakow, Poland: A €79 million refurbishment initiative is underway at the Bonarka City Center Mall in Krakow, Poland. Leveraging innovative internal architectural redesign, the project aims to augment the existing 74,700 square meter center by an additional 4,700 square meters, enhancing the overall retail experience for visitors.

Galati, Romania: Progress is underway for a new €48 million retail park spanning 33,200 square meters in Galati, Romania, situated along the Danube River in the northeast region bordering Moldova. This strategic development endeavor is poised to bolster economic vitality and commercial vibrancy within the port town.

Arena Mall, Budapest: A comprehensive €31 million refurbishment program spanning five years is set to revitalize the Arena Mall in Budapest, Hungary, enhancing its appeal and functionality to meet evolving consumer preferences.

In addition to these flagship projects, NEPI Rockcastle is spearheading several other development initiatives across the region, including significant investments in expansions and enhancements at Ploiesti Shopping City in Romania, Galeria Wolomin and Pogoria Shopping Centre in Poland.

Moreover, NEPI Rockcastle’s commitment to sustainability is underscored by its ambitious solar energy production project, aimed at harnessing renewable energy sources to power its shopping centers across CEE markets. With photovoltaic panels already installed on Romanian assets, the initiative is yielding substantial returns, signaling a paradigm shift towards environmentally conscious and economically viable business practices.

NEPI Rockcastle’s Dynamic Retail Development Initiatives Unveiled