South Africans buy Auchan and Bricostore spaces in Pitesti

At a time when retailers and owners of shopping centres are complaining about a sales decline, South African-held NEPI made a second acquisition in five months, taking over Auchan and Bricostore spaces in Pitesti.

Businessman Alexander Hergan, who controls the Avrig 35 group, made his fifth exit from the real estate sector, selling a part of Iris shopping centre in Pitesti in a transaction put at 40 million euros, considering that New Europe Property Investments (NEPI) will also take over debt accumulated to develop these spaces.

NEPI took over the 13,600 square-metre space rented out to Auchan and the 9,500 square-metre store where Bricostore operates. "The rental contracts with Auchan and Bricostore generate 4.67 million euros in net profit," NEPI said.

The project also includes two shopping galleries, an 8,000 square-metre one in front of the Auchan store, and another 7,000 square-metre space called Iris Shopping Center, which the Avrig 35 group kept for itself, with the option to be sold later, within a year, if the take-up of the spaces increases.