NEPI raises 40 million Euros from investors

• Martin Slabbert, CEO: The banking sector is becoming dysfunctional, which will provide well-capitalized businesses with opportunities

South African real estate investment fund "New Europe Property Investments" (symbol:NEP) yesterday announced it raised 40 million Euros from its shareholders, successfully concluding the guaranteed rights offering, according to a press release sent to the Bucharest Stock Exchange.

According to the press release, NEPI issued 14,285,714 shares, which caused its capital to increase to 102.78 million common shares.

The new shares were sold at a price of 2.8 Euros to shareholders registered in Great Britain and Romania and at a price of 30 ZAR to those of South Africa, price calculated using an exchange rate of 10.7 Rands/Euro.

The company's rights offering was oversubscribed by 48%.

Martin Slabbert, CEO of NEPI, explains the success of the offering through the high yield of the dividends.

In his opinion, the banking system is becoming dysfunctional, just like it did in 2009 and 2010, which will put pressure on the market and create opportunities for well capitalized businesses.

"We will continue to invest according to our long term plans", Martin Slabbert said yesterday.

At the time the announcement concerning the share capital increase was made, NEPI said that the funds drawn would be used to finance potential acquisitions in Romania, which are currently being negotiated, and if the acquisitions weren't made, the funds raised through the rights offering would be used to repay existing loans.

Fortress Income 2 Proprietary Limited, a branch owned by Fortress Income Fund Limited, which made the commitment to ensure the subscription of 14,285,714 shares through the rights offering, will not receive any shares, considering the fact that the rights offering was fully subscribed, NEPI announced.

The new shares have begun trading on the Johannesburg Stock Exchange on November 28th, and starting yesterday, on the AIM section of the London Stock Exchange, as well as on the Bucharest Stock Exchange.

"New Europe Property Invest-ments plc" is a holding which manages a group of companies especially created to invest in the office, retail and industrial property market, mainly in Romania, where the Group is active since the beginning of 2007.

The South-African investment group's portfolio in Romania includes 27 properties and is focused on acquiring properties with reliable multinational tenants generating Euro based income.

The most recent investments of the group are Floreasca Business Park (December 2010), the remaining part of the Auchan Shopping Center in Piteşti (May 2011), an extension of Promenada Mall Brăila (April 2011), the completion of a refurbishment of an office building in Brasov (June 2011) and the acquisition of retail development land in Ploieşti and Braşov (1st quarter of 2011), which were recently completed.

The Group is currently listed on the main board of the Johannesburg Stock Exchange (South Africa) and the AIM market of the London Stock Exchange and as mentioned above, starting with June 2011, it was also listed on the Bucharest Stock Exchange.