During your fourteen-year tenure with NEPI Rockcastle, what ambitions drive the company forward?

When I joined NEPI in 2007, it was a small team of three. Through the years, our growth culminated in a merger with Rockcastle in 2017, marking our entry into the Polish market. This expansion helped diversify our portfolio across nine countries, with Romania boasting the largest share—20 shopping centers and 7 strip malls across key cities. Our focus has always been the customers, with over 300 million people visiting our malls pre-pandemic.

How did the pandemic affect your operations, particularly with regards to customer footfall?

We witnessed a 30% decrease in earnings as people refrained from shopping or traveling during the pandemic. The retail sector, alongside tourism and live entertainment, felt the brunt of this impact. Our strategy prioritized safety measures, ensuring our malls followed stringent COVID-compliant guidelines. Adaptability was key; we restructured marketing and services to optimize resources.

How is NEPI Rockcastle diversifying its portfolio, and how does the sale of the office segment align with this strategy?

The pandemic accelerated the shift towards online shopping, prompting us to adapt our strategies. To maintain a balanced retail ecosystem, we divested from the offices sector, directing the revenue into enhancing our existing assets and investing in the residential market.

Why the residential sector in Romania, and what keeps NEPI Rockcastle invested in the country?

The decision to invest in the residential sector in Romania stemmed from market demand. The country offers a growing real estate market with ample opportunities. Its economic potential, stable legislative system, and promising returns make it an attractive investment destination. Our intent is to expand such investments across other NEPI Rockcastle presence countries like Croatia, Hungary, and Poland.

How accessible is financing for companies like NEPI Rockcastle in the regional market?

Accessing financing has evolved with our business growth. Initially reliant on bank financing, the expansion necessitated tapping into deeper capital markets. However, the pandemic shifted perspectives; banks became cautious due to e-commerce impacts on retail, leading to more expensive credits. We’ve adjusted our strategies accordingly.

What’s in the pipeline for NEPI Rockcastle in the next few years?

Our primary focus remains on customer relevance by prioritizing convenience, safety, diversity, and entertainment in our offerings. Committed developments will proceed alongside exploring new investment prospects. Despite the pandemic’s impacts, we anticipate a better year ahead with the ongoing vaccination programs and improving economic conditions. NEPI Rockcastle continues to lead in retail and development within the CEE region.