Nepi says it acted lawfully in buying mall’s debt

By Nick Hedley

JSE-listed New Europe Property Investments (Nepi‚ NEP) said on Thursday it had “at all times” acted lawfully in relation to the acquisition of the debt of Romanian mall Sibiu Shopping City’s debt.

Argo Real Estate Opportunities Fund‚ which owns the mall and focuses predominantly on Romanian commercial property assets‚ as does Nepi‚ said on Tuesday it had started legal proceedings in the Romanian courts against Nepi and Volksbank‚ the mall’s lender.

Nepi is also listed in London and Bucharest.

Argo’s legal claim hinged on “the unlawful use and dissemination of confidential information” about the centre that Nepi received from Volksbank‚ as well as damaging public statements made by Nepi about the centre‚ including that it was distressed.

Argo said its investment manager “has significant experience in dealing with legal situations of this kind and will take all actions necessary to protect the company’s assets”.

Nepi said on Thursday it had received no formal notice of the commencement of legal proceedings.

In April‚ Nepi said it had agreed to acquire the rights under the debt financing agreements for a portion of the debt relating to the mall‚ subject to various approvals.

“The board of directors is of the view that Nepi has at all times acted lawfully in relation to the Sibiu debt acquisition‚” Nepi said.

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