Towards the end of May, the South-African investment fund NEPI announced at the Bucharest Stock several investments, among which the acquisition of the rights from financing contracts, for a part of an unpaid loan of a commercial centre owner in Sibiu ("the acquisition of the debt in Sibiu", as specified in NEPI’s release).

The only important commercial centre in Sibiu is the one owned by the British fund Argo Real Estate Opportunities Fund Limited (AREOF).

Currently, AREOF has announced on the London Stock that they began the legal procedures in Romania against NEPI and Volksbank. „NEPI is AREOF’s competitor in Romania. Volksbank AG is AREOF’s creditor for the project Sibiu Shopping City (SSC). AREOF’s legal action refers to the illegal use and spreading of confidential information regarding Sibiu Shopping City, harmful public statements made about SSC and unfair competition followed by inconveniences of AREOF regarding SSC", shows the announcement of the fund issued to the London Stock.

The British also mentions that the company’s investment manager has significant experience in dealing with illegal situations of this kind and will take all necessary measures in order to protect the company’s assets.

NEPI also announced that the acquisition of the debt in Sibiu is subject to transaction paper drawing, the results of the due diligence process and other permits. Moreover, NEPI’s plans included that following the completion of the transaction to start negotiations with the other bank financers and landlords, in order to recapitalize and reorganize the companies owning the asset, to reduce the level of debts to a sustainable level and to be able to access the resources for renovating and reconfigure the centre. (source: