BVB expects offers worth EUR 2 bln in next two years

Petrom and the domino principle. A delay would be the worst outcome for the Stock Exchange, because it would also postpone the other offers approved by the government.

Under pressure by the International Monetary Fund (IMF), the Ministry of Economy makes new promises for 2012, saying it will float on the bourse 15 pc of Hidroelectrica and Nuclearelectrica, together with the shares held by the state in Petrom, Transgaz, Transelectrica and Romgaz, reads the ‘Ziarul Financiar’ newspaper. This would turn the Bucharest Stock Exchange (BVB) into one of the hottest capital markets in the region, with energy being the most disputed economic sector in Romania at this moment. The state might sell shares worth nearly EUR 1.9 bln – an estimation that takes into account current trading prices and analysts’ forecasts. To this might add the sale of 21 pc of Alro Slatina by the Russian owners of Vimetco – the first sale conducted by a foreign investor on BVB – which would push the total offer beyond the EUR 2 bln mark.

However, recent history proves that years might pass between promises and the moment when the shares get actually listed on the bourse. A delay in listing Petrom would be the worst outcome for BVB, as it would also postpone the other offers already approved by the government – Transelectrica, Transgaz and Romgaz – and would push back possible offers for Hidroelectrica and Nuclearelectrica.

According to a BCR-Erste analysis, if authorities float the promised shares on the stock exchange, this would increase the capitalisation of BVB by 50 pc and would as much as double the value of the free-float (the shares available for trading on the bourse).

Real estate sector reaches the bourse 7 years after Bulgaria

The listing of real estate investment trusts on the stock exchange is the first non-state measure aimed at reviving this market, reads the ‘Saptamana Financiara’ newspaper. In Bulgaria, for instance, the first real estate investment trusts (REITs) were listed on the capital market as early as in 2004, and the 19 REITs listed on the Sofia Stock Exchange have reached a cumulated capitalisation of more than EUR 110 M last year.

The biggest trust, Advance TerraFund, has a capitalisation of EUR 43.5 M. The National Securities Commission (CNVM) last week approved the prospect for listing the South African real estate investment trust New Europe Property Investments (NEPI) on BVB, according to an announcement made by the company. “A new announcement about the date when NEPI shares will become available for trading will be made at the right moment,” mentions the NEPI release.
NEPI will be the first real estate investment trust listed on the market segment specifically set up by BVB for REITs. Its shares are also listed on the Johannesburg exchange and on a platform of the London bourse.

NEPI is associated with South Africa’s main real estate group, Resilient Property Income Fund. According to the prospect, on December 31, 2010 the group had 33 properties (retail, office and industrial) in its portfolio, including 27 in Romania and the remainder in Germany.

The portfolio was evaluated at EUR 313.7 M. At the beginning of 2011, NEPI announced that it completed the purchase of Bucharest-based office building Floreasca Business Park, developed by Portland Trust, at a price of EUR 27.6 M, while taking over debts worth EUR 73.6 M. NEPI also controls part of the Iris Shopping Mall in Pitesti, the Braila-based European Retail Park, an industrial property of 23,000 square meters in Rasnov and a logistic property covering 4,800 sq m in Bucharest.

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