INTERVIEW NEPI Rockcastle: “We expect a shift in the market, on-going projects will not be put on hold”

NEPI Rockcastle, leading commercial property investor and developer in Central and Eastern Europe, expects a shift in the Romanian market caused by the COVID-19 crisis, but on-going projects will not be put on hold, according to company representatives.

“The initial forecast for this year was positive, but the significant developments around the COVID-19 situation make us have a high degree of uncertainty about the economic impact,” NEPI told The Diplomat-Bucharest. “Therefore, it is reasonable to expect a shift in the market, towards measures that can reduce this impact in the detriment of new investments. On-going projects will not be put on hold but could face delays due to possible extra safety measures taken by the authorities. It is prudent to refrain from other estimates until a better overview of the economic landscape is available.”

NEPI is focusing on its on-going projects and is committed to maintaining its “conservative gearing level and a robust liquidity.”

“At this stage, NEPI Rockcastle is actively implementing various measures focused on achieving the most suitable allocation of capital, including the reducing of non-critical operating expenses, the deferring of non-committed development projects and non-essential capital expenditure, and the utilizing of any relevant facilities provided by national authorities to assist companies in the current context,” NEPI added. “Our evolution was built upon well calculated investments, based on a good understating of the local landscape and the opportunities presented in each area where our commercial centres are active.

We are not looking to build just another shopping centre, we strive to transform it into a regional beacon of shopping, entertainment and leisure. We create modern hubs, with integrated facilities, for modern people, that have higher expectations. The market is changing, and we want to be the pioneers of modern leisure experiences.”

Asked about the company’s business approach in the current economic context, NEPI representatives underlined: “It has been mandatory to adapt our business in order to protect our clients and employees, as well as to preserve the economic climate. The first measures we undertook were related to health safety and prevention, therefore we stepped up the frequency of cleaning and disinfection processes throughout our commercial centres, especially in sensitive areas, such as mall entrances, toilets, food courts, elevators or escalators. We placed disinfecting dispensers in these areas and we naturally ventilated the malls.

We decided to adapt the working hours to 8 hours/day, in order to prevent a potential spread of the virus, but also offer the clients the opportunity to acquire necessary products. Following the Military Decree, we limited our centres activity and adapted to the fact that part of our tenants closed. At the same time we kept in place the recurrence of safety and prevention measures to protect the clients that access the malls for basic needs purchases, such as food and medicine from hypermarkets or drugstores, or food for their pets from the pet stores.”

NEPI also implemented teleworking for all the eligible employees. “In the shopping centres we implemented a system of working by rotation, so that we protect our staff and only the critical workers are permanently present in our centres,” NEPI added. “We have implemented these systems since the first half of March, and we will be maintaining this status quo until health safety conditions will allow a safe return to our offices.”