NEPI Rockcastle targets €13bn European property empire

JSE-listed retail property giant NEPI Rockcastle is targeting a portfolio of up to €13 billion over five years, expanding into Western Europe while strengthening its dominance in Central and Eastern Europe.

• NEPI Rockcastle targets €12–13 billion in property assets over five years, up from its current €8.4 billion portfolio.
• The group owns 60 shopping centres across eight European markets, supported by an €800 million development pipeline.
• Expansion into Spain, disciplined acquisitions and renewable energy investment underpin its next phase of growth.

A European Retail property powerhouse eyes its next growth phase

NEPI Rockcastle, one of the JSE's largest listed property companies, has outlined an ambitious strategy to grow its European shopping centre portfolio to between €12 billion and €13 billion over the next five years.

At its Capital Markets Day in Warsaw on 3 November 2026, the group reaffirmed its commitment to acquisitions, property development, active asset management and renewable energy as the four pillars of its expansion strategy.

With a portfolio valued at more than €8.4 billion, comprising 60 retail properties across eight European markets, NEPI Rockcastle is already the largest retail property owner in Central and Eastern Europe (CEE) and the third-largest listed retail real estate company in continental Europe.

Its largest markets are Romania and Poland, complemented by shopping centres in Bulgaria, Hungary, Slovakia, Croatia, the Czech Republic and, more recently, Spain. The group's properties attracted approximately 354 million visitors in 2025, highlighting the scale of its retail operations and its importance to international retailers seeking access to European consumers.

CEO Marek Noetzel says the strategy is built on two decades of experience developing and managing dominant shopping centres. "Our focus remains on acquiring and developing the right assets, creating value through active management and maintaining the financial flexibility to act quickly when attractive opportunities arise."

The group believes its established platform, retailer relationships and financial strength provide a foundation for expansion into new European markets.

Growth Strategy: Four pillars driving expansion

NEPI Rockcastle's five-year strategy focuses on increasing portfolio value while strengthening recurring rental income and long-term shareholder returns.

The four investment priorities are:

• Active asset management: Improving shopping centre performance through tenant optimisation, refurbishments and enhanced retail experiences.
• Strategic acquisitions: Targeting high-quality assets in established and new European markets with attractive growth prospects.
• Property development: Expanding and repositioning shopping centres to accommodate retailer demand and changing consumer preferences.
• Renewable energy: Investing in solar generation to reduce operating costs, improve energy efficiency and create additional income opportunities.

Over the past five years, NEPI Rockcastle has invested nearly €500 million in shopping centre refurbishments, extensions and improvements to its retail and leisure offering.

The group also has a development pipeline of approximately €800 million, providing opportunities for organic growth alongside acquisitions.

Spain opens the door to Western European growth

One of the most significant developments in NEPI Rockcastle's strategy is its expansion beyond Central and Eastern Europe into Spain.

The move represents an important step towards geographic diversification and greater exposure to established Western European economies.

In August 2026, NEPI Rockcastle acquired MegaPark Barakaldo near Bilbao, Spain, for €252 million, marking a significant investment in the Iberian retail property market.

Why Spain matters:

• Geographic diversification: Expands the group's income base beyond its traditional CEE markets.
• New acquisition opportunities: Provides access to established retail assets and potential development projects.
• Market fundamentals: Offers exposure to a sizeable consumer economy and established retail infrastructure.
• Operational synergies: Allows NEPI Rockcastle to apply its existing asset management and retailer relationship expertise to new markets.

Noetzel believes the group's entry into Spain will support its long-term growth ambitions. "Our entry into Spain represents an important step forward in that strategy."

The group intends to continue pursuing opportunities across CEE while selectively expanding into Western Europe.

Financial strength supports €13bn ambition

NEPI Rockcastle's expansion strategy is underpinned by a disciplined balance sheet, diversified funding and an investment-grade credit profile. Chief Financial Officer Eliza Predoiu highlighted the importance of maintaining financial flexibility while pursuing acquisitions and developments.

Over the past five years, the company has raised approximately €3.6 billion through diversified funding sources.

Financial and Investment Snapshot

Predoiu says financial discipline remains central to the group's investment strategy. "Financial prudence gives us the flexibility to act quickly when attractive opportunities arise."

The 33.1% loan-to-value ratio, below management's strategic ceiling of 35%, illustrates the importance of balance-sheet management as the group pursues further growth.

However, the relatively narrow headroom to its stated ceiling means future acquisitions will need to be supported by disciplined funding, asset recycling or additional capital. The group's 90% dividend payout ratio also reflects its commitment to shareholder distributions while retaining a portion of earnings to support growth.

Shopping Centres remain central to retail's future

Despite the continued expansion of e-commerce, NEPI Rockcastle sees significant opportunities in physical retail destinations. Its strategy is built around dominant shopping centres that combine retail, entertainment, leisure and convenience to attract customers and support tenant performance.

At Capital Markets Day, retail futurist Doug Stephens, founder of Retail Prophet, explored changing consumer behaviour and the evolving role of physical shopping environments.

Geoeconomics specialist Jens Larsen of Eurasia Group also discussed the macroeconomic and geopolitical forces influencing European investment markets.

The group's retail priorities include:

• Strengthening tenant mixes and relationships with international retailers.
• Investing in modern shopping environments and leisure offerings.
• Improving customer experiences to support footfall and tenant sales.
• Using renewable energy to improve operating efficiency and long-term sustainability.

With more than 680 employees and a centralised approach to retailer relationships, NEPI Rockcastle believes it has the operational capacity to expand while maintaining control over asset performance.

What it means for South African Property investors

For JSE investors, NEPI Rockcastle provides exposure to European retail property markets through a listed property group with an established operating platform.

Its expansion into Spain offers geographic diversification, while the existing CEE portfolio provides scale and a base of established retail assets.

Three factors investors should monitor:

• Acquisition returns: Whether new investments deliver sufficient rental income and long-term value to justify their purchase prices.
• Balance-sheet discipline: How the group funds expansion while maintaining its investment-grade rating and targeted leverage.
• Distribution growth: Whether acquisitions, developments and operational improvements translate into sustainable shareholder returns.

The ambition to increase portfolio value from €8.4 billion to as much as €13 billion represents substantial growth, but a larger portfolio does not automatically translate into higher returns per share.

Acquisition yields, financing costs, capital expenditure and earnings growth will ultimately determine the investment outcome.

The REI Take: Bigger portfolio, bigger opportunity

NEPI Rockcastle's latest strategy signals confidence in the long-term investment case for dominant European shopping centres. Its €800 million development pipeline, expansion into Spain and established CEE platform position the group for another phase of growth.

For South African investors seeking international property exposure, the strategy offers a compelling combination of geographic diversification, established retail assets and potential income growth.

The real test will be whether NEPI Rockcastle can convert its €13 billion portfolio ambition into sustainable earnings, stronger distributions and long-term shareholder value.