NEP - New Europe Property Investments plc - Investment acquisition issue of

NEP
NEP                                                                             
NEP - New Europe Property Investments plc - Investment acquisition, issue of    
shares and further cautionary announcement                                      
New Europe Property Investments plc                                             
(Incorporated and registered in the Isle of Man with registered number 001211V) 
(Registered as an external company with limited liability under the laws of     
South Africa, registration number 2009/000025/10)                               
AIM share code: NEPI                                                            
JSE share code: NEP                                                             
ISIN Code:   IM00B23XCH02                                                       
("NEPI" or "the Company")                                                       
INVESTMENT ACQUISITION, ISSUE OF SHARES AND FURTHER CAUTIONARY ANNOUNCEMENT     
Further to the 
announcement of 5 February 2010, New Europe Property Investments 
plc, the Central and Eastern European property investment company which has a   
primary listing on the AIM market of the London Stock Exchange and a secondary  
listing on the Alternative Exchange of the JSE Limited, announces details in    
respect of the investment in a retail park for a total purchase price of        
approximately Eur20,949,348. The purchase price will be settled through the     
issue of 9,310,823 ordinary shares in NEPI ("Vendor Shares") at a price of      
Eur2.25 per Vendor Share.  Of these shares, 2,429,723 will be locked up for a   
minimum period of 12 months.                                                    
On 3 February 2010, the Company signed a sale and purchase agreement to acquire 
100% of the shares in Connect Investment SRL ("Connect") from Central Eastern   
European Real Estate Shareholdings BV and Oceanis International BV ("the        
Acquisition").  Connect is the holding 
company of a retail park located in      
Pitesti, Romania ("Pitesti Park") which consisted of a portion rented by the two
anchor tenants, Auchan and Bricostore DIY, and the related common areas ("Iris  
Park"), as well as an approximately 7,000 square metre fashion and entertainment
gallery ("Iris Mall").                                                          
As the Acquisition is for Iris Park and its associated debt, the implementation 
of the Acquisition has required the separation of the Iris Mall out of Connect. 
The separation has been agreed in such a form that Iris Mall is held by a       
separate company ("the Mall SPV") while the common areas of the Pitesti Park    
(parking, access roads, etc) are held by another company ("the Common SPV"), of 
which 80% is held by Connect and 20% is held by the Mall SPV. As part of the    
Acquisition, the Company also obtained a 1-year call option in relation to the  
portion of the Pitesti Park which it is currently not acquiring, 
being Iris     
Mall.                                                                           
Pitesti is a city of over 167,000 people in Southern Romania, approximately     
107km from Bucharest and located on the Arge? River.  Iris Park is situated on  
the Pitesti ring road, within 10 minutes walking distance from residential areas
and benefits from a core catchment area of 133,000 people.                      
Iris Park is an 83,016 square metre site with approximately 33,000 square metres
of gross lettable area.  The leases of Auchan and Bricostore DIY provide a Net  
Operating Income of Eur4.67 million. The Acquisition is expected to improve     
distributable earnings per share.                                               
The Acquisition will have an effective date as of 1 January 2010.  The Vendor   
Shares will be admitted to trading on AIM and the JSE Limited on 12 March 2010. 
The Vendor Shares shall rank pari passu with the existing ordinary shares of the
Company 
which are currently in issue.                                           
For purposes of compliance with the JSE Limited Listings Requirements, the      
Company advises shareholders that NEPI remains in negotiations to acquire       
certain other retail assets in Romania, which if successfully concluded may also
have a material effect on NEPI`s financial position and consequently on the     
price of the Company`s shares. No certainty can be given that these negotiations
will be concluded successfully. Accordingly, shareholders are advised to        
continue to exercise caution when dealing in their NEPI shares until further    
announcements are made in this respect.                                         
11 March 2010                                                                   
For further information please contact:                                         
New Europe Property Investments plc                +40 74 432 8882              
Martin Slabbert                     
                                            
Smith & Williamson Corporate Finance Limited       +44 20 7131 4000             
Azhic Basirov / Charles Combe                                                   
South African sponsor                                                           
Java Capital (Proprietary) Limited                 +27 11 283 0042              
Date: 11/03/2010 14:00:03 Produced by the JSE SENS Department.                  
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