One of Europe’s largest commercial real estate investors – NEPI Rockcastle, which owns Sofia’s Paradise Center and Serdika Center shopping malls, has announced plans to significantly expand its business. The company aims to increase the value of its portfolio to EUR 12–13 billion within five years, South African publication Business Day and UK-based Retail & Leisure International report.
The strategy was presented to investors during NEPI Rockcastle’s Capital Markets Day in Warsaw. The main focus is on acquiring new retail properties, developing existing assets and entering promising European markets.
The group currently manages 60 retail properties in eight European countries with a total value of EUR 8.4 billion. This places it first among retail space owners in Central and Eastern Europe and third among publicly traded companies in this segment in continental Europe.
At the upper end of the announced target, the value of the portfolio will increase by nearly 55% compared with its current level. The expansion will be achieved through a combination of acquisitions, new construction, refurbishments and active asset management.
Chief Executive Officer Marek Noceľ says the company sees significant growth opportunities beyond its traditional markets in Central and Eastern Europe. In his view, entering Spain is an important step in this direction, as it enables the group to apply its accumulated experience in managing large shopping centres in other European countries as well.
In August 2026, NEPI Rockcastle acquired the MegaPark Barakaldo retail complex near Bilbao for EUR 252 million, marking the start of its expansion into the Spanish market. The company sees the Iberian Peninsula as an opportunity to diversify its revenues and expand its presence in Western Europe.
Over the past five years, the group has secured EUR 3.6 billion in financing from various sources, used for acquisitions, construction and the modernisation of retail properties. Investment in the refurbishment and expansion of existing properties alone has reached nearly EUR 500 million.
Chief Financial Officer Elisa Predoiu stresses that the company is maintaining a conservative approach to leverage. The ratio of loans to asset value is 33.1%, remaining below the strategic threshold of 35%. NEPI Rockcastle has an investment-grade BBB+ credit rating and maintains a policy of distributing 90% of distributable profit as dividends.
A key element of the future strategy is the development of renewable energy sources. The group is investing in solar installations designed to reduce electricity costs at its shopping centres and create additional sources of revenue.
Bulgaria remains part of NEPI Rockcastle’s core investment portfolio. The company owns Paradise Center and Serdika Center in Sofia – two of the largest shopping centres in the country.
According to Cushman & Wakefield | Forton’s Global Cities Retail Guide 2026, Paradise Center has around 81,000 sq m of leasable retail space and more than 300 tenants. Serdika Center offers approximately 52,000 sq m of retail space and has more than 217 tenants. Occupancy at both properties exceeds 99%.
The high occupancy rates of Sofia’s leading malls point to sustained demand for high-quality retail space from international and local brands. For owners of such properties, this creates opportunities to optimise rental income and modernise existing assets.
So far, NEPI Rockcastle has not announced any specific new investments in Paradise Center or Serdika Center as part of the five-year strategy presented. However, the company lists the modernisation and expansion of its operating shopping centres among its main priorities.
The expansion plans come against a backdrop of intensifying competition between traditional retail and online platforms. To attract visitors and tenants, mall owners are investing increasingly in entertainment areas, restaurants, services and improvements to the overall customer experience.
NEPI Rockcastle is relying precisely on this model, combining portfolio expansion with increasing the value of existing properties and optimising operating costs.
Detailed statistics on average property prices in Bulgaria by city and neighbourhood can be found at imot.bg