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LONDON (Alliance News) - Plaza Centers NV on Friday said its 50% owned venture Elbit Plaza India Real Estate Holdings Ltd has reached a new set of understandings with an unnamed investor in regards to its previously announced sale of a special purpose vehicle.
In December, 2015, the emerging markets property investors said Elbit inked a deal to sell 100% of its interest in the special purpose vehicle, which holds a site in Bangalore.
At the time, Plaza had said the total consideration for the sale was around EUR45.4 million, of which 50% would go to Plaza. Of this, 75% would be repaid to the company's bondholders, in line with its restructuring plan.
However, on Friday, Plaza said the sale of the project in Bangalore was not completed by the long-stop date of September 30. As a result, new understandings have been reached with the local unnamed investor, namely that the investor will pay an advanced payment of around EUR650,000 to Elbit prior to Friday. Plaza didn't say whether or not it has received that payment.
Alongside this, the securities provided by the investor to Elbit under the earlier sale agreement will remain effective and unchanged, and the long-stop date has been extended to November 15.
The investor will then make two sets of additional advance payments, in a tranche of around EUR4.3 million in two instalments during the fourth quarter of 2016, and an addition EUR3.0 million during the second quarter of 2017.
If all these additional payments are made, the long-stop date will then be extended to September 15, 2017, but if any are missed, Elbit will be able to enforce its rights under the sale agreement, including the execution of the securities.
Plaza said, at this preliminary stage, there is no definitive agreement between Elbit and the investor and there is no certainty any of the understandings will be executed.
If a final agreement is not reached, Elbit will consider its options with respect to the sale agreement, Plaza said.
Shares in Plaza were untraded on Friday, having last traded at 213.00 pence.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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