Of Interest29 Mar 2016 10:48
Israeli real estate developer Plaza Centers, in process of apparently exiting the Romanian market, announced that it has reached an agreement with Long Bridge Electric TL to sell Palazzo Ducale, an office building of 823 sqm GLA downtown Bucharest, placed between Piata Victoriei and Piata Romana, for EUR 1.085 million.
“This is consistent with the asset’s last reported book value,” a report sent by the company to London Stock Exchange reads.
In line with the developer’s stated restructuring plan, 75 percent of the net cash proceeds from the transaction will be distributed to the company’s bondholders by the end of September 2015 as an early principal repayment, the quoted document points out.
Last year, when the Israeli real estate developer announced the sale of 31,500 sqm land in Tirgu Mures for EUR 3.5 million, where intended to build a commercial centre, Ran Shtarkman, CEO Plaza Centers, has declared that the conditions on Romanian market changed significantly in the last period. “The sale is part of our strategy to give up on the assets which are not important and focus on main assets,“ he said at that moment.
Plaza Centers, insolvent since November 2013 until July 2014, has invested over EUR 300 million in seven plots situated in Iasi, Timisoara, Slatina, Hunedoara, Tirgu Mures, Constanta and Miercurea Ciuc, as well as in 75 percent of Casa Radio project in Bucharest, in the office building Palazzo Ducale and Radisson Blu Hotel.
However, the Israeli investor announced in July that has obtained the building permit for a mall in Timisoara (western Romania), which is 65 percent financed by Export-Import Bank PLC, owned by the Hungarian state.
Plaza Centers N.V. is a leading property developer and investor with a significant presence across Central and Eastern Europe and operations in India. It focuses on constructing new shopping and entertainment centres. The company is listed on the Main Board of the London Stock Exchange, the Warsaw Stock Exchange and the Tel Aviv Stock Exchange. Plaza Centers N.V. is an indirect subsidiary of Elbit Imaging Ltd., an Israeli public company whose shares are traded on both the Tel Aviv Stock Exchange in Israel and the NASDAQ Global Market in the United States. It has been active in real estate development in emerging markets for over 19 years.
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