Sign In
Last checked at 
3 Feb 2009 08:00
ο»Ώ
3Β FebruaryΒ 2009Β
PLAZA CENTERSΒ ACQUIRES SITE INΒ SOFIA,Β BULGARIA
Β Design process underwayΒ for β¬75Β millionΒ retail and officeΒ complexΒ
Plaza Centers N.V. ("Plaza" or the "Company"),Β a leading emerging markets property developer, today announces that itΒ has acquired aΒ controlling stake in aΒ 75,000 sqmΒ projectΒ in Sofia, Bulgaria,Β for the development ofΒ aΒ retailΒ and officeΒ complex.
Plaza has acquired a 51% stake in the project fromΒ a local developerΒ for aΒ totalΒ consideration of β¬7.14Β million.Β The consideration will consist of a cash payment of β¬2.78 million and the assumption of β¬4.36 million of debt, representing 51% of the project's debt liability.Β In addition Plaza will retain the right to acquire a further 24% stake in the projectΒ forΒ six months following the start of construction, based on theΒ current value of the project, as reflected in today's announcement.Β The local developerΒ will retain the remaining stake as joint venture partners in the project,Β withΒ Plaza managingΒ the construction.
The design phase of the project is already underwayΒ for theΒ plannedΒ 75,000 sqm gross built area,Β inclusive of parking spaces, with zoning approval forΒ the constructionΒ of retail and officeΒ spaceΒ as well asΒ extensiveΒ parking.Β The site is ideally locatedΒ atΒ a main junction,Β 2.7Β km fromΒ the centre ofΒ Sofia.Β TheΒ gross development budget for the project is expectedΒ to be β¬75Β millionΒ withΒ constructionΒ anticipatedΒ toΒ commence in 2010.
This project is Plaza's secondΒ projectΒ inΒ Bulgaria, following its acquisitionΒ in November 2007Β of aΒ 20,000 sqmΒ gross lettable areaΒ shopping centre development project inΒ Shumen.Β
Commenting on theΒ acquisition,Β Ran Shtarkman, President and CEO of Plaza Centers N.V., said:Β
"Plaza is uniquely placed to take advantage of opportunities in the current market, given itsΒ strong balance sheet and itsΒ expertiseΒ in developing assetsΒ across central and eastern Europe.Β There is considerable demand inΒ Bulgaria, and in particular inΒ Sofia, for well located,Β high quality retail space.Β MoreoverΒ thereΒ isΒ a significant shortage of office space in the city,Β particularly with parkingΒ facilities.
"The transaction required limited immediate funding from both partners, due to the level ofΒ bank financingΒ providedΒ for the landΒ acquisition,Β which was achievableΒ due to the experience and reputation of Plaza.Β ThisΒ newΒ project will enable usΒ to create significant value by deliveringΒ a high qualityΒ productΒ for which we expect to receive strong interest from potentialΒ internationalΒ and domesticΒ occupiers."
For further details please contact:
|
Plaza Mordechay Zisser, Chairman Ran Shtarkman, President and CEO Roy Linden, CFO |
+972 3 6086000 +36 1 462 7221 +36 1 462 7105 |
|
Financial DynamicsΒ Stephanie Highett/Laurence Jones |
+44 20 7831 3113 |
Notes to Editors
Plaza Centers N.V.Β (www.plazacenters.com) is a leading emerging markets developer of shopping and entertainment centres. It focuses on constructing new centres and, where there is significant redevelopment potential, redeveloping existing centres in both capital cities and important regional centres. The Company is dual listed on the Main Board of the London Stock Exchange and, as of 19 October 2007, the Warsaw Stock Exchange (LSE:"PLAZ", WSE: "PLZ/PLAZACNTR"). Plaza Centers N.V. is an indirect subsidiary of Elbit Imaging Ltd. ("EIL"), an Israeli public company whose shares are traded on both the Tel Aviv Stock Exchange inΒ IsraelΒ and the NASDAQ Global Market in theΒ United States.Β
Plaza Centers is a member of the Europe Israel Group of companies which is controlled by its founder, Mr Mordechay Zisser. It has been active in real estate development in emerging markets for over 13Β years.
Follow the stocks
