Plaza Regulatory News (PLAZ)

22 Jan 2008 08:00

Plaza Centers N.V.22 January 2008 22 January 2008 PLAZA CENTERS RECEIVES EUR 381 MILLION GROSS CASH PROCEEDS FROM THE SALE OF ARENA PLAZA, HUNGARY Plaza Centers N.V. ("Plaza Centers" or "the Company"), a leading emergingmarkets property developer, today announces that it has received gross proceedsof approximately €381 million in consideration for the sale of the Arena Plazashopping and entertainment centre in Budapest to UK based Active AssetInvestment Management ('aAIM'), one of the UK's fastest growing commercialproperty investment groups. As first announced to shareholders on 7 August 2007, Arena Plaza was pre-sold toaAIM. The transaction was consummated on 18 December 2007, with effect from 30November 2007, at a completion value totalling approximately €381 million. Thenet cash consideration received by Plaza after settlement of outstandingliabilities was approximately €248 million. With 66,000 square metres of lettable area, Arena Plaza is Hungary's largestshopping and entertainment centre. The Arena Plaza was 100% let to internationaland local tenants on its opening to the public on 15 November 2007. Commenting on the transaction, Ran Shtarkman, President and CEO of Plaza CentersN.V., said: "Arena Plaza is one of the largest and most prestigious shopping andentertainment centres in Central and Eastern Europe and the quality, size anddesign of this project has set new standards for the region as a whole. Bydeveloping what is, as of today, Hungary's largest shopping centre, Plaza hasprovided Hungary with an exciting new commercial centre in central Budapest anda compelling destination for national and international tenants and visitors.Amongst the international anchor tenants of the Centre are Tesco, the InditexGroup and the giant German retailer, Peek & Cloppenburg, which has chosen ArenaPlaza as the site to launch its first Mega Store in Hungary. Additionally, thecentre has other major and well known retailers such as H&M, Electro World,Hervis and C&A and a 23-screen Cinema City complex, which includes Hungary'sfirst IMAX theatre. "Our ability to develop Arena Plaza on time, within budget, and 100% let onopening to key international and local tenants clearly demonstrates the realstrength in construction and leasing operations which forms the backbone of theCompany's expertise. It is this proven track record of delivering high qualityshopping and entertainment destinations in emerging markets that continues toattract property investors to our developments, with the resulting disposalsensuring we achieve our strategy to deliver strong shareholder returns. ArenaPlaza is also an excellent example of Plaza Centers' strategic mega projects,such as the large leisure resort on Obuda Island in Budapest, and the Casa Radiolandmark scheme in the heart of Bucharest which comprises more than 600,000 sq mof built area. "The completion value of the Arena Plaza totalling approximately €381 million,is considerably higher than its estimated value of approximately €333 million atthe time of the Company's Admission to trading on the London Stock Exchange inOctober 2006. We are delighted to have achieved a significantly higher marketvalue for the Arena Plaza than stated in the Company's Admission Document andthereby realised significant additional value for our shareholders in both theUK and Poland. "The significant cash consideration received for Arena Plaza, which has beensecured since August 2007 by an irrevocable bank guarantee, will be used to helpdrive our ongoing plans for growth as well as investing in our current projectswhich are under development". For further details please contact: Plaza Mordechay Zisser, Chairman +972 3 6086000 Ran Shtarkman, President and CEO +36 1 462 7221 Roy Linden, CFO +36 1 462 7105 Financial Dynamics +44 20 7831 3113 Stephanie Highett/Laurence Jones Notes to Editors Plaza Centers N.V. (www.plazacenters.com) is a leading emerging marketsdeveloper of shopping and entertainment centres. It focuses on constructing newcentres and, where there is significant redevelopment potential, redevelopingexisting centres in both capital cities and important regional centres. TheCompany is dual listed on the Main Board of the London Stock Exchange and, as of19 October 2007, the Warsaw Stock Exchange (LSE:"PLAZ", WSE: "PLZ/PLAZACNTR").Plaza Centers N.V. is an indirect subsidiary of ELBIT IMAGING LTD ("EIL") anIsraeli public company whose shares are traded on both the Tel Aviv StockExchange in Israel and the NASDAQ Global Market in the United States. Plaza Centers is a member of the Europe Israel Group of companies which iscontrolled by its founder, Mr Mordechay Zisser. It has undertaken real estatedevelopment in emerging markets for more than 11 years. This information is provided by RNS The company news service from the London Stock Exchange