Last checked at 17 May 2016 15:30
17 May 2016
PLAZA CENTERS N.V.
SALE OF MUP PLOT IN BELGRADE FOR EUR 15.9 MILLION
Plaza Centers N.V. ("Plaza" or the "Company"), a leading emerging markets property developer, announces the sale of its wholly owned subsidiary, which holds the "MUP" plot and related real estate in Belgrade, Serbia, for €15.9 million, above the last reported book value of circa €13.5 million.
MUP is a prominent development site at the location of the former Federal Ministry of Internal Affairs, at the entrance to Belgrade's old town and on the city's main thoroughfare. The potential development is projected to comprise a significant mixed-use scheme, including residential units, retail, offices, a hotel and underground parking facilities. As a mixed-use development, the asset sits outside of Plaza's core focus on the retail and leisure sectors.
Following the fulfilment of certain technical conditions that are expected to be met in the coming weeks, the purchaser will pay €11 million in cash to the Company. An additional €300,000 will be due before 30 November 2016 and the remaining €4.6 million will be due within 15 months from the transaction closing date. Furthermore, Plaza will also be entitled to an additional pending payment of €600,000, on top of the €15.9 million transaction consideration, once the purchaser successfully develops at least 69,000 sqm above ground.
Upon the receipt of each stage payment, in line with the Company's stated restructuring plan, 75% of the net cash proceeds will be distributed to Plaza's bondholders in the following quarter.
Dori Keren Acting CEO at Plaza Centers, said:
"Following the sale of Riga Plaza, this is another strong result for us as we work intensively towards the disposal of certain non-core or mature assets in our portfolio. The MUP site has significant potential to become a major destination in Belgrade, but as a mixed-use development it sits outside of our core focus on shopping and entertainment centres. As such, it is pleasing to have secured the sale at a price significantly above book value, following the asset management success we have achieved in the planning and permits process over the last few years. The disposal will enable us to return further proceeds to our bondholders in line with our continuous efforts to reduce the Company's debt, and further re-focus on our Core business."
Ends
For further details, please contact: | |
Plaza | |
Dori Keren, Acting CEO | + 48 22 231 99 00 |
FTI Consulting | |
Dido Laurimore / Claire Turvey / Tom Gough | +44 20 3727 1000 |
Notes to Editors
Plaza Centers N.V. (www.plazacenters.com) is a leading emerging markets developer of shopping and entertainment centres with operations in Central and Eastern Europe and India. 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 listed on the Main Board of the London Stock Exchange, the Warsaw Stock Exchange and, as of 27 November 2014, the Tel Aviv Stock Exchange (LSE:"PLAZ"; WSE: "PLZ/PLAZACNTR"; TASE: "PLAZ"). Plaza Centers N.V. is an indirect subsidiary of Elbit Imaging Ltd. ("EI"), 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 20 years.