Last checked at 1 Sep 2020 07:00
August 31, 2020
PLAZA CENTERS N.V.
UPDATE REGARDING SALE OF ITS HOLDINGS IN THE PROJECT IN CHENNAI, INDIA
Plaza Centers N.V. ("Plaza" or the "Company") announces today, further to its press release dated June 2, 2020, regarding the agreement (the "SPA") between Elbit Plaza India Real Estate Holdings Limited (a subsidiary held by the Company (50%) and Elbit Imaging Ltd. (50%)) ("EPI") and the purchaser (the "Purchaser") for the sale of 100% stake in the SPV (subsidiary of EPI) which owns 74.7 acre plot in Chennai, India, for a total consideration of approximately Euro 13.5 million (INR 108 crores); that due to the COVID 19 negative impact on the economic situation in India, the Purchaser has sought additional time for closing of the transaction (currently set for September 2, 2020), and the parties have reached a revised understanding as follows:
a. The Purchaser will deposit INR 1 crore (approximately Euro 0.115 million) and agrees to deposit additional INR 0.50 crore (approximately Euro 0.057 million) by 1, December 2020.
b. The Purchaser gets additional seven months to complete the closing (up to 1, April 2021), which may be extended by another three months (up to 30, June 2021) upon payment by the Purchaser of an additional deposit of INR 7.5 crores.
c. As of this date, the Purchaser has deposited a total of INR 25 crores (approximately Euro 3.1 million).
d. According to the SPA, If the Purchaser is unable to complete the closing within the aforesaid time periods, then the parties will mutually appoint an international real estate consulting firm for the purpose of identifying a third-party buyer within a period of six months.
At this stage, there is no certainty that the SPA closing will occur.
Ends
For further details, please contact:
Plaza
Ran Yaacovs, CFO 972-546-303-006
Forward-looking statement
This press release may contain forward-looking statements with respect to Plaza Centers N.V. future (financial) performance and position. Such statements are based on current expectations, estimates and projections of Plaza Centers N.V. and information currently available to the Company. Plaza Centers N.V. cautions readers that such statements involve certain risks and uncertainties that are difficult to predict and therefore it should be understood that many factors can cause actual performance and position to differ materially from these statements.
Notes to Editors
Plaza Centers N.V. (www.plazacenters.com) is listed on the Main Board of the London Stock Exchange, as of 19 October 2007, on the Warsaw Stock Exchange (LSE: "PLAZ", WSE: "PLZ/PLAZACNTR") and, on the Tel Aviv Stock Exchange.