Last checked at 18 Oct 2016 15:00
18 October 2016
PLAZA CENTERS N.V.
UPDATE ON THE DISPOSAL OF SUWLAKI PLAZA AND TORUN PLAZA
Plaza Centers N.V. ("Plaza" or the "Company") announces that its subsidiary, Plaza Centers Polish Operations B.V., has signed a new non-binding Letter of Intent (the "LOI") with an investment fund (the "Purchaser") regarding the sale of Suwałki Plaza shopping and entertainment centre in Poland. The LOI, which binds the Purchaser to a set of strict timelines in order for the transaction to conclude during the fourth quarter of this year, values the asset at €42.3 million. Should the transaction complete as planned, following the repayment of the existing bank loan, the expected net proceeds to the Company are estimated at circa €15 million.
While a non-binding Letter of Intent had previously been signed with another global investment fund, with respect to both Torun Plaza and Suwalki Plaza, as announced on 1 August 2016, this party failed to meet the agreed terms of the transaction and, therefore, its exclusivity on the sale expired. Plaza is continuing to explore options for a separate sale of Torun Plaza.
While it is expected that the disposal of Suwałki Plaza will be finalised in the fourth quarter of this year, at this point in time there is no certainty that the transaction will be completed. Plaza will update the market on the progress of the transaction as appropriate.
The sale of Suwalki Plaza is consistent with the Company's stated strategy to oversee an orderly disposal of its mature assets in order to reduce Company debt levels.
Ends
For further details, please contact: | |
Plaza | |
Dori Keren, Acting CEO | + 48 22 231 99 00 |
Eitan Farkas, Financial Director | + 36 1 462 7140
|
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.