Plaza Centers N.V. COMPLETED SALE OF BELGRADE PLAZA (3867Y)
03 March 2017 - 2:30AM
UK Regulatory
TIDMPLAZ
RNS Number : 3867Y
Plaza Centers N.V.
02 March 2017
2 March 2017
PLAZA CENTERS N.V.
COMPLETED SALE OF BELGRADE PLAZA
Plaza Centers N.V. ("Plaza" or the "Company"), an emerging
markets property developer, announces the successful completion of
the sale of Belgrade Plaza shopping and entertainment centre, by
one of its subsidiaries, to a subsidiary of BIG Shopping Centers
Ltd. (the "Purchaser").
Belgrade Plaza is currently the largest development underway in
Serbia. The shopping centre, which is currently over 90% pre-let,
is on schedule to open in April 2017 and Plaza will remain
responsible for the development and leasing of the asset until the
opening. Plaza's subsidiary shall pay all related development costs
until the opening through a line of credit from a financing bank
which was previously agreed for the development of Belgrade Plaza
to a maximum amount of EUR42.5 million.
Following the successful sale, Plaza has now received an initial
advance payment of circa EUR31.5 million from the Purchaser for the
sale of 100% of the SPV. This will be followed by further payments
during the first 12 months of operation, which are subject to
certain operational targets and milestones being met. BIG Shopping
Centers Ltd. has provided a guarantee to secure these future
payments.
As previously stated, the final agreed value of Belgrade Plaza,
which will comprise circa 32,300 sqm of GLA, will be calculated
based on a general cap rate of 8.25% on the sustainable NOI after
12 months of operation, which the Company estimates will be
approximately EUR7.2-7.5 million per annum. Parts of the NOI will
be re-examined again after 24 months and 36 months of operation,
which may lead to an upward adjustment of the final purchase
price.
At least 75% of the net proceeds received from the disposal will
be distributed to the Company's bondholders by or before 31 March
2017, and further distributions will be made following receipt of
any future additional payments, in line with the Company's stated
amended restructuring Plan.
Dori Keren, CEO at Plaza Centers, said:
"We are pleased to be able to successfully develop a significant
shopping and entertainment centre in the capital city of Serbia. We
will continue to work with BIG Shopping Centers Ltd. on the
imminent launch of Belgrade Plaza and the ongoing delivery of the
centre."
Ends
For further details, please contact:
Plaza
Dori Keren, 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 an 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
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. 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 on the NASDAQ Global Market in the
United States. Plaza Centers has been active in real estate
development in emerging markets for over 21 years.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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