TIDMPLAZ
RNS Number : 0716F
Plaza Centers N.V.
15 May 2017
15 May 2017
PLAZA CENTERS N.V.
Results for the year ended 31 December 2016
CONTINUING to FULFILL BOND OBLIGATIONS AND ADVANCING ASSET
SALES
Plaza Centers N.V. ("Plaza" / the "Company" / the "Group"), a
property developer and investor with a focus on operations in
Central and Eastern Europe ("CEE"), today announces its full year
results for the year ended 31 December 2016. The full financial
statement is announced separately and includes the Independent
Auditors' report with a Disclaimer of opinion.
Financial highlights:
-- Reduction in total asset value to EUR322 million (31 December
2015: EUR392 million) mainly due to the impairment of trading
property and repayment of interest and principal of bonds according
to the restructuring plan.
-- Book value of the Company's trading properties decreased by
17% (EUR54 million) over the period, primarily due to the sale of
Liberec Plaza and Zgorzelec Plaza shopping centres, and MUP plot in
Belgrade and a significant impairment of Casa Radio project.
-- The Net Operating Income ("NOI") performance of current
operational shopping centres (excluding Riga shopping centre)
slightly decreased in 2016 to EUR11.4 million (in 2015: EUR12.7
million), mainly due to the disposal of the Liberec Plaza shopping
centre which became effective on 31 March 2016, as well as
discounts granted to new and renewed tenants. The total NOI of
Plaza's five malls including Riga Plaza (Latvia) was circa EUR13.8
million (three shopping centres out this five were sold during the
year).
-- Loss in 2016 totalled EUR46.5 million (in 2015: loss of
EUR46.1 million) mainly due to a significant impairment of the Casa
Radio project in Romania totalling EUR32.2 million as well as
non-cash finance costs of EUR13.7 million (as a result of bonds
discount amortisation). Basic and diluted loss per share reduced to
EUR6.78 (in 2015: loss per share of EUR6.73) following the
conclusion of a Reverse Share Split with a 1:100 ratio.
-- Consolidated cash position as at 31 December 2016 (including
restricted bank deposits and short term deposits) of EUR12.8
million (31 December 2015: EUR20.4 million) and current cash
position of circa EUR10.3 million (of which EUR2.3 million is
restricted).
-- Gearing increased to 89% (31 December 2015: 79%) mainly due
to non-cash finance costs mentioned above.
Further progress in portfolio rationalisation:
Since the conclusion of the debt restructuring agreement, to
date Plaza has completed sales totalling EUR170 million and has
received cash proceeds of EUR76 million in 2016:
-- Disposal of a 23,880 sqm site in Slatina, Romania, in March
2016 for EUR0.66 million, consistent with the asset's last reported
book value.
-- Sale of a subsidiary holding in Liberec Plaza, in the Czech
Republic, on 31 March 2016 for EUR9.5 million. Following net asset
value adjustments related to the subsidiary's balance sheet, the
Company received a net amount of EUR9.37 million. The majority of
the proceeds from the sale (EUR8.5 million, reflecting 100% of the
outstanding loan) were repaid to Plaza Centers Enterprises B.V.
("PCE"), a wholly owned subsidiary of Plaza, on account of the bank
loan PCE acquired in September 2015 (the bank loan was provided to
the SPV, the holding and operating company of Liberec Plaza).
Almost EUR1 million of surplus cash flow was delivered by the
disposal.
-- A pre-agreement to sell a 15,000 sqm development plot in
Piraeus, near Athens, Greece, for EUR4.7 million was signed in
April 2016 and was later on in December 2016 revised to be on
EUR3.5 million with possible upside depending on building rights.
Final agreement has not signed yet and the long stop date of this
transaction has been recently set at the end of May 2017.
-- On 16 May 2016, a subsidiary of Plaza, in which the Company
has a 50% stake, entered into a business sale agreement with
respect to the disposal of Riga Plaza shopping and entertainment
centre in Riga, Latvia, to a global investment fund. The agreement
had reflected a value for the business of circa EUR93.4 million
(reflecting 100% of the asset value), which was in line with the
last reported book value. The net cash proceeds from Plaza's 50%
share of the sale of the business were EUR17.8 million after
repayment of bank loan, with an additional EUR0.6 million expected
to be received within the next 25 months. The transaction was
completed on 15 September 2016.
-- Disposal of the Company's wholly owned subsidiary which held
the "MUP" plot and related real estate in Belgrade, Serbia, for
EUR15.75 million (to be received in several tranches), above the
book value of circa EUR13.5 million. The sale was completed on 29
June 2016. In addition to the EUR15.75 million transaction
consideration, Plaza will also be entitled to an additional pending
payment of EUR600,000 once the purchaser successfully develops at
least 69,000 sqm above ground. In February 2017 the Company agreed
with the buyer to bring forward the payment of EUR4.2 million out
of the third scheduled payment amount of EUR4.6 million in a
discount transaction with a present value of circa EUR4.05 million.
The remainder of the purchase price will be paid as originally
agreed between the parties at end of September 2017.
-- On 28 June 2016 the Company signed a preliminary agreement
for the sale of a 20,700 sqm plot which is 62% of the whole owned
land in Lodz, Poland, to a residential developer, for EUR2.4
million. On 28 September 2016 the final agreement was signed with
payment due in three instalments of which the last one is in June
2017. 26% of another part of the site was previously sold in two
separate transactions completed in 2015 and 2016 for a total value
of EUR1.2 million. Following these transactions Plaza still owns
4,017 sqm which is 12% of the whole land for future value
realisation. Plaza received an initial payment of EUR1.04 million,
which was followed by EUR180,000 in November 2016 and EUR220,000 in
December 2016, and is due to receive a final instalment of EUR0.96
million in June 2017.
-- On 30 June 2016 Plaza signed a Debt Repayment Agreement
("DRA") with the financing bank (the "Bank") of Zgorzelec Plaza in
Poland. On 14 September 2016, Plaza completed the sale of its
shares in Zgorzelec Plaza. A Share Purchase Agreement was signed
with an Appointed Shareholder nominated by the Bank, after which
the DRA process was completed and a mortgage over the asset of the
Company in Leszno, Poland, (valued at EUR0.8 million) was settled.
Plaza recognised a profit of circa EUR10 million, stemming from the
release of EUR23.0 million of the outstanding (and partially
recourse) loan (including accrued interest thereof), against an
outstanding asset value of EUR12 million as of 30 June 2016.
-- Disposal of an 18,400 sqm plot in a suburb of Ploiesti,
Romania, to a local investor for EUR280,000.
-- An Indian subsidiary ("SPV") of Elbit Plaza India Real Estate
Holdings Limited (in which Plaza holds a 50% stake with its joint
venture partner, Elbit Imaging Ltd.) signed a Joint Development
Agreement relating to its 74.7-acre plot in Chennai, India, to
transfer the property development rights to a reputable local
developer. The SPV will receive 73% of the total revenues from the
plotted development and 40% of the total revenues from the eventual
sale of the fully constructed residential units in instalments
subject to development milestones.
-- On 13 October 2016 Plaza signed a preliminary sale agreement
for the disposal of a 2.47 hectare plot in Kielce, Poland, for
EUR2.3 million. As part of the sale process, Plaza has received a
down payment of EUR465,000, while the outstanding amount will be
paid within eight months of the date of the agreement at June
2017.
Operational highlights
o At Torun Plaza, Poland, following a process of extending lease
agreements following five years since the mall opened,, the
occupancy slightly decreased to 95% (2015: 96.8%) while turnover
and footfall remained stable.
o Suwalki Plaza was sold after the end of the period having been
98.7% leased (YE 2015 96.5%), and with a 18% increase in turnover
in 2016 and 10% increase in footfall, compared to 2015 year.
o The letting process and construction of Belgrade Plaza has
been continued to expectations. On opening 97% of the mall was let
and the successful opening occurred in line with the planned
schedule on 20 April 2017.
Key highlights since the period end:
-- Since the year end, Dori Keren officially became Chief
Executive Officer on 1 January 2017, having been Acting CEO since
April 2016.
-- On 26 January 2017 Plaza announced that one of its
subsidiaries signed a binding share purchase agreement with BIG
Shopping Centers Ltd., a publicly traded company in Tel Aviv Stock
Exchange (the "Purchaser"), for the sale of the Belgrade Plaza
shopping and entertainment centre. Belgrade Plaza (Visnjicka) has
been the largest development underway in Serbia. Plaza is still
responsible for accounting for the final development cost and
leasing of the asset until the adjustment date. Upon completion of
the transaction, Plaza received an initial advance payment of EUR28
million (plus EUR3.7 million customary NAV adjustments) from the
Purchaser for the sale of 100% of the SPV, which will be followed
by further payments during the first year of operation subject to
certain operational targets and milestones being met. The Purchaser
provided a guarantee to secure these future payments. 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 basis of cash collected as well as the sustainable NOI after
12 months of operation, which the Company estimates will be
approximately EUR7.2-7.5 million per annum. The sustainable 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. Plaza has a line of credit from a
financing bank for the development of Belgrade Plaza to a
maximum amount of EUR42.5 million. On 20 April 2017 the
construction of the centre was completed and the shopping centre
was 97% let and is expected to be fully leased in the coming
months. Plaza has received EUR2 million for fulfilling its
conditions around the successful leasing milestone at the opening
of the centre. Belgrade Plaza is the 34th shopping centre built by
Plaza and its second scheme in Serbia.
-- On 1 February 2017 Plaza announced that one of its
subsidiaries ("SPV") completed the sale of Suwa ki Plaza shopping
and entertainment centre in Poland to an investment fund for
EUR42.3 million, which is in line with the last reported book
value. Having completed the transaction, the Company received circa
EUR16 million net cash, after the repayment of the bank loan (circa
EUR26.6 million) and other working capital adjustments in
accordance with the balance sheet of the SPV.
-- On 17 February 2017 Plaza announced the sale of David House,
a 2,297 sqm office building in Budapest, Hungary, for circa EUR 3.2
million, which is above book value. On 23 February 2017 Plaza
concluded the sale of a 26,057 sqm plot of land in Shumen,
Bulgaria, for circa EUR1 million, which is slightly above book
value.
-- On 23 February 2017 Plaza concluded the sale of a 26,057 sqm
plot of land in Shumen, Bulgaria, for circa EUR1 million, which is
slightly above book value.
-- Compliance of the Early prepayment term - On March 15, 2017
the company paid its bondholders a total amount of NIS 191.74
million (EUR 49.2 million) as early redemption and accordingly,
upon such payment the Company complied with the early redemption at
the total sum of at least NIS 382,000,000 and thus obtained a
deferral of one year for the remaining contractual obligations of
the debentures.
-- On 21 April 2017 Plaza Centers regarding its Romania project
Casa Radio has received immunity from certain potential criminal
charges from the relevant Romania Authorities and was assured that
the mentioned investigation should have no effect on the Company's
existing legal rights to the Project and the Public-Private
Partnership Agreement signed with respect thereto. As the
investigation of the Romanian authorities is still on-going Plaza
is still co-operating fully with the relevant Romanian Authorities.
The Company is unable to elaborate any further in this respect due
to restrictions coming from of a self-disclosure process.
-- On 4 May 2017, further to its announcement dated 15 September
2016, regarding the preliminary sale agreement to dispose of the
Leszno plot in Poland, announced the completion of the final sale
agreement has been postponed by 2 months. In line with the signed
agreement, the purchaser had the right to withdraw from the
transaction within a window of eight months which was due to end on
28 April 2017. The purchaser recently requested that the decision
is postponed by two months which extends the agreement to 30 June
2017. Plaza has signed an annex to the sale agreement which has
allowed this extension to take place.
Commenting on the results, Dori Keren CEO of Plaza Centers,
said:
"Our aim for 2016 was to substantially increase the pace of
converting assets to cash in order to fulfil our repayment
obligations to bondholders. Undoubtedly, we have delivered on this
objective by agreeing or completing 10 separate such transactions
during the period and progress continues into 2017."
"Focus remains on seeking potential buyers for selected non-core
assets which have become less fit for development by us. At a
corporate level, we have reduced central and finance costs, and
continue to focus on the improving the performance at our operating
shopping centre.
"Overall, we are making good progress and have already shown
accelerated sales and still have a pipeline of disposal
opportunities going forward, all with a focus on delivering for our
stakeholders."
The full year results for the year ended 31 December 2016 are
available for viewing on the Company's website at
http://plazacenters.com/index.php?p=financial_reports_2016
For further details please contact:
Plaza +48 22 231 99
Dori Keren CEO 00
FTI Consulting
Dido Laurimore / Claire Turvey
/ Tom Gough +44 20 3727 1000
Notes to Editors
Plaza Centers N.V. (www.plazacentres.com) is an emerging markets
developer of shopping and entertainment centres with operations in
Central and Eastern Europe and India. 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 21 years.
Forward-looking statements
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. Plaza Centers
N.V. has no obligation to update the statements contained in this
press release, unless required by law.
CHIEF EXECUTIVE OFFICER'S STATEMENT
2016 saw a year of increasing focus on the execution of Plaza's
strategy to dispose of non-core and matured assets to reallocate
capital to its core yielding assets and to reduce debt levels.
Total assets now stand at EUR322 million (31 December 2015: EUR392
million) having agreed or transacted on 10 separate disposals
during the year.
Rental income fell during the year to EUR15.6 million compared
with EUR18.7 million at the end of December 2015, a further
reduction which reflects the fewer properties managed by Plaza
(reduction of EUR2.1 million).
Our total loss for the year slightly increased to EUR46.5
million from EUR46.1 million at the end of December 2015.
Over the course of 2016, in line with the restructuring plan
agreed in 2014, we repaid 75% of proceeds from disposals to
bondholders, totalling EUR24.6 million. Since the restructuring
plan was approved, and since the Amended Plan came into effect,
Plaza has now returned principal amount of NIS 383 Million. On 8
November 2016, Standard & Poor's Maalot ("S&P Maalot"), the
Israeli credit rating agency which is a division of Standard &
Poor's International, updated its credit rating for Plaza's series
of two Notes traded on the Tel Aviv Stock Exchange from "ilBBB-" to
"ilCCC-" on the local Israeli scale. This rating was reinstated on
1 March 2017.
Overall, we made significant progress during 2016 and look
forward to further actions during the year ahead. 2016 saw
significant progress in the delivery of our obligations towards our
bondholders.
Results
As stated, Plaza's total loss for the year stayed at EUR46.5
million compared with EUR46.1 million at the end of December 2015,
much of which was due to an impairment at Casa Radio in Romania as
well as non-cash finance costs. Meanwhile income from operating
shopping centres and the disposal of trading properties totalled
EUR25.2 million, mostly due to the strategic sale of Liberec Plaza
at the first quarter of the year. Eliminating the effects of the
disposed shopping centres, NOI was stabilised at EUR10.5
million.
The most significant factor in this was a large reduction in
property was the net write-down costs of EUR40.8 million compared
to EUR20.3 million in 2015. These write-down costs are ascribed
mainly to the impairment of Casa Radio and Timisoara in
Romania.
Plaza further reduced net finance costs, shopping centre
operating costs and central administration costs during the
period.
Debt restructuring plan
In line with the debt restructuring plan agreed in 2014, Plaza
repays 75% of proceeds from disposals to bondholders. An Amended
Plan was agreed in November 2016, details of which are outlined
further below. Since the Plan became effective, until up to March
15, 2017, the Company has repaid circa NIS 383 Million (EUR93.1
Million) out of the debentures and allocated 13.21% of its shares
to the bondholders.
Following the closing of the Company's restructuring plan, the
Company's consolidated financial statements include liabilities to
bondholder's in the aggregate principal amount of EUR 186.4
million.
According to the original Plan, if until December 1, 2016 the
Company manages to repay its principal of debentures in the amount
of NIS 434 million (EUR 107.3 million), then the remaining
principal payments shall be deferred for an additional year ("the
Deferral").
During 2016, the Group undertook actions to dispose certain
assets in the aggregate amount of EUR 77.7 million
In addition, in November 2016, the Group agreed with its
bondholders to amend the terms of the early repayment requirement
under the original debt restructuring plan (the "Restructuring
Plan"). On March 15, 2017, the Group repaid the required minimum
early repayment Term (early redemption at the total sum of at least
NIS 382,000,000 (EUR 49.2 million)) to its bondholders and thus
obtained a deferral of one year for the remaining contractual
obligations of the debentures.
Information concerning the Group's obligations and commitments
to make future payments under contracts such as debt agreements and
vendors agreements in the next 18 months is aggregated in the
following tables.
Contractual Obligations Total Payment Due
by period
(in MEUR)
Within 1 1-1.5 years
year
Debentures including current
portion and interest 56,500 (*) 21.375
Secured bank loans 48,129 440
Total contractual obligations
(excluding working capital) 104,629 21,815
(*) Out of which EUR 51.8 million repaid by the date of approval
of these consolidated financial statements.
The Company expects to increase the amount of its liquid
balances during the Forecast Period, by means of the following
actions:
-- Sale of shopping centres in amount of EUR 146 million
-- Sale of plots of lands in amount of EUR 49.5 million
-- NOI and other income EUR 6.7 million
Management expects that the Group will be able to meet the
remaining contractual obligations during the 13 months' period
following the approval of the consolidated financial statements by
a combination of its assets disposal program shown above and cash
generated from operating shopping centre.
Coverage Ratio According to the Restructuring Plan
The CRC (Coverage Ratio Covenant) is a fraction calculated based
on known Group valuations reports and consolidated financial
information available at each reporting period. Minimum CRC deemed
to be complied with by the Group is 118% in each reporting period.
The December 31, 2016 calculated CRC 126.5%
NAV
The Company's NAV was calculated as follows:
Net Financial Debt -256
Asset Values*
Operating Assets 119
Development Assets** 140
Plots Pipeline 50
Office Building 3
311
Other assets and
liabilities, net 1.4
NAV 56
* Valuations by Jones Lang LaSalle as at 31 December 2016 for
the assets: Belgrade Plaza, Casa Radio, Constanta, Ciuc, Timisoara,
Arena Extension, Torun, Lodz Plaza. Valuations by Cushman and
Wakefield as at 31 December 2016 for Varthur and Chennai. The rest
of the assets were valuated internally.
** Including Casa Radio (100% due to material owner's loans),
Timisoara and Belgrade Plaza (Visnjicka).
Events post period end
At the Company's request, pending the publication of its
financial results for the year ended 31 December 2016, Plaza's
ordinary shares were suspended, with effect from 7.30 a.m. (London
time) on 2 May 2017, from trading on the London Stock Exchange's
main market for listed securities and being listed on the Official
List of the Financial Conduct Authority, and also its ordinary
shares were suspended from trading on the Warsaw Stock Exchange as
of 2 May 2017, as well as its Series A Notes and Series B Notes
from trading on the Tel Aviv Stock Exchange. The delay to the
publication of the 2016 Accounts followed discussions between the
Company and its auditors with respect to the auditor's opinion
regarding certain issues relating to historical agreements entered
into prior to the Company's debt restructuring.
Under the bond trust deeds the Company is required to publish
its annual consolidated financial statements by 31 March. If the
Company has not published the annual consolidated financial
statements by 30 April the Bondholders are entitled to declare that
all or a part of their respective (remaining) claims become
immediately due and payable.
The Company did not publish its financial statements within the
deadline set out in the bond trust deeds and did not remedy the
situation within the allowed time.
Both these matters entitle the Bondholders to declare that all
or a part of their respective (remaining) claims become immediately
due and payable. As at the date of approval of these financial
statements the Bondholders have not taken steps to assert their
rights.
The Company recently stated that these financial results would
include a note regarding "going concern". This information can be
found in Note 2 of the separate financial statement announcement.
While Note 2 must be read in full, the Company wishes to summarise
that, as of the date of the approval of these consolidated
financial statements, the Company is near the minimum ratio
required in respect to the Coverage Ratio Covenant. A combination
of the abovementioned conditions indicate the existence of a
material uncertainty that casts significant doubt about the
Company's ability to continue as a going concern.
Auditor comments
The Company wishes to highlight the Independent Auditors' Report
contained within the seperate statement announcement, including the
Auditor's view that it was not been able to obtain sufficient
appropriate audit evidence to provide a basis for an audit opinion
on these consolidated financial statements.
Portfolio progress
The Company currently has a land bank of 14 plots, and owns one
operational shopping and entertainment centre assets across the CEE
and in India. The location of the projects, as at 14 May 2017, is
summarised as follows:
Number of assets (CEE
and India)
---------- ----------------------------
Location Active Under development/
planning/land
bank
---------- ------- -------------------
Romania - 5
---------- ------- -------------------
India - 2
---------- ------- -------------------
Poland 1 4
---------- ------- -------------------
Hungary - 1
---------- ------- -------------------
Serbia - 1
---------- ------- -------------------
Greece - 1
---------- ------- -------------------
Total 1 14
---------- ------- -------------------
Liquidity & Financing
For a detailed liquidity analysis refer to the debt
restructuring section above. Plaza's consolidated cash position as
at 31 December 2016 (including restricted bank deposits and, short
term deposits) was EUR12.8 million (31 December 2015: EUR20.4
million). The current cash position is circa EUR10.3 million (of
which EUR2.3 million is restricted).
Plaza continued to focus on deleveraging its balance sheet
during the period. However, as a result of impairment losses
recorded in the period and finance costs incurred, the gearing
level increased to 88% in 2016.
Strategy and Outlook
In 2017, Plaza will continue delivering on the disposal of
non-core assets and its operating shopping centre.
Plaza's focus is in completion of preliminary signed assets'
sale agreements, unlocking the value of land through developments
where possible, reducing debt levels, continue to handle reducing
costs, and delivering on behalf of bondholders and
shareholders.
Dori Keren
CEO
14 May 2017
OPERATIONAL REVIEW
During 2016 Plaza took actions to improve the performance of its
portfolio. As outlined already, the main focus was on
disposals,
-- Operations: Improving performance of its operating shopping
and entertainment centres focused on Central and Eastern Europe,
and achieving key development milestones
-- Disposals: Focus remained on disposing of non-core assets to
reduce leverage and provide payments to bondholders in line with
the restructuring plan.
-- Financial position: As at 31 December 2016, Plaza's
consolidated cash position (including restricted bank deposits and,
short term deposits) was EUR12.8 million (31 December 2015: EUR20.4
million) and a current cash position of circa EUR10.3 million (of
which EUR2.3 million is restricted).
As of the balance sheet date, Plaza had 19 assets in seven
countries, of which two operating centres, 12 are designated for
sale across the CEE region as well as two developments in India. Of
these five are located in Romania, two in India, four in Poland,
and single assets in Serbia, Greece and Hungary. In addition to
these developments, Plaza retains the ownership of and operates one
shopping and entertainment centre in Poland.
The development projects are at various stages of the
development cycle, from landholdings through to those with planning
and permits.
The Company's assets and pipeline projects are summarised in the
table below:
Asset/Project Location Nature of Size Plaza's Status
asset sqm (GLA) effective
ownership
%
-------------------- ------------ ----------------------- --------------------- ----------- -----------------
Operating Shopping and Entertainment Centres
------------------------------------------------------------------------------------------------------------------
Suwalki Suwalki, Retail & entertainment
Plaza Poland scheme 20,000 100 Sold in Q1/2017
-------------------- ------------ ----------------------- --------------------- ----------- -----------------
Operating,
Torun Torun, Retail & entertainment opened in
Plaza Poland scheme 40,000 100 November 2011
-------------------- ------------ ----------------------- --------------------- ----------- -----------------
Development Assets
------------------------------------------------------------------------------------------------------------------
Casa Radio Bucharest, Mixed-use 467,000 75 In planning
Romania retail and (GBA including and permitting
leisure plus parking phase
office scheme spaces)
-------------------- ------------ ----------------------- --------------------- ----------- -----------------
Under planning
Timisoara Timisoara, Retail & entertainment and feasibility
Plaza Romania scheme 40,000 100 examination
-------------------- ------------ ----------------------- --------------------- ----------- -----------------
Belgrade
Plaza
(Visnjicka Belgrade, Retail & entertainment
) Serbia scheme 32,000 100 Sold in Q1/2017
-------------------- ------------ ----------------------- --------------------- ----------- -----------------
Operational Office Buildings
------------------------------------------------------------------------------------------------------------------
David Budapest,
House Hungary Office 2,000 100 Sold in Q1/2017
-------------------- ------------ ----------------------- --------------------- ----------- -----------------
Pipeline Projects
------------------------------------------------------------------------------------------------------------------
Plot Size
(sqm)
-------------------- ------------ ----------------------- --------------------- ----------- -----------------
Preliminary
Kielce Kielce, Retail & entertainment sale agreement
Plaza Poland scheme 25,000 100 signed
-------------------- ------------ ----------------------- --------------------- ----------- -----------------
Lodz, Retail & entertainment Designated
Lodz Plaza Poland scheme 61,500 100 for sale
-------------------- ------------ ----------------------- --------------------- ----------- -----------------
Preliminary
Leszno Leszno, Retail & entertainment sale agreement
Plaza Poland scheme 18,000 100 signed
-------------------- ------------ ----------------------- --------------------- ----------- -----------------
Lodz (Residential) Lodz, Residential 4,017 (remaining 100 Designated
Poland scheme following for sale
three transactions)
-------------------- ------------ ----------------------- --------------------- ----------- -----------------
Arena Budapest, Office scheme 22,000 100 Designated
Plaza Hungary (land use for sale
Extension right)
-------------------- ------------ ----------------------- --------------------- ----------- -----------------
Miercurea
Csiki Ciuc, Retail & entertainment Designated
Plaza Romania scheme 36,500 100 for sale
-------------------- ------------ ----------------------- --------------------- ----------- -----------------
Preliminary
Constanta Constanta, Retail & entertainment sale agreement
Plaza Romania scheme 26,500 100 signed
-------------------- ------------ ----------------------- --------------------- ----------- -----------------
Brasov, Retail & entertainment Designated
Brasov Romania scheme 67,000 100 for sale
-------------------- ------------ ----------------------- --------------------- ----------- -----------------
Krusevac, Retail & entertainment Designated
Krusevac Serbia scheme 19,930 100 for sale
-------------------- ------------ ----------------------- --------------------- ----------- -----------------
Shumen Shumen, Retail & entertainment
Plaza Bulgaria scheme 26,000 100 Sold in Q1/2017
-------------------- ------------ ----------------------- --------------------- ----------- -----------------
Preliminary
Piraeus Athens, sale agreement
Plaza Greece Retail/Offices 15,000 100 signed
-------------------- ------------ ----------------------- --------------------- ----------- -----------------
Bangalore, Residential Designated
Bangalore India Scheme 218,500 25 for sale
-------------------- ------------ ----------------------- --------------------- ----------- -----------------
Chennai, Residential
Chennai India Scheme 302,400 50 JDA signed
-------------------- ------------ ----------------------- --------------------- ----------- -----------------
Details of these activities by country are as follows:
Poland
Plaza owns and operates Torun Plaza, which was completed and
opened in late 2011, comprising approximately 40,000 sqm of GLA and
is Plaza's tenth completed centre in Poland. Occupancy level
slightly decreased to 95% at year end. The centre reported a stable
footfall and turnover.
Romania
Plaza holds a 75% interest in a joint venture with the
Government of Romania to develop Casa Radio (Dambovita), the
largest development plot in central Bucharest. The 467,000 sqm
complex, including a 90,000 sqm GLA shopping mall and leisure
centre, offices, a hotel and a convention and conference hall, is
planned for the site. The Company has obtained the PUD (Detailed
Urban Permit) and the PUZ (Zonal Urban Plan) for the Dambovita
Centre Multifunctional Complex.
In light of the financial crisis, and in order to ensure a
construction process that is aligned to current market conditions,
the Company initiated preliminary discussions with the Authorities
(which are shareholders in the SPV and a party to the Public
Private Partnership) regarding the future of the project. The
Company has also officially notified the Authorities that it will
be seeking to redefine some of the terms in the existing PPP
contract, including the timetable, structure and project
milestones. Please see note 8 (5) of the Financial Statements for
further information on the project.
During 2016 management has taken a number of steps in order to
unblock the development of the project and mitigate the risk of
termination of the PPP agreement, including commencing a process to
identify third party investors willing and capable to join the
Group for the development of the project. Management believes that
partnering with reputable investors with considerable financial
strength can enhance the Group's negotiation position vis-à-vis the
public authorities and assist in advancing an amicable agreement
with the relevant authorities with respect to the development of
the project.
In July 2015, the Company received a building permit to develop
Timisoara Plaza, a circa 40,000 sqm GLA shopping and entertainment
centre in Timisoara, western Romania. The execution of the project
depends on the availability of equity, external financing and
sufficient tenant demand
India
In 2008, Plaza formed a 50:50 joint venture with Elbit Imaging
(the "JV") to develop large mixed-use projects in Bangalore,
Chennai and Kochi. Under the terms of the agreement, Plaza acquired
a 47.5% stake in Elbit Plaza India Real Estate Holdings Limited
("EPI"), which had existing stakes in mixed-use projects in India,
in conjunction with local Indian partners.
The JV projects are as follows:
Bangalore - This residential project, owned by the JV, is
located on the eastern side of Bangalore, India's fifth largest
city with a population of more than eight million inhabitants.
In March 2008 the JV entered into an amended and reinstated
share subscription and framework agreement, with a third party, and
a wholly owned Indian subsidiary of the JV which was designated for
this purpose ("SPV"), to acquire, through the SPV, up to 440 acres
of the plot in certain phases as set forth in the Amended Framework
Agreement.
On 2 December 2015 EPI signed an agreement to sell 100% of its
interest in the SPV to the Partner (the "Sale Agreement"). The
total consideration upon completion of the transaction was INR
3,210 million (approximately EUR 45.4 million) which should have
been paid no later than 30 September 2016 (" Long Stop Date"). On
30 September 2016 the Company announced that the transaction had
not been completed and the parties reached a preliminary
understanding with the partner that the Long Stop Date will be
extended subject to payments of advances by the Partner.
Accordingly, on the same day the Partner provided an advance of INR
5 Crores (approximately EUR 0.65 million) to the Company. On 15
November 2016, the Partner informed EPI that it would not be able
to execute the next advance payments that were due the fourth
quarter of 2016.
As a result of the failure of the Partner to complete the
transaction under the Sale Agreement and in accordance with the
provisions thereto, EPI has 100% control over the SPV and the
partner is no longer entitled to receive the 50% shareholding.
On May 4, 2016, the National Green Tribunal ("NGT"), an Indian
governmental tribunal established for dealing with cases relating
to the environment, passed general directions with respect to areas
that should be treated as "no construction zones" due to its
proximity to water reservoirs and water drains ("Order"). The
restrictions in respect of the "no construction zone" are
applicable to all construction projects.
The government of Karnataka had been directed to incorporate the
above conditions in respect of all construction projects in the
city of Bangalore including the Company's project which is adjacent
to the Varthur Lake and have several storm-water crossing it.
The Group financial statements for the year ended December 31,
2016, include increase in the Company's shareholding in the SPV (as
described above) and a decrease in the net realizable value of the
Plot mainly due to the new NGT order described above, the interest
that the partner still hold in the Plot (10% as described above),
the size of the plot and the non-contiguous land parcel.
Chennai - A residential development, which is 100% owned by the
JV and 20% by a prominent local developer. The Chennai Project was
designated at the end of 2014 as a project for development. During
2015, due to changes in the Group's activities and objectives, the
Company decided not to develop the Chennai project but rather to
dispose it in its current situation.
On 16 September 2015, EPI obtained a backstop commitment from
the Local Partner for the purchase of its 80% shareholding in the
Chennai SPV by 15 January 2016, for a net consideration of
approximately INR 161.7 Crores (EUR 21.6 million).
Since the Local Partner had breached its commitment, EPI
exercised its rights and forfeited the Local Partner's 20% holdings
in the Chennai Project SPV. Accordingly, as of the balance sheet
date, EPI has 100% of the equity and voting rights in the Chennai
Project SPV.
On 2 August 2016, the Chennai Project SPV signed a Joint
Development Agreement with a local developer ("Developer" and
"JDA", respectively) with respect to the Property.
Under the terms of the JDA, the Chennai Project SPV granted the
property development rights to the Developer who shall bear full
responsibility for all of the project costs and liabilities, as
well as for the marketing of the scheme. The JDA also stipulates
specific project milestones, timelines and minimum sale prices.
Development will commence subject to the obtainment of the
required governmental/ municipal approvals and permits, and it is
intended that 67% of the Property will be allocated for the sale of
plotted developments (whereby a plot is sold with the
infrastructure in place for the development of a residential unit
by the end purchaser), while the remainder will comprise
residential units fully constructed for sale.
The Chennai Project SPV will receive 73% of the total revenues
from the plotted development and 40% of the total revenues from the
sale of the fully constructed residential units.
In order to secure its obligation, the Developer will pay a
total refundable deposit of INR 35.5 Crores (approximately EUR4.8
million), with INR 10 Crores (approximately EUR1.35 million) paid
following the signing and registration of the JDA, INR 17 Crores
(approximately EUR2.3 million) payable when planning permission for
the first phase of the development project is obtained (the
"Project Commencement Date"), and the remaining INR 8.5 Crores
(approximately EUR1.15 million) payable six months after the
Project Commencement Date ("Refundable Deposit").
The JDA may be terminated in the event that the required
governmental approvals for establishment of an access road to the
Property has not been achieved within 12 months from the execution
date of the JDA. Upon such termination, the Developer shall be
entitled to the refund of the relevant amounts paid as Refundable
Deposit and any other cost related to such access road or the title
over the Property. The JDA may also be terminated by the Chennai
Project SPV, inter alia, if the Developer has not obtained certain
development milestone and/or breached the terms of the JDA.
FINANCIAL REVIEW
Results
During 2016, Plaza remained focused on the execution of its
strategy to dispose of the non-core and matured assets in its
portfolio to reallocate capital to its core yielding assets and to
reduce debt levels.
The Company has designated its properties into three types:
-- Completed trading properties projects;
-- Projects scheduled for development; and
-- Plots in the planning phase.
With respect to its completed trading property projects, the
Company still faces material uncertainties in respect of the time
required to sell the properties. However, the Company has not
changed its business model and it is actively seeking buyers at the
right pricing levels. Therefore, it is clear from the Company's
perspective that these completed properties are trading properties,
rather than investment properties.
With respect to plots held at the planning stage, which are not
intended to be constructed in the near future, the Company is
actively looking for buyers and does not hold the plots passively
with the intention to gain from a potential value increase. Plots
scheduled for construction are intended to be developed and sold as
a completed project in the normal course of business once
circumstances allow. Therefore management also believes that these
are appropriately classified as trading properties.
Income comprised rental income from operating shopping centres
and income from disposal of trading properties. In 2016, Plaza
generated EUR15.6 million of income compared to EUR18.7 million in
2015. This includes rental income and service charges collected
from the tenants. The rental income in 2016 was EUR11.6 million
while in 2015 it was EUR13.2 million. The decrease is a result of
the strategic sale of Liberec Plaza at the end of Q1 2016 and
Zgorzelec Plaza in mid-2016 (c. EUR2.1 million of rental income
recorded in 2015 was from these assets) and also by the sale of
other undeveloped projects. Eliminating the effects of the disposed
shopping centres the NOI was stabilised at EUR10.5 million in both
years. No income from the Group's Fantasy Park operation, which
provided gaming and entertainment services in Plaza's active
shopping centres, was recorded (from EUR0.7million in 2015)
following the operational closure and sale of the units in the
Group's shopping centres.
The disposal of the above assets also led to a reduction in
operating costs from EUR6.5 million in 2015 to EUR4.9 million in
2016, while the elimination of Fantasy Park operating cost improved
the operating result by EUR1 million.
A write down of trading properties amounted to EUR40.8 million
in 2016 (EUR20.3 million in 2015) mainly affecting projects in
Romania (Casa Radio EUR32.2 million Timisoara EUR2.6 million,
Mercuera Ciuc and Constanza app EUR1 million each).
Share in results of equity accounted investees increase to EUR
4.3 million from EUR 2 million mainly as a result of increase in
Company's indirect shareholdings in two SPV's in Bangalore and
Chennai, been held by the JV with Elbit Imaging, and a decrease in
the net realizable value to these two projects, while the 2015
share in results was combined with the uplift in the value
attributable to Riga Plaza (Latvia).
The Company's active efforts to further reduce costs resulted in
administrative costs decreasing by 8% to EUR6.5 million (2015: EUR7
million), comprising a lower scale expense for professional service
providers and a lower head count.
Other net income (including gain from sale of plots reclassified
in 2016) saw a net decrease to EUR2.3 million from EUR8 in 2015. In
2015 the result was chiefly from a one-time gain recognised due to
the Kochi project in India (EUR4.7 million) and a settlement with
the potential buyer of Koregaon Park (EUR0.7 million), while in
2016 the income is mostly attributable to income from the sale of
trading property plots and to the expenses incurred in relation to
the settlement of the Klepierre lawsuit (for further information
please refer to Note 28 to the Financial Statements).
Finance income increased to EUR18.6 million from EUR14.2 in 2015
- in 2016 a gain of EUR17.7 million from the settlement of bank
debt of a Romanian subsidiary and Zgorzelec Plaza (Poland) was
recorded, while in 2015 there were settlements with banks in
Romania and the Czech Republic, generating an income resulting from
a discount in the bank loans of EUR13.5 million.
Finance costs decreased from EUR45.1 million in 2015 to EUR34
million in 2016. The main components of the costs were:
-- NIS strengthening vs. EUR during 2016 - the effect on the
debentures totalled EUR7.5 million of expense (2015: EUR14.7
million).
-- Interest expenses booked on debentures totalled EUR13.7
million (2015: EUR13.9 million expenses recorded).
-- In 2016, an additional EUR13.7 million recorded as an expense
(non-cash), associated with amortization of discount on debentures
(2015: EUR9.7 million).
-- In 2016 Interest expenses on borrowings totalled EUR3.6
million (2015: EUR5.1 million of expenses).
-- In 2016 EUR5 million of debenture finance costs were
capitalised due to construction works resuming in Belgrade (2015:
nil)
As a result of the above, the loss for the year amounted to c.
EUR46.5 million in 2016, compared to EUR46 million in 2015. Basic
and diluted loss per share changed to EUR6.78 (in 2015: loss per
share of EUR6.73) following the conclusion of a Reverse Share Split
in 1:100 ratio.
Balance sheet
The balance sheet as at 31 December 2016 showed total assets of
EUR322 million, compared to total assets of EUR392 million at the
end of 2015. The decrease was mainly driven by the write-down of
trading properties, as well as the disposal of assets and cash used
for repayment of debt.
The Company's consolidated cash position (including restricted
bank deposits, short term deposits and held for trading financial
assets) decreased to EUR12.8 million (31 December 2015: EUR20.4
million) after the repayment of bond principal and interest.
Gearing increased to 89% (31 December 2015: 79%) as a result of
write-down of trading properties and finance costs incurred during
the year.
Trading property values decreased from EUR318 million in 2015 to
EUR264 million in 2016 as result of selling assets, mainly Liberec
Plaza (Czech Republic), MUP plot (Belgrade, Serbia) and Zgorzelec
Plaza (Poland) the write-downs booked in the period (mainly related
to assets in Romania) and the increase in the value of Belgrade
Plaza (Serbia) as a result of the continuing construction. At the
end of the year, trading properties were classified as non-current
assets due to uncertainties around the development and commencement
dates.
Plaza has on its balance sheet a EUR30 million investment in
equity accounted investees which includes projects under joint
venture agreement with its parent company. These are the two
development sites in India (Bangalore and Chennai). Riga Plaza was
also classified as equity accounted investee at year end 2015, but
was sold during the year. Disregarding the effect of the sale the
value has increased by EUR2.6 million since, comprising a mainly
increase of the shareholdings and decrease as a result of
write-down.
Total bank borrowings (long and short term) amounted to EUR82
million (31 December 2015: EUR102.5 million). This decrease is the
result of disposal of Zgorzelec Plaza (EUR23 million), discount
achieved on the repaid investment loan in Romania (EUR8.5 million),
operating loans repaid during the year, offset by the increase of
the development loan for Belgrade Plaza (EUR11.5 million).
Apart from bank financing, Plaza has a balance sheet liability
of EUR178 million (with an adjusted par value of circa EUR186.5
million) from issuing debentures on the Tel Aviv Stock Exchange and
to Polish institutional investors. These debentures are presented
at amortised cost.
Provisions are booked in connection with the Company's Casa
Radio project in Bucharest Romania.
Other current liabilities have decreased from EUR7 million to
EUR2.9 million in 2016. It comprises mainly tenants' deposits and
advances, fees connected to sale of plots.
The total equity decreased from EUR83 million in 2015 to EUR36.6
million in 2016 due to a EUR46 million loss suffered mainly from
write-downs, NIS strengthening against the EUR and amortisation of
bonds discount.
Cash flow (including cash flow disclosures as required by
Israeli Securities Regulations)
Cash flow provided from (used in) operational activities in 2016
was positive at EUR9.4 million (2014: negative cash flow of EUR2.6
million) mainly due to a decrease in the trading property and
equity accounted investees.
Cash flow provided from investment activities in 2016 was
negligible while in 2015 totalled EUR2.6 million owing to the
disposal of the office building in Romania and net sale of held for
trading marketable debt securities.
Cash flow used in financing activities in 2016 totalled EUR19.4
million (2015: EUR17.9 million) owing mainly to the repayment
debentures and bank loan interest.
Disclosure in accordance with Regulation 10(B)14 of the Israeli
Securities Regulations (periodic and immediate reports),
5730-1970
1. General Background
According to the abovementioned regulation, upon existence of
warning signs as defined in the regulation, the Company is obliged
to attach to its report's projected cash flow for a period of two
years, commencing with the date of approval of the reports
("Projected Cash Flow").
One of the warning signs emphasised is a matter included in the
auditors' report - Disclaimer of opinion issued by the auditor. The
Material uncertainty related to going concern was included in view
of the management's plans for asset disposals and also in respect
of material uncertainty related to Casa Radio project, as described
in Notes 2(c), 29(u) and 8 (5) of the Financial Statements in this
press release.
Upon having such warning signs, the Company is required to
provide projected cash flow for the period of 24 months following
the reporting period, and also provide explanations on differences
between previously disclosed estimated projected cash flows with
actual cash flows.
2. Projected cash flow
The Company has implemented the restructuring plan that was
approved by the Dutch court on July 9, 2014 (the "Restructuring
Plan"). Under the Restructuring Plan, principal payments under the
bonds issued by the Company and originally due in the years 2013 to
2015 were deferred for a period of four and a half years, and
principal payments originally due in 2016 and 2017 were deferred
for a period of one year.
The Restructuring Plan further provided that, if the Company
does not prepay an aggregate amount of at least NIS 434 million
(EUR 107.3 million) on the principal of the bonds on or before
December 1, 2016 (the "Early Prepayment"), the principal payments
due under the Extended Repayment Schedule will be advanced by one
year (the "Accelerated Repayment Schedule"). On November 29, 2016,
the Company's bondholders approved a postponement of the Early
Prepayment date by up to four months and the reduction of the total
amount of the required Early Prepayments to at least NIS 382
million (EUR 94.5 million) (a reduction of 12% on the original
amount). In addition, the Company agreed to pay to its bondholders,
on March 31, 2018, a one-time consent fee in the amount of
approximately EUR 488 thousand (which is equal to 0.25% from the
Company's outstanding debt under the debentures at that time). The
consent Fee shall be paid to the Company's bondholders on a pro
rata basis.
The materialisation, occurrence consummation and execution of
the events and transactions and of the Assumptions on which the
projected cash flow is based, including with respect to the
proceeds and timing thereof, although probable, are not certain and
are subject to factors beyond the Company's control as well as to
the consents and approvals of third parties and certain risks
factors. Therefore, delays in the realisation of the Company's
assets and investments or realisation at a lower price than
expected by the Company, as well as any other deviation from the
Company's Assumptions (such as additional expenses due to
suspension of trading, delay in submitting the statutory reports
etc.), could have an adverse effect on the Company's cash flow and
the Company's ability to service its indebtedness in a timely
manner.
In EUR millions 2017 2018
-------------------------------------- ------ -----
Cash - Opening Balance 2.5 15.9
-------------------------------------- ------ -----
Proceeds from selling trading
properties 1 115.3 40.8
-------------------------------------- ------ -----
Cash flows from operating Activities 2 6.7 -
-------------------------------------- ------ -----
Total Sources 122.0 40.8
-------------------------------------- ------ -----
Debentures - principal 3 88.8 40.8
-------------------------------------- ------ -----
Debentures - interest 3 10.0 6.0
-------------------------------------- ------ -----
Compensation to Bondholders - 0.5
-------------------------------------- ------ -----
Bank loans - principal 1.4 -
-------------------------------------- ------ -----
Bank loans - interest 1.7 -
-------------------------------------- ------ -----
Operational expenses 5.0 2.3
-------------------------------------- ------ -----
Total Uses 106.8 49.6
-------------------------------------- ------ -----
Cash - Closing Balance 17.7 7.1
-------------------------------------- ------ -----
Income / Financing costs from -3.2 -
Shopping Centres
-------------------------------------- ------ -----
Release from Shopping Centres 1.5 -
-------------------------------------- ------ -----
Cash - Closing Balance 15.9 7.1
-------------------------------------- ------ -----
1. Comprised from the exercise of operating shopping malls:
Torun Plaza and Suwalki Plaza (Poland), Belgrade Plaza (Serbia) and
plots Timisoara, Miercuera Ciuc, Constanta and part of Casa Radio
in Romania; Piraeus in Greece; Lodz residential, Kielce, Leszno and
Lodz in Poland; Krusevac and additional instalment for MUP in
Serbia; David House office building and Arena Extension in
Hungary.
2. Based on expected Net Operating Income ("NOI") from subsidiaries.
3. Assuming EUR/NIS rate of 3.90 and EUR/PLN rate of 4.30. The
repayment schedule takes into consideration that in the case of a
disposal of an asset, 75% of the proceeds are used for the early
prepayment of the Unsecured Debt in accordance with the terms of
the Amended Restructuring Plan.
3. Projected solo cash flow
In its prospectus dated 27 May 2014, the Company published its
expected cash flow for the following 24 months. Below is a summary
table of the comparison between forecasted and actual cash flow,
with explanations on the differences published for the 12-month
period ending December 31, 2016.
Forecast Actual
------------------------------------------- ---- --------- -------
2016 2016
------------------------------------------- ---- --------- -------
Cash - Opening Balance 12.1 12.1
------------------------------------------- ---- --------- -------
Proceeds from selling trading properties (1) 152.4 43.1
------------------------------------------- ---- --------- -------
Distributions from operating subsidiaries (2) 7.6 4.8
------------------------------------------- ---- --------- -------
Release of restricted cash due to
disposal of subsidiaries 7.2 0.0
------------------------------------------------- --------- -------
Total Sources 179.3 60.0
------------------------------------------- ---- --------- -------
Cash outflow from operating activity
------------------------------------------- ---- --------- -------
Administrative expenses 5.8 6.5
------------------------------------------- ---- --------- -------
Cash outflow from investment activity
------------------------------------------- ---- --------- -------
Investment in equity in projects (3) 16.9 9.5
------------------------------------------- ---- --------- -------
Cash outflow from financing activity
------------------------------------------- ---- --------- -------
Principal repayment to bondholders (4) 107.5 24.7
------------------------------------------- ---- --------- -------
Interest repayment to bondholders 12.5 13.2
------------------------------------------- ---- --------- -------
Other expenses 3.6
------------------------------------------- ---- --------- -------
Total Uses 142.7 57.5
------------------------------------------- ---- --------- -------
Cash - Closing Balance 36.6 2.5
------------------------------------------- ---- --------- -------
1 Forecast included sale of Torun Plaza (EUR53 m) and Suwalki
Plaza(EUR16.5 m), land plot in Piraeus (EUR4.5 m), full payment for
Lodz residential plot (EUR2.6 m vs. EUR1 m), also sale of Krusevac
(land plot in Serbia), Miecurea Ciuc and Constanta (land plots in
Romania), and receipt of money on account of Vartur and Kochi (land
plots in India) in total of EUR28.8 m
2 Difference caused by the delay in the sale of shopping malls,
and thus the delayed released of restricted deposits
3 Investment in Belgrade Plaza was higher than anticipated, as
securing financing was delayed
4 Lower amount was repaid as the expected sales had not
materialized in 2016, so no repayment of 75% of the proceeds took
place.
Dori Keren
Chief Executive Officer
14 May 2017
External Valuation Summary as at 31 December 2016 (in EUR
millions) (2)
Country Project Company's Market Market Market Market
name share value value value value
(1) of land of land upon completion upon completion
and project and project 31 December 31 December
31 December 31 December 2015 (EUR 2016 (EUR
2015 (EUR 2016 (EUR M) M)
M) M)
--------- ----------- ---------- ------------- ------------- ----------------- -----------------
Arena
Hungary Ext. 100% 3.4 2.5 87.7 74.2
--------- ----------- ---------- ------------- ------------- ----------------- -----------------
Poland Torun 100% 97.7 76.3 97.7 76.3
--------- ----------- ---------- ------------- ------------- ----------------- -----------------
Poland Lodz 100% 7.4 5.1 70.9 comparable*
--------- ----------- ---------- ------------- ------------- ----------------- -----------------
Casa
Romania Radio 75% 108.6 60.1 771.6 633.9
--------- ----------- ---------- ------------- ------------- ----------------- -----------------
Romania Timisoara 100% 9.4 7.6 70.3 comparable*
--------- ----------- ---------- ------------- ------------- ----------------- -----------------
Romania Ciuc 100% 2.4 1.6 14.8 12.1
--------- ----------- ---------- ------------- ------------- ----------------- -----------------
Romania Constanta 100% 2.1 2.0 2.1 6.4
--------- ----------- ---------- ------------- ------------- ----------------- -----------------
India Varthur 50%** 15 19.1 116.4 comparable*
--------- ----------- ---------- ------------- ------------- ----------------- -----------------
India Chennai 50%*** 10.7 10.4 comparable* 10.4
--------- ----------- ---------- ------------- ------------- ----------------- -----------------
Serbia Belgrade 100% 29.6 72.1 91.3 90.4
--------- ----------- ---------- ------------- ------------- ----------------- -----------------
TOTAL 286.3 256.8 1,322.8 903.7
---------------------- ---------- ------------- ------------- ----------------- -----------------
1. All values represent the Company's share, except of Casa
Radio project, which represents 100% due to material shareholders"
Loans.
2. All external valuations for 2016 were conducted by Jones Lang
LaSalle, except of the Indian projects, which were valued by
Cushman and Wakefield (2015: Cushman and Wakefield)
* Asset was valued with the comparative sales price method; no
value at completion was estimated
** In 2015, the Company held 25% of the project
*** In 2015, the Company held 40% of the project
This information is provided by RNS
The company news service from the London Stock Exchange
END
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(END) Dow Jones Newswires
May 15, 2017 03:00 ET (07:00 GMT)
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