Elbit Imaging Announces Update Regarding a Possible Forward Sale Transaction of Belgrade Plaza (Visnjicka) by Its Subsidiary,...
November 03 2016 - 12:52PM
Elbit Imaging Ltd. (“EI” or the
“Company”) (TASE:EMITF) (NASDAQ:EMITF) announced
today, in further to its announcement dated on October 26, 2016,
that
Plaza Centers N.V. ("Plaza") (LSE:PLAZ), an
indirect subsidiary (45%) of the Company, has signed a new
non-binding Letter of Intent (“
LOI”) with BIG
Shopping Centers Ltd., a public company listed in the Tel Aviv
Stock Exchange (“
TASE”) and included in the TA 100
Index (the top 100 companies traded on the TASE), (the
“
Purchaser”) regarding a possible forward sale of
Belgrade Plaza shopping and entertainment center (“
Belgrade
Plaza”) in Belgrade, Serbia.
The LOI binds the Purchaser to a strict timeline
for committing a comprehensive Due Diligence and finalizing a
detailed binding agreement which determines that the transaction
should be concluded by the end of the year. Should the transaction
proceed to a signed share purchase agreement, following the due
diligence process, Plaza will receive up to €28 million from the
Purchaser upon the signing of the agreement as a first installment,
and will be due further payments during the first year of
operation, subject to certain targets and milestones fulfillment.
The Purchaser will provide a guarantee to secure such further
payments.
The final agreed value of Belgrade Plaza will be
calculated based on a cap rate of 8.25% and the sustainable NOI
after 12 months of operation (estimated NOI by the Company at that
time stage is approximately €7.5 million per year). Plaza has a
line of credit from a financing bank for the development of
Belgrade Plaza in a maximum amount of €42 million.
While it is expected that the disposal of
Belgrade Plaza will be finalized in the fourth quarter of this
year, at this stage there is no certainty that the transaction will
be completed.
The Company will update regarding any new
developments.
About Elbit Imaging Ltd.
Elbit Imaging Ltd. operates in the following
principal fields of business: (i) Commercial centers - initiation,
construction, and sale of commercial centers and other mixed-use
property projects, predominantly in the retail sector, located in
Central and Eastern Europe. In certain circumstances and depending
on market conditions, the Group operates and manages commercial
centers prior to their sale. (ii) Hotel - operation and
management of the Radisson hotel Complex in Bucharest, Romania.
(iii) Medical industries and devices - (a) research and
development, production and marketing of magnetic resonance imaging
guided focused ultrasound treatment equipment, and (b) development
of stem cell population expansion technologies and stem cell
therapy products for transplantation and regenerative medicine.
(iv) Plots in India - plots designated for sale initially
designated to residential projects.
Any forward-looking statements in our releases
include statements regarding the intent, belief or current
expectations of Elbit Imaging Ltd. and our management about our
business, financial condition, results of operations, and its
relationship with its employees and the condition of our
properties. Words such as “believe,” “expect,” “intend,” “estimate”
and similar expressions are intended to identify forward-looking
statements but are not the exclusive means of identifying such
statements. Actual results may differ materially from those
projected, expressed or implied in the forward-looking statements
as a result of various factors including, without limitation, a
change in market conditions, a decision to deploy the cash for
other business opportunities and the factors set forth in our
filings with the Securities and Exchange Commission including,
without limitation, Item 3.D of our annual report on Form 20-F for
the fiscal year ended December 31, 2015, under the caption “Risk
Factors.” Any forward-looking statements contained in our releases
speak only as of the date of such release, and we caution existing
and prospective investors not to place undue reliance on such
statements. Such forward-looking statements do not purport to be
predictions of future events or circumstances, and therefore, there
can be no assurance that any forward-looking statement contained in
our releases will prove to be accurate. We undertake no obligation
to update or revise any forward-looking statements.
For Further Information:
Company Contact
Ron Hadassi
Chairman of the Board of Directors
Tel: +972-3-608-6048
Fax: +972-3-608-6050
ron@elbitimaging.com
Elbit Imaging (CE) (USOTC:EMITF)
Historical Stock Chart
From Aug 2024 to Sep 2024
Elbit Imaging (CE) (USOTC:EMITF)
Historical Stock Chart
From Sep 2023 to Sep 2024