Elbit Imaging Announces Signing Final Agreement for the Sale of Belgrade Plaza (Visnjicka) by Its Subsidiary, Plaza Centers
January 26 2017 - 11:57AM
Elbit Imaging Ltd. (“EI” or the
“Company”) (TASE:EMITF) (NASDAQ:EMITF) announced
today, in further to its announcement dated on November 3, 2016,
that
Plaza Centers N.V. ("Plaza") (LSE: PLAZ), an
indirect subsidiary (45%) of the Company, has signed a binding
share purchase agreement with BIG Shopping Centers Ltd., a
publically traded company listed in the TA 100 Index (the
“
Purchaser”), for the sale of the Belgrade Plaza
shopping and entertainment center.
Belgrade Plaza (Visnjicka) is currently the
largest development underway in Serbia. The shopping center, 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.
Upon the completion of the transaction, which is
expected during the upcoming month, Plaza will receive an initial
advance payment of approximately Euro 28 million (plus customary
NAV adjustments) from the Purchaser for the sale of 100% of the
SPV’s shares, followed by further payments which will be subject to
certain operational targets and milestones being met. The Purchaser
will provide a guarantee to secure these future payments.
The final agreed value of Belgrade Plaza, which
will comprise approximately 32,300 sqm of GLA, will be calculated
based on a cap rate of 8.25% as well as the sustainable NOI after
12 months of operation, which Plaza estimates will be approximately
Euro 7.2-7.5 million per annum. Further instalments will be due to
Plaza during the first year of operation based on this 12 month
figure. 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.
Plaza has a line of credit from a financing bank
for the development of Belgrade Plaza to a maximum amount of €42.5
million. At least 75% of the net proceeds received from the
disposal will be distributed to Plaza’s bondholders by or before
March 31, 2017, and following receiving any future additional
payments, in line with Plaza’s stated amended restructuring
Plan.
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