Re: Handover of Centres
May 08 2007 - 4:00AM
UK Regulatory
RNS Number:1873W
Plaza Centers N.V.
08 May 2007
8 May 2007
PLAZA CENTERS COMPLETES SUCCESSFUL HANDOVER OF
RYBNIK AND SOSNOWIEC SHOPPING CENTRES
TO KLEPIERRE
Plaza Centers N.V. ("Plaza" or the "Company"), a leading Central and Eastern
European ("CEE") emerging markets property developer, announced today that it
has formally completed the successful handover of the Rybnik Plaza and Sosnowiec
Plaza Shopping and Entertainment centres in Poland to Klepierre SA ("Klepierre
"), a leading French property group.
Both shopping malls, which were 100% let to international and local tenants on
their opening to the public in March 2007, were pre-sold to Klepierre in July
2005.
Owing to the successful letting campaign and the strong market conditions
experienced in Poland since the pre-sale agreements were signed, the actual
closing consideration, subject to the fulfilment of certain conditions, resulted
in a higher sum being paid to the Company than disclosed in the Company's
Admission Document at the time of its IPO in November 2006. The combined market
value of the properties now totals Euro90.1 million, an increase of Euro18.6 million.
The gains from selling these assets will be included in the Company's
forthcoming interim accounts which will also report an updated Net Asset Value
statement. This is expected to take place in August this year.
The Company also anticipates benefiting from valuation uplifts of approximately
Euro7.5 million and Euro12 million respectively on the Lublin Plaza Centre (Poland)
and the Plzen Plaza Centre (Czech Republic) which have also been pre-sold to
Klepierre. The formal completion of the handover of these two centres is
anticipated to take place in Q2 2007 and Q1 2008, for Lublin and Plzen
respectively.
Additionally, Plaza is pleased to report that it has also agreed the sale of the
Duna Plaza offices in Budapest, Hungary, to Klepierre for a consideration of
Euro14.2 million, an increase in the value disclosed in the Company's Admission
Document at the time of its IPO. The offices are located adjacent to the Duna
Plaza shopping and entertainment centre which was sold to Klepierre in July
2004. Furthermore, the Company has agreed with Klepierre to proceed with the
development of the extension to the Duna Plaza Centre on an adjacent area of
land, which is anticipated to be completed by 2010.
Commenting on the handover agreement, Ran Shtarkman, President and CEO, Plaza
Centers N.V. said:
"Having fully leased-up and opened the Rybnik and Sosnowiec centres to the
public in March, we are now delighted to have formally signed the respective
handover agreements to Klepierre at a higher market value than stated in the
Company's Admission Document. This will provide significant added value for our
investors. In the meantime, we are also pleased to have further consolidated
our ongoing relationship with Klepierre by agreeing to extend our development of
the Duna Plaza Centre on their behalf.
"We also expect to realize similar increases in market value at the time of
delivery of the Lublin Plaza and Plzen Plaza centres, as well as the Arena Plaza
Mall in Budapest.
"The disposal of these assets marks the 22nd and 23rd sales to international
property investors achieved in the last three years. This demonstrates not only
Plaza's excellent track record of its core business, having accumulated vast
experience built up over more than 10 years but also a leading market position
in the CEE region which attracts leading purchasers for our assets.
"Plaza Centers' objective for the upcoming years is to further diversify and
enrich the Company's portfolio through the development of high quality shopping
and entertainment centres, such as the Arena Plaza Mall in Budapest which will
be one of the largest and most prestigious shopping and entertainment centres in
the CEE region."
For further details please contact:
Plaza
Mordechay Zisser, Chairman +972 3 6086000
Ran Shtarkman, President and CEO +36 1 462 7221
Roy Linden, CFO +36 1 462 7134
Financial Dynamics +44 20 7831 3113
Stephanie Highett/ Dido Laurimore/ Adam Leviton
Notes to Editors
* Plaza Centers N.V. is a leading emerging markets developer of
shopping and entertainment centres, focusing 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 an indirect subsidiary of Elbit
Medical Imaging Ltd. ("EMIL"), 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.
* Plaza Centers is a member of the Europe Israel Group of companies
which is controlled by its founder, Mr Mordechay Zisser. It has been
active in real estate development in emerging markets for over 10
years.
* Details of the two assets handed over to Klepierre are as follows:
- The Sosnowiec Plaza is located 300 metres from the city
centre of Sosnowiec and comprises 13,000 sqm of Gross
Lettable Area with 400 parking spaces attached. The
development was 100% occupied by international and local
tenants on its opening.
- The Rybnik Plaza is located in Rybnik's city centre and
comprises 18,000 sqm of Gross Lettable Area with 470 parking
spaces attached. The development is the first shopping and
entertainment centre in Rybnik and was 100% let to local and
international tenants on its opening.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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