PLAZ Plaza Centers N.v.

RNS Number:6426B
Plaza Centers N.V.
07 August 2007

7 August 2007


                    PLAZA EXECUTES AGREEMENT FOR SALE OF THE
                        ARENA PLAZA, BUDAPEST, FOR CIRCA
                                  Euro400 MILLION


Plaza Centers N.V. ("Plaza Centers" or "the Company"), a leading emerging
markets property developer, today announces that it has executed a binding
agreement for the sale of its Arena Plaza shopping and entertainment centre  in
Budapest to UK based Active Asset Investment Management ('aAIM'), one of the
UK's fastest growing commercial property investment groups. In September 2006,
aAIM launched a #2 billion acquisition programme for its European Symmetry Fund
in partnership with Bank of Scotland.


The estimated consideration for the acquisition of the Arena Plaza shopping and
entertainment centre is approximately Euro400 million.


The purchase price will be finally determined on the completion of the
transaction, which is expected to take place within a month of Arena Plaza's
opening date, on the basis of the actual rent levels achieved being capitalized
at an agreed yield.  Plaza Centers will remain responsible for the letting of
the centre's remaining units for a period of up to one year following the
closing, and is anticipated to benefit from further price adjustments reflecting
the signing of any additional leases during the two consecutive earn-out
periods, which end three months and 12 months respectively following the
completion.


The Company's management estimates the final transaction price based on actual
rent levels will be no less than circa Euro380 million, with an overall transaction
price cap of Euro400 million, as agreed with aAIM. The final expected transaction
price represents a significant upside comparing to the project's estimated value
upon completion at the time of the Company's Admission to trading in November
2006, which was circa Euro333 million.


Designed and developed by Plaza Centers following the acquisition of this
landmark site by the Company in late 2005, Arena Plaza is Hungary's largest
shopping and entertainment centre. It comprises 220 stores located throughout
approximately 66,000 sqm of lettable area and is serviced by over 2,800 parking
spaces. The centre is scheduled to open in the fourth quarter of 2007 whereupon,
subject to the fulfilment of certain conditions, the transaction will be
completed.  Amongst the international anchor tenants of the centre are Tesco,
the Inditex Group and Peek & Cloppenburg, together with other major retailers
such as H&M, Electro World, Hervis and C&A.  Additionally, Arena Plaza will
accommodate a 23-screen Cinema City complex, which includes Hungary's first IMAX
theatre.  The centre is currently over 85% pre-let.


The profit from the sale will be recognised mainly over 2007 with adjustments in
2008 and, in part, distributed in accordance with the Company's dividend policy,
announced following its successful listing on the London Stock Exchange last
November.


Commenting on the sale, Ran Shtarkman, Chief Executive of Plaza Centers, said:


"Arena Plaza is one of the largest and most prestigious shopping and
entertainment centres in Central and Eastern Europe, the design and ambition of
which has set new standards for the region ever since we first acquired the site
in late 2005.  In developing Hungary's largest shopping centre, we have provided
an exciting new commercial centre for Budapest and a compelling destination for
national and international tenants and visitors. Upon completion, the project
will represent our 25th shopping and entertainment centre in the region and our
17th shopping and entertainment centre in Hungary.  In addition, we have fifteen
other projects in our pipeline in different stages of development.


"The Arena Plaza confirms Budapest's position among the major and diverse cities
in Europe and has been a significant example of Plaza's mega, strategic
development projects, such as the large gambling and leisure resort on Dream
Island in Budapest and the Casa Radio landmark scheme in the heart of Bucharest
which comprises more than 500,000 sq m of build area, including one of the
biggest shopping and entertainment centres in the region, residential and office
space, a hotel, casino, hypermarket, convention and conference hall and parking
facilities.


"The sale of Arena Plaza demonstrates our ability to act decisively both to
create real value in the development of premier retail destinations with premier
tenants and brands in our chosen markets, to create significant value for the
Company and to generate strong returns for our shareholders. It also clearly
illustrates the ability of the management team to develop major, high value
assets and then sell them to third parties in order to recycle the Company's
capital.


"We look forward to fulfilling our management role on behalf of aAIM over the
coming months to fully complete and lease up the project.  We will also continue
to further diversify and enrich the Company's portfolio through the development
of other high quality shopping and entertainment centres and mixed used projects
both in the Central and Eastern European region and India."



For further details, please contact:


Plaza Centers

Mordechay Zisser, Chairman                                      +972 3 608 6000

Ran Shtarkman, President and CEO                                +36 1 462 7221

Roy Linden, CFO                                                 +36 1 462 7105


Financial Dynamics                                              +44 20 7831 3113

Stephanie Highett / Lauren Mills



Notes to Editors

Plaza Centers N.V. (www.plazacenters.com) is a leading emerging markets
developer of shopping and entertainment centers, focusing on constructing new
centers and, where there is significant redevelopment potential, redeveloping
existing centers, in both capital cities and important regional centers. 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 present in real
estate development in emerging markets for over 11 years.



                      This information is provided by RNS
            The company news service from the London Stock Exchange
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