Plaza Centers N.V. INDEPENDENT REPORT RE ELBIT IMAGING (5565G)
June 07 2013 - 6:03AM
UK Regulatory
TIDMPLAZ
RNS Number : 5565G
Plaza Centers N.V.
07 June 2013
07 June 2013
Plaza Centers N.V.
("Plaza Centers")
INDEPENDENT REPORT RE ELBIT IMAGING
Plaza Centers confirms that, on 5 June 2013, an economic expert
appointed by an Israeli court published a report examining
alternative debt structures for Elbit Imaging Ltd., Plaza Centers'
majority shareholder with a holding of 62.5%. Within his report,
the expert provided his opinion about the net asset value of Plaza
Centers and this section of the report (translated from Hebrew to
English) is provided as below:
12.1.1 Plaza Centers (Plaza) NAV
Firstly, it should be stressed that Plaza Centers is going
through a very challenging period in its activity as detailed in
chapter 5.1. The following is condensed data relating to the net
assets (net of debt) of Plaza Centers (EUR in millions):
Net asset Estimated
value - Plaza's net asset
Adjusted reported value at
net asset data the end of
value 2014
--------------- ------------ ----------------- ------------
Balance sheet December December December
date 2012 2012 2014
--------------- ------------ ----------------- ------------
Net asset
value 483 572 341
--------------- ------------ ----------------- ------------
Cash and
other 78 111 42
--------------- ------------ ----------------- ------------
Financial
debt (249) (249) -
--------------- ------------ ----------------- ------------
Reported
NAV 312 434 299
--------------- ------------ ----------------- ------------
Plaza's net asset value, according to its financial statements
as of December 31, 2012 amounts to approximately EUR 449
million.
Pursuant to Plaza's accounting policies, the real estate it owns
is measured at the lower of its cost or realization value.
Nevertheless, assets in development, where their realization
value is lower than cost, are not impaired in the event that the
realization price upon completion according to Plaza's forecast is
higher than cost (taking into account the completion costs).
On this basis, the expert made two adjustments as follows:
-- The impairment of the assets considered under development and
for which no impairment was effected, as above. The impairment that
was carried out is based on Plaza's presentations regarding the net
realization value without future development (in this regard, see
the impact on Elbit's share in assets in India in section 12.1.2).
This is the case, except when the property is an income producing
asset, for which impairment was not carried out and its value
derives from its net asset value upon completion (already carried
out).
-- Impairment of assets' value which, based on Plaza's
presentations (its realization plan), are expected to generate
lower cash flow than the realization value.
After performing the two adjustments, as above, a NAV of
approximately EUR 312 million results. Elbit Imaging's share (62%)
in the NAV amounts to approximately EUR 193 million.
In view of the fact that the expert opinion is predicated solely
on Elbit Imaging's presentations, the assets' value were not
depreciated without reference to the valuations carried out by
Elbit Imaging itself, especially with respect to Plaza's exposure
to lands in Romania and particularly, Casa Radio, which is the main
asset.
As additional information for evaluating the scope of Elbit
Imaging's debt after the arrangement and in view of the fact that
Plaza maintains a realization plan until December 31, 2014, the
expert found it necessary also to review the NAV on this date.
It is further emphasized that Plaza's total debt decreases
substantially from approximately EUR 249 million on December 31,
2012 to approximately EUR 84 million at the end of 2014. In the
absence of a realization plan for 2015, the model was not expanded
to cover this year as well, considering that in this year most of
the remaining debt will have been paid.
The review of the NAV as of December 31, 2014 was carried out
based on the NAV as of December 31, 2012 while depreciating the
assets' value according to the realization plan of Plaza and the
settlement of its liabilities based on the existing amortization
schedule. The NAV resulting from the above calculation amounts to
approximately EUR 299 million in terms of December 31, 2014, out of
which Elbit Imaging's share amounts to approximately EUR 185
million.
For further details, please contact:
Plaza
Ran Shtarkman, President and CEO +36 1 462 7221
Roy Linden, CFO +36 1 462 7222
FTI Consulting
Stephanie Highett +44 20 7831 3113
Notes to Editors
About Plaza Centers
Plaza Centers N.V. (www.plazacenters.com) is a leading emerging
markets developer of shopping and entertainment centres. It focuses
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 dual
listed on the Main Board of the London Stock Exchange and, as of 19
October 2007, on the Warsaw Stock Exchange (LSE:"PLAZ", WSE:
"PLZ/PLAZACNTR"). 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 on 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 17 years.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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