Plaza Centers N.V. FINAL AGREEMENT FOR THE SALE OF BELGRADE PLAZA (2399V)
January 26 2017 - 10:30AM
UK Regulatory
TIDMPLAZ
RNS Number : 2399V
Plaza Centers N.V.
26 January 2017
26 January 2017
PLAZA CENTERS N.V.
FINAL AGREEMENT FOR THE SALE OF BELGRADE PLAZA
Further to its announcement of 3 November 2016, Plaza Centers
N.V. ("Plaza" or the "Company"), an emerging markets property
developer, announces that one of its subsidiaries has signed a
binding share purchase agreement with BIG Shopping Centers Ltd., a
publically traded company listed in the TA 100 Index (the top 100
companies traded on the Tel Aviv Stock Exchange) (the "Purchaser"),
for the sale of the Belgrade Plaza shopping and entertainment
centre.
Belgrade Plaza (Visnjicka) is currently the largest development
underway in Serbia. The shopping centre, 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 completion of the transaction, which is expected during
February, Plaza will receive an initial advance payment of
approximately EUR28 million (plus customary NAV adjustments) from
the Purchaser for the sale of 100% of the SPV, 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
circa 32,300 sqm of GLA, will be calculated based on a general cap
rate of 8.25% as well as the sustainable NOI after 12 months of
operation, which the Company estimates will be approximately
EUR7.2-7.5 million per annum. Further instalments will be due to
the Company 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 EUR42.5
million. At least 75% of the net proceeds received from the
disposal will be distributed to the Company's bondholders by or
before 31 March 2017, and following receiving any future additional
payments, in line with the Company's stated amended restructuring
Plan.
Ends
For further details, please contact:
Plaza
Dori Keren, CEO +48 22 231 99 00
FTI Consulting
Dido Laurimore / Claire Turvey / Tom Gough +44 20 3727 1000
Notes to Editors
Plaza Centers N.V. (www.plazacenters.com) is an 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
listed on the Main Board of the London Stock Exchange, as of 19
October 2007, on the Warsaw Stock Exchange (LSE: "PLAZ", WSE:
"PLZ/PLAZACNTR") and, on the Tel Aviv Stock Exchange. 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 has been active in real estate
development in emerging markets for over 21 years.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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