Elbit Imaging Announces Signing Agreement to Sell of Suwalki Plaza Shopping and Entertainment Center in Poland, by Its Subsid...
December 22 2016 - 9:20AM
Elbit Imaging Ltd. (“EI” or the
“Company”) (TASE:EMITF) (NASDAQ:EMITF) announced
today, in further to the announcements dated August 1 and October
18, 2016, that
Plaza Centers N.V. ("Plaza")
(LSE:PLAZ), an indirect subsidiary of the Company, has entered into
a sale purchase agreement with respect to the sale of the shares of
the SPV holding the Suwałki Plaza shopping and entertainment center
in Poland, to an investment fund. The agreement reflects a value
for the asset of Euro 42.3 million.
In line with the terms of agreement, the final
closing and settlement is expected to be concluded by the end of
January 2017.
Upon completion of the agreement, Plaza will
receive approximately Euro 16.6 million net cash, after the
repayment of the bank loan (approximately Euro 26.6 million), and
other working capital adjustments in accordance with the balance
sheet of the SPV as of the closing date. Out of the net proceeds,
at least 75% will be distributed to Plaza’s bondholders by or
before the end of March 2017, in line with Plaza’s stated amended
restructuring Plan.
Suwałki Plaza shopping and entertainment center
provides 20,000 sqm of GLA and will be fully let soon. It is
located in Suwałki, north east Poland, close to the border with
Lithuania and the pan Baltic road which leads north to Lithuania,
Latvia and Estonia. As the only shopping centre in the city it also
benefits from a local population of approximately 75,000.
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
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