Elbit Imaging Announces Negotiations on a Possible
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Posted On: 09/29/2016 1:20:12 PM
Elbit Imaging Announces Negotiations on a Possible Forward Sale Transaction of Belgrade Plaza (Visnjicka) by Its Subsidiary, Plaza Centers
TEL AVIV, Israel, Sept. 29, 2016 (GLOBE NEWSWIRE) -- Elbit Imaging Ltd. (“EI” or the “Company”) (EMITF) (EMITF) announced today that Plaza Centers N.V. ("Plaza"
(PLAZ.L), an indirect subsidiary (45%) of the Company, has signed a non-binding Letter of Intent (“LOI”) with a third party (the “Purchaser”) regarding a possible forward sale of the Belgrade Plaza shopping and entertainment center in Belgrade, Serbia.
Under the terms of the proposed transaction, Plaza will complete the development of the property and will remain as the asset manager of the operating shopping center for 12 months thereafter, during which time Plaza will seek to further increase the rental income and Net Operating Income (“NOI”).
Under the terms of the LOI, upon the closing of the definitive agreement, Plaza will receive up to €35 million from the Purchaser and will be entitled to an additional payment of approximately €15 million upon the opening of the shopping center.
The final agreed total value of the asset will be calculated based on the sustainable NOI after 12 months of operation, capitalized at agreed yield and subject to customary working capital adjustments.
The expected transaction closure is in the fourth quarter of this year; however, at this stage there is no certainty that the transaction will be completed.
The Belgrade Plaza (Visnjicka) shopping center is currently the largest development underway in Serbia, where the capital city, Belgrade, is experiencing strong market demand due to its given large catchment area of approximately 1.7 million people?.
The construction of the Project is in advanced stages and the shopping center is on schedule to be open in the first half of 2017 and is currently over 50% pre-let. Upon completion of the project, Belgrade Plaza will comprise approximately 32,000 sqm of GLA and will be anchored by a supermarket, a multi-screen cinema complex and major international and local brands.
TEL AVIV, Israel, Sept. 29, 2016 (GLOBE NEWSWIRE) -- Elbit Imaging Ltd. (“EI” or the “Company”) (EMITF) (EMITF) announced today that Plaza Centers N.V. ("Plaza"
(PLAZ.L), an indirect subsidiary (45%) of the Company, has signed a non-binding Letter of Intent (“LOI”) with a third party (the “Purchaser”) regarding a possible forward sale of the Belgrade Plaza shopping and entertainment center in Belgrade, Serbia. Under the terms of the proposed transaction, Plaza will complete the development of the property and will remain as the asset manager of the operating shopping center for 12 months thereafter, during which time Plaza will seek to further increase the rental income and Net Operating Income (“NOI”).
Under the terms of the LOI, upon the closing of the definitive agreement, Plaza will receive up to €35 million from the Purchaser and will be entitled to an additional payment of approximately €15 million upon the opening of the shopping center.
The final agreed total value of the asset will be calculated based on the sustainable NOI after 12 months of operation, capitalized at agreed yield and subject to customary working capital adjustments.
The expected transaction closure is in the fourth quarter of this year; however, at this stage there is no certainty that the transaction will be completed.
The Belgrade Plaza (Visnjicka) shopping center is currently the largest development underway in Serbia, where the capital city, Belgrade, is experiencing strong market demand due to its given large catchment area of approximately 1.7 million people?.
The construction of the Project is in advanced stages and the shopping center is on schedule to be open in the first half of 2017 and is currently over 50% pre-let. Upon completion of the project, Belgrade Plaza will comprise approximately 32,000 sqm of GLA and will be anchored by a supermarket, a multi-screen cinema complex and major international and local brands.
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