UPDATE RE AGREEMENT TO SELL PROJECT IN BANGALORE

RNS Number : 7797G

Plaza Centers N.V.

25 July 2019

 

July 25, 2019

PLAZA CENTERS N.V.

UPDATE REGARDING THE AGREEMENT TO SELL ITS HOLDINGS

IN THE PROJECT IN BANGALORE, INDIA

 

Plaza Centers N.V. ("Plaza" or the "Company") announced today, further to its press release dated May 27, 2019, regarding an agreement (the "Agreement") signed by Elbit Plaza India Real Estate Holdings Limited (a subsidiary held by the Company (50%) and  Elbit Imaging ltd. (50%)) ("EPI"), for the sale of a 100% interest in a Special Purpose Vehicle which holds a site in Bangalore, India, to a local investor (the "Purchaser"), that after long negotiations the Purchaser has this week further paid €0.127 million (INR 1 crore) (Plaza part approximately €0.063 million) and thereby having paid €0.76 million (INR 6 crores) out of the approximately €3.05 million (INR 24 crores) to be paid until the end of July 2019.

 

The Purchaser seeks more time without committing to a schedule for payment of the remaining amount. At this stage, there is no clarity on payment of the remaining amount. The Company is taking necessary legal steps to protect its interest.

 

As of the date hereof, the Purchaser paid to EPI approximately €11 million (INR 86 crores) (Plaza part approximately €5.5 million), out of total consideration of €45.4 million (INR 356 crores), which EPI is entitled to forfeit if the Purchaser does not close the transaction as per the Agreement. Further, the Purchaser has mortgaged approximately 8.7 acres of plots as security for completion of the transaction.

 

 The Company will update regarding any new developments.

Ends

For further details, please contact:

Plaza

Avi Hakhamov, Executive Director                                                           [phone]

Forward-looking statement

This press release may contain forward-looking statements with respect to Plaza Centers N.V. future (financial) performance and position. Such statements are based on current expectations, estimates and projections of Plaza Centers N.V. and information currently available to the company. Plaza Centers N.V. cautions readers that such statements involve certain risks and uncertainties that are difficult to predict and therefore it should be understood that many factors can cause actual performance and position to differ materially from these statements. Plaza Centers N.V. has no obligation to update the statements contained in this press release, unless required by law.

Notes to Editors

Plaza Centers N.V. (www.plazacenters.com) 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 has been active in real estate development in emerging markets for over 23 years.

 

END

 

 

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