Agreement

RNS Number : 4294Z

Plaza Centers N.V.

10 January 2020

 

January 10, 2020

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") announces today, further to its press release dated September 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 ("SPV") which holds a site in Bangalore, India, to a local investor (the "Purchaser") that a notice has been issued to the Purchaser to file its response in the insolvency proceedings initiated for the recovery of the amounts due.

As regards the criminal cases filed for dishonor of the cheques which were given as security for payment of certain installments, the court has issued arrest warrants and the local police is on the look out for the accused persons.

As of the date hereof, the Purchaser paid to EPI approximately €11.2 million (INR 87.00 crores) (Plaza part 43.5 crores (approximately Euro 5.6 million). SPV is entitled to receive a total consideration of € 45.85 million (INR 356 crores) (Plaza part 178 crores (approximately Euro 22.925 million) 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 continue to take all measures warranted in the circumstances to protect its interest and will update regarding any new development.

Ends

For further details, please contact:

Plaza

Ran Yaacovs, CFO                                                  972-546-303-006

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. 

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 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 23 years.

 

END

 

 

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