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 €28 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 €7.2-7.5 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 €42.5 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