UPDATE RE THE AGREEMENT TO SELL ITS HOLDINGS

RNS Number : 0080P

Plaza Centers N.V.

04 February 2019

 

04 February 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") announces today, further to its press release dated December 13, 2018, regarding an agreement (the "Agreement") signed by Elbit Plaza India Real Estate Holdings Limited(a subsidiary held by the Company (47.5%) and  Elbit Imaging Ltd. (47.5%)) ("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") in consideration for circa €43 million (the "Consideration"); that the Purchaser defaults on payments of Circa EUR 1.86 million (Rs 15.25 Crore) that were  supposed to be paid  up to and include end of January 2019 (Plaza Part EUR 0.93 million) according to the signed restated amendment agreement.

 

The Purchaser has mortgaged in favor of EPI approximately 8.7 acres of plots in Bangalore as collateral for completion of the transaction. Simultaneously, EPI is considering all legal measures available to it to protect its interest.

 

As of the date hereof, the Purchaser paid to EPI a total of circa EUR 9.1 million (Rs. 70.75 crore) on account of the Consideration (Plaza Part circa EUR 4.55 million), which EPI is entitled to forfeit if the Purchaser does not close the transaction as per the Agreement.

Ends

For further details, please contact:

Plaza

Avi Hakhamov, Acting CEO                                                           [phone]

Forward-looking statements

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 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 23years.

 

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