Elbit Imaging Announces Its Subsidiary, Plaza Centers, has Announced Sale of MUP Plot in Belgrade for EUR 15.9 Million
May 17 2016 - 12:56PM
Elbit Imaging Ltd. (“EI” or the
“Company”) (TASE:EMITF.TA)
(NASDAQ:EMITF) announced today, that
Plaza Centers
N.V. ("Plaza") (LSE:PLAZ)
, an indirect
subsidiary of the Company, has announced the sale of its wholly
owned subsidiary, which holds the “MUP” plot and related real
estate in Belgrade, Serbia, for €15.9 million, above the last
reported book value of approximately €13.5 million.
MUP is a prominent development site at the
location of the former Federal Ministry of Internal Affairs, at the
entrance to Belgrade’s old town and on the city’s main
thoroughfare. The potential development is projected to comprise a
significant mixed-use scheme, including residential units, retail,
offices, a hotel and underground parking facilities. As a mixed-use
development, the asset sits outside of Plaza’s core focus on the
retail and leisure sectors.
Following the fulfillment of certain technical
conditions that are expected to be met in the coming weeks, the
purchaser will pay €11 million in cash to Plaza. An additional
€300,000 will be due before 30 November 2016 and the remaining €4.6
million will be due within 15 months from the transaction closing
date. Furthermore, Plaza will also be entitled to an additional
pending payment of €600,000, on top of the €15.9 million
transaction consideration, once the purchaser successfully develops
at least 69,000 sqm above ground.
Upon the receipt of each stage payment, in line
with Plaza's stated restructuring plan, 75% of the net cash
proceeds will be distributed to Plaza’s bondholders in the
following quarter.
About Elbit Imaging Ltd.
Elbit Imaging Ltd. operates in the following
principal fields of business: (i) Commercial centers - initiation,
construction, and sale of commercial centers and other mixed-use
property projects, predominantly in the retail sector, located in
Central and Eastern Europe. In certain circumstances and depending
on market conditions, the Group operates and manages commercial
centers prior to their sale. (ii) Hotel - operation and
management of the Radisson hotel Complex in Bucharest, Romania.
(iii) Medical industries and devices - (a) research and
development, production and marketing of magnetic resonance imaging
guided focused ultrasound treatment equipment, and (b) development
of stem cell population expansion technologies and stem cell
therapy products for transplantation and regenerative medicine.
(iv) Plots in India - plots designated for sale initially
designated to residential projects.
Any forward-looking statements in our releases
include statements regarding the intent, belief or current
expectations of Elbit Imaging Ltd. and our management about our
business, financial condition, results of operations, and its
relationship with its employees and the condition of our
properties. Words such as “believe,” “expect,” “intend,” “estimate”
and similar expressions are intended to identify forward-looking
statements but are not the exclusive means of identifying such
statements. Actual results may differ materially from those
projected, expressed or implied in the forward-looking statements
as a result of various factors including, without limitation, a
change in market conditions, a decision to deploy the cash for
other business opportunities and the factors set forth in our
filings with the Securities and Exchange Commission including,
without limitation, Item 3.D of our annual report on Form 20-F for
the fiscal year ended December 31, 2015, under the caption “Risk
Factors.” Any forward-looking statements contained in our releases
speak only as of the date of such release, and we caution existing
and prospective investors not to place undue reliance on such
statements. Such forward-looking statements do not purport to be
predictions of future events or circumstances, and therefore, there
can be no assurance that any forward-looking statement contained in
our releases will prove to be accurate. We undertake no obligation
to update or revise any forward-looking statements.
For Further Information:
Company Contact
Ron Hadassi
Chairman of the Board of Directors
Tel: +972-3-608-6048
Fax: +972-3-608-6050
ron@elbitimaging.com
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