Elbit Imaging Ltd (EMITF)

[midastouch017]

Elbit Imaging Announces Signing Agreement to Sell of Suwalki Plaza Shopping and Entertainment Center in Poland, by Its Subsid...

Elbit Imaging Ltd. (“EI” or the “Company”) (TASE:EMITF) (NASDAQ:EMITF) announced today, in further to the announcements dated August 1 and October 18, 2016, that Plaza Centers N.V. ("Plaza") (LSE:PLAZ), an indirect subsidiary of the Company, has entered into a sale purchase agreement with respect to the sale of the shares of the SPV holding the Suwalki Plaza shopping and entertainment center in Poland, to an investment fund. The agreement reflects a value for the asset of Euro 42.3 million.
In line with the terms of agreement, the final closing and settlement is expected to be concluded by the end of January 2017.

Upon completion of the agreement, Plaza will receive approximately Euro 16.6 million net cash, after the repayment of the bank loan (approximately Euro 26.6 million), and other working capital adjustments in accordance with the balance sheet of the SPV as of the closing date. Out of the net proceeds, at least 75% will be distributed to Plaza’s bondholders by or before the end of March 2017, in line with Plaza’s stated amended restructuring Plan.

Suwalki Plaza shopping and entertainment center provides 20,000 sqm of GLA and will be fully let soon. It is located in Suwalki, north east Poland, close to the border with Lithuania and the pan Baltic road which leads north to Lithuania, Latvia and Estonia. As the only shopping centre in the city it also benefits from a local population of approximately 75,000.