Elbit Imaging Ltd (EMITF)

[midastouch017]

Elbit Imaging Announces Completion of the Sale of Suwalki Plaza Shopping and Entertainment Center in Poland, by Its Subsidiary, Plaza Centers

[Step by step towards profitability!!!]

TEL AVIV, Israel, Feb. 01, 2017 (GLOBE NEWSWIRE) -- Elbit Imaging Ltd. (“EI” or the “Company”) (EMITF), (EMITF) announced today, in further to the announcement, dated December 22, 2016, that Plaza Centers N.V. ("Plaza") (PLAZ.L), an indirect subsidiary of the Company, has completed the sale of Suwalki Plaza shopping and entertainment center in Poland to an investment fund for Euro 42.3 million, which is in line with Plaza’s last reported book value.

Having completed the transaction, Plaza has received approximately Euro 16 million net cash, after the repayment of the bank loan (approximately Euro 26.6 million), and other working capital adjustments.

Suwalki Plaza, with its 20,000 sqm GLA, is the only shopping center in Suwalki, a Polish city with population of approximately 75,000, close to the border with Lithuania. It is located next to a major road which connects the Baltic countries to Poland and has a potential catchment area of 200,000 inhabitants. The center is fully let.

Out of the net proceeds, at least 75% will be distributed to Plaza’s bondholders by or before March 31, 2017, in line with Plaza’s stated amended restructuring Plan.