Business
COMPLETED SALE OF BELGRADE PLAZA
COMPLETED SALE OF BELGRADE PLAZA.
About this update from Plaza Centers N.v.
[{"type":"text","content":"\n \nRNS Number : 3867Y Plaza Centers N.V. 02 March 2017 \n\n2 March 2017\n \nPLAZA CENTERS N.V.\n \nCOMPLETED SALE OF BELGRADE PLAZA \n \nPlaza Centers N.V. (\"Plaza\" or the \"Company\"), an emerging markets property developer, announces the successful completion of the sale of Belgrade Plaza shopping and entertainment centre, by one of its subsidiaries, to a subsidiary of BIG Shopping Centers Ltd. (the \"Purchaser\").\nBelgrade Plaza 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. Plaza's subsidiary shall pay all related development costs until the opening through a line of credit from a financing bank which was previously agreed for the development of Belgrade Plaza to a maximum amount of €42.5 million. \nFollowing the successful sale, Plaza has now received an initial advance payment of circa €31.5 million from the Purchaser for the sale of 100% of the SPV. This will be followed by further payments during the first 12 months of operation, which are subject to certain operational targets and milestones being met. BIG Shopping Centers Ltd. has provided a guarantee to secure these future payments. \nAs previously stated, 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% on the sustainable NOI after 12 months of operation, which the Company estimates will be approximately €7.2-7.5 million per annum. Parts of 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. \n \nAt 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 further distributions will be made following receipt of any future additional payments, in line with the Company's stated amended restructuring Plan.\n \nDori Keren, CEO at Plaza Centers, said:\n\"We are pleased to be able to successfully develop a significant shopping and entertainment centre in the capital city of Serbia. We will continue to work with BIG Shopping Centers Ltd. on the imminent launch ...