Business
Re Joint Venture
Re Joint Venture.
About this update from Plaza Centers N.v.
[{"type":"text","content":"\n RNS Number : 8558G Plaza Centers N.V. 09 February 2010 \n \n\n9 February 2010\n \nELBIT PLAZA USA ANNOUNCES COMMITMENT BY INTERNATIONAL REAL ESTATE INVESTMENT FUND TO INVEST US$100 MILLION FOR CO-INVESTMENT IN THE US REAL ESTATE MARKET\n \n \nStrategic joint venture to focus on investments in the US commercial real estate sector\n \nPlaza Centers N.V. (\"Plaza\" or the \"Company\"), announces that, Elbit Plaza USA, L.P. (\"Elbit Plaza USA\"), a new real estate investment joint venture with its parent company, Elbit Imaging Ltd. (\"Elbit\"), has entered into a framework and co-investment agreement with Eastgate Property LLC (\"Eastgate\") to take advantage of real estate opportunities in the United States, primarily in the retail sector. \n \nUnder the terms of the new strategic joint venture, Elbit Plaza USA and Eastgate have jointly committed to invest a total of US$200 million in one or more dedicated US real estate investment platforms, which will focus on investments in the US commercial real estate sector (collectively, the \"Fund\"). Elbit Plaza USA's investment into the Fund, totalling US$ 100 million, will be invested by Plaza and Elbit in equal shares.\n \nThe Fund will seek to identify potential investments and make both direct purchases and enter into joint ventures with local business partners over a two year acquisition period. Once assets have been acquired, Elbit and Plaza will use their extensive experience in the retail sector to undertake asset management initiatives to maximise income and capital value growth from the properties, with the objective of selling the assets and dissolving the Fund within a five to-seven year period from the initial closing of the Fund. \n \nEastgate is an affiliate of NCH Capital Inc. (www.nchcapital.com), an established US based international real estate fund manager with over $3 billion of capital under management. Eastgate will take an active role in the joint management of the Fund utilising its extensive experience of fund management and capital raising activities in the US. \n \nThis new joint venture is part of Elbit Plaza USA's broader strategy of securing additional capital commitments from third party investors, to take advantage of the attractive pricing currently being seen in the region. Elbit Plaza USA inte...