Business
Successful sale of Kragujevac Plaza in Serbia
Successful sale of Kragujevac Plaza in Serbia.
About this update from Plaza Centers N.v.
[{"type":"text","content":"\n \nRNS Number : 2727T Plaza Centers N.V. 02 October 2014 \n \n\n2 October 2014 \n \nPlaza Centers N.V.\n \nPLAZA CENTERS COMPLETES THE SUCCESSFUL SALE OF KRAGUJEVAC PLAZA IN SERBIA\n \nPlaza Centers N.V. (\"Plaza\" or the \"Company\"), today announces that it has successfully completed the disposal of its shopping and entertainment centre, Kragujevac Plaza in Serbia for €38.6 million, in line with the asset's last reported book value.\n \nFollowing the repayment of related bank debt of c. €28.2 million, the Company will receive net cash from the disposal of c. €10.4 million. 75% of the net cash proceeds will be distributed to the Company's bondholders in the fourth quarter of this year as an early repayment of the bonds, in line with the Company's stated restructuring plan. Restricted cash linked to the bank debt and other working capital balances of circa €2 million were also released following the transaction.\n \nThe shopping centre, which is 99% leased, was opened in March 2012.\n \nRan Shtarkman, President and CEO of Plaza Centers N.V., said: \n\"We are very proud of what we have achieved with Kragujevac Plaza, which was the first western shopping and entertainment centre to be completed in Serbia outside the capital Belgrade. Its sale - the 27th mall we have sold since our inception - is in line with our current strategy to realise value from assets that are close to full potential, in order to reduce debt and recycle our capital for new developments. \n \n\"Following the successful conclusion of our restructuring plan earlier this year, we are pleased to be able to execute this realisation significantly ahead of our expected disposals schedule which anticipated selling Kragujevac Plaza in 2016, thereby providing our bondholders with an early repayment from the proceeds of this sale.\"\n \nFor further details, please contact:\n \nPlaza\nRan Shtarkman, President and CEO +36 1 462 7221\nRoy Linden, CFO ...