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Elbit Imaging unit to Sell Riga Plaza for more than $100m

Staff writer |
Plaza Centers, an indirect subsidiary of Elbit Imaging, has announced that one of its subsidiaries, in which Plaza has a 50% stake, will sell Riga Plaza shopping and entertainment centre in Riga, Latvia.

The buyer is a global investment fund. The agreement reflects a value for the business of approximately €93.4 million ($105,68 million) which is in line with the last reported book value.

The asset, which is a dominant scheme in the Latvian capital comprising 50,000 sqm of GLA, is the second biggest shopping centre to have been developed by Plaza.

In line with Plaza’s stated restructuring plan, 75% of the net cash proceeds from Plaza’s share of the sale of the business, after the repayment of the bank loan (approximately €55 million, reflecting 100%), will be distributed to Plaza’s bondholders within the quarter following the closing.

The closing of the transaction is subject to several conditions precedent, all of which are expected to be fulfilled in the coming months.

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