Elbit Imaging Ltd. (Nasdaq: EMITF; TASE: EMIT) subsidiary Plaza Centers NV (LSE:PLAZWSE:WLZ) today acquired the 51% controlling interest in a 75,000-square meter retail and office complex to be built in the Bulgarian capital of Sofia for €7.14 million.
Plaza Centers paid the local developer of the project €2.78 million in cash and assumed €4.36 million in debt, amounting to 51% of the project's debt liability. The company has an option to acquire a 24% stake in the project, valid for six months after the start of construction, due to begin in 2010. The project's gross development budget is €75 million.
This is Plaza Centers' second project in Bulgaria; in November 2007 it bought a 20,000-square meter shopping center project in the city of Shumen.
Plaza Centers president and CEO Ran Shtarkman said, "There is considerable demand in Bulgaria, and in particular in Sofia, for well located, high quality retail space." He added, "The transaction required limited immediate funding from both partners, due to the level of bank financing provided for the land acquisition, which was achievable due to the experience and reputation of Plaza."
Plaza Centers has been scaling back its activity elsewhere in Eastern Europe and Russia, including freezing projects in Romania.
Plaza Centers' share rose 1.5% in morning trading in London today to ₤0.65, giving a market cap of ₤180 million.
Published by Globes [online], Israel business news - www.globes-online.com - on February 3, 2009
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