Elbit Medical Imaging president Shimon Yizhaki: We expect a capital gain of NIS 900 million-1 billion on the sale.
Elbit Medical Imaging Ltd. (Nasdaq: EMITF; TASE: EMIT) subsidiary Plaza Centers NV (LSE:PLAZ) has sold the Arena Plaza mall in Budapest to Active Asset Investment Management of the UK for $550 million (€400 million). The mall has 66,000 sq.m. of rented space, with 220 stores, a 23-screen cinema center, including Hungary’s first IMAX theater. It is due to open during the fourth quarter.
The final purchase price will be determined when the sale is closed, which is expected to take place within a month of Arena Plaza’s opening date, on the basis of the actual rent levels achieved being capitalized at an agreed yield. Plaza Centers will remain responsible for the leasing of the mall’s remaining units for a period of up to one year following the closing. Plaza Centers recorded the Arena Plaza mall at a value of $460 million at the time of its IPO in November 2006.
Elbit Medical Imaging president Shimon Yizhaki said, “Arena Plaza is one of the largest and most innovative shopping and entertainment centers in Central Europe. It is the group's 17th shopping and entertainment centre in Hungary. We expect a profit and capital growth of NIS 900 million-1 billion, which will significantly increase the company’s equity capital.”
Published by Globes [online], Israel business news - www.globes.co.il - on August 7, 2007
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