The companies are planning to invest $350 million in Eastern European commercial centers.
Elbit Imaging, controlled by Motti Zisser, and Israel Theaters will inaugurate tomorrow a 22,000 sq.m. shopping mall in Warsaw, in which they have invested $36 million. The mall is the first stage in Elbit Imaging’s plan to for investing $350 million in construction of a series of Eastern European commercial centers, mostly in Poland.
The Warsaw mall was constructed using equity of the two developers only; each contributed 50%. The center is the first constructed by Elbit Imaging, after the Zisser group transferred construction and operation of its commercial centers to the company. Europe-Israel, controlled by Zisser, holds 54% of Elbit Imaging.
Most of the tenants are local businesses, which will pay an average of $40 per sq.m. per month, under leases ranging from three to ten years. The anchor stores will pay lower rents. The rent will total an annual $6.2 million, constituting a 17% yield.
The Warsaw mall will be the flagship of Elbit Imaging, which is planning to construct 25-30 commercial centers in Poland without Israel Theaters as a partner.