29th Sep 2015 16:20
LONDON (Alliance News) - Plaza Centers NV said Tuesday its subsidiary has won a tender to buy the loan to wholly owned holding and operating company for Liberec Plaza shopping and entertainment centre in the Czech Republic.
The EUR20.4 million bank loan is currently provided by two commercial banks, which Plaza has agreed to buy for EUR8.5 million, which it said reflects a discount of 58%.
It expects to report a profit on the discount of around EUR12 million in its financial statements for the second half of 2015.
"This was a timely opportunity to buy the Liberec Plaza loan at a discount, enabling us to take full control of the asset. Liberec Plaza opened in 2009 against a challenging regional economic backdrop, but we believe that the current rental levels are sustainable and hold a good upside potential," said Chief Financial Officer Roy Linden in a statement.
Shares in Plaza Centers closed down 10% at 2.25 pence Tuesday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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