8th Apr 2016 14:11
LONDON (Alliance News) - Plaza Centers NV on Friday said it is selling its development land in Piraeus, Greece for EUR4.7 million, with 75% of the proceeds to go back to shareholders.
The company, which develops shopping and entertainment centres in emerging markets, said the purchaser has placed a corporate guarantee to secure the transaction for 10% of the consideration.
Plaza Centers received a permit in 2009 to build a shopping centre on the land, but later decided not to proceed with the project "due to market conditions".
Upon completion of the sale, 75% of the net cash proceeds will be distributed to Plaza shareholders.
"This latest sale is part of the ongoing strategy we have set ourselves to dispose of non-core assets and refocus our portfolio on higher quality income producing assets in Romania and Serbia, as well as to meet our commitments to bondholders, as we continue to strengthen the underlying business," Chief Financial Officer and Acting Chief Executive Roy Linden said in a statement.
Shares in Plaza Centers were trading up 36% at 1.70 pence Friday afternoon.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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