28th Jun 2016 09:17
LONDON (Alliance News) - Plaza Centers NV on Tuesday said it has sold a 20,700 square metre plot of land in Poland to a residential developer for EUR2.4 million, in a conditional agreement expected to be signed by the end of August.
The emerging markets property developer said the plot represents 63% of a wider 33,000 square metre site in Lodz, Poland, 26% of which Plaza Centers previously sold in two separate transactions in 2015 and earlier this year, for a value of EUR1.2 million in total. Following all three transactions, Plaza Centers will own 4,000 square metres of the land for future value realisation, it said.
Plaza Centers said the sale of the plot of land was consistent with its strategy to oversee an orderly disposal of its non-core or mature assets, in a bid to reduce debt levels and to bring its development projects to fruition.
Plaza Centers said it will receive an initial payment of EUR1.04 million for the 20,700 square metre plot of land, followed by a EUR180,000 payment in November, EUR220,000 in December and then EUR960,000 in June, 2017.
In line with its restructuring plan, 75% of the net cash proceeds from the sale will be distributed to bondholders within the quarter following receipt of each cash portion, Plaza Centers said.
"This transaction in Poland at a favourable price represents further progress as we continue to implement the ongoing disposal programme, in order to meet the commitments of our restructuring plan and refocus the portfolio towards core assets in target markets," Acting Chief Executive Dori Keren said.
Shares in Plaza Centers were untraded on Tuesday, having last traded at 2.75 pence.
By Hannah Boland; [email protected]; @Hannaheboland
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