23rd Oct 2007 11:15
Plaza Centers N.V.23 October 2007 23 October 2007 PLAZA CENTERS FORMS PARTNERSHIP TO DEVELOP RESIDENTIAL AND OFFICE PROJECTS IN ROMANIA Plaza Centers N.V. ("Plaza" or the "Company"), a leading emerging marketsproperty developer, today announces that it has entered into a joint venturepartnership with BAS Development ("BAS"), to develop residential and officeprojects in Romania. BAS is a private company which is active in the Romanianproperty market and which operates primarily in partnership with AuraInvestments Limited, an Israeli investment and management company listed on theTel Aviv Stock Exchange (AUR.TA). A newly established company (the "JV Company"), of which 50.1 per cent will beowned by Plaza and the remaining 49.9 per cent by the current shareholders ofBAS, will acquire BAS' ownership in five existing residential and officedevelopment projects. The acquisition price of approximately €6.9 millionreflects the initial value of BAS' net interest in the projects. BAS will retainresponsibility for managing these projects. The five projects are located in three of Romania's largest cities: Bucharest,Brasov (the gateway to Transylvania) and Ploiesti (56 km north of Bucharest).Plaza anticipates that these cities are poised for significant growth,particularly in light of the positive economic impact of the EU on this region.In the future, the JV Company will work to identify and secure additionalresidential and office development opportunities in these and other large citiesin Romania. Commenting on the deal, Ran Shtarkman, CEO, Plaza Centers N.V. said: "Our main focus of activity will continue to be shopping and entertainmentcentres. However, we believe the opportunity to gain a position in Romania'sfast growing residential and office markets, at little cost and risk to Plaza,will generate a profitable return as we strive to generate increased shareholdervalue. "We know the Romanian market very well and have a strong local presence. We aretherefore confident that diversifying into additional sectors in this regionwill generate significant additional returns. Bucharest, Brasov and Ploiesti arevibrant cities in excellent locations which we believe will generate significantvalue growth. This, in turn, will translate into higher returns for ourshareholders." Ends For further details please contact: PlazaRan Shtarkman +36 1 462 7221Roy Linden +36 1 462 7105 Financial DynamicsStephanie Highett/Lauren Mills +44 20 7831 3113 Notes to Editors Plaza Centers N.V. (www.plazacenters.com) is a leading emerging marketsdeveloper of shopping and entertainment centres. It focuses on constructing newcentres and, where there is significant redevelopment potential, redevelopingexisting centres in both capital cities and important regional centres. TheCompany is dual listed on the Main Board of the London Stock Exchange and, as of19 October 2007, the Warsaw Stock Exchange. Plaza Centers N.V. is an indirectsubsidiary of Elbit Medical Imaging Ltd. ("EMIL"), an Israeli public companywhose shares are traded on both the Tel Aviv Stock Exchange in Israel and theNASDAQ Global Market in the United States. Plaza Centers is a member of the Europe Israel Group of companies which iscontrolled by its founder, Mr Mordechay Zisser. It has undertaken real estatedevelopment in emerging markets for more than 11 years. B.A.S. Development B.V., a private company, which specialises in the developmentof residential and office schemes, mainly in Romania, under the brand name "Primavera". Aura Investments Limited is an Israeli public company which has been traded onthe Tel Aviv stock exchange since 1993 (AUR.TA). Through its 100% subsidiary,Aura Europe SA, it is active in the development of 18 residential, office andretail projects in Romania, Hungary and Kazakhstan. In addition, Aura is activein the development of over 20 residential projects in Israel. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Plaza