Plaza Centers N.V. announced that its 70% subsidiary has reached an agreement to sell its 50% equity stake (together with the other 50% Joint Venture partner) in the Uj Udvar project in Budapest, Hungary. As a result of the transaction, proceeds of €2.35 million in cash were received by Plaza for its share in the asset.
Ran Shtarkman, President and CEO of Plaza Centers N.V., said: “The Uj Udvar project is an operational shopping center but requires substantial refurbishment to enable it to deliver strong levels of income and provide value enhancement for our shareholders. Therefore, in the context of a lack of readily available development finance for such projects and our ongoing restructuring process, we decided to sell our stake to refrain from incurring additional material costs.
“The disposal is also in line with our strategy to deleverage and to dispose of non-core assets and to focus on the core yielding assets across our portfolio, which we are continuing to do.”
Source: Plaza Centers