Plaza Centers N.V., a leading Central and Eastern European emerging markets property developer, has announced that it has formally completed the successful handover of the Rybnik Plaza and Sosnowiec Plaza Shopping and Entertainment centers in Poland to Klepierre SA.
Both shopping malls, which were 100% let to international and local tenants on their opening to the public in March 2007, were pre-sold to Klepierre in July 2005.
Owing to the successful letting campaign and the strong market conditions experienced in Poland since the pre-sale agreements were signed, the actual closing consideration, subject to the fulfilment of certain conditions, resulted in a higher sum being paid to the Company than disclosed in the Company's Admission Document at the time of its IPO in November 2006. The combined market value of the properties now totals €90.1 million, an increase of €18.6 million.
The gains from selling these assets will be included in the Company's forthcoming interim accounts which will also report an updated Net Asset Value statement. This is expected to take place in August this year.
The Company also anticipates benefiting from valuation uplifts of approximately €7.5 million and €12 million respectively on the Lublin Plaza Centre (Poland) and the Plzen Plaza Centre (Czech Republic) which have also been pre-sold to Klepierre. The formal completion of the handover of these two centres is anticipated to take place in Q2 2007 and Q1 2008, for Lublin and Plzen respectively.
Additionally, Plaza is pleased to report that it has also agreed the sale of the Duna Plaza offices in Budapest, Hungary, to Klepierre for a consideration of €14.2 million, an increase in the value disclosed in the Company's Admission Document at the time of its IPO. The offices are located adjacent to the Duna Plaza shopping and entertainment center which was sold to Klepierre in July 2004. Furthermore, the Company has agreed with Klepierre to proceed with the development of the extension to the Duna Plaza Centre on an adjacent area of land, which is anticipated to be completed by 2010.
Commenting on the handover agreement, Ran Shtarkman, President and CEO, Plaza Centers N.V. said, "Having fully leased-up and opened the Rybnik and Sosnowiec centres to the public in March, we are now delighted to have formally signed the respective handover agreements to Klepierre at a higher market value than stated in the Company's Admission Document. This will provide significant added value for our investors. In the meantime, we are also pleased to have further consolidated our ongoing relationship with Klepierre by agreeing to extend our development of the Duna Plaza Centre on their behalf.
"We also expect to realize similar increases in market value at the time of delivery of the Lublin Plaza and Plzen Plaza centres, as well as the Arena Plaza Mall in Budapest.
"The disposal of these assets marks the 22nd and 23rd sales to international property investors achieved in the last three years. This demonstrates not only Plaza's excellent track record of its core business, having accumulated vast experience built up over more than 10 years but also a leading market position in the CEE region which attracts leading purchasers for our assets.
"Plaza Centers' objective for the upcoming years is to further diversify and enrich the Company's portfolio through the development of high quality shopping and entertainment centres, such as the Arena Plaza Mall in Budapest which will be one of the largest and most prestigious shopping and entertainment centers in the CEE region."