TEL-AVIV, Israel, Aug. 7 /PRNewswire-FirstCall/ -- Elbit MedicalImaging Ltd. (TASE, Nasdaq: EMITF) ("EMI" or the "Company") announced todaythat its subsidiary, Plaza Centers N.V. (LSE: PLAZ) ("Plaza"), a leadingCentral and Eastern European ("CEE") and in India, emerging marketsproperty developer, announced today that it has executed a bindingagreement for the sale of its Arena Plaza shopping and entertainment centrein Budapest, to UK based Active Asset Investment Management ('aAIM'), oneof the UK's fastest growing commercial property investment groups. InSeptember 2006, aAIM launched a pounds Sterling 2 billion acquisitionprogram for its European Symmetry Fund in partnership with Bank ofScotland. The estimated consideration for the acquisition of the Arena Plazashopping and entertainment centre is approximately USD 550 million (circaeuro 400 million). The purchase price will be finally determined on the completion of thetransaction, which is expected to take place within a month of ArenaPlaza's opening date, on the basis of the actual rent levels achieved beingcapitalized at an agreed yield. Plaza will remain responsible for theletting of the center's remaining units for a period of up to one yearfollowing the closing, and is anticipated to benefit from further priceadjustments reflecting the signing of any additional leases during the twoconsecutive earn-out periods, which end three months and 12 monthsrespectively, following the completion. Plaza's management estimates the final transaction price based onactual rent levels will be no less than approximately USD 525 million(approximately euro 380 million), with an overall transaction price cap ofUSD 550 million (euro 400 million), as agreed with aAIM. The final expectedtransaction price represents a significant upside comparing to theproject's estimated value upon completion at the time of Plaza's admissionto trading in about November 2006, which was approximately USD 460 million(circa euro 333 million). Designed and developed by Plaza following the acquisition of thislandmark site by Plaza in late 2005, Arena Plaza is Hungary's largestshopping and entertainment center. It comprises 220 stores locatedthroughout approximately 66,000 sqm of lettable area and is serviced byover 2,800 parking spaces. The center is scheduled to open in the fourthquarter of 2007 whereupon, subject to the fulfillment of certainconditions, the transaction will be completed. Amongst the internationalanchor tenants of the center are Tesco, the Inditex Group and Peek &Cloppenburg, together with other major retailers such as H&M, ElectroWorld, Hervis and C&A. Additionally, Arena Plaza will accommodate a23-screen Cinema City complex, which includes Hungary's first IMAX theatre.The center is currently over 85% pre-let. The profit from the sale will be recognized mainly over 2007 withadjustments in 2008 and, in part, distributed in accordance with Plaza'sdividend policy, announced following its successful listing on the LondonStock Exchange last November. Mr. Shimon Yitzhaki, President, commented: "Arena Plaza is one of thelargest and most innovative shopping and entertainment centers in CEE. Itis the group's 17th shopping and entertainment center in Hungary. "As of the completion of the transaction, we expect a profit andcapital growth at a range of approximately NIS 900 million - NIS 1 billion,which will significantly increase the Company's equity capital. "While developing the Arena Plaza we have accomplished new highlightsin the following major aspects: (i) the short period of time, which lastedonly a year and a half for the initiation, development, built, marketingand sale of this shopping and entertainment center, although the size andmight; (ii) the large scale profit percentage, emphasized both in theabsolute values and in the yield amounts. "This transaction consummated another Mega Project sale in the field ofshopping and entertainment centers. In the company's pipeline are at leasttwo other Mega Projects, one of which is the 'Obuda - Dream Island' inBudapest, comprising of 400 thousand sqm and the 'Casa Radio (Dambovica)Mega Project' in Bucharest, comprising of 600 thousand sqm." About Elbit Medical Imaging Ltd. EMI is a subsidiary of Europe Israel (M.M.S.) Ltd. EMI's activities aredivided into the following principal fields: (i) Initiation, construction,operation, management and sale of shopping and entertainment centers inIsrael, Central and Eastern Europe and India; (ii) Hotels ownership,primarily in major European cities, as well as operation, management andsale of same through its subsidiary, Elscint Ltd.;(iii) Long-term leases ofreal estate property; (iv) Investments in the research and development,production and marketing of magnetic resonance imaging guided focusedultrasound treatment equipment, through its subsidiary, InSightec Ltd.; and(v) Other activities consisting of the distribution and marketing ofwomen's fashion and accessories through our wholly-owned Israelisubsidiary, Mango Israel Clothing and Footwear Ltd., and venture-capitalinvestments. Any forward looking statements with respect to EMI's business,financial condition and results of operations included in this release aresubject to risks and uncertainties that could cause actual results todiffer materially from those contemplated in such forward lookingstatements, including, but not limited to, product demand, pricing, marketacceptance, changing economic conditions, risks in product and technologydevelopment and the effect of EMI's accounting policies, as well as certainother risk factors which are detailed from time to time in EMI's filingswith the Securities and Exchange Commission including, without limitation,Annual Report on Form 20-F for the fiscal year ended December 31, 2006,filed with the Securities and Exchange Commission on July 3, 2007. For Further Information: Company Contact Investor Contact Shimon Yitzhaki, President Rachel Levine Elbit Medical Imaging Ltd. The Global Consulting Group (972-3) 608-6000 1-646-284-9439
Elbit Medical Imaging Ltd. Announces Plaza Centers Executes Agreement for Sale of the Arena Plaza, Budapest
August 08, 2007, 1:23 a.m. EDT 5 Min Read
