Elbit Imaging provides update on subsidiary's transactions
Elbit Imaging announced, in further to the announcement dated August 1, 2016, that Plaza Centers N.V. , an indirect subsidiary of the Company, has signed a new non-binding Letter of Intent with a global investment fund regarding the sale of Suwalki Plaza shopping and entertainment center in Poland. The LOI, which binds the Purchaser to a set of strict timelines in order for the transaction to conclude during the fourth quarter of 2016, values the asset at EURO$42.3 million. Should the transaction complete as planned, following the repayment of the existing bank loan, the expected net proceeds to Plaza are estimated at approximately EURO$15 million. While a non-binding Letter of Intent had previously been signed with another global investment fund, with respect to both Torun Plaza and Suwalki Plaza, as announced on August 1, 2016, this party failed to meet the agreed terms of the transaction and, therefore, its exclusivity on the sale expired. Plaza is continuing to explore options for a separate sale of Torun Plaza. While the disposal of Suwalki Plaza is expected to be finalized in the fourth quarter of 2016, at this stage there is no certainty that the transaction will be completed. The sale of Suwalki Plaza is consistent with Plaza's stated strategy to oversee an orderly disposal of its mature assets in order to reduce Plaza's debt levels.