Plaza Centers NV subsidiary, Plaza Centers Polish Operations BV, has signed a new non-binding letter of intent with an investment fund regarding the sale of Suwalki Plaza shopping and entertainment centre 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 this year, values the asset at €42.3 million.
Should the transaction complete as planned, following the repayment of the existing bank loan, the expected net proceeds to the company are estimated at circa €15 million.
Plaza says: "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 1 August 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 it is expected that the disposal of Suwalki Plaza will be finalised in the fourth quarter of this year, at this point in time there is no certainty that the transaction will be completed. Plaza will update the market on the progress of the transaction as appropriate.
At 3:14pm: (LON:PLAZ) Plaza Centers NV share price was 0p at 250p