Elbit Imaging unit completes $1.43b US malls sale

The net proceeds from the sale total $530 million, after EPN, repays the $928 million in financing on the 47 shopping centers.

Elbit Imaging Ltd. (Nasdaq: EMITF; TASE: EMIT) today announced the completion of the sale of 47 US shopping centers by its unit EPN Group BRE DDR Retail Holdings LLC, a joint venture between Blackstone Group LP (NYSE: BX) and DDR Corporation (NYSE: DDR), for $1.43 billion. The sale was announced on January 11. The properties were held by EPN Group, a joint venture of Elbit Imaging subsidiaries Elbit Plaza USA LP and Plaza Centers NV (LSE:PLAZWSE:WLZ).

EPN's net proceeds from the sale total $530 million, after it repays the $928 million in financing on the properties. EPN still owns two other shopping centers, which it has put up for sale, and which have a net value of $30 million. Plaza Centers will report a cash flow of $120 million on the sale.

EPN invested $358 million in its US operations, including the properties sold, and Elbit Imaging's profit from this investment is $228 million. The company has already recognized these profits in previous financial reports.

Elbit Imaging co-CEO Dudi Machluf said, "After two years of intensive activities in the US, we are pleased to announce the closing of the transaction for the sale of 47 EDT properties to Blackstone and DDR, which are two of the leading real estate investors in the US." He added, "We are currently pursuing, in collaboration with our partners, the establishment of a second real estate investment fund in the US, using the knowledge and experience gained by us to attract new investors and pursue investments in assets that fit the new fund's profile, in the objective that our activity in the US will remain an integral part of the company's operations in the coming years."

Elbit Imaging's share price 5.1% in morning trading on the TASE today to NIS 9.15, after rising 0.9% on Nasdaq yesterday to $2.34, giving a market cap of $58 million. Plaza Center's share price rose 1.8% in early trading on the London Stock Exchange to £0.43, giving a market cap of £137 million.

Published by Globes [online], Israel business news - www.globes-online.com - on June 21, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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