Engel Europe (TASE: ENGR1 ,ENGR5) a subsidiary of Lagna Holdings Ltd. (TASE;LGNA), announced today the launch of two further mall construction projects, after it announced last week the signing of an MOU for the construction of a large shopping mall in Romania. The company said it had signed an MOU for the construction of two malls in Ukraine, at an estimated investment of NIS 550 million.
The new projects form part of the Engel Europe’s strategy of constructing malls in key cities in Eastern Europea and the CIS countries. The company said it was in talks for the construction of additional malls in Russia and a third country.
In the latest deal, Engel Europe signed an agreement under which it will purchase the shares of two companies and will hold a 77.2% stake in each of them once the transaction is complete. One of the companies intends to construct a mall on a 48,000 sq.m. lot (excluding parking space) in the center of Odessa, while the other will construct a mall on a 35,000 sq.m. lot in Nikolayev.
Engel Group chairman Yaakov Engel said, “The construction of the malls in Ukraine, plus the mall in Romania that we announced last week and our talks for the construction of more malls in Russia and other countries in the region are part of our strategy, which will see us investing billions of shekels in key cities in Eastern Europe, mainly in the CIS countries. We are considering bringing in strategic partners for these malls, in the same manner as the partnerships we entered in our residential property projects in Eastern Europe.”
Published by Globes [online], Israel business news - www.globes.co.il - on August 1, 2006
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