CEE, Big join in €1b Serbia mall deal

The companies' joint venture will build 15-20 shopping centers in Serbia.

Central European Estates BV (CEE) (TASE:CNERO.B1), owned by Yuli Ofer and Nimrod Rinat, and Big Shopping Centers (2004) Ltd. (TASE:BIG) have set up a joint venture, CEE-Big BV, which will build 15-20 shopping centers in Serbia at an estimated cost of €20-50 million per mall. The companies will own the joint venture in equal shares.

CEE-Big has already bought a lot in Jagodina for €2.8 million, and has signed a preliminary agreement to buy a lot in Novi Sad for €16 million. The company plans to build the shopping centers, including open malls and lifestyle malls, over the next 3-5 years.

CEE-Big will receive a €10 million owners loan, amounting to 25% of its financing, and will obtain the rest of the financing from banks and other financial institutions.

CEE and Big will decide within 12 months whether to extend CEE-Big's operations to Croatia and Montenegro.

Published by Globes [online], Israel business news - www.globes-online.com - on July 15, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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