News Article Plaza Centers to sell Torun Plaza for €70 million
by Ákos Budai | Investment

A Plaza Centers subsidiary has signed a non-binding letter of intent with an unnamed investment fund regarding the sale of the Torun Plaza shopping and entertainment centre in Poland. The LOI binds the purchaser to a strict timeline for undertaking a comprehensive due diligence process which would result in the transaction being completed by the middle of September 2017.

Should the transaction proceed towards a signed share purchase agreement, following the due diligence process, Plaza Centers will receive circa €70 million followed by additional payments up to a maximum potential amount of €4 million after an additional earn out period following the closing of the transaction. The expected net proceeds to the company, following the repayment of the related bank loan are estimated to be circa €27-29 million.
 
At this point in time, there is no certainty that the transaction will be completed.