Plaza buys further stake in Hungarian project

Leading emerging markets property developer Plaza Centers, in partnership with Hungarian commercial bank MKB Bank, has acquired a further 27% stake in its Dream Island project in Budapest, Hungary, from CP Holdings, a company controlled by Bernard Schreier. Plaza and its 50/50 joint venture partner MKB Bank, a subsidiary of the German Bayerische Landesbank, together previously held 60% in the project and have acquired the additional 27% stake for circa EUR 21.4 mln. The transaction consists of a cash payment of EUR 12 mln and the assumption of EUR 9.4 mln of debt, representing 27% of the project's net debt liability.

Totalling over 350,000 m² of gross built area, Dream Island will include around 3,000 hotel rooms in several hotels of different categories as well as approximately 1,000 leisure apartments, a convention centre accommodating 3,500 delegates, a 1,500 seat opera house, a 3,500 seat multi-purpose theatre, a marina with an anchorage for 300 vessels, a shopping and entertainment centre including a prestigious 'Designer avenue', a Roman cultural museum, and parking facilities for 5,500 vehicles, as well as a 40,000 m² casino. It is located at the southern end of Obuda Island on the Danube River in central Budapest.

Ran Shtarkman, CEO of Plaza Centers, said: 'Plaza is uniquely placed to take advantage of opportunities in the current market, given its strong balance sheet and its expertise in developing assets across central and eastern Europe. We therefore saw this as a good opportunity, as CP Holdings were looking to restructure their investment portfolio, to acquire a further stake in one of the most important and high-profile developments in Europe.'