Plaza Centers has completed on the sale of Riga Plaza in the Latvian capital for €93.4 mln.
The sale was initially announced in May and sees Plaza Center divest its 50% stake in a subsidiary holding the shopping and entertainment centre to a global investment fund.
The asset is a dominant scheme in the Latvian capital comprising 50,000 m2 of gross lettable area and is the second largest shopping centre to be developed by Plaza.
Overall, 75% of the net cash proceeds from Plaza's share of the sale of the business, after repayment of the bank loan of €55 mln, will be distributed to Plaza's bondholders, in line with the company's restructuring plan.
'Plaza successfully executed the development, the launch in March 2009 and the continued management of Riga Plaza and it is now one of the dominant schemes in the Latvian capital, producing high levels of occupancy, footfall and turnover. The sale of the centre is aligned with our strategy to dispose of non-core or mature assets in order to reduce company debt levels whilst enabling us to bring other development projects on line,' said Dori Keren, acting CEO at Plaza Centers.
