Plaza Centers receives EUR 381m from sale of Arena Plaza in Budapest

London and Warsaw-listed Plaza Centers has announced it has received gross cash proceeds of approximately EUR 381 mln from the sale of Arena Plaza to UK-based Active Asset Investment Management (AAIM). Arena Plaza's 66,000 m² of lettable area makes it Hungary's largest shopping and entertainment centre. Fully let upon opening on 15 November 2007 Arena Plaza's tenants include Tesco, the Inditex Group, German retailer, Peek & Cloppenburg, H&M, Electro World, Hervis and C&A. It also contains a 23-screen Cinema City complex and the country’s first IMAX theatre.

Ran Shtarkman, president and CEO of Plaza Centers, said of the transaction, 'Arena Plaza is one of the largest and most prestigious shopping and entertainment centres in Central and Eastern Europe and the quality, size and design of this project has set new standards for the region as a whole. By developing what is, as of today, Hungary's largest shopping centre, Plaza has provided Hungary with an exciting new commercial centre in central Budapest and a compelling destination for national and international tenants and visitors.'

'The completion value of the Arena Plaza totalling approximately EUR 381 mln, is considerably higher than its estimated value of approximately EUR 333 mln at the time of the company's admission to trading on the London Stock Exchange in October 2006. We are delighted to have achieved a significantly higher market value for the Arena Plaza than stated in the company's admission document and thereby realised significant additional value for our shareholders in both the UK and Poland.The significant cash consideration received for Arena Plaza, which has been secured since August 2007 by an irrevocable bank guarantee, will be used to help drive our ongoing plans for growth as well as investing in our current projects which are under development'.