CEE retail specialist Plaza Centers has announced the sale of Riga Plaza in the Latvian capital for €93.4 mln.
A subsidiary, in which Plaza Centers has a 50% stake, has sold the shopping and entertainment centre to a global investment fund. The company said the sale price was in line with the last reported book value.
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.
Dori Keren, acting CEO at Plaza Centers, said: 'The transaction represents another solid step forward in our strategy implementation and the ongoing disposal programme, as we seek to meet the commitments of our restructuring plan and refocus the portfolio towards more resilient and higher quality income-producing properties, especially in Serbia and Romania.'
