Riga Plaza shopping center sold for €93m

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The Plaza Centers NV company has sold the Riga Plaza shopping center to an unnamed global investment fund for €93.4m, reported Rus.lsm.lv Monday.

A press release notes the sale to be part of a "strategy to oversee an orderly disposal of its non-core or mature assets".

The proceeds will be paid to repay a bank loan of €55m and 75% of the remainder will be distributed among bondholders.

The shopping mall comprises 50,000 square meters of gross leasable area. 

"Despite the very challenging timing of the development and opening phase of Riga Plaza in 2007-2009, during the course of the significant global economic downturn [..], Riga Plaza has been a success story for Plaza over the last number of years," said Dori Keren Acting CEO at Plaza Centers.

"The transaction represents another solid step forward in our strategy implementation and the ongoing disposal programme," said Keren.

Kārlis Cebulis, head of New Century Holding which indirectly owns 50% of Riga Plaza, confirmed to Rus.lsm.lv that €93.4m is the price for the whole shopping center.

"Without a doubt the sum is less than what we together with the partners invested into the construction and development of the object," he said.

According to data by Latvia's Enterprise Register, reported Rus.lsm.lv, the investments of Plaza Centers NV are held by the Dīksna SIA [SIA roughly corresponds to Ltd.] company. Dīksna is headed by Dori Keren. 

Netherlands-registered Plaza Centers NV owns about half of the company, while 48.6% are owned by Cyprus-registered ATS Development Corporation (Moldova) Limited. Another 1.4% are held by Dīksna Finanses SIA, which in turn is owned by Cyprus' ATS Development Capital Corporation Limited.

Both Cypriot companies are registered at a single address in Nicosia. 

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