Elbit Plaza USA Announces $200 Million Co-Investment Facility for Investment in the US Real Estate Market
NORTHBROOK, Illinois, February 9 /PRNewswire/ -- Elbit Plaza USA, L.P. ("Elbit Plaza USA"), a real estate investment venture jointly formed by Elbit Imaging Ltd. (NASDAQ: EMITF) ("Elbit") and Plaza Centers N.V. (LSE: PLAZ) (WSE: PLAZ/PLAZACNTR) ("Plaza"), has entered into a framework and co-investment agreement with Eastgate Property LLC, an affiliate of NCH Capital Inc. (http://www.nchcapital.com), an established U.S. based international real estate fund manager ("Eastgate"), under which the parties have committed to co-invest in equal portions a combined $200 million with a U.S. real estate investment fund that will be jointly established by the parties with outside investors and which will focus on investments in the U.S. retail and commercial real estate sectors (the "Fund"). The parties intend to take advantage of real estate opportunities in the United States, primarily in the retail sector, through direct acquisitions and joint ventures with leading real estate operators.
Elbit Plaza USA is in the process of securing capital commitments totaling, together with Elbit Plaza USA's and Eastgate's investments, approximately $400 million to be utilized in pursuit of the Fund's investment program, enabling Elbit Plaza USA to fund property acquisitions valued at up to $1 billion taking into account potential leverage. The framework and co-investment agreement is a major step forward in Elbit Plaza USA's efforts towards that end.
Alex Berman, Chief Executive Officer, commented: "We are excited to work with Eastgate, as it brings to the venture additional capital and significant investment and fund management experience. Elbit Plaza USA is actively seeking investment opportunities. We are of the view that the recent financial turmoil in the U.S. which resulted in a correction of the real estate market has caused certain assets such as shopping malls to be undervalued, and we predict that over a five-to-seven-year period, such assets will again be valued by the markets at fair value. There are various shopping malls in the U.S. that have attractive annual net operating income and significant upside potential in terms of appreciation."
About The Elbit Group
Elbit Imaging Ltd. is a public limited liability company whose shares are traded both on the NASDAQ Global Select Market (NASDAQ: EMITF) and on the Tel Aviv Stock Exchange. The Company is a dynamic, ever-growing conglomerate with specialty in real estate and other entrepreneurial investments. Elbit strives to create shareholder's value by investing in high growth initiatives.
Through our subsidiary, Plaza Centers N.V., whose shares are traded on the main listing of the London Stock Exchange (LSE: PLAZ) and on the Warsaw Stock Exchange (WSE: PLZ/PLAZACNTR), the Company engages in various activities including construction, operation, management and sale of shopping and entertainment centers in Central and Eastern Europe and in India. Plaza Center's focus is on the construction of new commercial and entertainment centers in emerging markets as well as acquiring existing properties with potential for significant appreciation in strategically located cities and developing regions.
For more information on Elbit and Plaza Centers visit http://www.elbitimaging.com and http://www.plazacenters.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities.
For further information, please contact:
Elbit Plaza USA, L.P.
Mr. Alex Berman
Chief Executive Officer
707 Skokie Boulevard, Suite 600
Northbrook, IL 60062, U.S.A.
Phone: +1-312-915-0690
[email protected]
SOURCE Elbit Plaza USA L.P.
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