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    11:40am 21st April 2017

    Plaza Centers Opens Belgrade Plaza As Romanian Investigation Continues

    LONDON (Alliance News) – Plaza Centers NV on Friday said it is unable to provide an update concerning the ongoing investigation in Romania over one year after being launched, as the property developer announced the opening of the Belgrade Plaza in Serbia to the general public.

    In March 2016, Plaza Centers started an internal investigation into issues raised about its Casa Radio project in Romania after identifying issues with agreements that had been signed previously related to the project, and was cooperating fully with Romanian authorities.

    All has been quiet on that front since the investigation started, and little has changed according to the company’s update on Friday.

    “[The company] is still co-operating fully with the relevant Romanian authorities and within this process received immunity from certain potential criminal charges. As the investigation of the Romanian authorities is still on-going, the company is unable to elaborate any further in this respect,” said Plaza Centers.

    “The company was assured that the mentioned investigation should have no effect on the company’s existing legal rights to the Project and the Public-Private Partnership Agreement signed with respect thereto,” Plaza Centers added.

    In a separate statement on Friday, Plaza Centers said that Belgrade Plaza successfully opened to the public on Thursday. The completed centre is 97% let and should be fully leased “in the coming months”.

    Belgrade Plaza is the 34th shopping centre built by Plaza Centers and its second scheme in Serbia.

    As previously announced, Plaza Centers signed a a binding share purchase agreement with Tel-Aviv-listed BIG Shopping Centers Ltd for the sale of the Belgrade Plaza shopping and entertainment centre.

    Plaza Centers will get EUR2.0 million for successfully opening Belgrade Plaza, with 75% of net proceeds being distributed to bondholders as per its restructuring plan. Future proceeds are subject to certain conditions being met.

    Plaza Centers shares were untraded on Friday, last closing at 210.0 pence.

    By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance

    Copyright 2017 Alliance News Limited. All Rights Reserved.