Plaza Centers announced that it has reached an agreement to sell its 31,500 sqm site in Targu Mures, Romania to a third party developer for €3.5m, which it says matches the asset’s last reported book value. In a statement about the deal, the company’s president and CEO Ran Shtarkman said that different assumptions were in place when his company first acquired the project. “A number of years ago, we identified this site as a potential location for the development of a shopping and entertainment centre but market conditions in Romania have altered significantly during the intervening period. This disposal is in line with our ongoing strategy both to deleverage and to dispose of non-core assets and focus on the core yielding assets across our portfolio. The proceeds we have secured from the sale are in-line with our cash flow forecasts.”
