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Klepierre paying Elbit Medical €40 mln more for Eastern European malls

The French company Klepierre will be paying Elbit Medical Imaging roughly €40 million more, for four malls it bought from the Israeli real estate company in 2005.

Elbit Medical, which belongs to real estate baron Moti Zisser, sold the shopping centers to Klepierre while they were still under construction. The final touches to two of the centers, located in the Czech Republic, are being added and delivery is imminent. In Poland, the centers began operating in March and achieved 100% occupancy. Elbit Medical will be recording an €18.6 million gain for the Q2 of 2007 pursuant to the increase in price. The rest will be recorded in the following quarters, as the two other malls are delivered.

In other Elbit Medical news, the company agreed to sell its Duna Plaza offices in Budapest, Hungary, for $19.25 million (NIS 77 million). Its subsidiary Plaza Centers will be building an extension at the Dona Plaza, completing construction by 2010, which should bring extra income. In July 2005, Elbit Medical sold five shopping centers to Klepierre for half a billion dollars. The two companies had also done business the year before. Their present set of deals will end once the two final malls are delivered. (