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Elbit Imaging Announces Successful Closing Of Sale Of 47 Real Estate Properties By EPN Group

Stocks in this article: EMITF

TEL-AVIV, Israel, June 21, 2012 /PRNewswire/ --

Elbit Imaging Ltd. (NASDAQ: EMITF) ("the " Company") announced today, in continuation to its previous announcement dated January 11, 2012, that the sale of 47 shopping centers located throughout the USA (the " Properties") by certain indirect subsidiaries of EPN GP, LLC and EPN EDT Holdings II, LLC (collectively, " EPN" and together with their affiliates, " EPN Group") to BRE DDR Retail Holdings LLC for a purchase price of $1.428 billion has closed.

The total proceeds from the transaction, including cash and other net working capital items less property level financing which was repaid by EPN or assumed by the buyer at closing (in the amount of approximately $928 million), amounts to approximately $530 million. In September 2011 EPN Group received a dividend payment of $26 million from the entity that held these Properties at that time. In addition, EPN Group holds two other properties that are currently held for sale, which have a net value of approximately $30 million.

EPN's total investment in its U.S. operations, including the Properties, amounts to approximately $358 million. The profit generated from EPN's investment, amounts to approximately $228 million, which had been recognized in the Company's financial statements in previous fiscal periods, in accordance with International Financial Reporting Standards. The proceeds and profits from the transaction are subject to the deduction of certain transaction expenses and applicable taxes.

The Company's interest in EPN Group is held through Elbit Plaza USA L.P., a joint venture entity held in equal parts by the Company and its subsidiary Plaza Centers N.V. (LSE: "PLAZ", WSE: "PLZ/PLAZACNTR"). Elbit Plaza USA L.P. holds an approximately 45.4% ownership interest in the Properties through its holdings in EPN Group.

Mr. Dudi Machluf, Co-CEO of the Company, commented: "After two years of intensive activities in the United States, we are pleased to announce the closing of the transaction for the sale of 47 EDT properties to Blackstone and DDR, which are two of the leading real estate investors in the United States. The closing of this transaction generated significant cash-flow and profit for the Company, over an investment period of two years only.

"During the last two years we have gained vast experience and knowledge in the United States retail real estate market in locating assets with appreciation potential, improving their value by increasing their occupancy rates and improving their financing structure, as well as the ability and knowledge to realize those assets through sale to leading strategic investors.

"We are currently pursuing, in collaboration with our partners, the establishment of a second real estate investment fund in the United States, using the knowledge and experience gained by us to attract new investors and pursue investments in assets that fit the new fund's profile, in the objective that our activity in the United States will remain an integral part of the Company's operations in the coming years."

About Elbit Imaging Ltd.

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