Netherlands’ Plaza Centers to divest $67.7 mln stake in Casa Radio project

Dutch property developer and investor Plaza Centers NV has inked a non-binding letter of intent with Israeli peer AFI Europe NV for the divestment of its 75 percent holding in the Casa Radio project in Romania for 60 million euros ($67.7 million).

The Casa Radio project, a shopping mall and hotel project, is 75 percent owned by Plaza Centers with the remainder held by Romanian authorities and an unnamed private investor.

Under the pre-sale agreement, AFI Europe will make a non-refundable down payment of $225,850 and after 15 months, a sale agreement will be inked, where the rest of the payment will be made.

The divestment is subject to certain conditions, including completion of due diligence, regulatory approval, and confirmation of a 49-year lease period to be dated from 2012 at the earliest.