Israeli Elbit Imaging has signed a definitive sale and purchase agreement for the sale of its entire shareholding – 98.2 percent of the outstanding share capital – in Bucuresti Turism, the company which owns the 5-star Radisson Hotel, according to a press release sent to the US NASDAQ stock exchange.
The property value was set at EUR 169.2 million and is considered the biggest transaction of the year in real estate.
The agreement has been signed with an acquisition vehicle jointly owned by two international investment funds.
”The estimated net proceeds to be derived from the transaction is expected to be approximately EUR 81 million. Part of the net proceeds equal to EUR 8 million will be used to finance a vendor loan which has been granted for a period of 3 years, bearing interest at the rate of 5 percent per annum,” the release reads.
Elbit Imaging announced earlier this year that it has put on sale the most important asset it holds on the local market. Opened in 2008, following an investment of EUR 70 million, the former Bucuresti Hotel, is operated under the Rezidor brand – Radisson Blu.