Israeli based Elbit Imaging has announced that it has signed a non binding letter of intent to sell its 98.2 percent shareholding in the Radisson Complex in Bucharest based on a property value of around EUR 177.5 million, a statement filed with the NASDAQ stock market on Friday informs.
The purchaser is an undisclosed investment fund and the deal, which is subject to the approval of the Romanian competition authorities, should be completed within three to four months.
The net proceed to the company will be calculated following the repayment of the secured bank loan, customary working capital adjustments and other agreed adjustments as of the closing date, the statement also reads.
The hotel was opened in September 2008 and is located in the center of Bucharest and since then constituted a significant part of the exclusive hotels market in Bucharest. Elbit Imaging controls 98.2 percent of Radisson Complex through local company Bucuresti Turism.
The Radisson Blu hotel is the leading five-star hotel with 487 rooms, while the newly renovated four star Park Inn Hotel has 276 rooms and 7,200 sqm of commercial space that includes the biggest Casino in Bucharest, a fitness centre and fashion stores.
The Radisson Blu hotel and the Park Inn hotel are managed by Rezidor, which is part of Carlson Rezidor Hotel Group, the management agreement is set to expire in 2036, according to the information available on the website.