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| EMI Group acquires 75% of the 'Casa-Radio' project in Bucharest Elbit Medical Imagining Ltd. (EMI) has, together with its subsidiary company, (jointly the "EMI Group") initialed an agreement with an unrelated third party for the acquisition of a 75% interest in a Romanian limited liability company (the "Project SPV") which executed a Public Private Partnership Agreement with the Government of Romania for the execution of the "Casa Radio" Complex in central Bucharest. The Government of Romania will hold a 15% interest in the Project SPV in consideration for its granting of use rights over the project land measuring approximately 92,000 square meters (approximately 1,000,000 square feet) and the existing and future buildings for a period of 49 years. The vendors will retain a 10% interest in the Project SPV. An initial investment in the aggregate amount of approximately US$41,000,000 will be made. In addition, in terms of the Additional Act, the purchasers have undertaken to cause the Project SPV to construct an office building on an adjacent area of land for the Government of Romania at its own cost measuring approximately 13,000 square meters (approximately 143,000 square feet). Total construction costs are estimated to exceed US$500 million, which will be funded by equity capital and externally sourced construction loans. The project, which will have an estimated built up area of 360, 000 square meters (approximately 4 million square feet), will be constructed in three stages over a five to six year period, and will include a shopping and entertainment center of approximately 120,000 square meters (approximately 1,320,000 square feet) and a 300 room five star hotel. The Shreir Group of the United Kingdom will be afforded an opportunity to acquire 25% of the EMI Group's holdings in the Project SPV (namely an 18.75% interest in the project) on terms to be agreed, subject to their approval as additional investors by the Government of Romania. If this option is exercised, the EMI Group's interest in the project will be reduced to 56.25% share. write your comments about the article :: © 2006 Construction News :: home page |