3.90% PLAZA CENTRES PLC 19.09.2026

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Plaza Centres plc - Prospectus dated 11 August 2016

The Company

The Company’s business traces its origins to the construction of the Plaza cinema in the 1950’s. In 1986, the management of the Plaza discontinued the cinema operations and decided to develop a modern commercial centre with construction works starting in 1989 and completed in 1993. Today, Plaza Centres plc still owns and operates the Plaza Commercial Centre in Sliema which over the years has been expanded with the latest major extension completed in March 2011.

The Centre now comprises 4,500 square metres of retail area spread across four floors as well as circa 6,000 square metres of office space spread across the remaining five floors of the complex. Overall, the Plaza Commercial Centre comprises a total rentable area of circa 10,500 square meters and is estimated to receive between 1.8 million and 2 million visitors per year with August and December being the peak months.

The Company’s core revenue emanates from leases of office space and retail outlets. The lease agreements normally provide for a twenty-year tenure in the case of outlets and twelve years in the case of offices. Leaseholders pay a premium on initial letting. Lease agreements provide for regular increments in rent.

As part of its growth strategy, the Issuer acquired, through its newly established fully-owned subsidiary Tigne Place Limited, Tigné Place for a consideration of €9 million and a further €0.5 million related to acquisition costs. This property (originally developed in 1999) comprises a rentable area of 3,279 square metres comprising two floors of office space, a complex of shops and commercial establishments at ground floor and at an intermediate level as well as 100 underlying car spaces. The subsidiary will subsequently engage the Issuer to manage the property against a management fee.

Use of Proceeds

The net proceeds from the Bond issue, estimated at €8.35 million after issuance costs, will be principally used by the Issuer for the following purposes:

  • to on-lend €5 million to its fully-owned subsidiary, Tigne Place Limited, which in turn will use these funds to part-finance the acquisition of Tigne Place;
  • up to a further €3.35 million will be used to repay two outstanding bank loans in full as well as repay as much as possible of the balance outstanding on the Issuer’s €1.5 million overdraft; 
  • the remaining balance, if any, shall be applied to the general corporate funding purposes of the Group.

Status

The Bonds constitute the general, direct, unconditional and unsecured obligations of the Issuer, and shall at all times rank pari passu without any priority or preference with all other present and future unsecured obligations of the Issuer. Nonetheless, the Issuer may incur further indebtedness in the future that may rank senior to the Bonds.

Coupon

3.90%

Amount Issued

€8,500,000

ISIN Code

MT0000121203

Maturity

The bonds will mature at 100% (par) on 22 September 2026.

Interest Payment

Annually on 19 September

XD Date

04 September

Listing

Official List

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