1 July 2010 8:44
Price Sensitive shopping centers

Preliminary agreement for the purchase of a Shopping mall in Gorizia cancelled

IGD – Immobiliare Grande Distribuzione SIIQ S.p.A., one of the key players in the Italian retail real estate sector and listed on the Star segment of the Italian Stock Exchange, announces that it has cancelled the preliminary contract, signed in May 2008, for the purchase of a shopping mall in Gorizia.

The contract was cancelled as a delay in the issue of building licenses by the authorities would have lengthened the completion time thus making the project less attractive vis-à-vis the targets outlined in the IGD Group’s 2009-2013 Business Plan.

This plan favours a focus of financial resources on projects which have more stable, quicker completion times and, thus, greater cash flow generation capacity in the near term.

Following cancellation of the contract IGD SIIQ will be reimbursed the entire deposit made of  €7.35 million or 15% of the total forecast investment of approximately €49 million.