check mdt company news , page-3

Elbit Imaging Announces an Investment in the US Real Estate Market via Macquarie DDR Trust

TEL AVIV, Israel, April 22, 2010 /PRNewswire-FirstCall/ -- Elbit Imaging Ltd. (NASDAQ: EMITF) ("Elbit") announced today that its joint subsidiary, EPN GP, LLC ("EPN") (a real estate investment venture jointly formed by Elbit Plaza USA, L.P. (a subsidiary of Elbit and Plaza Centers N.V. (LSE: PLAZ) (WSE: PLAZ/PLAZACNTR)) and Eastgate Property LLC ("Eastgate"), has entered into a series of agreements for investment in Macquarie DDR Trust ("MDT" or the "Trust"), an Australian publicly traded trust (ASX:MDT; (ARSN 106 570 352)), which holds and manages two US REIT portfolios (Macquarie DDR US Trust Inc.("REIT I") and Macquarie DDR US Trust II Inc. ("REIT II")) with 41 operating retail properties in REIT I and 37 operating retail properties in REIT II. Altogether approximately 13.3 million square feet of leaseable area, mainly of community shopping centers throughout the United States (the "Investment Agreements").

Under the Investment Agreements, (i) MDT completed a Australian$9.5 million (approximately USD 8.8 million) private placement ("Placement") to EPN representing 15% pre-placement; (ii) MDT shall initiate a proposed recapitalisation of MDT by way of a pro rata entitlement offer ("Entitlement Offer") to raise approximately A$200 million (approximately USD 185.5 million) ("Proposed Recapitalisation"). The Entitlement Offer is conditional on MDT entering into definitive underwriting agreements with professional underwriters and receiving acceptable standstill agreements from the Trust's lenders and derivative counterparties. EPN will participate in and be a sub-underwriter to the Entitlement Offer; (iii) EPN has acquired from Macquarie Group Limited 2.6% principal unitholding in the Trust; and (iv) following the completion of the Entitlement Offer, EPN shall acquire from Macquarie Group its 50% interest in the entity which is the owner of the Responsible Entity of the Trust ("US Manager").

It is intended that the proceeds of the Placement and Proposed Recapitalisation will be used for the repayment of the amounts outstanding under MDT's unsecured debt and derivative liabilities and other senior debt, and provide enhanced balance sheet stability to MDT.

Following the Placement and acquisition of Macquarie's interest in MDT, EPN's holding in the Trust will be approximately 15.3%. This holding may increase as a result of the Proposed Recapitalisation.

Half of EPN's investment under the Investment Agreements shall be financed by Eastgate and half by Elbit and Plaza. Elbit and Plaza shall finance their portion in the investments in equal shares.

Private Placement

Under the Placement, MDT has issued to EPN 141.48 million new units at a price of A$0.067 per unit and A$9.5 million (approximately USD 8.8 million) in the aggregate, reflecting a premium of 4.7% to the last closing price of A$0.064 on March 25, 2010. The Placement represents 15% of the Trust's units pre issue. The units issued in the Placement will rank equally with existing MDT units.

Proposed Recapitalisation

In addition to the Placement, the Trust proposes to conduct a pro rata entitlement offer to raise approximately A$200 million (approximately USD 185.5 million). EPN will participate in and be a sub-underwriter to the entitlement offer. Other substantial unitholders in the Trust will be offered the opportunity to participate in the sub-underwriting of the offer. EPN's final ownership level in the Trust will depend on the participation level of MDT's other unitholders in the offer and the extent of other unitholders participation in the sub-underwriting of the offer.

The Entitlement Offer is conditional on the Trust entering into definitive underwriting agreements with professional underwriters and receiving acceptable standstill agreements from the Trust's head lenders and derivative counterparties.

Full details relating to the Entitlement Offer will be set out in a product disclosure statement for the Entitlement Offer to be issued by MDT to its unitholders.