|Globes, Tel Aviv, IsraelMcClatchy-Tribune
July 24, 2011--Park Plaza Hotels Ltd. (LSE:PPH), controlled by Eli Papouchado, is expanding from Europe to Thailand through a joint venture with Kitaria Holdings Ltd. to develop 40,000-square meter mixed-use complex at Pattaya, including a 100-room upscale hotel. The companies will own the venture in equal shares, but the owner of the site, Bali Hai Co. Ltd will receive 10 percent of the profits.
When the project is completed, Park Plaza and Kitaria will acquire 93.2 percent of Bali Hai from Elran (DD) Real Estate Ltd. (TASE:ELRE), controlled by Dori and Gadi Danker for $7 million, plus a $2.5 million loan. A Thai investor will own the rest of Bali Hai.
Earlier this month, Park Plaza bought a two-acre site in Park Royal in western London for Â£6 million on which it plans to build a hotel
Park Plaza's share price fell 8.7 percent in London on Friday to UKpound2.21, giving a market cap of UKpound93 million.
Financially troubled Elran Real Estate, a subsidiary of Elran Investments Ltd. (TASE: ELIN) reached a debt settlement with its bondholders in April, but still needs cash.
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