Engel East Europe N.V., one of the leading developers of residential and mixed-used properties in Central and Eastern Europe, announced plans to withdraw from a project in the Sofia borough Gorna Banya, website investor.bg reported.
The project envisioned a residential complex consisting of 430 flats, in which Engel held a 40 per cent share in a joint venture with Heitman Group, which held 60 per cent.
As the main reason for its withdrawal the company cited that the owner of the land plot where the complex should have been built did not abide to his side of the mutual agreement.
The initial arrangement had regulated the owner of the land to keep a certain portion of it while Engel was to keep construction rights and ownership over the buildings which were to be erected on the plot.
Engel’s share of preliminary calculated value of the potential property sales was estimated at 17 million euro, while the construction was planned to begin in the second half of 2008.
Up to date, Engel has initial expenditures on the project in amount of 250 000 euro, which will be written off.
The company’ other projects in Bulgaria include Vitosha Palace, Boutique Apartments and Slunchev Dom, all located in Sofia.
