News
Engel East Europe Gorna Banya project stopped
Engel East Europe N.V. has decided not to proceed with the Gorna Banya project to develop 430 residential units in Sofia, Bulgaria, reports news agency Dow Jones. The company's share in the estimated sales value was 17 mln euro and construction was scheduled to start in the second half of 2008. Engel holds a 40% interest in the project through a joint venture with an affiliate of the Heitman Group which holds the other 60%, it said. The joint venture had entered into an agreement with the land owner, whereby the land owner retained an interest in the land but ownership of the construction rights and buildings erected on the land would be transferred to the joint venture. The decision not to proceed with the project follows the failure of the land owner, despite being granted an extension, to fulfill certain contractual obligations to the joint venture, Engel was quoted as saying in a filing with the London Stock Exchange. The company's share of the costs incurred by the project to date is 0.25 mln euro which will be written off. Source: http://news.dnevnik.bg/