Local media: Euromall claims damages of EUR 7 mln from Immofinanz for a residential project in Bucharest

Real estate developer Euromall claims damages of over EUR 7 million from Austrian group Immofinanz, saying the group didn’t respect the obligations assumed in a partnership agreement for a residential project in Baneasa area, northern Bucharest. According to local news agency Mediafax, the developer has filed, through an investment vehicle, Baruba Trade & Invest Limited, an arbitration request to the Court of Arbitration of the Chamber of Commerce and Industry, asking a compensation of some EUR 7.3 million. The amount represents the damage suffered by Baruba after Immoeast (now Immofinanz) didn’t respect the obligations assumed under the partnership agreement on IE Baneasa Project, concluded between the two parties in 2007. According to the request, the two companies started working together to develop a residential real estate project in Baneasa area in 2007, when they formed the company IE Baneasa Project, owned in equal proportions, reports Mediafax. Back in 2007, the two companies said they plan to build 1,000 houses with a EUR 150 million investment. Three years later, the investors decided to suspend the project until December 2012, given the difficult situation on the real estate market. “Right before the end of the suspension period, the parties have started to establish a practical way to develop the project. Baruba representatives’ efforts to continue the project were blocked due to the non-participating attitude and the lack of cooperation of Immoeast, which gave up the pursuit of the two parties’ common goal - the implementation of the project,” reads the request, quoted by Mediafax. Also, Euromall representatives stated that Immoeast also tired to exclude Baruba from the Baneasa real estate project. Irina Popescu, irina.popescu@romania-insider.com