The Management Board of Abadon Real Estate S.A. ("Issuer") informs that on January 17, 2019, the Issuer's subsidiary - Awbud S.A. ("Contractor" "Awbud") has entered into a general contractor for construction works with Murapol Westini Sp. z o.o. ("Investor"), under which it undertook to comprehensively implement a complex of two multi-family residential buildings with additional service premises along with the technical infrastructure as part of the project implemented by the Investor at ul. Cybernetics 15 in Warsaw ("Agreement").
Awbud's remuneration for comprehensive work is PLN 69.3 million net. Completion of works covered by the subject of the Agreement along with obtaining the occupancy permit should take place by November 19, 2019. The agreement provides for the possibility of increasing the scope of the subject of the Agreement and remuneration in connection with the implementation of heat distribution centers, telecommunications connections and arrangement works.
The total amount of contractual penalties whose payment the Investor may demand under the Agreement and all the titles specified in the Agreement shall not exceed 10% of the total net remuneration. The parties have the right to claim damages transferring the amount of contractual penalties on general terms. The investor has the right to terminate the Agreement without notice due to reasons specified in the Agreement, including failure to remove the breach by the Contractor, any delay in the execution of works or significant defects.
The contract is the implementation of the letter of intent between MURAPOL S.A. in Bielsko-Biała and Awbud, about which the Company informed in the current report No. 32/2018 of September 21, 2018.
Source: company website, investor relations, current and periodic reports.