The Management Board of Vantage Development S.A. ("Issuer") informs that on May 25, 2018, a subsidiary of the Issuer, VD limited liability company Flats XVII sp. K. ("Ordering party"), implementing a residential development investment of the Legnica Valley at Małopanewska Street in Wrocław ("Investment "), concluded with ERBUD SA ("Contractor"), a contract for construction works and general contracting, worth PLN 47 million net ("Agreement"). On the basis of the Contract, the Contractor was obliged to complete and complete the complex of multi-family residential buildings with an underground garage in the Legnica's Dorzecze stage III project including development and utilities, including small architecture and greenery, accompanying constructions as well as communication system necessary routes related to the non-road investment by the Employer at ul. Małopanewska in Wroclaw. Stage III of the Investment will include 204 apartments.
The completion of all works has been scheduled within 64 weeks from the date of delivery of the order to commencement of works, which order may be issued by the Ordering Party by March 31, 2019 at the latest. The ordering party is entitled until the order commencement of works, but no later than on March 31, 2019, to withdraw from the Agreement without giving a reason and without the right to charge a contractual penalty for withdrawal. If the Ordering Party does not issue an order to commence work in the above time, the Contract expires on March 31, 2019, and the Contractor is not entitled to: the right to withdraw from the Agreement, charge contractual penalties or any other claims for damages.
The Contracting Authority may withdraw from the Agreement until 31 December 2020, in the case of, delays in the implementation of individual stages of work. In the event of withdrawal from the Agreement by the Employer or the Contractor for reasons attributable to the Contractor, the Agreement provides for a contractual penalty in the amount of 10% of the total remuneration under the Agreement. The total amount of all contractual penalties charged may not exceed 15% of remuneration. The Employer is entitled to claim damages exceeding the amount of the contractual penalty on the general principles of the Civil Code.
Source: company website, investor relations, current and periodic reports.