Ursa Smart-city cb7 img ursapark img

20/2019 Conclusion of the agreement for the performance of construction works and the amended to the investment agreement

The Management Board of CPD S.A. (the Company, the Issuer) informs about signing by its subsidiary as the principal on 16 July 2019 with the company Unibep S.A. (the Contractor) of the contract for construction works in general contracting system at Dyrekcyjna, Quo Vadis and 47KD-D streets in Warsaw (the Contract) within the framework of URSA HOME project (the Investment). The Investment is a joint construction venture consisting in joint realization by the companies from the Company’s capital group and members of Unibep capital group (Unibed Group) of the complex of blocks of flats with shops and ancillary infrastructure (the Investor Agreement). Amendment of the investment contract for realization of joint construction ventures was notified by the Company i.a. in the current reports No. 39/2018 and 40/2018.

The principal is URSA PARK Smart City Sp. z o.o. spółka komandytowa with the corporate seat in Warsaw, in which the limited partner is the Issuer’s subsidiary Challange Eighteen Sp. z o.o. and the unlimited partner is the Issuer’s subsidiary Smart City Sp. z o.o. (the Principal). The subject matter of the contract is realization of the Project 2 within the meaning of the Investment Agreement, i.e. residential estate consisting in construction of 3 blocks of flats with underground garage and land arrangement. The works will be carried out in two stages. The erected blocks of 7 over-ground levels will contain in total 341 flats, 17 shops and 342 parking places.

The 1st stage is expected to start in 3rd quarter of 2019 and to end in 4th quarter of 202. The 2nd stage expected to start in 3rd quarter of 2019 and to end in 1st quarter of 2021.

The fee for completion of the 1 stage amounts to ca. zł 41,3 million net and for completion of the 2nd stage ca. zł 43,50 million net.

The contract provides for a possibility to charge contractual penalties by the Contractor to the Principal for waiver of the contract caused by the Principal’s fault at 10% for a given stage. The provision on contractual penalties does not prevent the Contractor from claiming compensation higher than the contractual penalties on common terms.

Other contractual provisions, including security of proper implementation of the Contract and the possibility of waiver, do not differ from typical provisions of such contracts.

The Management Board of CPD further informs of execution on 16 July 2019 of the annex to the investment contract (single text on 26/10/2018) concerning joint realization with Unibep group of Ursa construction investment. The annex changes the expected fee of the Contractor for its construction works in Ursa Home investment and increases the share in profit of CPD’s subsidiary for participation in the company that handles the investment.

 

Legal basis:

Article 17.1 MAR – Inside information

 

Signatures of the persons entitled to representation:

Elżbieta Wiczkowska, President of the Board, July 2019

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