This means that 400 apartments cannot be delivered, reveals the
financial report by ECDC investment fund, which holds 50% of the
project.
Asmita developers have been involved in an over EUR7 million
lawsuit with Strabag for several years. Although there have already
been two rulings (one favoring Strabag and the second Asmita), the
suit has not ended and works are unlikely to be completed until an
agreement is reached.
Under the circumstances, Asmita has been without a sales team since spring, and defaulted on the over EUR70 million loan taken out from Alpha Bank.
By late March, 314 of the 758 apartments had been sold, with
pre-contracts being signed for another 42 units.
“Early 2011, Asmita site operations were suspended, amid
negotiations with the lender and the project partner to find the
best way to restructure the loan in default and continue the
project quickly. Until these negotiations are completed, the
project cannot make any progress,” said ECDC representatives, an
investment fund that has reached capitalization of below GBP5
million on the London Stock Exchange, from over GBP100 million in
2007.