ClickCease
Find apartment

Conclusion of a general contractor agreement by the Issuer’s subsidiary


With reference to Current Report No. 74/2016 of 14 July 2016, the Management Board of LC Corp S.A. (the "Issuer") reports that today (i.e. on 26 June 2017), the Issuer’s subsidiary – LC Corp Invest XVII Spółka z ograniczoną odpowiedzialnością Projekt 22 Sp. k. with its registered office in Wrocław (the "Investor"), in which the Issuer has, directly and indirectly (through its subsidiary LC Corp Invest XVII sp. z o.o.) the sole shareholder, concluded a general contractor agreement with Budimex S.A. with its registered office in Warsaw (the "General Contractor"), an entity unrelated to the Issuer, for a development project to construct an office and service building with elements of land development, located in Warsaw at ul. Skierniewicka/Siedmiogrodzka (the “Agreement”), on the following terms:

  1. Remuneration: up to a maximum of PLN 125,020,000.00 net (including the variable part of the remuneration for fit out works up to a maximum of PLN 40,959,000.00 net),
  2. Works commencement date: the day following official handing-over of the construction site and the documentation enabling the General Contractor to start the works, not later than on 4 July 2017,
  3. Works completion date along with obtaining the occupancy permit: 24 months of handing-over of the Construction Site, not later than on 4 July 2019,
  4. Collateral for the Agreement: 5 blank promissory notes with a blank promissory note agreement submitted by the General Contractor as collateral for the proper and timely performance of the Agreement, in the total amount equal to 10% of the fixed net remuneration and 5 blank promissory notes with a blank promissory note agreement submitted by the General Contractor as collateral for the removal of defects and failures during the period of guarantee and warranty, in the total amount equal to 5% of the fixed net remuneration.
  5. The total amount of liquidated damages stipulated in the Agreement with regard to penalties for untimely fulfilment of obligations by the General Contractor shall not exceed 10% of the value of the fixed remuneration, notwithstanding the parties’ right to claim compensation in excess of the contractual penalties.

 

The information about the conclusion of the above Agreement is considered by the Issuer as confidential within the meaning of Art. 7 of the MAR.