Nepi Rockcastle begins arbitration over sale of Romanian portfolio
It signed a non-binding memorandum of understanding with AFI Europe on Sunday, property group says
Property group Nepi Rockcastle has entered into a non-binding agreement and initiated arbitration proceedings over the sale of its Romanian office portfolio, it said on Monday.
The group signed a non-binding memorandum of understanding with AFI Europe, a wholly owned subsidiary of Africa Israel Properties, on Sunday, after a breach of agreement on the sale of the portfolio earlier this year, the group said. “Pursuant to which, under certain conditions, the parties may terminate the arbitration and enter into a new binding agreement regarding the disposal, based on the pricing and other terms of the original transaction subject to any requisite amendments required in relation to the payment dates and completion,” it said.
The group owns shopping malls in Eastern and Central Europe.
Nepi Rockcastle said it has began arbitration proceedings with AFI Europe regarding a request by Nepi Rockcastle that AFI Europe should pay the contractual guarantee. The latter contested this and requested specific performance of the disposal, Nepi Rockcastle said.
The group said in December that it would sell its the portfolio for €290m (R5.5bn) as it plans to focus on retail.
Nepi Rockcastle said in May that the disposal of the Romanian office portfolio had not been completed due to AFI Europe’s “obligations related to the completion procedures not being fulfilled”.
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