Under the signed preliminary investment agreement BBI Development and Liebrecht & wooD (L&W) will jointly carry out the works on the office and commerce part of Praga Koneser Center. The agreement stipulates the conditions of the cooperation, the schedule and conditions of sale after the project is completed.
We are happy to take part in KONESER project and we are confident that our existing fruitful cooperation with BBI Development is a perfect base for efficient realization of the office and commerce part of the project - says Marc Lebbe, Managing Director at Liebrecht & wooD.
On September 2nd, 2013, the investment fund of L&W will start a complex Due Diligence research. The investor is obliged to present draft report within four weeks. If its result is negative or if the parties will not reach an agreement regarding the outcomes of the research, they will be have the opportunity to withdraw from the agreement.
Liebrecht & wooD is obliged to finance the running costs of the enterprise, including design work conducted by Juvenes Projekt company dependent on BBI Developmet. Before the final investment agreement is signed, the financing will be realized as loans which will not exceed 9 million PLN.
The progress of the project depends also on obtaining relevant approvals and decisions of the financing bank as well as obtaining on time building permits and closing the sale of Nowy Plac Unii project.
Liebrecht & wooD's contribution to the project is to amount to about 55 million PLN, whereas BBI Development will provide about 21.8 million PLN. 70% of the project will be financed with a bank credit. L&W will also be able to buy the project after it is completed.
Complition of works on Praga Koneser Center is planned to take place in 2017. The value of the investment is estimated at 450 million PLN. The centre is located in Warszawa at 27/31 Ząbkowskiej Street, in the premises of former Warsaw Koneser Vodka Distillery. The project will provide over 300 flats, 22 000 square meters of office space, and 22 500 square meters of commerce and services space.
For over four years we have been successfully cooperating with Liebrecht & wooD company on a different project, thus we are happy that we will be able to join forces again to work on that exceptional project. For several years now we have been working on Koneser project which has all the necessary qualities to become the flagship of this part of Warszawa - says Michał Skotnicki, President of BBI Development.