Management Board of CPD S.A. (hereinafter the “Company”) with regard to the current reports 23/2014 and 6/2015 concerning the establishment by the companies CPD S.A. and UNIBEP S.A. of joint enterprise Smart City spółka z ograniczoną odpowiedzialnością spółka komandytowa (hereinafter “Smart City”) in order to realize a developer investment project in the district of Ursus in Warsaw, would like to inform that on 8 October 2015 the agreement was made with UNIBEP S.A. for the performance of construction works as a general contractor (the “Agreement”).
Under the terms of the Agreement, Smart City commissioned to UNIBED S.A. the performance as a general contractor of the works for the construction of the residential project with the name of URSA – Smart City comprising the construction of four modern buildings designed specifically as regards their functionality, along with the underground garage, development of the area as well as the necessary accompanying works. Investment project shall be located on part of the plot of land with the survey number 95 from the zone 2-09-09 at Hennela street in Warsaw – District of Ursus.
Works shall be performed in two stages and as a result of conclusion of the Agreement the realization of the first stage was ordered as part of which one residential building with underground garage under four buildings (with the total of 359 parking spaces) shall be constructed. 181 apartments and 13 commercial premises will be located in the 7-storeys building.
Moreover the decision to of the second stage may made by the Smart City at any time by notifying the UNIBEP at least 2 months prior to the planned commencement date for construction of this stage.
First stage shall be completed in the period between October 2015 – February 2017. And the deadline for the possible completion of the second stage was determined as 59 weeks from the commencement of works as part of that stage.
Lump-sum remuneration due to UNIBEP S.A. for the completion of the first stage of the investment project amounts to 43.7 million zlotys net. And the remuneration for the possible realization of the second stage was set as 23.8 million zlotys net.
Agreement provides for the possibility to encumber UNIBEP S.A. with contractual penalties, among others, for delays in the performance of the Agreement as well as for the possibility of withdrawal by Smart City from the Agreement under the terms and conditions as specified in the Agreement however the penalties shall be charged regardless. Provision for the contractual penalties does not deprive Smart City of its right to claim compensation exceeding the amounts of contractual penalties up to the value of full damage under the general terms.
Other provisions of the Agreement, including the possibility to withdraw from the Agreement do not differ from the standards applied commonly for these types of agreements.
For the purposes of reporting the Company uses the criteria for determination of material agreements on the basis of §2 par. 1 subpar. 44 letter b) of the Regulation – i.e. 10% of the value of the sales revenue of the Issuer’s capital group for the period of the last 4 financial quarters.
Agreement meets the above criteria of materiality.
Legal basis:
§ 5.1.3) in connection with § 9 of the Ordinance of the Minister of Finance of 19 February 2009 on current and periodic information passed by issuers of securities and on terms for consideration of information required under laws of states that are not Member States as equivalent.
Signatures of persons authorized to represent the Company:
Elżbieta Donata Wiczkowska, President of the Management Board, 9 October, 2015
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