AFI Europe, the owner of a major mixed-use complex in western Bucharest, is still interested in taking over the majority stake (75%) in Casa Radio, a communist-era abandoned building along Dambovita shore close to the downtown area, but the building is subject to two legal debates involving Plaza Centers, the private partner in a Public Private Partnership Project visibly failed.

Plaza Centers, which wants to sell its 75% stake in the project, filed a request for arbitration at the World Bank’s arbitration court ICSID in 2022 and is seeking compensatory damages for losses incurred due to the delay in the Casa Radio project, Economica.net reported.

In turn, the government approved a memorandum by which it was decided to terminate the PPP Contract with Plaza Centers by introducing an arbitration action at the Court of International Arbitration in London and mandated the National Investment Company (CNI) to represent the Romanian State in the arbitration procedure regarding the termination of the contract.

Plaza Centers had committed to erecting a giant real estate project on the land of about 92,000 square meters, which also includes the building known as Casa Radio. In 2013, the company filed for insolvency to protect itself from creditors.

iulian@romania-insider.com

(Photo source: Tsyhun/Dreamstime.com)