Tallinn, Estonia, 2013-06-13 15:45 CEST (GLOBE NEWSWIRE) -- On 13 June 2013 Nordecon AS handed in a termination notice for the design and construction contract of apartment houses and their adjacent infrastructure (so-called Tivoli residential development) in Tallinn central area, signed on 21 May 2012 with Tivoli Arendus OÜ.
Nordecon AS sees the termination justifiable as Tivoli Arendus OÜ has not provided to this date the building permit and on 10 June 2013 Arco Vara AS, a NASDAQ OMX Tallinn Stock Exchange listed company (joint investor in Tivoli Arendus OÜ) announced that the land plots for the proposed developments had been sold. These circumstances predicate that Tivoli Arendus OÜ has renounced its duties to fulfil the contract and as a result makes it impossible for Nordecon AS to so as well.
Tivoli Arendus OÜ’s liabilities for services rendered is approximately 0.18 million euros.
Previous related announcements:
22 May 2012 - Construction contract (Tivoli residential development)
https://newsclient.omxgroup.com/cdsPublic/viewDisclosure.action?disclosureId=507185&messageId=622519
2 May 2013 - Comments on Arco Vara AS announcement (4 February 2013) regarding the termination of Tivoli residential development contract
https://newsclient.omxgroup.com/cdsPublic/viewDisclosure.action?disclosureId=540034&messageId=665156
Nordecon is a group of construction companies whose core business is construction project management and general contracting in the buildings and infrastructures segment. Geographically the Group operates in Estonia, Ukraine and Finland. The parent of the Group is Nordecon AS, a company registered and located in Tallinn, Estonia. In addition to the parent company, there are more than 10 subsidiaries in the Group. The consolidated revenue of the Group in 2012 was 159.4 million euros. Currently Nordecon Group employs more than 700 people. Since 18 May 2006 the company's shares have been quoted in the main list of the NASDAQ OMX Tallinn Stock Exchange.
Raimo Talviste
Nordecon AS
Head of Finance and Investor Relations
Tel: +372 615 4445
Email: raimo.talviste@nordecon.com
www.nordecon.com