Orco Property Group will pay €13m to the Italian company Inso to settle a contract dispute over the Złota 44 residential tower in Warsaw. Inso was the project’s general contractor before it was kicked off the job by the financially troubled developer Orco. A few months later, Złota was sold to Amstar as a distressed asset for €63m. The new owner rehired Inso to complete the project in December. Under new agreement, the US investor will pay Orco €50m for the project, €13m less than the original selling price.
Construction on Złota is set to resume in February, with completion scheduled for the second half of 2016. The value of Inso’s new contract has not been disclosed.
“Re-engaging Inso was a clear choice. It has always been evident to us that the previous challenges associated with the project were in no way due to the existing work, which is of the highest quality,” said Jeff Stonger, Amstar’s vice president.
Designed by world famous architect Daniel Libeskind, Złota is one of Europe’s largest and most luxurious residential development projects. It will offer 260 luxury apartments, of which 20 percent has already been sold.
