DWF has successfully represented Centrum Krokus and Centrum Serenada in a EUR 30 million ICC arbitration.
Centrum Krokus and Centrum Serenada are ultimately controlled by Fonciere Euris, a majority shareholder of French conglomerate Rallye SA.
According to DWF, “the arbitration was commenced as the aftermath of failed sale transaction of two shopping centers in Krakow, Poland. The ICC tribunal ordered companies from the Johannesburg-listed NEPI Rockcastle group to pay DWF's clients, the owners of the properties, EUR 30 million as contractual penalty along with the interest and arbitration costs.”
According to the firm, the tribunal accepted the arguments that “the transaction failed since the purchaser's intentional actions prevented the fulfillment of certain agreed conditions precedent to closing. These conditions included among other things a receipt of regulatory approval to pursue the acquisition before the long stop date. The transaction documents contained a reservation of a EUR 30 million contractual penalty – the goal of which was to protect the owners and sellers of the shopping centers against any intentional action of the purchaser aimed at sabotaging the transaction – and which ultimately was awarded by the ICC tribunal.”
DWF’s team included Senior Partner Maciej Jamka, Of Counsel Bogudar Kordasiewicz, Counsel Ewelina Wetrys, Senior Associate Patrycja Treder, and Associate Dominika Sarek.
