LONDON (Alliance News) - Arricano Real Estate PLC said Friday that it will be taking legal action to protect its interest in the Sky Mall Shopping centre, Kiev, Ukraine.
In August, the London Court of International Arbitration tribunal ruled that Arricano had validly exercised a call option in 2010 to acquire the remaining stake in the centre that it does not own. It currently has a 49.97% stake in the shopping centre, which was opened in 2007, with the remaining stake held by Stockman Interhold SA.
However, preceding the exercise of the call option, the company said it had been informed that that Pizma Beta LLC has entered into a second mortgage agreement for the centre with Financing and Invest Solutions BV for the centre.
Prizma Beta's major underlying asset is the centre; Finance and Invest has subsequently acquired Prizma Beta, and ownership of the title of Sky Mall has been transferred to Bank Pivdenyi, the holder of the first mortgage of the asset.
Arricano said it believes the sale of Prizma and the transfer of the title are "illegal actions", and it plans to begin legal proceedings to reverse these actions.
Shares in Arricano were untraded Friday, quoted at USD2.34.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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