investor relations
Subject: Conclusion of a significant contract for construction works by a subsidiary
Legal basis - Article 17 section 1 of MAR concerning inside information.
Contents of the report:
The Management Board of J.W. Construction Holding S.A. with its registered office in Ząbki ("Company") hereby informs, with reference to the information provided in the current report No. 23/2021 of May 18, 2021, that on June 22, 2021, a subsidiary of the Company, the company Chorzów Development Spółka z o.o. with its seat in Ząbki ("Investor") concluded an agreement with PORR S.A. with its registered seat in Warsaw acting as the General Contractor ("Contractor"), on the basis of which it commissioned the construction of a property in Chorzów at the Kościuszko street in the general contracting system, including obtaining the final occupancy permit for the investment of the Housing and Service Development Complex named "Osiedle Kościuszki" (Phase I and II) along with the external infrastructure necessary for the functioning of the said complex.
The Parties established the following contractual terms:
The deadline for obtaining the final occupancy permit is June 22, 2023.
The Contractor's remuneration was determined during negotiations in connection with the detailed agreement of contractual terms, as a lump-sum remuneration based on the scope of works, in the amount of PLN 60,200,000.00 plus VAT at the rate applicable on the date of invoicing.
The contractor granted the Investor a 72-month warranty and guarantee for the works performed, the term of which starts from the date of obtaining the occupancy permit.
The contractor will secure the performance of the contract and the period of the warranty and guarantee for the work performed by providing the Investor with bank guarantees in the amounts commonly used for this type of contract.
Due to the fact that the Investor is a special-purpose vehicle in the Capital Group of the Company, it was stipulated in the contract that the Company would provide a surety for the Contractor's debts from the Investor up to the amount of the entire remuneration under the contract valid until December 31, 2024. The surety will be secured by enforcement pursuant to article 777 § 1 section 5 of the Polish Code of Civil Procedure up to the amount of PLN 10,249,067.00 valid until December 31, 2024.
In the remaining scope, the terms of the Agreement do not differ significantly from those commonly used for this type of agreement.
The basis for submitting this report is the significance of the concluded agreement for the Company's operations in terms of value and purpose.