Bauhaus gives up EUR 100 million investment in Serbia - Delta to return land in Block 53 to Belgrade

Germany's Bauhaus has given up the construction of its first retail facility in Serbia, which was supposed to be built in New Belgrade's Block 53. Given that the German partner has forgone a joint project worth EUR 22 million, Delta Holding's Delreal1 will today file a request with the city of Belgrade for the termination of its right to use the land in Block 53.

- The German partner Bauhaus yesterday notified the company Delta that it was giving up their joint project in Block 53 because it could not extend deadlines and wait for a building permit any more, which also terminates the interest of Delreal1 in the location in Block 53 - Vojislav Glavinic, director of Delta Real Estate, said at today's press conference in Delta Holding.

As Glavinic stressed, Delta is not the owner of that land because its conversion has not been finished yet, although it's been two years since the request was submitted.

- Our company had plans to build a retail park in that location, but we now give up all projects in Block 53.

He specified that the company had paid more than EUR 10 million for the right to use that land and another EUR 1 million to cover associated expenses and project design costs.

(disputable parcel in Block 53)

According to Glavinic, the German company was supposed to open five Do-It-Yourself stores in Serbia, thus committing the total of EUR 100 million to our country.

- These five hypermarkets would also create jobs for 1,500 workers - Glavinic stressed.

Glavinic denied any connection between the questioning of Delta Holding President Miroslav Miskovic by the police two days earlier with Delreal1's decision to return the parcel, claiming that the only reason was the loss of interest.

He also said that Delta would not give up the construction of Delta Planet in 2013 or any other projects.