A fresh breakthrough in Mennica Legacy Tower case – Mint of Poland makes an offer to buy the remaining 50% stake
On 20 December 2022, the Mint of Poland made an offer to buy the remaining 50% of shares in Mennica Legacy Tower, with the total value of the building estimated at EUR 401 million. The transaction is primarily intended to save the SPV that is the operator of this prestigious office complex in the center of Warsaw from insolvency while providing funds necessary to pay off the bondholders of Golub GetHouse. Golub GetHouse currently holds a 50% stake in the SPV, which was financed by retail investors.
Mint of Poland as the guarantor of payout for retail bondholders
As a condition of the transaction, the Mint of Poland is required to draw up a distribution plan of the proceeds which will be ultimately deposited in an escrow account. Although the Mint of Poland has no obligations towards Golub GetHouse bondholders, it considers the issue of creating a mechanism to settle its Partner’s liabilities towards them as key.
– We are currently the only guarantor for the stabilization of the difficult situation at Mennica Legacy Tower and securing the interests of retail bondholders. We have the financial capacity and want to restore the project’s good name. The decision now lies with the key players on the other side – Cezary Jarząbek, and John and Philip Radziwiłł – as their countersignatures are required for the agreement to go into effect – says Katarzyna Budnicka, CEO and President of the Management Board, Mennica Polska S.A.
The only way out of the stalemate
The offer of the Mint of Poland is currently the only proposal which will allow to quickly normalize the project’s situation. Particularly now as the loan taken out to partially finance the investment has been made immediately due and payable and the Mint’s current offer is higher than the one made in August last year. This is primarily due to the end of rent-free periods for the building’s key tenants.