Orco Property Group has filed a request for arbitration against the State Property Management Agency of the Republic of Croatia, also known as AUDIO, the legal successor of the Croatian Privatization Fund .
Orco filed its request alleging numerous breaches by the fund of its contractual public-private partnership obligations since 2005. Orco’s preliminary damages estimates as a result of the fund’s alleged breaches exceed €32m.
The claims relate to underlying title disputes to properties on the island of Hvar in Croatia held through the Croatian company Suncani Hvar, which is listed on the Zagreb stock exchange. Orco owns some 55.6% and the fund around 31.7% of the shares in Suncani Hvar.
Orco said: “Both Orco and the fund are focused on the continuing success and operations of Suncani Hvar and do not anticipate these parallel arbitration proceedings impacting this commitment in any way. Legal teams from both sides will work on the arbitration, while the finance, operations and hotel teams will continue to make Suncani Hvar and the island of Hvar the leading tourist destination in Croatia.”
