The Korean Commercial Arbitration Board has decreed that Hanil Engineering and Construction Co, the developer behind the stalled US$240 million Gold Tower 42 Project, was in breach of contract after failing to provide finances to complete the development.
The KCAB had demanded Hanil pay US$30 million in damages to the project owners, South Korean firm Yon Woo Cambodia, financier Daehan, according to the company’s legal representatives, local English language newspaper The Cambodia Daily reported today.
Construction of the mixed-unit skyscraper, slated to be the Kingdom’s tallest building, came to an indefinite standstill, leaving it only 31 storeys tall.
“At this point, they [Yon Woo] can now make decision on what to do with the project,” Yon Woo representative lawyer Yoo Jeoung-hoon said.
While Hanil officials told The Daily last month that it wanted to see the project through, Yoo said that Yon Woo are looking to replace the construction firm.
“Yon Woo will have to decide when to restart [Gold Tower 42]but at this moment, Hanil is still holding the property, so if they do not leave, Yon Woo will have to take legal action against them,” he added.
Yon Woo should make it a priority to restart the development, according to CBRE country manager David George.
“It would be fantastic and bring a big sense of confidence in the Cambodia property market and reignite interest amongst investors,” he said.