The Oldest Developer of Belarus Is a Bankrupt

Manolium Engineering Company working in our country since 2003 is closing down.

Center for Winding-Up and Bankruptcy of Enterprises has become the liquidator. The Economic Court of the Minsk region has initiated bankruptcy procedures against the Russian company, ej.by informs.

Manolium Engineering is the developer of one of the first investment projects with foreign capital, which began implementation on a commercial real estate market of Belarus in 2003. The Russian businessman Aram Evakyan, owner of central-office company Manolium Processing, brought the company on the Belarusian market. He invested money raised on the sale of his petrochemical assets in a promising project, in his opinion.

In 2003 Manolium Engineering became the winner of announced by the Minsk City Executive Committee tender for construction of the former trolleybus depot in the area of Kiseleva-Krasnaya Streets then Varvashenya Street. This site was intended to become a mixed-use complex with a business centre, a hotel, shopping arcades and a residential area. First, Radisson and later Park Inn (both brands belong to Redizor Hotel Group) were considered as a hotel manager. The investment to the project totaled to $450 million. According to the conditions of the tender, the investor had to build a new depot for 220 trolleybuses in Uruchcha that was subject to donation to the city before the construction near Horizont.

The implementation of the project started from the depot in 2007, later it was suspended because of the crisis and resumed in 2011. Manolium Engineering built accomplished the depot by 80-85%, but it invested more (22 million instead of 15) than stipulated by the agreement. According to the developer, it caused the conflict with the authorities which broke the agreement with the company in 2014. In turn, the company refused to transfer ownership of a new depot demanding the return of invested funds. According to the city, the conflict situation caused the termination of the contract occurred because of the investor, which exceed the allotted time of construction and allowed overspending. The authorities also believed that could bring claims for loss of profit - the city missed complex in the city centre and taxes raised on it.