Chinese Investor Fails to Make Payment for Former Communist Political School

Total Croatia News

ZAGREB, January 3, 2020 – After the Zhongya Nekretnine company failed to pay, within an extended deadline, the remaining amount of money for the purchase of the building in the Croatian town of Kumrovec, which used to house a Communist political school and is now the Hotel Zagorje, the company stated on Thursday that it hadn’t given up this acquisition.

The company said in a press release that partners of the investor, Mrs. Jiang Yu, had not managed to allocate the money within the set deadline, for technical reasons. They are seeking models to transfer the required amount to Croatia as soon as possible, reads the press release.

The company is also ready for a new round of talks with the Croatian government, and says that the delays are due to the fact that the Chinese government is tightening control of the transfer of capital out of China. In this context it mentions a trade war between China and the USA.

The press release, signed by director Mario Rendulić, also says that a statement issued by the Croatian State Assets Ministry on Thursday afternoon underlines that a final decision on the future of the Hotel Zagorje rests with the Croatian government.

In its statement, the ministry notes that the investor failed to pay the remaining amount by 31 December.

In mid-June the government decided to sell the Hotel Zagorje, which used to be a Communist political school during the time of the former Yugoslavia, to Zhongya Nekretnine as the sole bidder, for 14.09 million kuna (1.9 million euro).

The new owner was expected to pay the purchase price within 30 days upon the conclusion of the sales contract. After the company failed to do so within the initial deadline, the government allowed the bidder to pay the required amount until 31 December 2019.

In the event that the bidder missed the new deadline, the advance payment of 598,000 kuna would be retained by the government.

The state-owned Hotel Zagorje, which is in a dilapidated condition, covers 27,000 square metres.

More business news can be found in the dedicated section.


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