TALLINN – Listed Estonian construction group Merko Ehitus announced on Monday that AS Merko Ehitus Eesti, a company of Merko Ehitus group, and GVP Invest Estonia OU have terminated, by mutual agreement, the construction contract for building a hotel at 49 Tartu Road in Tallinn, entered into on Feb. 12, 2020.
After the pandemic started, the rapidly changing situation on the construction and accommodation markets did not favor starting the construction works under the terms of the contract. Therefore the parties decided to terminate the contract, Merko Ehitus informed the stock exchange.
The contract of Feb. 12, 2020 was concluded for the construction of a six-story hotel building to start operating as the first Hampton by Hilton hotel in the Baltic states.
The contract value was approximately 8.9 million euros, plus value added tax. The building was scheduled to be completed in December 2021.
At present a retail compound converted from a Soviet-era cinema lies on said plot belonging to GVP Invest Estonia, a holding of Mindaugas Bagdonavicius, minority shareholder of Maxima owner Vilniaus prekyba and former CEO of Maxima Grupe.