A Federal Higher Court has concluded the legal dispute between BGI-Ethiopia and Purpose Black, putting an end to a planned 115-storey skyscraper project that many had invested in.
The court ruled that the conflict over property acquisition should be resolved through mediation, and both companies have agreed to settle out of court. As part of the settlement, BGI-Ethiopia has refunded Purpose Black one billion birr, lifting the injunctions on over one billion birr in BGI’s accounts.
The dispute originated from BGI’s agreement to sell its 30,000 square meter property near Mexico Square in Addis Ababa to Purpose Black for five billion birr. However, BGI terminated the agreement in March, accusing Purpose Black of failing to make the required payments on time and deliberately delaying the sale. Purpose Black had only paid an initial one billion birr.
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BGI felt Purpose Black lacked genuine commitment and canceled the deal. As per the court’s decision, Purpose Black has agreed to withdraw from the property and abandon its plans for a residential project there. BGI plans to find a new buyer for the site.
Purpose Black had initially aimed to finance the property deal through share sales, offering future ownership in a proposed tower.
