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 Property Deal Gone Sour

Mar 4 , 2024

BGI Ethiopia has officially declared the termination of the sales transaction involving its HQ near the Mexico roundabout with Purpose Black Ethiopia. The brewery cites a "lack of genuine commitment" from Purpose Black as the primary reason for the breakdown in negotiations.

A pioneering brewery in the country, BGI had strategically planned to exit the city in compliance with the updated master plan, which restricts factory operations in the city centre. The expansive 30,000sqm property, featuring an eight-storey building, a factory unit warehouse, and ample parking space, was poised for acquisition by Purpose Black. The latter had expressed interest and unveiled ambitious plans for a 115-storey building named "Ke'Geberew Tower."

Purpose Black's financing strategy for the towering project involved public share offerings, initially priced at 1.5 million Br a share. The company claimed an impressive start, claiming sales of 1,000 shares and mobilising 1.5 billion Br within the first week. The share price was doubled to 3.5 million Br for the second round, allegedly exclusively offered to a select group of 750 individuals.

The fate of shareholders now hangs in the balance, with Ermias Berhanu, the legal head of Purpose Black, remaining tight-lipped about the issue.

"We're ready to sign whenever they uphold their side of commitment," Ermias told Fortune while refraining from providing further details on the fallout with BGI.

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