Local developer Purpose Black has moved its 100 million birr in capital to a high-interest deposit after being forced to abandon plans for a landmark tower project in Mexico Square.
The company had hoped to construct a 115-story skyscraper offering over 1,000 luxury condominiums. It secured 1.5 billion birr in deposits through pre-purchase agreements on units priced from 1.5-3.5 million birr.
But when the desired downtown site fell through last year, Purpose Black could no longer proceed with construction, scrapping housing for pre-sold units.
In July 2023, Purpose Black Trading announced acquiring the headquarters of BGI Brewery as the new project site. But nine months later, BGI Brewery pulled out of the deal and reimbursed the 1.15 billion birr deposit.
With their flagship development terminated, Purpose Black CEO Fisseha Eshetu says the funds were placed in a 19 percent yielding deposit at Hibret Bank to earn returns on idle capital.
United Bank also clarified its role in this matter. In a statement, the bank indicated it was simply acting as custodian of the time deposit, having secured that position over other competing financial institutions.
