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Croatian builder ING-GRAD d.d. has agreed the key elements of a construction contract worth an estimated €50 million excluding VAT for Allegheny Park Residence Tower 1 in Zagreb’s Zavrtnica district. The arrangement is not yet a completed, effective contract: ING-GRAD’s supervisory board must approve the agreements, and specified contractual conditions must be met. The company also disclosed a separate €16 million non-purpose, collateralized loan to a related company, giving ING-GRAD both a contractor role on the tower and a lender role within the same investor group.
What did ING-GRAD agree for the €50 million deal?
ING-GRAD said it had agreed the key elements of a construction contract with Allegheny Park Residence d.o.o. for the first tower in the Allegheny Park Residence development. The estimated construction value is €50,000,000 excluding VAT, according to ING-GRAD’s 2026 filing.
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The filing describes agreed terms rather than a signed contract. Before the agreements can be signed and enter into force, ING-GRAD’s supervisory board must approve them and the specified contractual conditions must be satisfied.
SEEbiz reported on 23 October 2026 that the contracts had not yet been signed. That distinction matters: the announced value identifies the planned scope of the arrangement, but it is not confirmation that the full €50 million has been booked as completed or irreversible revenue.
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Is the ING-GRAD Zavrtnica tower contract signed yet?
No. The public information available on 23 October said the contracts were still unsigned. The next formal steps are supervisory-board approval, execution of the agreements and fulfillment of the conditions written into them.
ING-GRAD said it would continue to report promptly on information connected with the agreements in accordance with applicable regulations. Its filing stated: “O svim informacijama vezanima uz navedene ugovore Izdavatelj će, kao i do sada, pravovremeno izvijestiti javnost sukladno propisima.” In English, the issuer said it would keep the market informed about the agreements as required by regulation.
What is the separate €16 million loan?
The same filing records a different transaction: a €16,000,000 non-purpose, collateralized loan. ING-GRAD would be the lender and Allegheny Financial d.o.o. the borrower.
Unlike the €50 million arrangement, this is a financing transaction rather than a construction contract. “Non-purpose” means the disclosed loan is not restricted in the filing to a stated project expenditure, while “collateralized” indicates that security is provided for the lender. The filing still places the transaction within the same approval and contractual-condition framework described for the agreements.
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How do the two ING-GRAD arrangements differ?
| Arrangement | Counterparty | Value | ING-GRAD’s role | Reported status |
|---|---|---|---|---|
| Tower 1 construction contract | Allegheny Park Residence d.o.o. | €50,000,000 excluding VAT (estimated) | Contractor | Key terms agreed; contracts not signed as of 23 October 2026; supervisory-board approval and contractual conditions required |
| Corporate loan | Allegheny Financial d.o.o. | €16,000,000 | Lender | Disclosed with the agreements and subject to the stated approval and contractual conditions |
Bloomberg Adria characterized the structure as a dual contractor-lender role. ING-GRAD is therefore not only positioned to build the first tower but also to provide financing to a related company in the investor group. The two figures should not be added together as construction revenue: one is an estimated, VAT-exclusive building contract and the other is a loan principal.
What is planned for Allegheny Park Residence?
Investor information cited by SEEbiz describes a wider development of 30,768 square metres with four residential towers, each planned at 23 floors, and 616 apartments. The scheme also includes underground garages and recreational, hospitality and other supporting facilities.
Do these 3 things before closing this tab:
1Fix the driver behind crashes, sound loss and screen glitches2Repair Windows errors before they cause bigger problems3Scan for outdated or missing drivers - takes under a minuteThe development is planned in four phases. SEEbiz reported that a building permit for the first tower was active, and the €50 million construction arrangement relates specifically to that tower rather than automatically covering the whole four-tower plan.
Why the first tower is the relevant phase
A phased project can produce separate contracts, approvals and financing decisions for each stage. The announced agreement therefore gives a monetary indication for Tower 1, but it does not establish the value, contractor or timing of later phases. No separate contract amounts for Towers 2 through 4 were disclosed in the cited accounts.
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What should investors and project watchers monitor next?
- Supervisory-board approval: ING-GRAD must approve the agreements before the disclosed terms can proceed.
- Contract execution: the parties must sign the construction and financing documents.
- Conditions to entry into force: the specified contractual conditions must be met.
- Further regulatory disclosure: ING-GRAD has said it will report material information about the agreements promptly.
- Scope confirmation: later announcements can clarify the final Tower 1 price, VAT treatment, timetable, guarantees and the terms of the €16 million loan.
Until those steps occur, the €50 million figure should be read as the estimated value of agreed key terms, not as proof that construction has started or that the contract is fully effective.
Why does the announcement matter for Croatia’s construction market?
The disclosure links a major Zagreb residential project to a Croatian contractor while showing that the contractor may also finance a related company. It provides concrete transaction and project-scale figures—€50 million for Tower 1, €16 million for the loan, 30,768 square metres, four towers and 616 planned apartments—but it does not provide an independent estimate of market size, job creation or the project’s eventual economic impact.
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The most immediate significance is corporate: ING-GRAD would combine execution risk as builder with credit exposure as lender. The final legal documents and subsequent regulatory updates will determine how those commitments are structured and when they become effective.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Frequently Asked Questions
What does “excluding VAT” mean for the €50 million figure?
The stated €50 million is the estimated construction-contract value before value-added tax. The filing does not state the VAT-inclusive total, so the amount payable after tax cannot be calculated from the disclosed figure alone.
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Does the €50 million cover all four Allegheny Park Residence towers?
No. The disclosed arrangement concerns Tower 1. The broader plan has four towers, but no contract values for the other three phases were reported in the cited accounts.
Who is borrowing the €16 million from ING-GRAD?
Allegheny Financial d.o.o. is the borrower, while ING-GRAD d.d. is the lender. The loan is described as non-purpose and collateralized, making it distinct from the Tower 1 building contract.
What would make the agreements effective?
ING-GRAD’s supervisory board must approve them, the documents must be signed, and the contractual conditions specified in the agreements must be fulfilled. Public reporting said the contracts were still unsigned on 23 October 2026.
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