Bicicletas Monark announced on Wednesday, the 4th, that the São Paulo Court of Justice (TJSP), in Brazil, has upheld a decision ordering BR Properties to pay a R$ 97.3 million fine for breach of contract.

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The lawsuit, filed by the bicycle manufacturer in 2008, originally sought a R$ 19.2 million fine against WTorre Empreendimentos Imobiliários for backing out of a purchase and sale agreement for a property on Rua Engenheiro Mesquita Sampaio, the current site of the Parque da Cidade development.

BR Properties became involved in the legal dispute as a "defendant" after acquiring One Properties, previously known as WTorre Properties, in a 2012 transaction with WTorre S.A., BTG Pactual bank, and One Properties.

In 2019, an appellate court upheld the ruling in favor of Monark, affirming the company's claim.

In December 2022, under the threat of further fines and legal fees, BR Properties was ordered to deposit R$ 98.7 million in court due to the collection action initiated by Monark.

At the time, BR Properties, a commercial real estate investment firm, argued in a market update that the merger agreement stipulates WTorre is responsible for the lawsuit with Monark, including its management, oversight, and any losses the company [BR Properties] might incur as a result of the case.

Sought for comment, BR Properties issued the following statement:
"BR Properties clarifies that in December 2022, the full amount related to the monitoring action filed by Monark had already been deposited in court, as informed to the market at the time through a Material Fact. Therefore, the recent court decision does not impact the Company's operations or finances in any way."*