CDR | 13 April 2026
Dutch real estate giant fails in EUR 425 million arbitral claim against Romania
by Dippy Singh
Plaza Centers’ major dispute with Romania over a stalled development project, which has involved dual arbitrations, has seen ICSID dismiss the company’s claim on jurisdictional grounds.
A long-running, high-stakes wrangle over the stalled ‘Casa Radio’ project in Bucharest – which spurred Romania to launch its own arbitration claim against Plaza Centers for EUR 2 billion – has resulted in Plaza’s original arbitration claim failing at the International Centre for Settlement of Investment Disputes (ICSID), which rejected the company’s claim on jurisdictional grounds based on Plaza’s conduct and agreements.
Netherlands-headquartered Plaza – a property developer and investor widely recognised for spearheading the development of Western-style shopping and entertainment centres in Central and Eastern Europe (CEE) – said in a statement today (13 April): “[The ICSID] award, by majority decision, dismissed the company’s claims on jurisdictional grounds. The decision was based on findings relating to the company’s conduct and certain historical agreements referenced in the company’s public disclosures published between 2016 and 2020. The Tribunal ordered that each party shall bear its own costs related to the arbitration.”
According to the ICSID case details, arbitrator Todd Weiler delivered a partial dissenting opinion.
ICSID’s decision centres on a major spat between Plaza and Romania over the Casa Radio/Dâmbovița Center project. Plaza entered a public-private partnership (PPP) agreement with the Romanian government for the project in 2006, with the company planning to redevelop the communist-era structure into one of the largest multipurpose complexes in the region, inclusive of a shopping centre, hotel and office complex.
In May 2022, Plaza initiated ICSID proceedings against Romania under the Netherlands-Romania bilateral investment treaty (BIT), alleging that the country’s authorities had blocked the project through repeated regulatory and administrative obstructions, leading to prolonged delays and failure of the project, and breaches of Romania’s contractual obligations. While Plaza had originally claimed just over EUR 260 million, it upped the amount to EUR 425.5 million in March 2024.
Romania then filed for arbitration against Plaza at the London Court of International Arbitration (LCIA) in July 2024 to terminate the PPP contract, asserting that the project was in default. The European country increased its initial EUR 96 million claim to a mammoth EUR 2 billion – a sum that holds more significance given Plaza’s failure at ICSID. Those proceedings are still ongoing.
Plaza added in its statement: “The company is reviewing the [ICSID] award, including the reasoning and the implications of the Tribunal’s findings, assessing its position and considering all available options and next steps.”
CDR has contacted Plaza and the Romanian Ministry of Finance for comment.
In the ICSID proceedings, Plaza was represented by a Bryan Cave Leighton Paisner team in London. Romania was represented by a Squire Patton Boggs team in New York and Prague, a MPR Partners team in Bucharest, and the Romanian Ministry of Finance.
Earlier this month, San Marino was threatened with its first ICSID arbitration. The dispute stems from Bulgaria-based Starcom’s failed bid to acquire 51% of the Banca di San Marino (BSM).
