Orco, the Prague-traded debt-ridden property group, sinks back into loss in 2011 with its overall debt to asset ratio worsening. The group is seeking a deal with a key group of bondholders to translate their debt into equity and is looking to sell off more assets to cut the debt burden. If it is not successful in those aims the outlook looks bleak.
Prague-listed Orco Property Group has announced its unaudited financial results for 2010, showing a 25 percent increase in revenues to €315 million. Development revenues came in at €183 million due to sales of large commercial developments such as Leipziger Platz in Berlin for €89 million.
The ambitious urban regeneration projects some developers planned in the CEE region during the property boom years have had varied fortunes. One such showcase project, Orco’s €3 billion Bubny redevelopment in Prague, show signs of moving forward; the developer says there’s always been a plan in place to split the project into plot sales, JVs and its own development.