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.
A €53 million deal to sell off a large part of its Russian property portfolio has been sealed by debt-burdened property developer Orco. The deal is parrty of the ongoing moves by the company to concentrate its activities on Czech, Polish, Hungarian and German real estate markets.
Prague-listed property group Orco paid the price for its ongoing divestments to cut debt with revenues shrinking considerably in the first half of the year and the group falling back into the red to the tune of €7.5 million. Orco boss Jean-Francois Ott said the financial situation continued to be difficult but saw a silver lining in its concentration on better performing Central European markets.
Debt burdened property group Orco has announced another step in its moves to cut its debt burden and concentrate on key markets. The company said Wednesday it had agreed to sell most of its Russian property portfolio for €53 million. The property group wants to focus on Prague, Berlin, Warsaw and Budapest.
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.
Orco Property Group’s joint venture with the Croatian Privatization Fund (CPR) to develop the Sunčani Hvar hotel resort on the country’s Adriatic coast has gone from bad to worse, with disagreements leading to threats. The dispute centers around majority owner Orco’s restructuring plan for the loss-making project and claims its Croatian partners have failed to carry out their obligations.
The CEO of Prague-listed developer Orco Property Group, Jean-Francois Ott, was detained by Croatian police in Zagreb on Tuesday after having just finished a media briefing, a company spokeswoman has said. Ott was reportedly detained immediately after making a presentation to journalists, a day after Orco failed to reach an agreement with the Croatian government on the future of the Sunčani Hvar island resort in the Adriatic Sea.