CIJ Blog

Orco finds financing for Váci 1

October 12, 2009 · Leave a Comment

Orco Property Group has announced an agreement which “should” allow for the completion of two of its projects in Budapest, Váci 1 and the Paris Department Store.

Through the agreement signed with UniCredit Bank, for every step of the construction until completion, UniCredit Bank will be financing 75% of all costs incurred, and Orco Property Group S.A. will be financing the remaining 25%. The loan is set to be turned from development loans into investment loans once the property is leased.

It also says it should also pick up €3.7m in cash from the sale of a Peugeot dealership in Warsaw, through a deal expected to go through in December.

Finally, Orco Property Group will increase its control of Orco Germany by converting a €17.5m shareholder loan into nearly 11 million new shares. This will raise its stake in Orco Germany from 58% to 65%, based on a share price of €1.60.

Categories: Germany · developers · distress
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