Orco Property agrees sale of shares in Croatia hotel group

PRAGUE, June 12 Thu Jun 12, 2014 4:52am EDT

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PRAGUE, June 12 (Reuters) - Orco Property Group has agreed to sell a 24.9 percent stake in Croatian hotels group Suncani Hvar, the central European developer said.

It did not name the buyer, which would pay a symbolic 1 euro along with the value of receivables worth 2.1 million euros. The sale was mediated by GSG Group, formerly known as Orco Germany.

Orco, which is suffering record losses, is a shareholder in GSG Group but sold down its stake earlier this year to help raise money after losing financing for its flagship apartment tower project Zlota 44 in Warsaw.

It retained a 31.6 percent stake in Suncani Hvar and said it expected no material loss from the deal after taking impairments in 2013. Orco added the sale had no impact on ongoing arbitration proceedings against the state of Croatia, which is another shareholder in Suncani Hvar.

Czech billionaire property developer Radovan Vitek is the largest Orco shareholder with a 30.7 percent share and has also recently taken control of the profitable Orco unit GSG Group, acquiring an 85 percent stake. (Reporting by Jason Hovet; editing by Tom Pfeiffer)

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