Orco Property restructures debt of Czech and Slovak portfolio

PRAGUE, June 25 Wed Jun 25, 2014 12:57pm EDT

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PRAGUE, June 25 (Reuters) - Orco Property Group has restructured debt in its Czech and Slovak portfolio financed by Credit Agricole CIB.

In the deal, concerning three properties, Orco said it had transferred stakes in companies owning the Hlubocky production plant in the Czech Republic and the Dunaj department store in the Slovak capital to a subsidiary of Credit Agricole CIB.

It kept ownership of its Bubenska 1 building in Prague, with lower leverage and a longer debt maturity, it said.

"This transaction has a minimum group NAV impact and allows (Orco) to mainly cut-off and restructure underperforming loans and gain enough time to progress with development of the Bubenska 1 building," Orco said in a statement.

Orco said it also refinanced an office building in Luxembourg.

The central European developer posted a record loss last year after write-offs, mostly due to provisions for its unfinished 192-metre high Zlota 44 residential tower in Warsaw.

In April a bank called in loans on the project. Orco has put up for sale the landmark building, which stands near Warsaw's tallest structure, the Palace of Culture and Science.

(Reporting by Jason Hovet, editing by Louise Heavens)

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