PRAGUE, June 25 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
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)