PRAGUE, June 12 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, 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)