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Developer Orco's future uncertain, shareholder says - agency
January 24, 2014 / 3:57 PM / 4 years ago

Developer Orco's future uncertain, shareholder says - agency

PRAGUE, Jan 24 (Reuters) - The future of Orco Property Group is uncertain and liquidation of the indebted real estate developer is a possibility, its largest shareholder was quoted as saying by news agency CTK on Friday.

Czech investor Radovan Vitek also said in an interview with the main Czech news agency that, since his investment, several items have appeared in the central European developer’s books that could cut the company’s value by tens of millions of euros.

An Orco spokeswoman had no comment.

Shares in Orco, which have dropped 30 percent in the past year, fell more than 7 percent on the Prague bourse on Friday.

Orco shareholders voted this month to remove board members representing two U.S. funds that have battled over strategy with Vitek, increasing his influence at the company that was hit hard by the global financial crisis.

Vitek, who owns 30.7 percent of Orco, wrote in an open letter to shareholders in December that it needed immediate funding of at least 100 million euros to cover debts and guarantees.

Vitek, a major investor in Czech real estate through his company CPI, has built up his shares in Orco since 2012.

The company, founded in 1991, has properties in the Czech Republic, Slovakia, Hungary, Germany and Poland, including the 192-metre tall Zlota 44 residential tower in Warsaw.

Its founder and Chief Executive, Jean-Francois Ott, still holds nearly 10 percent of the company.

Orco reported a 142 million euro net loss for the first nine months of 2013 after taking impairment charges on some projects. (Reporting by Jason Hovet; editing by Tom Pfeiffer)

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