Orco Property Group lost €53.4m during the first quarter of 2014 and saw its balance sheet greatly reduced in large part because of its loss of control over GSG GROUP (formerly ORCO Germany S.A.). In its most recent filing, the company says that a series of capital increases in GSG GROUP were subscribed in cash “for a total of EUR 51 Million by Stationway Properties Limited, an entity affiliated with Mr. Jean-Francois Ott, and by two other shareholders of OPG (Alchemy Special Opportunities Fund II LP and Société Générale).”
OPG writes that its decision to acquire the Pekao bank receivable for the Złota 44 project in Warsaw would allow it to carry out an orderly sale of the asset without undue time pressure. Had the bank foreclosed on the loan, it points out, the resulting sale price would have been far lower. The company revealed that it has entered into bankruptcy proceedings over its Hungarian assets, but that Czech residential sales had pushed up its total revenues by €900,000 for the first quarter. Its consolidated net asset value has plummeted from €1.1bn to just €515m.
