ECM Real Estate Investments sold its two Luxembourg-based companies: Epoque-Lancaster and Epoque Hotel. Both were SPVs established for projects designed for Prague 4-Pankrác. The revenue from the transaction was used to repay the development loan granted by Raiffeisen Bank. The new owner of Epoque-Lancaster and Epoque Hotel also acquired ECM’s claims worth CZK 185m.
Meanwhile, the proceeds from the sale of Várenská Office Center in Ostrava have been used to cover ECM’s outstanding debt with UniCredit Bank. ECM has been in insolvency proceedings since 2011, with debts running to billions of crowns. EMC’s creditors will decide the fate of the developer during the first quarter of 2013. Astin Management, charged with restructuring the company, recommends selling off assets and liquidation.
