Orco Property Group restructured its debt in its Czech and Slovak portfolio that was financed by Credit Agricole Corporate and Investment Bank (Credit Agricole CIB). The deal concerns three properties: the Hlubocky production plant in Olomouc, the Bubenská 1 office building in Prague as well as the Dunaj department store in Bratislava. Orco said it has transferred shares in the SPVs that own the Hlubocky and Dunaj projects to a subsidiary of Credit Agricole CIB. It will retain ownership of Bubenska 1 in Prague 7 with substantially decreased leverage and debt maturity extended by another three years.“This transaction has a minimum group NAV impact and allows OPG to cut-off and restructure underperforming loans and gain enough time to progress with the development of the Bubenska 1 building,” Orco said in a statement.
The developer reported a record loss in 2013 after write-offs, due to provisions made for its Złota 44 residential tower in Warsaw. In April, the lender demanded that Orco repay its debts. The developer has since put the uncompleted highrise up for sale.
