Orco Property Group (OPG) received a notice from lender on its Złota 44 project in Warsaw. The Polish bank PKN is demanding that OPG repay its debt worth €60m (CZK 1.65bn) within 30 days. The flagship Warsaw high-rise designed by the architect Daniel Libeskind has been struggling, as demand for high-end apartments is extremely weak, and the project has already cost the developer €150m.
On its web page, the Prague-based company wrote that it was “putting all in place in order to collect the needed cash in due course mainly by selling liquid assets.” It could throw in its Bubny project in Prague 7, valued at €69m in its 2013 annual report, but the sale would take months in the current business environment. Selling shares of Orco Germany, the only profit-producing part of the whole group, looks like a more realistic option. OPG holds a 45-percent stake in its successful daughter, and by selling its 190 million shares at the current price of €0.55 per share, it could earn €104.5m.
