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Orco Property restructures portfolio debt, refinances office building
By Caroline Salls
Pittsburgh, June 25 – Orco Property Group completed a portfolio debt restructuring transaction with Credit Agricole CIB, according to a company news release.
Orco said the transaction involves three investment assets located in the Czech Republic and Slovakia with existing leverage of Credit Agricole that used to be cross-collateralized.
The investment assets include Bubenska 1, a commercial building in Prague, Hlubocky production plant near Olomouc, Czech Republic, and Dunaj department stores in Bratislava, Slovakia.
As a result of the transaction, Orco said it has transferred the ownership of share interests in entities holding Hlubocky production plant and Dunaj department stores, together with related debt, to a fully owned subsidiary of Credit Agricole.
Orco retained the ownership of an entity holding Bubenska 1 building, with substantially decreased Credit Agricole leverage and extended debt maturity for the next three years, the release said.
Collateral crossed among these projects was released.
According to the release, this transaction has a minimum group impact and allows Orco to cut off and restructure underperforming loans and gain enough time to progress with the development of the Bubenska 1 building.
In addition, the company said it refinanced its office building in Capellen, Luxembourg. The office building bears an €18.7 million bank loan by BGL BNP Paribas, part of which was overdue since January.
Through the refinancing, Orco said it obtained a stable and amortized financing, maturing in 2027.
Refinancing terms also include lowered interest rate and an up-front loan repayment of €2 million, allowing the company to hold and manage this income generating asset for the long term, the release said.
Orco Property Group is a Central European developer and asset management company based in Luxembourg. Orco Germany is a real estate company based in Berlin.
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