Orco Germany 'confident' of closing refinancing by year-end

Orco Germany, the German unit of Orco Property Group, said that its GSG Asset GmbH & Co. Verwaltungs KG subsidiary has obtained a detailed term sheet for financing from a club of German banks in the amount of EUR 270 mln.

'In light of such progress, the company expects to obtain a further extension of the standstill agreement on the existing EUR 286 mln financing beyond 31 August 2012,' it said in a statement. In July Orco had signed an extension on its debt standstill agreement with the Royal Bank of Scotland.

The GSG loan terminated on 15 June 2012 and was initially extended until 20 July.

In the first half of 2012, Orco Germany reported a net loss of EUR 12 mln versus a profit of EUR 15 mln a year before. The negative performance was mostly a result of impairments taken, among others, on the Sky office building in Düsseldorf (EUR 14 mln) and a provision set up for potential litigation on Leipziger Platz (EUR 4.0 mln).

The adjusted EBITDA rose to EUR 16 mln, up 23.1% from EUR 13 mln in H1/2011, reflecting an improvement of the company’s operational profitability.