Orco Property Group reported that net losses widened to EUR 45.7 mln in the first quarter, reflecting interest charges of EUR 21.5 mln. and non-cash currency losses of EUR 17.9 mln. In the year-earlier period, the group booked losses of EUR 12.8 mln.
Orco Property Group reported that net losses widened to EUR 45.7 mln in the first quarter, reflecting interest charges of EUR 21.5 mln. and non-cash currency losses of EUR 17.9 mln. In the year-earlier period, the group booked losses of EUR 12.8 mln.
Turnover increased 16.3% to EUR 54.8 mln, backed by stable rents and a resilient residential market in the Czech Republic, the company said in a press statement issued on Wednesday. Personnel costs and other operating expenses fell by 11%, as the first effects of the restructuring plan started to kick in.
The company said it is holding reviews with most of its creditor banks. 'Progress is constantly being made on the financing side thanks to constructive discussions with banks. For Zlota, Orco Property Group is studying a possible mezzanine financing. For Vysocany Gate, the Prague team negotiated the extended vendor financing till the completion of the project with Skanska Bank.'
On April 29, 2009, Orco Property Group and Colony Capital entered into exclusive negotiations on a reserved share capital increase. Due diligence is currently on schedule, the company said.
Commenting on the results, CEO Jean-François Ott said real estate markets in Central European are unlikely to recover in 2009. 'Poland and the Czech Republic are resisting better than Slovakia and Hungary, but overall the values of stabilised buildings should not increase in 2009. In this adverse environment, our focus is on revenue generation.'
