Orco Property Group has sold the Radio Free Europe-Hagibor office building in Prague to a subsidiary of the L88 Companies, an American-owned business. The transaction value amounted to $94 mln (EUR 75 mln), which is at par with a DTZ valuation after taking into account all taxes on the transaction.
Orco Property Group has sold the Radio Free Europe-Hagibor office building in Prague to a subsidiary of the L88 Companies, an American-owned business. The transaction value amounted to $94 mln (EUR 75 mln), which is at par with a DTZ valuation after taking into account all taxes on the transaction.
Upon closing, L88 delivered $80 mln in cash, $2 mln in concessions, plus a $12 mln note convertible into a 20% stake in the parent company of the entity acquiring the building.
In addition, the parties have entered into a strategic alliance for the development and construction of a broad based building platform for the US Department of State.
'Orco looks forward to working with the L88 Companies in the development of premium standard buildings for the US Government. The Strategic Alliance for this broad based platform is a natural progression for Orco as it looks to new development opportunities following its successful financial restructuring,' said Jean-François Ott, OPG’s President & CEO.
Salans is advising Orco on the sale.
