Luxembourg-based Orco Property Group is purchasing 80% of Molcom, a logistics centre 15 km of Moscow. The project's total area amounts to 104,000 m2, and includes a 4-hectare land bank reserve which will ensure a potential future development pipeline in the Russian logistics and light industrial sector. This marks Orco’s second acquisition in Russia, the company’s seventh foreign country. Financial details of the transaction were not disclosed.
Luxembourg-based Orco Property Group is purchasing 80% of Molcom, a logistics centre 15 km of Moscow. The project's total area amounts to 104,000 m2, and includes a 4-hectare land bank reserve which will ensure a potential future development pipeline in the Russian logistics and light industrial sector. This marks Orco’s second acquisition in Russia, the company’s seventh foreign country. Financial details of the transaction were not disclosed.
'Russia is a huge market in which we think Orco can duplicate the same methods that made its success in Central Europe: acquiring prime location assets and land banks ensuring future growth,' Orco's president Jean Francois Ott said in the full-year 2006 report.
Orco's revenues increased 243% from EUR 50 mln to EUR 172 mln in 2006. Net profit rose 73.9% to EUR 97.9 mln. The company has proposed a dividend of EUR 1 per share, a 25% increase year-on-year. Orco is a leading investor, developer and asset manager in the Central European real estate and hospitality market, currently managing assets of approximately EUR 1.3 bn.
