Orco Property Group has entered into an agreement to sell stakes in its Russian operations to an unnamed local investor for EUR 53 mln.
Orco Property Group has entered into an agreement to sell stakes in its Russian operations to an unnamed local investor for EUR 53 mln.
The sale covers a logistics business, residential projects, as well as offices and land plots in Russia that have a combined value of EUR 57 mln.
The agreement contains a further provision entitling Orco to a percentage of future sales profits. Formal closing should take place in September. An initial EUR 13.2 mln will be paid in cash before year-end, with the balance to be disboursed in 2012.
Following the transaction, Orco's Russia portfolio includes the Pokrovka hotel, which is part of Mamaison Hotels and Residences, and a 10% stake in the Filion shopping centre.
'We continue to implement our strategy to focus on our four core cities of Prague, Berlin, Warsaw and Budapest,' noted CEO Jean-Francois Ott. 'As such, the disposal of our assets in Moscow was important.'
