Orco to wind down Endurance Fund: report

Orco Property Group plans to start winding down its EUR 466 mln Endurance real estate fund next year following pressure from investors, Bloomberg has reported.

In an interview with the newswire, executive board member Ales Vobruba said the company would have preferred to wait another year or two for markets to improve, but investors are calling for immediate action.

Orco, which acts as a fund manager and also owns 14% of the fund, will sell all properties and redeem investors during 2012 and 2013. Investors include Morgan Stanley’s Jardenne Corporation S.a.r.l., Portfolio Acquisitions 2 Ltd, a unit of Goldman Sachs, or Henderson Indirect Property Fund (Europe). The assets are located in the Czech Republic, Poland, and Hungary and consist of office and housing properties.

Luxembourg-based Orco emerged from creditor protection in May after a Paris-based court approved its plan to restructure the company and repay claims from creditors over a 10-year period.