PR 2014 Financial Results
2014 Financial Results
The Board of Directors approved the publication of ORCO PROPERTY GROUP ("the Group") financial information under the
going concern assumption, particularly in light of the corrective measures, restructuring of the financing sources and as a result
of the outcome on the sale of Zlota 44 project.
Corporate and commercial highlights
The Group managed to solve a difficult situation with the Zlota 44 project in Warsaw. In April 2014, the Group reached an
agreement with the financing bank to acquire the accelerated Zlota 44 loan and all related securities for EUR 55 million. That
acquisition was executed to release the Group from corporate guarantees of EUR 48.2 million related to Zlota 44 and to allow
the Group to organize an ordered sale process of Zlota 44. The Zlota 44 disposal was successfully carried out in August 2014
and finalized in January 2015. The initial gross transaction purchase price of EUR 63.0 million has been decreased by EUR
13.0 million used for the settlement of disputes with the Zlota 44 general contractor INSO. The final purchase price therefore
amounted to EUR 50 million. The Group used part of the Zlota 44 proceeds for a total value of EUR 31 million to re-acquire
some of the CPI PROPERTY GROUP (former GSG Group) shares that were previously disposed of by the Group to mobilize
the required liquidity in order to face Zlota 44 bank loan acceleration and potential calls on the corporate guarantees.