On February 1, 2011, ORCO Immobilien GmbH, a subsidiary of ORCO Germany S.A., closed the sale of ORCO Leipziger Platz GmbH, holding the Wertheim project on Leipziger Platz in Berlin valued as at December 2009 by DTZ at 84 million. The net sales price amounts to 89 million, plus an additional payment of 30 million payable after finalizing of the project.
The transaction is being executed in several installments. The first part of the sales price of 67 million has been paid and has been solely used to repay the bank debt for the project. A second part is expected to be paid in February. A third part is deferred to cover for project development risks overtaken by ORCO. The last additional payment will become due after finalization of the project.
"We are very happy that the sale of the Leipziger Platz project has been completed successfully and construction has started. We are convinced of the success of the project for both HGHI and ORCO Germany," says Jean-François Ott, CEO of ORCO Germany.
Source: Kirchhoff Consult AG