ORCO PROPERTY GROUP | ORCO Germany announces successful closing of the acquisition of Viterra Development
ORCO Germany announces successful closing of the acquisition of Viterra Development
ORCO Germany, as a subsidiary of ORCO Property Group, one of the leading European investors, developers and asset managers, announces the successful closing on 23rd June of the acquisition of Viterra Development, Essen. Total value of the transaction including the assumption of debt and the takeover of a number of properties is approximately EUR 75 million.
With this acquisition Orco supplements its own portfolio through Viterra’s substantial projects and real estates in the 5 major German cities as well as in Prague and in Warsaw.
First projects have already been launched together. Amongst others are the go-ahead for the realisation of the Viterra-developed Sky Office in Düsseldorf - innovative office areas on 23 floors, with roughly 37,400 sq. m gross space, located between the city centre, the exhibition centre and the airport. At 89 metres, the building is the new landmark on the Kennedydamm, Düsseldorf's Mecca for top companies (www.skyoffice.de).
The Berlin City Centre site at Voßstr. 19 is situated directly opposite the Canadian Embassy and adjoins the Potsdamer Platz and Leipziger Platz, city squares steeped in history. The land was originally purchased by the German Federal Government and has already been sold to a private investor. On this 1,000 sq. m. site, a villa with offices and a leasing area of 1,800 sq. m. will soon grace the area - construction starts this week and should be finished sometime in 2007.
The neighbouring sites, Voßstraße 17, 18 and Ebertstrasse 19, with a total area of 3,000 sq. m., were also purchased by the Jewish Claims Conference. The plans are to build an Embassy building as well as an office and commercial building. CB Ellis Richards acted as sole consultant and negotiator for these acquisitions.
With the takeover of Viterra Development, Orco has established a new focal point for its business activities on German soil - while at the same time reinforcing its Central and Eastern European strategy. This transaction has gained the Orco Property Group an experienced team of 80 professionals based in Germany, Warsaw and Prague.
The acquisition of Viterra Development will have a positive impact on ORCO’s NAV and bring positive cash flow to Orco Property Group. Potentially, it will contribute EUR 60 to 80 million turnover per year from 2006 onwards and EUR 130 million in cash flow over the next 3 years.
Orco Germany
Orco Germany, as subsidiary of the Orco Property Group, has been active in Germany since 2004. In the last year and a half, 18 asset deals with a total volume of approx. 100 million Euros have been made. Keeping pace with the fast growth in the residential properties segment, the commercial properties, asset management and project development sectors have also been expanded (development of the Fehrbelliner Höfe in Berlin city centre and the Haus Cumberland on the Kurfürstendamm).
ORCO Germany has been listed in the Open Market of the Frankfurt Stock Exchange since May 2006.
Orco Property Group
Orco Property Group is a leading investor, developer and asset manager in the Central European real estate and hospitality market, currently managing assets of approximately EUR 737 million as valued at 31/12/2005.. Operating in Central Europe since 1991, Orco Property Group is a public company, based in Luxembourg, and listed on both the Euronext and Prague Stock Exchange. Orco Property Group’s portfolio includes, IPB Real, MaMaison Residences, Orco Hotel Collection, Orco Real Estate, and other retail properties. Orco Property Group operates in a number of countries including, mainly, the Czech Republic, Hungary, Poland, Russia, Croatia, Germany and Slovakia. Orco Property Group is continually analysing investment into new territories. Orco Property Group is also sponsor and manager of the Endurance Real Estate Fund For Central Europe, a Luxembourg–regulated, closed–end fund whose total subscribed capital represents EUR 142 million, and which currently manages assets of EUR 110 million. Estimated value of the Fund’s portfolio is ca. EUR 500 million. The Endurance Fund is dedicated to institutional investors and focuses on acquisitions in Central European real estate markets.
Viterra Development
Viterra Development is one of the leading project developers and investors in the commercial and residential sector property sectors in Germany and Eastern Europe. The company's business activities encompass a range of large project development actions and investments in the German core markets of Berlin, Düsseldorf, Frankfurt, Hamburg and Munich. Viterra, a company with an excellent network, is also active in Central/Eastern Europe (Prague and Warsaw).
Contacts:
Patricia Jaenisch, Orco Immobilien GmbH
pjaenisch@orcogroup.com
Tel : +49 (0)30 473 74 440
www.orcogroup.com
Dr. Christian Heyn, Viterra Development
christian.heyn@viterra.com
Tel : +49 (0)211 23 98 92 – 0
http://www.viterra-development.de
www.skyoffice.de
Christian Köhler, Viterra Development
Christian.Koehler@viterra.com
Tel: +49 (0)30 254 088 0
http://www.viterra-development.de
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