I last posted an update in November last year when I reported that bugger all is going on. Nothing much has changed but I was sent this update on the situation with the company who were developing it, Orco, which is worth reading for those who are interested in progress. I assume this was originally published elsewhere but I don’t have information as to where or when that was.
Orco repayment plan approved
EUROPE The Paris commercial court has approved the repayment plan for developer Orco Property Group. This will enable the company to restart investment. Since March 200, Orco has been subject to the sauvegarde procedure, which was twice been extended and is designed to facilitate financial restructuring. However, some creditors do not agree to the restructuring plan as drawn up. The decision allows the of 100 pct reimbursement of claims against the company (about EUR 1.5 bln of debt) over the next 10 years. This does not mean unfreezing the company’s flagship project – the Złota 44 apartment tower in Warsaw. Its fate will likely be determined by the Supreme Administrative Court on June 24th, on reinstating the building permit for the project. Up until then, none of the apartments can be sold. By the time construction work was halted, 90 of the 251 apartments available had been sold, and another 30 reserved. The company is in the initial phase of the preparation of new housing projects in Poland – in Józefosław (the company has already planning permission, but is amending the project to be better suit the realities of today’s market), Kraków and Szczecin; but under the sauvegarde procedure, funds for such investment cannot be allocated without the consent of the court. In Warsaw, the company has other projects that are available for sale: Klonowa Aleja in Targówek (now half sold to home buyers), Mokotowska 59 (put into use last year, with only the last apartments now available) and Feliz Residence on ul. Figiel, which has been completed, with about 30 pct of the homes still remaining). Orco Property Group had a EUR 250.6 mln consolidated net loss attributed to the equity holders of the parent company in 2009 and a EUR 390.6 mln loss a year earlier.