LUXEMBOURG, August 3 /PRNewswire-FirstCall/ -- Orco Property Group's
turnover for the first half year 2005 amounts to 20 642 KEUR, in line with
the first half year budget.
http://www.orcogroup.com
S1 - 2005, non audited figures (in 000 euros)
H1 2005 H1 2004 Variation
Total revenues 20642 46300 -55%
Development 11924 40200 -70%
Offices 1299 800 62%
Residential 762 900 -15%
Retail 148 0 NS
MMR 1737 1200 45%
Orco Hotel Collection 4699 3200 47%
Other services 73 0 NS
Property development:
The turnover generated by the sale of flats and houses represented a
turnover of 11924 KEUR. This amount is made only of the sale of apartments
and houses of which the ownership is transferred at the cadastre. This
represents 109 flats - 100 % of the units the Company was able to deliver.
The lower level of sales of this semester is due to the fact that the
flats/houses of which the ownership could be transferred are limited due to
the lacking IPB Real pipeline planned in 2001-2003, before the acquisition by
Orco. This level does not reflect the very good performance of the sales.
This situation will be improving in the next twelve months as already at the
end of June, 254 new Future Purchase Contracts were signed and will be turned
in turnover in the next months. In Poland also reservations agreements and
presale agreements were signed on the new projects under development and in
Hungary, the sale of our project Avenue Gardens started recently.
Property Investment :offices & residential:
The total rents for first semester for the offices amounts to 1299 KEUR.
During this period, the offices reached back a high occupancy rate, 97,5 % in
Prague on 9923 sqm2 and 86 % in Budapest on 2350 sqm2. Warsaw is lower at 73
% on 10249 sqm2 (including parking space) because of the fact the Zlota- City
Center building will be turned into a high rise residential development soon
and thus long term leases cannot be offered to tenants.
For the residential buildings, the total rents for first semester amounts
to 762 KEUR. The decrease of 138 KEUR is due to the fact that some flats
rented last year were sold. The occupancy rate also improved at 85 % average
over the first semester and 88 % in June.
Retail:
Pursuant to the acquisition of a 4863 sqm2 shopping center in Brno (
Czech Republic), Orco enters into the retail market. The occupancy rate
reaches 82 %.
MaMaison Residences:
The turnover generated by the extended stay hotels is increasing and
amounts to 1737 KEUR. The occupancy rate for the first semester is at 43 %.
This low level is due to the opening of new residences in Bratislava
(Sulekova), Warsaw (Diana) and Prague (Pachtuv Palace). The setting up of a
new sales platform for both extended stay hotels and hotel activities will
ensure a drastic improvement of these figures for the second semester.
Orco Hotel Collection:
The global turnover reached 4700 KEUR for the first semester to be
compared to 3200 KEUR. Global occupancy reached 51,5 % on the same level as
last year but taking into account the opening of Le Regina in Warsaw it
reflects a global improvement. The average room rate increased by 12 % to
reach 94 EUR. The summer season is better than budgeted with for the month of
July an average occupancy rate at 56 %, which is 19 % higher than expected
and August looks as good.
Additional news:
The second semester started with the finalisation of the Suncani Hvar
deal in Croatia. Orco entered the public private partnership and subscribed
to a capital increase of 27 000 KEUR for a participation of 47 % while taking
control of the board and of management. The second step is a take over bid on
the shares of the minority shareholders in a very near future. By this
transaction, Orco guarantees a very significant value creation for the
company that will be recognised in the result of the third quarter. It will
represent an increase of the NAV of EUR 2 per share.
Orco signed a "build and lease" contract with Radio Free Europe on a
22000 sqm class A building in Prague 10. The development of the building is
planned to be finalised in 2,5 years. The leasing is for a period of 15 years
with an extension close of 30 years. This guarantees to Orco a yearly net
turnover of 5 400 USD. This represents the biggest contract ever signed by
Orco and one of the most important contracts signed on the Prague market in
2005.
Two tenants signed leases in Luxembourg Plaza bringing the total of pre
lease including Marriott above 50%. A lot of discussions are being held with
future tenants that shall lead to more leases in the second semester.
Moreover, the interest in Prague office space is raising again, the level of
available office space in Prague dropped down from 20 % to 14 % with
stabilised rents on a year to year comparison basis.
Orco is involved in three large redevelopment portfolio acquisitions, two
in Prague and one in Budapest, these transactions shall progress during the
last quarter and potentially give Orco a significant prime location buildings
addition to its portfolio.
More generally the IFRS rules will enable to recognise the revaluation
profits on the Investment properties. For the June result, the Management
decided to revalue all the assets bought during the first semester and also
the existing assets as at December 2004 for which a major change was caused
by the evolution of the project.
The Company remains confident is reaching a total turnover for year 2005
of 63 000 KEUR, not including any asset sale except the ones to the Endurance
Fund. The Company foresees a significant rebound of the turnover in 2006.
The S1 results will be presented to the market on 27 September 2005 in
Paris and in Prague.
For additional information visit: http://www.orcogroup.com or contact:
Luxembourg
Luc Leroi
Tel: +352-26-47-67-1
lleroi@orcogroup.com
Paris
Cecile Chapuis-Vandenbogaerde
Tel: +33-1-40-67-67-03
cchapuis@orcogroup.com
Prague
Ales Vobruba
Emmanuel Leonard
Tel: +42-02-21-416-311
av@orco.cz
el@orco.cz
SOURCE Orco Property Group
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CONTACT:
Contact: Luxembourg - Luc Leroi, Tel:
+352-26-47-67-1, lleroi@orcogroup.com. Paris - Cecile
Chapuis-Vandenbogaerde, Tel: +33-1-40-67-67-03,
cchapuis@orcogroup.com. Prague - Ales Vobruba, Emmanuel Leonard,
Tel: +42-02-21-416-311, av@orco.cz, el@orco.cz
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