Orco Property Group expects to operate profitably in 2011 and will consider the possibility of issuing new bonds, said the company’s CEO Jean-Francois Ott in an interview with the E15 newspaper on Thursday.
He emphasized that Orco will launch 20 percent more projects this year than last year and will continue to focus on its core Central European markets in Prague, Budapest, Warsaw, and Berlin. "If we persist in our decision to return to the ‘roots’ of Orco’s business, the numbers should be positive," said Ott.
The company is expected to record a profit in 2010 after achieving a gain of 270 million euros in the second quarter based on a new valuation of bonds as part of a restructuring process approved by the court. Orco was forced to restructure its debt after its business was pressured by the decline in the real estate market over the past few years.
Orco expects to generate revenues between 280 and 300 million euros for the past year, while they estimate that this year they should rise to 350 to 380 million euros. Ott also stated that he wants to issue new bonds and will seek to buy shares of the company, as he has done in the past when the price was attractive. (H)
