BERLIN-Jean-Francios Ott, founder and CEO of CEE developer Orco Property Group, has taken over as head of its Orco Germany unit, which plans to co-develop, with Berlin-based private developer High Gain House, its mixed-use project Leipziger Platz in the German capital.
Orco Germany management changes follow the decision of former CEO Rainer Bormann not to renew his contract. Orco Germany’s board of directors also appointed Nicolas Tommasini deputy CEO and Brad Taylor corporate and legal affairs director.
The Leipziger Platz project is a $532.88 million (€400m) mixed shopping centre, office and residential development in the heart of Berlin, with the site owned by a unit of Orco Germany. The parties expect to close the contract soon. A majority of the commercial space has been pre-leased, and construction is planned to begin in December.
Separately, Orco is to wind up its $620.8 million (€466m) Endurance property fund amid disputes with investors, and following a recent extraordinary general meeting in Luxembourg. The fund is a Luxembourg SICAF. Executive Ales Vobruba told Bloomberg: “We’d rather wait a year or two when markets are in a better recovery to maximise profits but investors are demanding to proceed.” Orco, which also holds 14% of fund equity, will, starting next year, sell all properties and distribute proceeds to investors including Morgan Stanley and Goldman Sachs. Luxembourg-registered Orco emerged from protection from creditors last May after a Paris-based court approved its restructuring plan and extended bond redemptions over a 10-year period. It is listed on Euronext and in Prague, Warsaw and Budapest.
Allan Saunderson is a managing editor of Property Investor Europe and a contributor to GlobeSt.com.
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