Intruder Vítek will demand three board seats and a capital increase at Orco’s General Meeting
8. listopadu 2012, 11:45
The developer and real estate agent Orco Property Group’s General Meeting is scheduled in about a month’s time. It will happen under the baton of Radovan Vítek (41), an intruder/raider/usurper for the company, and the sole owner of the Czech Property Investments (CPI) holding, the regional real-estate market’s leader. Through Crestline Ventures and Gamaly, Vítek now controls nearly 21% of Orco’s voting rights. He certainly won’t stop there, though: as a rule, he goes to the very end of everything he undertakes (see the Včela affair). When he is done with it, CPI’s consolidated assets could exceed the CZK 100bn threshold.
Vítek will aim at putting the proverbial cherry on the cake of his hold over Orco, in the shape of three seats on the company’s Board, and also by demanding that the company’s equity be increased.
With its €240m market capitalization, Orco is now a perfect target for Vítek-type predators. The company’s shareholding structure is fragmented; it has got out of its enormous, unmanageable debt, and controls a few very attractive assets spread across eight countries. These mainly include a total of 1.1 million square metres of rental premises, including 840,000 m2 in Berlin, which makes Orco probably the largest private rental-space owner in the German capital. Other sexy assets are the twenty-two hotels and residences branded Mamaison Hotels & Residences. Another jewel is the Bubny Project, consisting of 25 hectares of land in the Prague borough of Holešovice, one of the city’s most sought-after business locations.
Translated by Lingvus