Orco and Unibail-Rodamco: new shopping centre in Prague´s Bubny
Orco has sold a part of its land in Prague´s Bubny to a joint company with another property developer, Unibail-Rodamco. The companies want to build together a shopping centre on the plots.…
Orco has sold a part of its land in Prague´s Bubny to a joint company with another property developer, Unibail-Rodamco. The companies want to build together a shopping centre on the plots. Unibail-Rodamco will have at least 60% share in the joint project. The plot in question has an area of 3.7 hectares. The companies expect to finalize the transaction at the beginning of 2012. The actual shopping centre should open its gates in 2017. Orco initially negotiated joint construction of the shopping centre with the German company ECE, however, they didn´t come to an agreement.
Construction on the site of the former railway station and adjacent land in Bubny is one of main Orco´s projects. The firm is planning extensive construction of flats, offices, shops as well as school buildings there. “We are currently negotiating construction of a university campus with Czech and American universities,“ said Petra Zdeňková, spokesperson for Orco. The developer also wants to attract state administration to the location. Orco controls a total of over 25 hectares of land in Bubny.
Orco struggled with high debt in recent years. It was under judicial protection from its creditors for over a year, due to debts. Last May, the commercial court in Paris approved company business plan, which includes repayment of debts by 2020.