Listed property developer ORCO has sold off one of its Hungarian assets on Szervita tér, a site originally planned to accommodate an office complex. The deal was concluded on Monday, ORCO country manager Kornél Kalapács told the BBJ.
While confirming the transaction itself, he declined to reveal the identity of the buyer as well as the purchase price.
ORCO originally purchased the parking lot in 2005 and the adjacent headquarters of the National Research and Technology Institute in 2007 for a gross total HUF 2.19 billion from the Hungarian state, where it originally planned to erect an office by 2010.
The project already sparked controversy, since many in the profession as well as neighboring residents were skeptical about the extravagant design created by star architect Zaha Hadid.
Due to several financial issues in the ORCO group, the Szervita venture was suspended and the company announced that it would be one of the ventures that it is looking to sell. Kalapács added that the sale of other assets, especially its valuable retail ventures, is not on the agenda.
ORCO also concluded another sale in Germany. It announced a deal involving Leipziger Platz for a total of €119 million to be paid in several installments. (Gergő Rácz)
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