Orco Property Group, listed on the Budapest Stock Exchange, on Wednesday said it agreed to sell its assets in Russia for €53 million pursuant to a restructuring strategy.
The properties in the deal are valued at about €57 million, but the sales agreement contains a provision entitling Orco to a percentage of future sales which "should result in Orco reaching or exceeding the existing valuation", the company said.
The deal should be closed in September. Orco expects to get €13.2 million from the transaction by the end of 2011, with the balance to be paid in 2012.
"We continue to implement our strategy to focus on our four core cities of Prague, Berlin, Warsaw and Budapest," Orco said.