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ORCO continues with Budapest project after UniCredit restarts loan

Orco Property Group is continuing the reconstruction of the Váci1 office building, the former site of the Budapest Stock Exchange at the end of Budapest's upscale Vaci Street, after they agreed with UniCredit Bank on a €46 million loan, head of Orco's developments in Hungary Kornél Kalapács said.

The agreement on the loan with the bank came after a six-month suspension, Kalapács said, and the reconstruction could be completed by the spring of 2011.

Orco recently completed the reconstruction of the Paris Department Store on the capital's exclusive Andrássy avenue. The project was also financed with a €17 million loan from UniCredit Bank.

Orco will not go ahead with the reconstruction of a car park on Szervita square before 2011, Kalapács said.

Orco did not reveal total project costs. Banks has financed at most 70% of total project costs since the start of the crisis, property experts say. (MTI – Econews)