Orco said that it has entered a tender for a 270k sqm of a plot of land in Prague 7, Bubny. The minimal call price is cEUR18m. Orco would develop a mix-used area, including apartments, space for leisure activities, sports and shopping centre, within the next 15 years while it has already secured a bank guarantee. Orco plans to spend cEUR700m in CAPEX. Based on our estimations that the price of land is cEUR20m, CAPEX per sqm of EUR1,500 and net space of 65% of the total sqm to be potentially built with an average rent of EUR15/sqm/month and a yield of 7%, should Orco win the tender, the project could add EUR8 per share to our valuation. We continue to rate Orco as a Buy.