Orco announced opening of already second Endurance Fund (EF) aimed on acquisition, development, management and disposition of middle class and luxury residential properties in CEE region, Germany, Croatia and Russia as well. Initial equity should reach EUR 100m and is dedicated to institutional investors.
Orco has already experience with fund management as it opened its first EF last year and acquired nine properties, mostly office space, across CE3 countries. For its services Orco gets 1% acquisition fee and 5% management fee. Moreover Orco holds smaller stake (10%) in the first EF. We expect similar conditions to ba valid also for its Residential EF. In the 1H06 EF’s share on total sales reached almost 12% but it should decline by year end due to expansion of other segments and Viterra consolidation.