According to HN daily, Orco plans to refurbish Brno’s shopping centre Centrum and ad 25 meters in height and thus finish the building in line with orignal project dated back to 1920’s. The reconstruction should cost “several tens of milions CZK”.
Our view: We see Orco’s effort in expansion to major regional cities as positive as these provide better upside potential than some properties in Prague. We don’t expect the news to have a trading impact today.