According to Hungarian server Portfolio.hu, Orco plans to launch EUR 200m investment project in Zagreb, Croatia. Planning is carried out by famous Daniel Libeskind, who has already cooperated on Orco's Zlota Tower in Warsaw. Orco plans to finance the project partly by sources from sale of hospitality business and partly by capital increase of EUR 100m which is expected to take place with Warsaw listing.
Our view: We see the news as neutral for today's trading as expansion into Croatia's mainland has been announced previously. Although the news doesn't specify character of the project, Orco previously planned expansion into residential segment there. From long term perspective we see further expansion to the south as positive. Croatia's residential segment can experience surge in prices prior to EU accession expected
In 2009, same as in CEE3 countries or lately in Bulgaria and Romania.