Morgan Stanley Real Estate Investing (MSREI) has completed the purchase of a 19.2% stake in Orco Property Group, becoming the largest shareholder in the Euronext-listed CEE real estate developer.

The transaction was carried out through the swap of MSREI's stake in Orco Germany and the Endurance real estate funds for an interest in the parent company, Orco Property Group.

Orco paid for the shares with the issue of roughly 3 million new shares subscribed by MSREI.

As a result of the operation, Orco has increased its interest in Orco Germany to around 87.3%, while its share in the Endurance Residential and Office funds will reach 14.8% and 27% respectively.

'MSREI's commitment to Orco and its management, as well as Orco solidifying its control over Orco Germany, greatly stabilises the shareholding of the group. Orco can now accelerate deleveraging, while focusing on higher value added assets in our core strategic cities of Prague, Berlin, Budapest and Warsaw,' said Orco's CEO Jean-François Ott.