Orco Property Group said on Monday that it has completed the previously announced sale of most of its Russian assets to a local investor for a total of EUR 53 mln. The disposal includes the logistics business, the residential projects, the offices and land plots that are collectively valued at around EUR 57 mln.

The agreement contains a further provision entitling Orco to 20% of future sales proceeds in the event they exceed the EUR 53 mln. The company has received an initial payment of nearly EUR 8 mln.

Following the deal, Orco in Russia still owns the Pokrovka hotel, which is part of Mamaison Hotels and Residences, and a 10% stake in the Filion shopping centre.

'In a challenging global market and economic situation, real estate assets are showing their resilience, and this transaction is positive for the company and its stakeholders,' said CEO Jean-Francois Ott. Orco will continue to implement its strategy aimed at deleveraging and focusing on its four major cities, Prague, Berlin, Warsaw and Budapest, he added.