Orco Property Group has entered into an agreement to sell stakes in its Russian operations to an unnamed local investor for EUR 53 mln.

The sale covers a logistics business, residential projects, as well as offices and land plots in Russia that have a combined value of EUR 57 mln.

The agreement contains a further provision entitling Orco to a percentage of future sales profits. Formal closing should take place in September. An initial EUR 13.2 mln will be paid in cash before year-end, with the balance to be disboursed in 2012.

Following the transaction, Orco's Russia portfolio includes the Pokrovka hotel, which is part of Mamaison Hotels and Residences, and a 10% stake in the Filion shopping centre.

'We continue to implement our strategy to focus on our four core cities of Prague, Berlin, Warsaw and Budapest,' noted CEO Jean-Francois Ott. 'As such, the disposal of our assets in Moscow was important.'