UPDATE 1-Orco raises 2007 revenue forecast by 20 mln euros

PRAGUE, Nov 27 (Reuters) - Real estate developer Orco Property Group <ORCO.PA> <ORCOsp.PR> raised its revenue forecast for next year by 20 million euros to 320 million euros ($420.3 million) as delayed projects are completed, its chief financial officer said on Monday.

The Luxembourg-based company lowered this year's projected revenues by the same amount earlier this month to 180 million euros from 200 million, due to delays in project deliveries from 2006 to early 2007.

"(Outlook of) 320 (million) corresponds simply to the fact that 20 (million) is shifted from 2006 to 2007," Chief Financial Officer Luc Leroi said in written answers to Reuters questions.

"We do not have today any indication that there will be delay in the 2007 deliveries."

The company said it would give a more a detailed outlook at the beginning of next year, including a specific prognosis for German developer Viterra, which Orco acquired this year.

Leroi said Orco should keep margin at its development arm at around 10 percent.

Last week, Orco announced 9-month net profit of 22.9 million euros, well below average market expectations of 46.03 million euros, mainly due to lower gains from asset revaluation.

From next year, the company will use an accounting procedure that better reflects the profitability of particular projects, Leroi said.

"It is not a change of method but a better allocation of the costs to the projects... A better analytical accounting will help us here," Leroi said.

Orco traded 2.45 percent up at 2,631 crowns in Prague and 1.25 percent up at 93.45 on Euronext at 1020 GMT.

((Reporting by Jan Korselt, editing by Sue Thomas; prague.newsroom@reuters.com; Reuters Messaging: jan.korselt.reuters.com@reuters.net; +420 224 190 477))

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Keywords: ORCO RESULTS/