Echo finds new funds
Investment & finance
The finance raised – an investment loan of EUR 29 mln and a VAT loan of PLN 5 mln – is to be used to construct the two initial stages of A4 Business Park Katowice. “We hope that the office complex is the first step towards successful cooperation between our groups and we are hoping for more loans for our commercial projects,” explains Grzegorz Iwański, the director of Echo Investment’s funding department. A4 Business Park, which is being built on ul. Francuska near an A4 motorway exit, consists of three buildings. The first was completed in Q1. The seven-storey office building offers 9,000 sqm and has been fully leased to IBM IT. The second phase, which will involve the construction of a ten-storey building with an office area of app. 9,000 sqm and a multi-storey car park with 560 spaces, is currently in progress. The completion of the construction work is planned for Q4 2014, with the contractor of the shell being Remax Construct.
How much are Echo’s properties worth?
The Kielce-based developer has also published the latest valuation of its real estate portfolio, which was carried out by Knight Frank. According to the CV comparative method valuation (the market value of the land), the shopping centres owned by the company are worth more than PLN 3.4 bln. Nine operating facilities have been valued along with their subsequent stages/extensions: Galeria Echo in Kielce, Pasaż Grunwaldzki in Wrocław, Galaxy in Szczecin, Galeria Olimpia in Bełchatów, Outlet Park Szczecin, Galeria Veneda in Łomża, Galeria Echo in Przemyśl, Galeria Sudecka in Jelenia Góra and Galeria Amber in Kalisz. The company’s office projects (Malta Office Park in Poznań, Oxygen in Szczecin, Postępu 3, Babka Tower and Park Rozwoju in Warsaw, Astra Park in Kielce and A4 Business Park in Katowice) have been valued at over PLN 967.3 mln in total (according to the CV method) and PLN 974.82 mln (according to the RV method). The balance sheet value was set at around PLN 827 mln. Echo Investment’s current residential projects, along with their subsequent stages (Klimt, Nowy Mokotów in Warsaw, Przy Słowiańskim Wzgórzu in Wrocław, Osiedle Jarzębinowe in Łódź, stage two of Kasztanowa Aleja, Osiedle Jaśminowe in Poznań, Hortus Apartments, Bronowicka 42 in Kraków, Grota 111 in Wrocław and Osiedle Południowe in Dyminy near Kielce) are worth over PLN 299 mln according to the CV method and PLN 291.2 mln under the RV method. Their balance sheet value is PLN 255.7 mln. All the company’s assets are worth a combined PLN 4.67 bln (CV method), PLN 4.75 bln (RV method) and PLN 3.75 bln (balance sheet method).
Thousands of metres under construction
This year Echo Investment is planning to complete useable and residential space and a gross leasable area of more than 100,000 sqm. In Q1 the company finished the first stage of the Park Rozwoju office project in Warsaw (17,000 sqm) and the first stage of the above-mentioned A4 Business Park in Katowice (9,000 sqm), while the Galeria Amber shopping centre (34,000 sqm) was also opened. Echo Investment will also be redeveloping a section of Galeria Olimpia in Bełchatów, which is to include a furnishing and interior design centre. “In this way we want to adjust this part of the complex to the expectations of the local market. The analyses that have been carried out and are supported by the growing footfall in Galeria Olimpia as well as the healthy turnover achieved by our tenants, confirm our belief that the interior design offer has enjoyed a great deal of interest from customers. We are in advanced negotiations with chains such as Komfort and Jysk. As a result of the revitalisation, Galeria Olimpia will provide a full range of fashion, entertainment and interior decoration products,” declares Marcin Materny, the director of Echo Investment’s shopping centre department.
