Strong performance by Echo

In Q2 alone, the company’s net profit came to PLN 125 mln (compared to PLN 113 mln last year). The profit was largely a result of the sale of 40 mln EPP shares, (which resulted in an income of EUR 49 mln) as well as the revaluation of the remaining 51 mln of shares, which resulted in a combined profit of PLN 88 mln. As a result, the company paid out an additional dividend to its shareholders of PLN 0.50 per share. Echo Investment still owns 7.2 pct of EPP’s shares. “H2 will see even better results. We are planning to complete the construction of a number of properties, including two buildings in the O3 Business Campus in Kraków, Symetris in Łódź, and the extension of the Galaxy and Outlet Park centres in Szczecin, which we are building for EPP. Additionally, we are going to be handing over around 770 apartments to our customers,” stated Nicklas Lindberg, the CEO of Echo Investment. The company reports that it sold 550 apartments and handed over 148 in H1. In H2, the company is planning to increase the number of apartments on sale and start construction work on 1,200 apartments. Over the past twelve months, the developer has bought new plots for office, retail and residential projects with a combined area of nearly 550,000 sqm. Moreover, Echo Investment reports that it has begun preliminary negotiations for the acquisition of land for the construction of 70,000 sqm while negotiations are being concluded for the acquisition of plots on which 390,000 sqm of space could be built (with app. half the space earmarked for residential projects). The company is also about to start work on another major project and is going to develop Towarowa 22 in Warsaw jointly with EPP. “We are working hard to prepare our applications for the necessary permits that will guarantee the balance between the residential, office, services and entertainment sections,” Echo Investment has announced. Work on stage I of the investment, with estimated investment costs of PLN 1.7 bln, is planned to begin in Q2 2018. The work should be completed by 2020 and the centre will offer around 111,000 sqm gla. In 2017 Echo began work on its Browary Warszawskie project. Currently, two apartment buildings and office buildings are under construction and the developer has announced it will start the construction of the third apartment building in a few weeks' time. In Q1 2018 the construction of three office buildings G, H and K, with a combined area of 39,200 sqm, is to start. In Q4 2017 Echo Investment is planning to start the construction of the Face 2 Face office complex on ul. Grundmanna in Katowice, which will have a total gla of 46,000 sqm built in two stages. In stage I 25,500 sqm of office space is to be built. In Q1 2018 Echo is planning to start the construction of an office building in Łódź on ul. Piłsudskiego with 14,100 sqm of office space to be completed in Q3 2019. Earlier this year Echo Investment purchased a plot on ul. Nowomiejska in Gdańsk, not far from the European Centre of Solidarity. The developer is planning to use the land for the construction of office buildings with a combined area of 30,200 sqm. Work is to start on the first building (with 14,300 sqm of space) in Q1 2018.