Echo making even more noise

The value of its assets amounted to nearly PLN 3.9 bln – a 15 pct increase over the year, while the value of its retail and residential properties under construction grew by more than 60 pct during that time. In the total, the office, retail and residential space the company has under construction and preparation amounted to app.1.1 mln sqm – 40 pct more than at the end of 2016.

“The scale of our activities has recently been growing rapidly, which is why we are devoting much energy to strengthening our business functions, efficiency and streamlining procedures. Due to the greater number of projects we have under construction we have recruited more than 100 people,” explains Nicklas Lindberg, the CEO of Echo Investment.

The group generated a net profit of PLN 312 mln last year, resulting from the delivery of 1,006 apartments and an increase in investment profits of PLN 234 mln. The figures were also influenced by an appreciation in the share value of Echo Polska Properties (EPP), the remuneration received for construction services and the leasing of the Outlet Park and Galaxy shopping centres in Szczecin as well as the Q22 office building in Warsaw. The 1.1 mln sqm Echo is currently working on comprises 740,000 sqm under preparation and 370,000 sqm under construction – more than twice as much as in 2015.

This year the company intends to begin work on office buildings K (15,100 sqm), G and H (23,100 sqm) of the Browary Warszawskie project in Q2, the launch of the Face 2 Face office project in Katowice (20,100 sqm), as well as an office building on ul. Piłsudskiego in Łódź (14,100 sqm). Construction work on the first stage of the Solidarności project in Gdańsk (13,900 sqm) will start in Q3, while the launch of the Moje Miejsce II project (17,400 sqm) is being prepared for Q4. Furthermore, the company intends to start nine new residential projects with more than 1,660 units and five projects including 1,250 rental apartments.

In 2018 Echo also intends to buy land for the development of around 400,000 sqm. In Q1 the company bought sites in Kraków for 22,500 sqm of offices and flats and for 43,000 sqm of apartments in Wrocław. Negotiations are taking place over the possible purchase of plots for the construction of app. 250,000 sqm (70 pct of which would be residential with the remainder being office space) in Kraków, Warsaw, Wrocław, Katowice and Poznań. This year Echo plans to sell six projects: Symetris Business Park II, West Link, O3 Business Campus III and Sagittarius Business House. Galeria Libero, which should be ready in August, is also being prepared for sale as well as the first office building (J) of the Browary Warszawskie complex, which should be completed in the final quarter of the year.