Echo sees PLN 300 mln profit

During that time the company handed over projects with more than 160,000 sqm of residential, office and retail space, including its 150th project of its history – Libero shopping center in Katowice.

In its yearly report the company presented detailed information about its flagship mixed-use project on ul. Towarowa 22 in Warsaw. The largest part of this will be taken up by retail and services (116,000 sqm gla). The complex will also include 60,700 sqm of offices, 261 apartments (18,500 sqm of usable space), 444 apartments for rent (16,300 sqm) and a hotel (18,900 sqm). “Our strategy to build multifunctional projects, new parts of the cities, being destinations for people to live, work and entertain, has gained momentum. Currently, such projects reached over 45% of our pipelineLast year, we opened up the first two buildings of Warsaw Brewery and the entire project will be ready in the second half of 2020,” said Nicklas Lindberg, CEO at Echo Investment.

Echo started construction of eight residential investments and sold 986 units. This year Echo is to start construction and sale of projects with app. 2,300 apartments. To strengthen the second pillar of its residential business, last year Echo Investment, together with a financial partner, established Resi4Rent apartment rental platform. At present, the company is building four projects with 1,200 apartments and is preparing to start another 1,700 units within the coming twelve months. Resi4Rent is on a good way to achieve the target of 5,000 apartments under management by 2020.

The company also started the construction and lease of four office buildings in Warsaw, Katowice, and Wrocław. In 2019, another four projects will be launched in Warsaw, Łódź, Gdańsk and Wrocław. The company currently has about 100,000 sqm of space, which can be offered to potential clients.

Echo sold office buildings West Link and Sagittarius in Wrocław and Symetris II in Łódź for approximately EUR 130 mln in total. The company also signed the preliminary agreement for the sale of Gatehouse Offices – the first office building of Warsaw Brewery.

As at 31 December 2018, the value of Echo Investment assets amounted to almost PLN 4 bln, out of which PLN 2 bln was the value of projects under construction. Projects under construction and in preparation have a total usable area of app. 1.3 mln sqm, or nearly 20 pct more than at the end of 2017. “Low level of indebtedness of the Echo Investment group, which at the end of 2018 amounted to 28 pct, creates flexibility to quickly react to opportunities that come on the market and gives us great comfort in choosing the optimal sources of financing for development. Last year, the company placed PLN 240 million of bonds for individual and institutional investors,” said Maciej Drozd, CFO at Echo Investment.