Echo Investment's residential business will be integrated into Archicom. The change will clarify the structure of the group, where Archicom will be the residential part and Echo Investment will focus on growing the commercial and PRS segments, as well as on creating mixed-use ‘destination’ projects.
Archicom has entered into an initial agreement according to which Echo Investment will contribute to Archicom its residential development projects together with employees. Echo Investment will acquire new shares of Archicom in exchange. According to the preliminary schedule, the transaction will close in July 2023. The conclusion of the final agreement is conditional upon consents from the General Meetings of Shareholders of both companies.
Archicom has been part of the Echo Investment Group since 2021. So far, it has developed residential projects in Wrocław, while Echo Investment - in Warsaw, Kraków, Poznań and Łódź. The Echo Investment-Archicom Group sold 1,515 apartments last year, which gave it the sixth place among developers on the Polish market. Currently, the group offers approx. 1,200 apartments, and in 2023 it intends to start construction of 2,500 residential units.
The business of our group will be divided into two streams: residential and commercial. The new structure will be easier to understand by the capital market and will allow for a faster, more effective implementation of the strategy of profitable growth.
Nicklas Lindberg, CEO of Echo Investment
The total value of Echo Investment-Archicom Group’s assets at the end of 2022 amounted to PLN 6.1 bln, comprising PLN 2.3 bln of residential and PLN 3.8 bln of commercial assets.
