Echo Polska Properties (EPP), a company jointly owned by Echo Investment S.A. and South Africa’s Redefine Properties is aiming to list on the Luxembourg Stock Exchange (LuxSE) in August 2016 followed by a listing on the Johannesburg Stock Exchange (JSE) in September 2016.

“EPP"s listing on the LuxSE and the JSE is anticipated to provide it with significantly improved access to expansionary capital and provide existing and future shareholders with an opportunity to invest in a dynamic and highly-attractive economy,” says Hadley Dean, CEO of EPP. "EPP"s listing on both Luxembourg and Johannesburg Stock Exchanges is a great way to strengthen our partner and his ability to buy from Echo Investment and co-invest with it in future real estate projects. This is also an excellent opportunity for Echo Investment to grow the business further and take clear role as the biggest Polish developer focusing on high quality assets, what is a base of our strategy" says Nicklas Lindberg, CEO of Echo Investment. The value of EPP"s initial portfolio as at 30 June 2016 was EUR 1.2 billion, with retail properties comprising 78% of the initial portfolio by market value. Currently, EPP owns six office and 10 retail properties with a gross leasable area (GLA) totalling 446,400 square metres. The buildings are located in major cities across Poland, and were all built by Echo Investment. EPP is backed by an experienced board and staff complement, which continues to drive its development into one of the largest property funds in Poland. Dean says the fund has the potential to double in size over the next two years, in part due to some potentially significant investment opportunities available to the company. EPP has a 25% development profit participation in and has also secured the right of first offer from Echo Investment to purchase 7 properties (known as ROFO projects) with a total GLA of approximately 200,000 square metres. The ROFO projects are at various stages of construction and are set to be completed between 2016 and 2018. In addition to organic growth of its property portfolio, EPP has significant growth opportunities embedded by virtue of the extensions, reduction in vacancy rates and arrangements regarding the ROFO projects. EPP is also well placed to leverage off the development activities of Echo Investment, thereby providing the company with a significant advantage in the identification and sourcing of high quality real estate assets. With concerns about Brexit swirling, Dean says Poland is well-placed to weather the storm of any market volatility, with opportunities for inexpensive space a positive outcome flowing from Brexit for Poland. “Big banks are actively seeking more space for their back offices now, so Poland is set to benefit hugely by Brexit as the banks are looking to snap up office space that is almost 60% cheaper than in London,” he says. Poland is the largest economy in Central Europe and was the only country in Europe to avoid recession during the 2008 financial crisis, mainly due to its own currency, strong domestic market, independent central bank with a solid track record and a conservative banking system. “Poland has a large, stable and liquid real estate market which has become increasingly attractive to foreign investors over the last few years due to its high growth potential and scalability, and shareholders stand to benefit from the returns that will emanate from high quality, modern and sizeable properties,” says Dean. Dean made it clear that the listing is aimed at EPP raising new equity capital to fund acquisitions and that the existing shareholders would not be exiting their investment on the listing. Redefine Properties Limited a South African REIT, is one of the Top 40 companies listed on the Johannesburg Stock Exchange. It manages the assets worth 65 billion ZAR (ca. 4 billion EUR). The company has been quoted on the Johannesburg Stock Exchange since 2000 and has been systematically increasing its value since. Echo Investment SA is one of the largest investment and development companies in Poland. It carries out investments in four main sectors of the real estate market: residential buildings, shopping as well as shopping and entertainment centres, office buildings, and hotel properties. Since 1996, it has been listed on Warsaw Stock Exchange. The company has completed over 120 projects in several dozens of Polish cities, with a total area close to 1,300,000 sq. m. In 2015, Echo Investment SA joined the dynamically developing capital group of Griffin Real Estate – Oaktree – PIMCO.