Echo Polska Properties (EPP) and Echo Investment concluded final agreements concerning a joint purchase and development of a mixed-use project at 22 Towarowa Street in Warsaw. The property with an area of 6.5-ha is located in the heart of the most dynamically developing part of the capital city and it is the largest commercial plot in the city centre.

EPP will ultimately purchase 70% shares in the SPV company which is the property owner whereas Echo Investment S.A. will buy the remaining 30%. The total purchase price is nearly EUR 120 mln, EUR 77.4 mln of which is to be paid in 2016 and the remaining part – after the fulfilment of specified conditions. EPP will manage the property after its construction and Echo Investment will be the developer of the project. Towarowa 22 has an area of 6.5-ha where a leasable area of 100,000 sqm could be built. Hadley Dean, president of EPP, comments: “It is a unique purchase for EPP, which will allow us to create a unique project in the capital of the country. It also an excellent extension of our portfolio due to its attractive location – the last of its kind in the centre of Warsaw.” The index of retail space per 1,000 residents of Warsaw amounts to 450 sqm, which means that the market can absorb more projects. For comparison, the index in Poznań and Wrocław is 600 sqm per 1,000 inhabitants. “It will be the latest generation project in the city where residents" purchasing power is 80% higher compared to the national average,” adds Hadley Dean. The launch of the construction work is planned for 2018 and its completion – for the end of 2020 and early 2021. In the years 2014-2016 the seller, Griffin Real Estate, merged a dozen or so plots constituting Towarowa 22. “We are pleased with the possibility of participating in the Towarowa 22 project, which will develop this part of the city and will create a place where people will be able to live, work and spend free time. Echo and EPP will use their unique experience which they gained in a lot of fields and they will contribute to the transformation of Wola district into a new centre of Warsaw, particularly with regard to entertainment and shopping,” says Nicklas Lindberg, president of Echo Investment. Wola is the fastest developing district of Warsaw. Thanks to the construction of the second line of the underground and its improving infrastructure, it is growing to be the most popular location for the construction of offices and apartments. More than 500,000 sqm of offices are to be built here over the next few years, thanks to which it will be the most important business district of the city. Nearly 140,000 people live within a 10-minute walk from Towarowa 22 and the number is expected to grow by 25% between 2015 and 2025. Minimum 6,000 cars go past the plot every hour at peak times.