Echo Investment’s results for Q3 2019 exceeded the market expectations. The obtained net profit of PLN 49 million results from 515 apartments handed over to clients, increase in the value of office projects under construction, such as two buildings of Warsaw Brewery and Face2Face complex in Katowice, as well as the sale of O3 Business Campus III in Kraków.
‘Echo Investment enjoys a very stable financial situation and a low debt ratio. Thanks to the strong liquidity, we are able to enlarge our land bank to secure our future growth. Since the beginning of the year Echo Investment has acquired plots for over 170,000 sqm of the usable space at the value of almost 70 million EUR’, says Maciej Drozd, Echo Investment’s CFO.
Over the last four quarters the value of projects under construction grew by 18%, while increase of residential assets amounted to as much as 53%. This is in line with the strategy to extend the exposure to the residential market.
‘The achievement of this year's company targets, meaning sales of 1,300 apartments and handovers of 1,250 apartments is close as until the end of October we sold 1,089 and handed over 841 units. Quarter by quarter we increase the number of units sold and handed over, but at the same time we continue to keep a healthy margin on our projects’, says Waldemar Olbryk, Member of Echo Investment’s Board responsible for the Residential Department.
The platform of apartments for rent Resi4Rent has reached an important milestone in Q3: the first project Rychtalska in Wrocław was granted an occupancy permit in September and in October another project – Wodna in Łódź – was also finished. Both projects are now in the process of leasing and enjoy great interest of prospective clients. The strategic goal of Resi4Rent is to develop a platform of 7,500 apartments for rent by 2024.
At the end of the third quarter of 2019, Echo Investment had seven office buildings under construction with a total leasable area of 140,000 sqm.
‘The market sentiment is very good, we could observe it especially on Face2Face Business Campus in Katowice. The construction works on the first phase of the complex are on the final stage and the building is leased in almost 93%. From the beginning of 2019, our Office Department has signed lease agreements for 60,000 sqm. The annual target of leasing amounts to c.a. 100,000 sqm and to fulfil the target, we have very promising negotiations with prospective tenants ongoing’, adds Rafał Mazurczak, Board Member responsible for the Office Department.
Completion of Warsaw Brewery – the first destination project - will be one of the main tasks for Echo Investment in 2020. The company devotes a lot of attention to the squares, restaurants in the historical cellars creating a food hall and the greenery that will not only invite people to meet there but will also create a central point of Warsaw’s Wola district.
‘The news that historical malthouse will turn into a restaurant was very well received, as Robert Lewandowski, a football player and an internationally renowned ambassador of Poland is one of the restaurant’s investors. We have in our pipeline many more interesting news on the District of Meetings and Flavors that we are creating and everyone will be able to visit already next year’, says Nicklas Lindberg, CEO of Echo Investment.
In October, the main shareholders informed Echo Investment on their intention to sell all shares they possess to the Hungarian real estate company Wing. The transaction is subject to approval by the Polish antimonopoly authority.