Echo Investment has had another successful year with a great operational and financial results. The obtained net profit of PLN 300 million results from the increase in the value of our office and retail projects, handover of 1,263 apartments, as well as the sale of office buildings Gatehouse Offices in Warsaw and O3 Business Campus III in Kraków.
Echo Investment is focused on developing multifunctional, ‘destination’ complex projects, which now constitute approx. 45% of the total sqm of projects under construction and projects in the pipeline. Today, the ongoing ‘destination’ projects are Warsaw Brewery and Fuzja in Łódź that are very well received among clients and tenants.
In Fuzja almost entire available office space has been leased. In 2019 Echo Investment received the building permit for the first office buildings in this complex and attracted Fujitsu Poland Global Delivery Center to move its headquarter here in 2022.
Warsaw Brewery also attracts an extra-ordinary tenant-mix. Robert Lewandowski, Pjaca restaurant, as well as Craft & Beer Kumpel Atelier could be found among tenants who believed in the potential of this place and chose it for their market debut. On top of that, Echo Investment is in advanced negotiations on the whole remaining office space in the buildings. Once fully completed later this year, Warsaw Brewery will become a new heart of Wola district.
The company systematically strengthen its position among the biggest residential developers in Poland. As one of the few developers, Echo Investment improved its sale results in 2019. It exceeded its goals, selling 1357 apartments and handing over the keys to 1263 apartments to its clients, which enabled it to achieve a 38% better score than in 2018.
“To develop our residential business, in 2019 and in the beginning of 2020, lands where over 8,000 apartments can be developed, were bought or secured. I am particularly satisfied of the acquisition of the Tesco shopping mall in Warsaw’s Kabaty which is going to be transformed into the new center of the district. Another great deal was concluded in the beginning of 2020 where we secured three standing and working first generation shopping malls belonging to the Tesco Group that enable us to develop around 240,000 sqm mixed use area”, says Nicklas Lindberg, CEO of Echo Investment.
For Resi4Rent, residential for rent platform, 2019 was a breakthrough. The company was granted a use permit for its first projects – Rychtalska buildings in Wrocław and Wodna in Łódź, that together offer over 520 apartments. According to the ambitious growth plans of the platform, another 1.8 thousand units for rent will be completed by the end of 2021.
Last year Echo Investment started construction of four office projects with a total leasable area of over 95,000 sqm, and has obtained the occupancy permit for two office buildings - Moje Miejsce I and Face 2 Face I. Its leasing team signed lease agreements for a total area of 96,000 sqm. Among the largest tenants secured last year were such companies as Grupa Żywiec in the Warsaw Brewery, CitySpace in React in Łódź and of course Fujitsu Poland Global Delivery Center in Łódź-based Fuzja.
In 2019 Echo Investment together with EPP opened Galeria Młociny in Warsaw. This multifunctional project combines 85,000 sqm of modern, well-designed retail and entertainment area, as well as approx. 6,000 sqm of office space.
Echo Investment enjoys a very stable financial situation and a low net asset-to-debt ratio, which as at 31 December 2019, was at 34%. The Group maintains a high cash balance: over PLN 490 million at the end of 2019.
“The value of our projects under construction increased over the last four quarters by 30%. This is in line with our strategy to achieve dominant position on markets we operate in. This is why we constantly searching and buy land for further development. In 2019, we acquired land properties for over 170,000 sqm of residential and office space. Also another land for 190,000 sqm is already secured with preliminary agreements – mainly for residential projects, including projects for Resi4Rent”, comments Maciej Drozd, CFO of Echo Investment.