In the second quarter of 2020, Echo Investment generated a net profit of PLN 10.4 million, which mainly resulted from the appreciation in the value of projects under construction and the handover of 222 apartments to buyers. The pandemic has shown once again that the company’s diversified portfolio is one of its main strengths.

Echo Investment continues to enjoy a stable financial standing. The Group has also maintained its healthy cash position: at the end of the first half of the year this came to more than PLN 340 million. The value of assets now amounts to over PLN 5 billion, almost 17% higher than a year ago. The value of investment properties increased by 80% and a 12% increase in the value of commercial and residential projects under construction and in preparation is noted. With trust Echo Investment continues to receive from financial institutions, the company is able to place new bonds and obtain financing for its office buildings under construction.

“We are active in the office, residential and retail real estate sectors. We invest in the most promising new segments, such as apartments for rent or serviced offices. Our strategy is flexible, such as in the way we adapt to the changing trends and business cycles of the real estate market, thanks to this, the company as a whole remains in a healthy financial and operational shape,” says Nicklas Lindberg, CEO at Echo Investment

Since the beginning of the year Echo Investment has completed five residential projects in Warsaw, Łódź, Poznań and Wrocław and was able to hand over 412 apartments to clients. Echo Investment sold 653 units in the first half of 2020, exceeding the result of the same period last year. In terms of business development, the company is actively searching for new plots. In the first half of 2020 Echo Investment bought two properties in Kraków and Warsaw, where 36,000 sqm of residential space could potentially be built and secured plots with approx. 305,000 sqm of usable space.

In the first six months of 2020, Resi4Rent, the largest private, institutional apartment rental platform in Poland, has received an occupancy permit for its second Wrocław project. The first Warsaw project Warszawa Browary got occupancy permit in August and the first residents already took keys to their apartments. The scheme consist of 450 apartments in the city center of Warsaw.

Since the beginning of the year, Echo Investment has commissioned four office buildings – Face 2 Face I in Katowice, West 4 Business Hub I in Wrocław, as well as Villa Offices and Malthouse Offices in Warsaw. Currently the developer has a number of office buildings under construction with a total leasable area of approx. 140,000 sqm, including Fuzja CD in Łódź, Moje Miejsce II in Warsaw, Face2Face II in Katowice and MidPoint71 in Wrocław. Upon completion, the Fuzja office building will become the headquarters of Fujitsu. Two other buildings to be delivered in fourth quarter of 2020 – Moje Miejsce II and Face2Face II – are also very well leased.

“Despite the challenging market, we have been seeing substantial interest from new tenants looking to expand in Poland and who require safe and high quality office space in the best locations. Echo Investment is still the best partner they could have,” says Maciej Drozd, CFO at Echo Investment. And adds: “In line with our Profitable Growth Strategy, all of our completed buildings, as well as those that are under construction, are intended for sale. We are in advanced negotiations with a number of major investors to sell our completed buildings, while those that are under construction are also the subject of substantial interest in terms of potential transactions.”

“In order to secure the company's development, in the second half of the year we focus on permitting processes. In addition, we constantly monitor the market in terms of potential acquisition targets that are in line with our growth strategy. We also place great emphasis on the administrative processes related to occupancy permits for our residential projects, so that we can hand over approx. 1,600 apartments to clients by the end of the year,” stresses Nicklas Lindberg.

In August, the first Primark store in Poland was officially opened in Galeria Młociny in Warsaw This was one of the most anticipated debuts on the Polish retail market and has attracted crowds of shoppers since the beginning. After the reopening of shopping malls, clients have also returned to Libero centre in Katowice, as is confirmed in increasing figures.