Echo Investment's residential business will be integrated into Archicom in order to create a nationwide developer with bigger growth potential, synergies and wider market presence. This move is in line with the Group’s strategy to create the residential and commercial market leader. The change will also clarify the structure of the Group, where Archicom will be the residential part and Echo Investment will focus on growing the commercial and PRS segments, as well as on creating mixed-use ‘destination’ projects.

Archicom has entered into an initial agreement according to which Echo Investment will contribute to Archicom its residential business - in particular development projects and employees. Pursuant to the agreement, Echo Investment will acquire new shares of Archicom in exchange for a contribution in kind. According to the preliminary schedule, the transaction will close in July 2023. The conclusion of the final agreement is conditional upon certain business and legal actions, including consents from the General Meetings of Shareholders of both companies.

‘We are convinced that the combined potential, synergies and nationwide presence will generate added value for both companies, their customers and, consequently, for the shareholders of both companies. Both short-term and long-term perspective of the residential market is improving, as there is a high underlying demand for apartments in Poland. According to JLL data, the sale of apartments in the first quarter of 2023 was 34 percent higher than in the previous quarter and 10 percent higher YoY. This is the good moment to expand the scale and strength of Archicom, so that the company will be the undisputed market leader in near future’ says Waldemar Olbryk, CEO of Archicom.

Archicom has been part of the Echo Investment Group since 2021. So far, it has developed residential projects in Wrocław, while Echo Investment - in Warsaw, Kraków, Poznań and Łódź. The Echo Investment-Archicom Group sold 1,515 apartments last year, which gave it the sixth place among developers on the Polish market. Currently, the Group offers approx. 1.2 thousand apartments, and in 2023 it intends to start construction of 2.5 thousand.

‘The business of our Group will be divided into two streams: residential and commercial. The ambition and strategic goal for both parts is to be a nationwide champion. Achievement of the goal in residential segment will be facilitated by combining projects, competences and experience of Echo and Archicom. On the other hand, Echo Investment continues to strengthen its position in the commercial and PRS sectors, and by creating multifunctional ‘destinations’ projects like Warsaw Breweries or Towarowa 22. The new structure will be easier to understand by the capital market and will allow for a faster, more effective implementation of the strategy of profitable growth’ says Nicklas Lindberg, CEO of Echo Investment.

The total value of Echo Investment - Archicom Group’s assets at the end of 2022 amounted to PLN 6.1 billion, comprising PLN 2.3 billion of residential and PLN 3.8 billion of commercial assets.