Echo Investment Capital Group closed the first quarter of 2008 with a net profit exceeding 26 million PLN. The Group’s net income increased by more than 40% compared to the identical period of the previous year, and equals almost 91 million PLN

The total assets’ value exceeded 1 milliard EUR, and the level of ownership capital equalled almost 0,5 milliard EUR, which constitutes an increase of about 20 % as compared to figures from the previous year.

Towarsd the end of the Ist quarter of 2008, Echo Investment Capital Group owned more than 270 million PLN in cash and liquid assets and the ratio of short- and long-term liabilities to total assets equalled 44% and remained at the similar level as in identical period of the previous year.

The factor which considerably affected growth of income from sale and the result gained in the first quarter of 2008, was the intake of income on grounds of concluded final sale agreements concerning the residential project in Warsaw at Inflancka street (IInd phase), and also increase in income obtained from lease of commercial areas owned by the company.

The acquired result was also affected by a quarterly updating of valuation of immovables owned by the Capital Group, taking into consideration, among others, changes resulting from exchange rate differences of EUR and USD (q/q) and indexation of rent rates, done at the beginning of each turnover year.

The lower net profit in the Ist quarter of 2008, in comparison to the identical period of the previous year, is a result of the smaller impact of the immovables’ value updating.
In the Ist quarter of 2008 Echo Investment Capital Group concluded transactions of land purchase in Cracow and Koszalin, allowing realization of more than 100 000 sq. m of lease area.

SHOPPING CENTERS

The company plans realization of 8 new projects (including investments in Hungary and Romania). After these are accomplished, the number of such projects in the company’s portfolio shall amount to 18. Echo Investment is also planning extension of its shopping- and shopping-entertainment centers. The existing commercial establishments shall increase in area by more than180 000 sq. m.

OFFICES AND HOTELS

Echo Investment operates actively in the sector of office real estate. In the portfolio of realized and planned investments the Group has 9 office projects. After they are accomplished, Echo Investment shall own 12 office projects of the total area exceeding 300 thous. sq. m. nett.
The Company is also planning erection of a hotel in Łódź.

APARTMENTS

In 2007 the Company won 2 new markets in the residential projects sector, in Łódź and Wrocław. Land plots were purchased for another investments, upon which there will be accomplished more than 120 000 sq. m. of area for sale.
In 2008 another 4 projects shall be handed over for use in Kielce, Poznań and Warsaw. There are altogether 20 new projects in preparation and in realization (3100 apartments and plots with designs of houses).

LAND PLOTS

Echo Investment has secured altogether more than 300 hectares of land for new projects. Pursuing the adopted development strategy, the company is still actively searching for new investment possibilities in all 4 sectors of its activity in Poland and abroad. In 2007 the Company purchased the land plot of attractive location in Romania, upon which it is planning to accomplish a shopping-entertainment center of the area of approximatelly 53 000 sq. m.