The Echo Investment capital group concluded with the bank EUROHYPO AG a credit agreement of the value of 100 million EURO. The means obtained on the basis of this agreement shall be allocated to finance costs of construction of the shopping-entertainment center in Kielce (Poland) – Echo Gallery. The concluded agreement pertains to investment credit, which shall be assigned directly for financing of the Kielce center erection – this is the biggest transaction of this type concluded this year on Polish real estate market and one of the biggest credits in a whole CEE region.
The credit shall be handed over in installments to 31 March 2012 inclusive. The final term of repayment of the credit falls on 31 March 2020.
In June of the current year Echo Investment and Eurohypo signed an agreement of the value – then biggest on the market - of 50 MLN EUR concerning refinancing of the costs of construction of the office park “Park Postępu” in Warsaw. This credit for Echo Gallery, according to Mr. Grzegorz Iwański – Financing Department Director, conducting the transaction on the side of Echo Investment – means another major step forward on the market of real estate financing.
„This is one of the few recently, and the biggest in value, transactions providing financing of a project in its realization phase. After the credit refinancing construction of Park Postępu, this is another great and common success of Echo Investment and Eurohypo. The bank’s decision heralds, in my opinion, the change of attitude of financial institutions to projects in phase of construction and planning. Though banks’ requirements still are very rigorous and negotiations are incomparably harder, than before the crisis, it seems that financiers understand and appreciate the needs of stable developers on this difficult market. One one hand, it bears fruit of greater trust and on the other hand it raises the quality of prepared investments. This is a very good news for all well-prepared commercial projects in the pipeline.” – said Mr. Grzegorz Iwański.
To quote the Eurohypo representative, Mr. Hartwig Glatzki, Head of Continental Europe and Latin America „We are content to be able to conclude one of the first development financing schemes in this unstable environment. This proves that we managed to create in Poland a very solid client base with healthy business and we hope to continue along these lines.”
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GALERIA ECHO in Kielce occupies at present the area of approximately 68 000 sq.m., 26 000 sq. m. out of which constitute a leasable area. The development project assumes construction of 4 commercial storeys and a multi-level car park. The total area of Echo Gallery, after its extension, shall equal approximately 159 000 sq.m., in which the leasable area shall take up 66 000 sq. m.. Customers will be able to use approximately 2 300 parking places.
In extended Echo Gallery customers will be able to shop in almost 300 stores. The two topmost storeys of the center were designed for entertainment and recreational functions. Customers shall have attheir disposal a body building gym, a fitness club, a 12-alley bowling, a discotheque, numerous restaurants, cafes and a playing ground for children and other attractions located at various storeys of the center.
The new Echo Gallery shall be opened in 2011. The design of the Echo Gallery expansion and the multi-storey car park was created in the architectural studio Detan of Kielce and the design of elevation was created by the architectural studio Open Architekci of Warsaw.
Echo Investment SA. is the investor and developer of Echo Gallery.
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EUROHYPO AG is one of the biggest European banks specializing in financing on investments of the real property market. The bank has branch offices in Europe, United States of America and Asia. So far Eurohypo and Echo Investment co-operation has comprised finacing of such projects as shopping-entertainment center: Pasaż Grunwaldzki in Wrocław and Galaxy in Szczecin and office project: Postępu 3, Athina Park and Park Postepu in Warsaw.
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