Echo summarises the year of positive changes

Transformation from being the owner of standing assets to pure developer, considerable acceleration of development and leasing activity, high growth in apartment sales and focus on delivering return to the shareholders – these are Echo Investment’s 2016 highlights.

The company successfully implemented the strategy of profitable growth and it is ready to establish long-term dividend policy.

Nicklas Lindberg, Echo Investment CEO. Image: Echo
Nicklas Lindberg, Echo Investment CEO. Image: Echo

One of the major pillars of the profitable growth strategy is to accelerate the capital turnover. The results are proven by numbers. Last year Echo Investment started projects of nearly 200,000 sq m of office, residential and retail space, and completed almost 170,000 sq m. That is twice as much as in 2015.

The leasing teams increased the leased area by 80% in office sector and by 30% in retail. Residential sales teams encouraged clients to buy 925 apartments, which is 56% more as compared to the previous year.

“In 2016, Echo Investment became a pure developer. Based on our standing assets, we created Echo Polska Properties, attracted a respectable co-investor to the new company and successfully listed it on Luxembourg and Johannesburg stock exchanges. Later, we sold Q22 to Invesco Real Estate and three office buildings to EPP, at the total price of EUR 397 million. Sales of almost entire commercial property pipeline for 2017 and 2018 has been already secured by preliminary agreements with the ultimate owners. This gives us very stable outlook for future business growth and return delivering,” says Nicklas Lindberg, Echo Investment CEO.

Echo’s pipeline of projects for 2017 is impressive. The company intends to launch construction of projects with combined office, retail and residential area totalling 182,000 sq m, and to complete over 150,000 sq m. of space in these sectors.

Image: Echo Investment
Image: Echo Investment

“Echo Investment is a stable and experienced company, and has the ability to develop projects in retail, office and residential sectors, including big-scale, mixed-use investments like Browary Warszawskie or Galeria Libero in Katowice. Such projects fit our strategy as well as help to accelerate capital turnover and optimise our resources,” added Nicklas Lindberg.

The company’s pipeline secures projects to be started until 2019, but Echo continues negotiations regarding new plot acquisitions.

“Since the beginning of 2016, we have bought several plots, which will be used to develop 123,000 sqm of residential, office and retail space. We are also well advanced in negotiations regarding acquisitions of areas with potential to build over 500,000 sqm. These activities, together with Towarowa 22 and Galeria Młociny projects that we are going to develop with EPP, secure the implementation of our investment plan for the next few years,” adds Nicklas Lindberg.

Last year was very profitable also for the company’s shareholders. For the first time in its history Echo Investment shared profits with its investors. The total return on Echo’s shares in 2016 amounted to 62%, together with the share price and dividends paid or declared.

“Having secured the sale of almost all projects in the pipeline, the management board decided to adopt the dividend policy. For 2017 profit, Echo Investment will pay the shareholders PLN 0.5 per share, and after that – up to 70% of the net profit will be shared. The remaining amount of the profit will become a foundation for the company future growth. We want Echo Investment to be a stable and attractive investment target,” concludes Maciej Drozd, Echo Investment CFO.

Nicklas Lindberg, Echo Investment CEO about Echo´s year 2016

Video: Echo | Youtube


fb-art 150

Share this article
Sign up for our ACROSS Newsletter. Subscribe to ACROSS Magazine.

Ticker MORE

Realm banks on F&B occupier growth with key appointment

Realm has grown its leasing team with the appointment of Caroline Helyer as leasing manager. Caroline will be working across several of Realm’s schemes – including Dalton Park, Milsom Place and Bedford Riverside – where she will be leading initiatives to secure new retail lettings and lease renewals, as well as enhance the customer shopping experience and F&B offering across the portfolio.

redos buys Äppelallee-Center retail warehouse in Wiesbaden, Germany

Hamburg-based large-scale retail property specialist redos Group has acquired the Äppelallee-Center in Wiesbaden near Frankfurt. The purchase was made on behalf of the special AIF "Redos Einzelhandel Deutschland III".

PINKO will open store in Ocean Plaza Shopping Mall in Ukraine

The Italian brand PINKO will open the second store in Ukraine in Ocean Plaza shopping mall. The exclusive distributor of the brand is ARGO. The new store with an area of ​​160 sq.m. will open its doors on the first floor in May. A wide range of women's clothing, shoes and accessories will be presented.

Sabine Georgi Appointed as ULI Germany/Austria/Switzerland Executive Director

Sabine Georgi joins the Urban Land Institute (ULI) from Royal Institute of Chartered Surveyors (RICS).

Acquisition of The Moor, Sheffield in a Joint Venture with BRAVO

NewRiver is pleased to announce that its joint venture with BRAVO Strategies III LLC in which it holds a 10% stake has exchanged contracts to acquire The Moor, a 28 acre estate in Sheffield city centre, from CEP ASI UKPF Nominee 1 Limited and CEP ASI UKPF Nominee 2 Limited, for total consideration of £41.0 million, representing a capital value of £60 per sq ft.

Ziv Gigi appointed as Managing Director for GTC’s operations in Romania

GTC has announced the promotion of Ziv Gigi to the position of Managing Director Romania. He will be responsible for all operations of GTC in the Romanian market.