Polish developer – Echo Investment – and international fund operating in the REIT formula – Echo Poland Properties – signed contracts concerning purchase of plot and building of a new investment at Towarowa 22 Street in Warsaw. Towarowa 22 is a property composed of dozen or so plots consolidated by Griffin Real Estate. In effect, the largest building land in the Warsaw city center was obtained for a commercial purpose thanks to five independent transactions. Its total area amounts to ca. 6.5 ha, whereas the potential leasable area amounts to more than 100 thousand sq. m. The purchasers are to pay the amount which does not exceed 120 million euro. After signage of the contract, 78 million euro are to be paid. The remaining price is to be paid after meeting of specified planning conditions.
According to regulations of the contracts, EPP and Echo Investment are to create joint venture, in which EPP will obtain 70 per cent, whereas Echo Investment – the remaining 30 per cent. On the basis of the separate contracts, Echo Investment will be also a developer of the investment, which is to be built on the plot. The depended company EPP will be a manager of the investment. These contracts are conditional; they depend on meeting of certain conditions, including the permit of the President of the Office of Competition and Consumer Protection. The commercial consultants of the purchasers were CBRE and Savills, whereas Colliers International advised the sellers.
After the sale of seven offices within ROFO to EPP, Echo has enough means for new investments. We decided to start with Towarowa, especially because of the fact that this project perfectly fits our strategy. Echo Investment is to build big projects which co-create the city and meet the needs of inhabitants. There will be ca. 1 million sq. m of offices in the neighborhood in the nearest years. Wola is also a district where the biggest number of apartments in Warsaw is to be realized. Our investment is to revive this historical city block by adding commercial, entertainment and restaurant functions – says Nicklas Lindberg, President of Echo Investment.