The Echo-Archicom Group closed the year 2022 with a strong cash position and further reduced the net debt of the company. This is the result of the sale of seven office buildings worth nearly €320 million. In 2022, the Group generated a net profit of PLN 127 million attributable to shareholders of the parent company, which was mainly the outcome of handing over to customers 2,168 apartments for sale and rent built by Echo Investment and Archicom, as well as an increase in the value of office buildings and apartments for rent.
In 2022, the value of the Group Echo-Archicom’s assets amounted to nearly PLN 6.1 billion, including a high level of cash: PLN 942 million.
“As always, we are focused on maintaining a stable financial position of our Group and following a prudent financial policy. We enjoy the trust of investors, thanks to which in 2022 our Group issued bonds with a total value of PLN 495 million. During this time, we redeemed bonds worth nearly PLN 590 million. When thinking about the future, we are working on more spectacular projects. Recently, we presented the Towarowa 22 project in Warsaw, which we will build together with our partner AFI Europe. We plan to start construction of the first office building already this year,” says Maciej Drozd, CFO of Echo Investment.
The residential market is currently changing. Individual investors who buy flats, treating them as safe capital investment, have become the dominant group of clients. Last year the Group sold 1,515 and handed over 2,168 apartments to individual clients, as well, as started the construction of 1,613 units. The clients appreciate the quality, excellent project locations, as well stability and reputation of the Group.
The excellent condition of the rental residential market is reflected in the high level of commercialization of Resi4Rent buildings. At the end of 2022, the company had nearly 3,000 ready and fully leased premises, with another 3,600 under construction. The goal of Resi4Rent is to have about 10 thousand premises for rent by the end of 2024 – out of which over 8,000 are ready and the rest close to completion. Currently, the land for 95 percent of these apartments is already secured.
“Last year was marked by the sale of completed and well-leased office buildings in our Group. We managed to close transactions for the sale of seven buildings with a total value of €318 million. Echo is in the process of negotiating further transactions, the effects of which we will soon be able to present to you. We are also happy with the development of CitySpace, our flexible office space operator. The main activities marked by 2022 in this company were the opening of the twelfth location, expansion in Warsaw, and adapting offices in the entire network to the highest standards,” says Nicklas Lindberg, the company’s CEO.
Libero and Galeria Młociny are popular among clients thanks to changes in the tenant mix and implemented marketing campaigns. 2022 was a continuation of growth in both locations. Libero’s turnover in 2022 was 39 percent higher than in 2021 while its footfall grew by 35 percent. An equally good situation is observed in Galeria Młociny in Warsaw. Here, the turnover increased by 41 percent and footfall – by 33 percent.
In March 2023, Echo-Archicom Group adopted an ambitious ESG strategy that organizes its priorities and actions from the perspective of 2030. Its main assumptions focus on limiting the carbon footprint, improving the energy efficiency of buildings, minimizing the project’s impact on the environment and biodiversity, as well as strengthening our corporate culture. Simultaneously with the financial report, the Group also published the Sustainable Development Report which summarizes the Echo-Archicom Group’s activities in the past year.