Handing over 1,650 apartments for sale and rent to customers, maintaining 100 percent of the lease level in all completed Resi4Rent buildings, increasing the turnover of Libero in Katowice and Galeria Młociny in Warsaw – this is a summary of the Echo-Archicom Group’s operating activities in three quarters of 2022. During this time, the Group generated PLN 125 million in net profit.
The value of the joint assets of Echo Investment and Archicom amounts to nearly PLN 6.4 billion. The Group also maintains a high level of cash: at the end of September, it was PLN 700 million. As always, the companies are focused on maintaining a stable financial position and following a prudent financial policy.
Since the beginning of 2022, Echo-Archicom Group sold 1,202 and handed over 1,515 apartments to individual clients, as well as started construction of 1,335 units.
“The residential market is currently undergoing changes. Individual investors who buy flats, treating them as safe capital investments, have become the dominant group of our clients. They appreciate the quality, excellent project locations, as well the stability and reputation of our Group. That is why we introduce to our offer projects that best meet the expectations of these customers. We also observe a very strong demand for apartments for rent, which confirms our faith in this market segment. Its excellent condition is reflected in the 100 percent level of commercialization of Resi4Rent buildings,” comments Nicklas Lindberg, CEO of Echo Investment.
Resi4Rent currently has nearly 3,000 ready and fully leased premises, with another 3,000 under construction. The goal of Resi4Rent by the end of 2024 is to have about 10,000 premises for rent – out of which over 8,000 ready and the rest close to completion. Currently, the land for 90 percent of these apartments is already secured.
In recent weeks, Echo Investment has commissioned the first building of the Brain Park complex in Krakow. The office building is well-leased, by i.a. PepsiCo and Mercator Medical, due to the great interest of tenants, the developer decided to start the construction of the second phase of Brain Park.
“We are pleased with the high level of lease of all our commercial projects and with tenants’ interest in the upcoming buildings. At the end of September 2022, we had three office projects under construction with a total lease area of 52,000 sqm. Another 152,000 sqm in Kraków, Łódź and Wrocław is in the planning phase. Among the investments in preparation, there are new ‘destinations’ projects – places that attract people. Early next year we will be able to start the awaited projects such as Towarowa 22 in Warsaw, Wita Stwosza in Krakow or Swobodna in Wrocław – multifunctional, well-designed large fragments of cities,” says Maciej Drozd, CFO of Echo Investment.
Tenant’s interest in the use of flexible office space offered by CitySpace in our Group is increasing. In the third quarter, the operator prepared two new locations, including 242 workstations in Plac Unii and 390 workstations in MidPoint71 in Wrocław – the most exposed office space in the city.
The uptrend is also visible in the Libero shopping centre in Katowice and Galeria Młociny in Warsaw. Libero’s turnover in the three quarters of 2022 was 91 percent higher than in the corresponding period of 2020, while the footfall increased by 69 percent higher. An equally good trend is observed in Galeria Młociny in Warsaw. Here, the turnover increased by 56 percent compared to the first nine months of 2020, while the footfall grew by 49 percent.
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