ECC Invest enters Poland with fund launch

ECC Invest, part of the Dutch ECC Group, has said it is launching a new fund that will invest in two residential projects in Poland. The new investment vehicle, ECC Polish residential Fund I, will offer professional investors the opportunity to participate in two large scale developments in Warsaw and Poznan. This is ECC Invest's first operation in Poland.

Polish Residential Fund I will invest in two projects that are currently being developed by the ECC Group: a modern apartment complex in Warsaw and a luxury housing development on the outskirts of Poznan. In Warsaw, ECC Group is building 120 luxury apartments, as well as 141 underground parking spaces and approximately 1,100 m² of commercial space. Near Poznan, the company is developing 193 single family homes on a nine-hectare site. The total investment volume of the fund amounts to approximately EUR 66.5mln, of which EUR 12mln being represented by own equity.

The ECC Polish Residential Fund I is targeting an internal rate of return of 14% after performance fee over the next four years. The profit will be distributed to the investors on the completion and sale of the projects. Interim profit distributions and repayments of capital are also possible.

Baarn-based ECC Invest is a subsidiary of the ECC Group, which has been active in Central Europe and Poland since 1989. In Warsaw the group has developed important projects such as the 120,000 m² Promenada shopping center, which last year was sold to a UK fund for about EUR 128mln. ECC Invest structures and manages real estate investments that have been initiated by the ECC Group in emerging countries in Central Europe, Southeast Asia and Northern Africa, where ECC Group has a total development pipeline of some EUR 750mln.