Polish developer-investor Echo Investments and Echo Polska Properties (EPP), a spin-off business formed around Echo's standing assets, have jointly acquired a €120 mln site in central Warsaw for a mixed-use project.
The pair have acquired Towarowa 22, which spans an area of 6.5 hectares and can cater for a project with 100,000 m2 of leasable space. The site is located in Wola, the 'fastest growing area of the capital city' and is the largest commercial plot in the centre, the buyers said.
EPP will acquire 70% stake in the special purpose vehicle which owns the property, while Echo Investment – will own the remaining 30%. The total purchase price is €120 mln, of which €77.4 mln will be paid in 2016, and the remainder - upon fulfillment of agreed conditions.
Echo Investment is the developer of the project, while EPP will manage the completed building.
The vendor, Griffin Real Estate, merged several parcels of land between 2014 to 2016 to create the Towarowa 22 site. Commencement of the construction works is scheduled for 2018 with a planned delivery in 2020/2021.
Hadley Dean, CEO of EPP comments: 'It is an exceptional acquisition for EPP, which will allow us to create a unique project in the capital. It is also an ideal complement to our portfolio because of the attractive location - the last of its kind in the centre of Warsaw.'
The ratio of modern retail space per 1000 inhabitants in Warsaw is 450 m2, which means that the market is ready to absorb further retail investments, according to Dean. In comparison, in Poznan or Wroclaw, the ratio is 600 m2 per 1000 inhabitants. 'This is going to be the 5th generation project in the city where the purchasing power of residents is 80% higher than the national average,' Dean added.
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