Echo Investment has reached an agreement with Eurohypo for the financing of its Echo Gallery extension project in Kielce, Poland. The EUR 100 mln financing facility represents the largest credit agreement in the Polish real estate market so far this year, Echo said. The loan, which has to be fully paid by March 2020, will be used to finance the construction of the shopping-entertainment centre in the Polish city.
Echo Investment has reached an agreement with Eurohypo for the financing of its Echo Gallery extension project in Kielce, Poland. The EUR 100 mln financing facility represents the largest credit agreement in the Polish real estate market so far this year, Echo said. The loan, which has to be fully paid by March 2020, will be used to finance the construction of the shopping-entertainment centre in the Polish city.
In June Echo Investment and Eurohypo signed an agreement for a EUR 50 mln facility to fund the construction of the Park Postepu office park in Warsaw. According to Grzegorz Iwanski, director of the financing department of Echo, the credit facility for Echo Gallery marks another major step forward for the real estate financing market in the country.
‘This is one of the few recent transactions providing financing for a project in its realisation phase. After the credit refinancing for Park Postepu, this is another great, joint success for Echo Investment and Eurohypo. The bank’s decision heralds, in my opinion, the change of attitude of financial institutions to projects in the construction and planning phase. Though banks’ requirements are still very rigorous and negotiations are tougher than before the crisis, it seems that financiers understand and appreciate the needs of stable developers in this difficult market,’ he said.
Galeria Echo offers a lettable space of around 26,000 m2 across four storeys and will be extended to provide 66,000 m2. The mall, which is due to open in 2011, will comprise 300 shops, a fitness club, bowling alley, discotheque and numerous restaurants and cafes.
