by Property Forum | Retail

Echo Investment and EPP (Echo Polska Properties) have concluded a loan agreement worth €175 million and a VAT loan of PLN 34 million with Bank Zachodni WBK S.A. as an agent as well as PKO Bank Polski S.A. and Bank Gospodarstwa Krajowego. The acquired funds will be used for the construction of Galeria Młociny in Warsaw. The loan was granted for the construction period and a five-year investment period.


“Galeria Młociny will be a new place on the retail and entertainment map of Warsaw. We wanted to involve the most active financial institutions on the Polish market in the financing process. Because of a considerable amount of the funding as well as the city-forming value of the project, we jointly decided with our partner EPP to cooperate with a consortium of renowned financial institutions i.e. Bank Zachodni WBK S.A., PKO Bank Polski S.A and Bank Gospodarstwa Krajowego. Such a partnership guarantees smooth completion of the construction process and opening Galeria Młociny to future customers. We also would like to emphasize that we are proud of the trust placed in us by our partners from the financial consortium,” says Grzegorz Iwański, Director of Echo Investment’s Funding Department.
 
Galeria Młociny is a shopping and office centre with a combined leasable area of 82,000 sqm, 71,000 sqm of which is earmarked for retail, entertainment and gastronomy. The facility is planned to include a modern cinema, a fitness club, an extended food-court as well as a medical centre. The mall is 60 percent leased already. Its key fashion brands include the Inditex group as well as Van Graaf, H&M, C&A, CCC, Sephora, Douglas, Intermarche, MediaMarkt Saturn, RTV Euro AGD, Go Sport, Martes Sport, SMYK and CINEMA 3D and the Calypso fitness club. The construction of the first stage started in October 2016 and the completion is planned for Q1 2019.