Echo Polska Properties (EPP) and Echo Investment concluded final agreements concerning a joint purchase and development of a mixed-use project at 22 Towarowa Street in Warsaw. The property with an area of 6.5-ha is located in a rapidly developing part of the capital city and it is the largest commercial plot in the city centre.
EPP will ultimately purchase 70% shares in the SPV company which is the property owner whereas Echo Investment S.A. will buy the remaining 30%. The total purchase price is nearly €120 million, €77.4 million of which is to be paid in 2016 and the remaining part – after the fulfilment of specified conditions.
EPP will manage the property after its construction and Echo Investment will be the developer of the project. Towarowa 22 has an area of 6.5-ha where a leasable area of 100,000 sqm could be built.
The index of retail space per 1,000 residents of Warsaw amounts to 450 sqm, which means that the market can absorb more projects. For comparison, the index in Poznań and Wrocław is 600 sqm per 1,000 inhabitants. “It will be the latest generation project in the city where residents’ purchasing power is 80% higher compared to the national average,” adds Hadley Dean, President of EPP.
The launch of the construction work is planned for 2018 and its completion – for the end of 2020 and early 2021. In the years 2014-2016 the seller, Griffin Real Estate, merged a dozen or so plots constituting Towarowa 22.