Echo Group closed the first half of 2026 with a 14% rise in residential sales and considerable activity in its commercial segment. The Group completed the sale of part of the Resi4Rent portfolio, comprising 18 projects and 5,322 units, for approximately PLN 2.4 billion, the largest transaction to date in the Polish PRS market. It also sold two buildings in the Brain Park office complex in Kraków for €74.3 million. Capital raised from these transactions is being directed towards debt reduction and new investment, primarily in central Warsaw.
Echo is developing, or will shortly begin construction of, three new office buildings in Warsaw: two in the Towarowa22 mixed-use development and a high-rise at 53 Grzybowska Street. Demand for office space in central locations is evidenced by a lease signed with PwC, which will occupy nearly 20,000 sqm in AFI Tower. Across Poland's largest business centres, the Group leased 54,000 sqm of office space in the first half of the year, a rise year on year, and is finalising agreements covering a further 17,000 sqm. In Wrocław, the Group completed Swobodna SPOT, delivering 16,000 sqm of office space, while the approximately 18,000 sqm office component of the WITA project in Kraków was fully leased before completion.
"The first-half results show continued demand for our residential and office offering. At the same time, having completed several key transactions, we are moving into the next stage of our strategy. The capital raised will allow us to reduce debt and launch new projects, particularly offices in central Warsaw, where the supply of modern space remains limited," said Nicklas Lindberg, CEO of Echo Group.
The living segment continues to form an important part of the Group's business. Following the partial disposal of the Resi4Rent portfolio, the platform continues to grow, with almost 2,800 units in operation at the end of June and a further 945 under construction in Warsaw and Kraków. Archicom sold 1,320 apartments in the first half of 2026, 14% more than a year earlier, and handed over keys to 1,137 units. Two StudentSpace private student residences under construction in Warsaw will offer a combined 1,095 beds, with the first 500 available at the start of the academic year.
At the end of June 2026, Echo's total assets exceeded PLN 6.4 billion and cash and cash equivalents stood at PLN 419 million. The Group repaid the vast majority of bonds maturing in 2026 and renegotiated terms on bonds worth nearly PLN 500 million, reducing annual interest costs by approximately PLN 7.5 million. It also decided on the early full redemption of its 1I/2022 bonds with a nominal value of PLN 180 million and raised the total dividend for the financial year to PLN 1.2 per share.
"Our secure liquidity position and consistent debt reduction are increasing our financial flexibility. This allows us to plan new investments with confidence while lowering financing costs and making distributions to shareholders. The Group's diversified business and strong operating performance provide solid foundations for further growth," said Maciej Drozd, CFO of Echo Group.
