Echo Polska Properties NV announced results Q1 2017 with distributable earnings 3.2% ahead of budget at €16 million. At period end the portfolio was valued at €1.5 billion with a portfolio of 10 retail and nine office properties and two Warsaw-based retail development sites.
During the period EPP advanced its expansion strategy aimed at major underserved cities. “We are on track to become a pure retail property fund with an acquisition strategy focused on retail assets in strategic locations, enabling us to further leverage our portfolio and platform with retail tenants,” says CEO Hadley Dean.
The acquisitions included two development sites which pave the way for EPP’s entry into the underserviced Warsaw retail market. One of these, Galeria Mlociny was concluded post-period end and is already 55% pre-let and on track for completion in Q2 2019. The 82,000 sqm development is located in a strategic transport hub in a large growing residential district, serving 40,000 people a day.
Other acquisitions included the €53.3 million purchase of the Zakopianka shopping centre in Kraków, A4 Business Park Phase III in Katowice; and the post-period end conclusion of the €141.60 million acquisition of Galeria Twierdza in Klodzko, Galeria Twierdza in Zamość and Galeria Wzorcownia in Wloclawek.
“We continued to unlock value in our existing portfolio with a number of extensions and enhancements,” says Dean. The additional 15,150 sqm for Galaxy in Szczecin is expected to provide a €3.1 million increase in net operating income and is scheduled to open in November 2017 with pre-letting at 80% at the time of this release. The 3,800 sqm extension to Outlet Park Szczecin is scheduled for completion in September 2017 and will feature 118 stores and an uplift to net operating income of €708,000.
