WOOD Flash – Echo Investment: sells Villa Offices for EUR 87m (>2x capex, a 4.7% yield, EUR 5.2k per sqm)
Echo Investment has announced that it has sold its Villa Offices in the Warsaw Brewery complex to KGAL Group, for EUR 86.7m. The selling price is more than double Echo’s total development cost of EUR 40m (including the land). We estimate that the transaction could generate net proceeds of around EUR 60m, or around 15% of Echo’s market cap. Echo has confirmed that the negotiations for the sale of the Malthouse Office, the larger of the two Brewery offices, as well as My Place, another Warsaw office, are in advanced stages. The sale of these additional buildings could generate substantial net proceeds, and could bring the net debt to assets to mid-30%, we believe, even following the acquisition of Archicom. While this is, in our view, still high for a developer, if management is confident that these further disposals are likely to be closed, we cannot rule out that the company may decide to pay a dividend from the 2020 earnings (in our base case, we forecast no dividend from the 2020E earnings).Echo Investment is a real estate investment and development company based in Poland. Co.'s is engaged in operations in the real estate market, the design, construction and development of shopping and entertainment centers, hotels, office buildings, houses, blocks of flats and apartments. Co.'s operations are organized along three operating segments: Shopping and Entertaining Centers, Offices and Hotels and Residential. Co. also offers general contracting services for third party investors. Co. owns properties throughout Poland, including Szczecin, Poznan, Warsaw, Krakow and Kielce, among others, and abroad, including Ukraine, Romania and Hungary.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.