The transaction clearly divides Echo-Archicom business into commercial and residential parts and opens up attractive opportunities resulting from its synergies. The consolidation of the residential business is a significant milestone and a chance to boost growth on an unprecedented scale. The combined resources make it easier, among other things, to improve competencies, share experience, and expand geographically. Following the transaction, Archicom absorbed residential development projects, a team of employees and a land bank from Echo Investment. In return, Echo Investment acquired 22,825,700 new Archicom shares at the issue price of PLN 36.34, achieving a share in the capital of 90.50%. Echo Investment will focus on the office, retail, PRS and flexible office segments, further strengthening its position in the commercial real estate sector, where its end clients are institutions.
Name of the deal
Consolidation of Echo-Archicom residential assets
The date of closing the deal
Jun-Aug 2023
Value of the transaction (in EUR)
180000000
Yield
0
Seller, plus brief information about the company
Echo Investment is a Polish real estate developer with extensive experience in key sectors of the real estate market. The company is currently focusing on the office, commercial, and PRS segments. It also undertakes mixed-use developments such as Warsaw Breweries, and Fuzja in Łódź, where people can work, live, and enjoy commercial, food, and entertainment offerings. Echo Investment is listed on the Warsaw Stock Exchange, and its main shareholders are Wing and Griffin Capital Partners.
Consultancy which advised Seller
N/A
Purchaser, plus brief information about the company
Archicom is a developer that has been creating city-forming projects for several decades. It has been operating mainly on the Lower Silesian market since 1986, and since 2016 it has been listed on the Warsaw Stock Exchange. The company grew out of a family design office with 160 completed investments including Wroclaw Breweries, the award-winning Olimpia Port estate, and Platinum Lofts in Wrocław. Its projects are places where one can work, relax, enjoy sporting activities – simply live.
Consultancy which advised Purchaser
N/A
Financing institution
N/A
Current occupancy level
0
Please say why this deal should be considered for the award
With a market value of nearly PLN 830 million, the transaction has significantly strengthened Archicom's position. It thus became a nationwide brand and one of the largest residential developers in the country. The company's offer is now available in the five largest Polish cities: Warsaw, Cracow, Wrocław, Łódź and Poznań. The nationwide scale of operations will give Archicom's business a new dynamic, and with its new team it will reach the sales potential of 4,000 apartments per year.
