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Aquisition of ECHO shares

CATEGORY
Investment Deal of the Year, CEE
In December 2019, WING has acquired a 100% stake in Lisala, which in turn owns a 56 % stake in ECHO Investment, a company listed on the Warsaw Stock Exchange (WSE). Echo Investment is the largest Polish property development company and the only one with extensive experience across the entire range of residential, retail and office segments. Already the market leader in Poland in both the office and retail segments, the company has been strengthening its residential property market portfolio as well. With the transaction complete, WING Group has become a majority owner of Echo Investment. In March 2020 WING acquired a further 10,04% shares of Echo. As a result, WING has increased its stake in Echo Investment to 66% from 55,96%. As the main shareholder, WING intends to keep the company listed on the Warsaw Stock Exchange and continue its development in line with the current strategy. Both companies will be operationally independent.
Name of the deal
Aquisition of ECHO shares
The date of closing the deal
March 2020
Value of the transaction (in EUR)
€ 301 Million
Yield
n.a.
Seller, plus brief information about the company
Echo Investment is the largest Polish developer, the only one on the market with an extensive track record in three sectors of the real estate market: residential, commercial, and office. Echo Investment is a market leader in Poland in both the office and retail segments and is constantly strengthening its position in the residential property market. As a company responsible for urban development, Echo is involved in large scale destination projects combining various functions. It creates places where people can work, live, play, and satisfy their everyday life needs. The company’s activity is focused in seven cities: Warsaw, Cracow, Łódź, Wrocław, Katowice, Gdansk and Poznan. It has already completed 168 projects with a total area of over 1.7 million sqm in dozens of Polish cities. Since 1996, Echo Investment has been listed on the Warsaw Stock Exchange.
Consultancy which advised Seller
n.a.
Purchaser, plus brief information about the company
WING is one of the largest privately owned Hungarian real estate companies, Hungary’s market-leading office developer and Hungary’s leading BTS HQ Developer for multinational tenants. The company operates in all market segments, engaging in the development of offices, industrial properties, retail properties, hotels and residential properties. Since its foundation, in the past 20 years Wing developed over 1 million sqm of real estate in the investment value of EUR 1,5 billion. WING is a reliable, financially stable partner, leading real estate bond issuer on the Hungarian stock exchange. It has a significant development and investment portfolio and subsidiaries that specialize in real estate services.
Consultancy which advised Purchaser
n.a.
Financing institution
n.a.
Current occupancy level
n.a.
Please say why this deal should be considered for the award
In 2019 WING, celebrating its 20th anniversary this year, is Hungary’s leading property company. Building on its success in the Hungarian real estate market, it has identified international expansion as its next strategic goal. With acquiring the majority holding of Echo Investment the largest Polish real estate developer WING has taken a major step forward in this direction and it is now a group that is significant at the regional level.