POLAND Echo Investment has sold the West Link office project in Wrocław to Griffin Premium RE, a platform created by Griffin Real Estate, for EUR 36 mln.
The preliminary contact gives Griffin Premium RE the right to purchase the Echo Investment subsidiary that is developing the building. The agreement is conditional and should be finalized no later than on December 31st, 2018.
Furthermore, Echo Investment and Griffin Premium RE, with its subsidiary, have signed an investment agreement for Griffin Premium RE indirectly invest 25 pct of the capital needed to complete the development of two commercial projects in Warsaw developed by Echo subsidiaries (Beethovena, phase I and II; and Browary Warszawskie, phase J).
As a result of the investment, Griffin Premium RE will be entitled to a 25 pct indirect stake in the profits from the sale of the two projects by Echo Investment and will obtain the first purchase rights for them.
“The deals are in line with Echo Investment’s asset-light strategy to divest buildings leased up to a satisfactory level and allows us to invest this cash to grow the business further. It generates faster capital turnover and higher rates of return,” explained Nicklas Lindberg, the CEO of Echo Investment.
Dorota Wysokińska-Kuzdra, the CEO of Griffin Premium RE, added that this is another step towards expanding and diversifying the company’s portfolio to generate stable returns and to enable it to pay out attractive dividends.