Completion of the joint venture agreement with R4R S.à r.l. (“R4R”), a company controlled by a fund managed by one of the world’s premier investment managers.

Following the information on entering into a joint venture agreement (“Agreement”) based on which a full-function joint venture (“JVCo”) under the joint control of R4R and  Echo Investment S.A. (the “Company”) is to be created (current report no 18/2018) and on the European Commission merger clearance decision approving unconditionally conclusion of the Agreement (current report no 28/2018), the Management Board of the Company hereby informs that on 20 July 2018, the Company and R4R have undertaken the following actions required under the Agreement: (1) they entered into the deed of amendment of the Agreement based on which they introduced certain technical amendments to the procedures governing the JVCo set-up; (2) the Company acquired 30% of the shares and votes in the JVCo and R4R acquired 70% of the shares and votes in the JVCo; and (3) they entered into a shareholders" agreement regulating corporate governance of the JVCo. Pursuant to the Agreement, JVCo will operate as a development platform for residential real estate for rent in Poland. The JVCo will develop apartments for rent in four locations in Warsaw, Łódź and Wrocław. After its establishment the platform will take over four projects being under development and will conduct construction of more than 1,200 apartments and another 1,700 apartments will be ready for construction in the next 12 months. The first tenants will be able to move in during the fourth quarter of 2019. Under the Agreement, the Company will provide planning, design and developments services, while JVCo will lead the operational management.  Legal basis: Article 17 sec. 1 of MAR - inside information.