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 company – R4R Poland sp. z o.o. (“JVCo”) under the joint control of R4R and  Echo Investment S.A. (the “Company”) has been created (current report no 18/2018) and the information on amendment of the Agreement, acquisition of shares in the JVCo and entering into shareholders" agreement regulating corporate governance in the JVCo (current report no 29/2018), the Management Board of the Company hereby informs that on 14 September 2018, the following actions have been undertaken in exercise of the Agreement: (1) the Company or its subsidiary companies listed below, as the case may be, entered into preliminary sale agreements as sellers with the following subsidiary companies of JVCo as buyers with respect to four development projects under construction (approx. 1,200 apartments) for the total net price of PLN 338.669.808: (a) Dellia Investments - Projekt Echo – 115 sp. z o.o. (subsidiary of the Company) entered into a preliminary sale agreement with R4R Warszawa Browary sp. z o.o. (subsidiary of JVCo) with respect to Browary Warszawskie project, being realised on the real property located in Warsaw at Grzybowska 58 street; (b) Projekt Echo – 137 sp. z o.o. (subsidiary of the Company) entered into a preliminary sale agreement with SO SPV 103 sp. z o.o. (subsidiary of JVCo) with respect to Rychtalska project, being realised on the real property located in Wrocław at Rychtalska street; (c) Echo-Property Poznań 1 sp. z o.o. (subsidiary of the Company) entered into a preliminary sale agreement with R4R Wrocław Kępa sp. z o.o. (subsidiary of JVCo) with respect to Kępa project, being realised on the real property located in Wrocław at Kępa Mieszczańska island; (d) the Company entered into a preliminary sale agreement with SO SPV 101 sp. z o.o. (subsidiary of JVCo) with respect to Wodna project, being realised on the real property located in Łódź at Wodna 23 street; (2) JV and its subsidiary companies listed above entered into the loan and facility  agreement with Bank Polska Kasa Opieki S.A. and other financial institutions for the total loan amount of PLN 258,668,000; (3) in exercise of its obligation to co-finance the JVCo under the Agreement, the Company injected to JVCo the total amount of PLN 41.354.269 by subscribing for newly issued shares in JVCo and granting it a shareholder loan. 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 and take over of four projects being under development (construction of appeox. 1,200 apartments), in the next stage of the JVCo development it will take over from the Company another development projects with approx. 1,700 apartments which are ready for construction commencement in the next 12 months. The first tenants will be able to move in during the third 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.