The conclusion of an amendment to the preliminary conditional real estate purchase agreement and the conditional real estate purchase agreement concerning real properties located in the area of ul. Towarowa in Warsaw.

Further to the information published in the form of current report No. 32/2016, the management board of Echo Investment S.A. (the “Issuer”) hereby announces that on 30 November 2016, a subsidiary of the Issuer, Projekt Echo – 138 sp. z o.o. sp. k. (the “Buyer”), Griffin Real Estate Invest sp. z o.o., with its registered seat in Warsaw (“GREI”) and Fidelin Development sp. z o.o. sp. k., with its registered seat in Warsaw (the “Seller”), concluded: (i) an amendment to the preliminary conditional purchase agreement dated 15 September 2016 concerning 13 (thirteen) real properties located in the area of ul. Towarowa in Warsaw (the “PPA”), including eight real properties being subject to the statutory right of first refusal vested in the authorities of the capital city of Warsaw (the “RFF Real Properties”) and five real properties not being subject to such statutory right of first refusal (the “Other Properties”) (the “Amendment to the PPA”); and (ii) in performance of the PPA, a conditional agreement for the sale of the RFF Real Properties (the “Conditional Agreement”). Pursuant to the Amendment to the PPA, the price for the sale of the RFF Real Properties was set at EUR 19,234,588.50, and the conclusion of the Conditional Agreement was made dependent on the fulfilment of the following conditions precedent, i.e. (i) the receipt of relevant merger clearance; and (ii) the receipt of the repayment representation referred to in the PPA (the “Conditions”). The Amendment further provides that both the Buyer and the Seller are entitled to rescind (odstąpić od) the PPA if, by 31 January 2017, the Buyer and the Seller have not jointly received the advance tax ruling concerning the transaction as contemplated under the PPA.
The Amendment to the PPA describes the conditions precedent for the conclusion of the Conditional Agreement (described below) the fulfilment of which will result in the parties being required to execute an agreement on the transfer of the title to the RFF Real Properties (the “Final Agreement”).

In connection with the fulfilment of the last of the Conditions on 30 November 2016, the Buyer, the Seller and GREI executed the Conditional Agreement, pursuant to which after the fulfilment the conditions precedent described below, the Seller will sell and the Buyer will buy the RFF Real Properties. The price for the sale of the RFF Real Properties was set at EUR 19,234,588.50. As provided in the Conditional Agreement, the Final Agreement will be concluded after the fulfilment of the following conditions precedent: (i) with respect to the RFF Real Properties, the non-exercise by the capital city of Warsaw of its right of first refusal within the statutory deadline or the waiver thereof by the capital city of Warsaw; and (ii) with respect to the Other Properties, as described in the Conditional Agreement, the receipt of an appropriate advance tax ruling, the establishment of security for the payment and the receipt of a commitment to provide insurance for the title to the real properties (the “Conditions to Closing”). The Buyer and/or the Seller are entitled to rescind (odstąpić od) the Conditional Agreement with immediate effect if not all the Conditions to Closing have been fulfilled by 31 January 2017. The Conditional Agreement contains representations and warranties of the seller and the purchaser that are customary for transactions of this type as well as standard contractual clauses concerning the parties" liability. The provisions of both agreements do not diverge from the provisions commonly used in these types of transactions. Legal basis: Art. 17 section 1 of the MAR – inside information