Conclusion of the final property sale agreement for the property A4 Business Park office complex (Phase 3) in Katowice

With reference to the information published in current report No. 31/2016, the Management Board of Echo Investment S.A. (the “Issuer”) hereby reports that on 26 April 2017 a subsidiary of the Issuer, Projekt Echo - 135 spółka z ograniczoną odpowiedzialnością spółka komandytowa, which acted as the seller, and a subsidiary of Echo Polska Properties N.V. (“EPP”), A4 Business Park – “Iris Capital” spółka z ograniczoną odpowiedzialnością spółka komandytowa, which acted as the buyer, concluded the final sale agreement concerning real property located in Katowice at ul. Górnośląska, Polna and Francuska along with a building situated thereon which is a part of an office complex under the name of A4 Business Park (the “Real Property”) (the “Agreement”). The Agreement contains standard provisions and representations of the seller and the buyer for transactions of such type, as well as standard terms and conditions concerning the liabilities of the parties. The seller provided the buyer with a quality guarantee regarding the building and construction facilities located on the Real Property with reference to individual elements specified in the Agreement and within a period specified in the Agreement. The provisions of the Agreement do not differ from the provisions used in transactions of this nature. As part of the transaction envisaged under the Agreement, the seller and the buyer concluded a rental guarantee agreement. The basic provisions of the this agreement envisage a guarantee provided by the seller to the buyer as regards the payment of rent fees and average operating costs for individual parts of the building which were not leased to third parties on the day of the signing of the Agreement and parts of the building which were leased but in relation to which the rent was discounted or rent-free periods were introduced.  Furthermore, the seller and the buyer concluded: (i) an escrow account agreement; (ii) a fit-out works agreement under which the seller shall conduct fit-out works on the Real Property in favour of the buyer for an additional remuneration; and (iii) a profit participation loan agreement regarding the repayment of the loan granted by EPP (Cyprus) 2 Limited, a subsidiary of EPP. The ultimate sale price resulting from the calculation described in current report No. 31/2016 was EUR 27,500,159 increased by VAT. Part of the price in the amount of EUR 15,469,996 shall be paid promptly after the execution of the Agreement pursuant to the provisions of the escrow account agreement. The remaining part of the price in the amount of EUR 12,030,163 and the entire amount of VAT due on the price shall be paid within ten business days from the execution of the Agreement. The payment of the deferred part of the price and the entire amount of VAT was guaranteed by EPP. Taking into consideration additional payments which the seller could obtain on the basis of the fit-out work agreement, the total value of the income involving the sale of the Real Property could increase to up the estimated amount of EUR 28,469,995 (increased by VAT). Legal basis: Art. 17 section 1 MAR – confidential information.