A loan of nearly PLN 1.5 bln for Echo Investment
Echo Investment concluded a loan agreement worth EUR 342 mln and PLN 15 mln with a consortium of banks: BZ WBK SA and Erste Group Bank AG in order to refinance its Pasaż Grunwaldzki in Wrocław and Galaxy in Szczecin projects. The funds will be used to refinance the loans which were granted earlier and to execute the extension of the Galaxy shopping centre in Szczecin
“Pasaż Grunwaldzki in Wrocław and Galaxy in Szczecin are some of key assets of the Echo Investment group. That is why we looked for exceptional financing conditions for this portfolio. This is the largest loan agreement in the history of Echo Investment and the financing conditions offered by Bank Zachodni WBK and Erste Group Bank A.G. are very satisfying. We are pleased with another loan agreement concluded with our loyal partner BZ WBK and the start of cooperation with Erste Group Bank. We hope that the refinancing of the next sets of our projects, which is planned for the beginning of next year, will be conducted on equally competitive financial conditions,” says Grzegorz Iwański, director of Echo Investment’s Funding Department.
The loan process was conducted with the help of lawyers from the Hogan Lovells law office of Warsaw while evaluations and technical reports were drawn up by experts from Knight Frank and Europtima of Warsaw.
Pasaż Grunwaldzki is one of the largest shopping and entertainment centres in Lower Silesia and it has been in operation since 2007. It is located in the inner city centre and it is a favourite shopping and meeting place as well as a showpiece of the Grunwaldzki Square in Wrocław. Pasaż is currently being modernized. The interior of the nearly 10-year-old facility is to undergo a major metamorphosis. A complete redevelopment of its food court and the main square as well as an improvement of the comfort and aesthetic aspects of its car park will be the main focus of the modernization. The interior design of some of the shops as well as tenants’ area will also be changed. New shops as well as popular and niche brands will be introduced.
The extension of Galaxy will be carried out in accordance with a design of the Open Architekci architectural studio. The project will completely change the appearance of the most popular shopping and entertainment centre in the West Pomeranian region.
The new section of Galaxy is a modern shopping arcade including a square which will not only be a place for shopping but mostly a meeting place for residents of Szczecin and the region. The new Galaxy will be developed around a spacious internal square, which will include a stage for organizing various events. The entirety will be covered with a glass roof, which will provide appropriate access to natural light.
After the completion of the extension Galaxy will have a retail area of nearly 60,000 sqm. Its offer will be extended to 200 shops. Drivers will be able to use a total of 1,500 parking spaces. There will be a large fitness club and a lot of debuts on the local market of clothing brands.
Construction work is to be launched in March 2016 and its completion is planned for October 2017. The project will also involve an exchange of the entire facade of the existing section of Galaxy. About 500 jobs will be created in connection with the extension.