€100 million credit agreement for realization of Echo Gallery in Kielce (PL)

The Echo Investment capital group concluded with the bank Eurohypo AG a credit agreement of the value of €100 million. The means obtained on the basis of this agreement shall be allocated to finance costs of construction of the shopping-entertainment center in Kielce (Poland) – Echo Gallery. The concluded agreement pertains to investment credit, which shall be assigned directly for financing of the Kielce center erection – this is the biggest transaction of this type concluded this year on Polish real estate market and one of the biggest credits in the whole CEE region.

The credit shall be handed over in installments to 31 March 2012 inclusive. The final term of repayment of the credit falls on 31 March 2020.

In June of the current year Echo Investment and Eurohypo signed an agreement of the value – then biggest on the market - of €50 million concerning refinancing of the costs of construction of the office park "Park Postêpu" in Warsaw. This credit for Echo Gallery, according to Mr. Grzegorz Iwañski – Financing Department Director, conducting the transaction on the side of Echo Investment – means another major step forward on the market of real estate financing.

"This is one of the few recently, and the biggest in value, transactions providing financing of a project in its realization phase. After the credit refinancing construction of Park Postêpu, this is another great and common success of Echo Investment and Eurohypo. The bank's decision heralds, in my opinion, the change of attitude of financial institutions to projects in phase of construction and planning. Though banks' requirements still are very rigorous and negotiations are incomparably harder, than before the crisis, it seems that financiers understand and appreciate the needs of stable developers on this difficult market. One one hand, it bears fruit of greater trust and on the other hand it raises the quality of prepared investments. This is a very good news for all well-prepared commercial projects in the pipeline," said Mr. Grzegorz Iwañski.

To quote the Eurohypo representative, Mr. Hartwig Glatzki, Head of Continental Europe and Latin America "We are content to be able to conclude one of the first development financing schemes in this unstable environment. This proves that we managed to create in Poland a very solid client base with healthy business and we hope to continue along these lines."

Source: Echo

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