Echo Investment Capital Group and Eurohypo AG have concluded a credit agreement of the value of €50 million. The means obtained on the basis of the aforesaid agreement shall be assigned for refinancing of building costs of the Park Postepu office complex, being constructed in Warsaw, Poland. The credit shall be transferred in five installments, by September 30, 2010, inclusive. The final term of the credit repayment is January 31, 2020.
Park Postepu will comprise approx. 33,000 m².
"It is this year's biggest credit transaction on the real estate market. Taking into account the present economic situation, prolongation of procedures it causes and more rigorous policy adopted by financial institutions towards the whole developers' branch, I think, that signing of the credit agreement in a relatively short time is a big success of both Echo Investment and Eurohypo bank. We achieved the agreement in the matter of granting the credit thanks to co-operation and, first of all, the good will of both parties. I am convinced that presently conducted negotiations concerning financing of our further projects shall end with a similar success," said Mr. Grzegorz Iwañski, Financing Department Director, conducting the transaction on Echo Investment side.
Representing Eurohypo Dariusz Salamonowicz, Transaction Manager, said: "Echo Investment is our proven partner, with whom we have been co-operating for many years, basing on mutually elaborated standards. The total amount of credits granted to Echo Investment Capital Group exceeded 350 million. The developer's position is always significant upon making of a decision concerning credit. We evaluated very well the financed project. Park Postepu has all the features which, from the point of view of the bank, guarantee safety of a transaction: very good localization, appropriate quality of architecture and workmanship, proper level of advancement of execution and lease of the project and also stable leaseholders."
Piotr Gromniak, the President of Echo Investment Management Board, commented on the fact of signing the agreement with Eurohypo: "I am glad that financial institutions open up for the developers' needs, and I hope that the agreement with Eurohypo may be interpreted as the beginning of a change of the unfavorable market tendencies. Apparently decisions concerning financing of good and secure projects may be taken without needless delay, especially in the situation, where more and more positive signals come to us from various sectors of the market. In projects of Echo Investment the agreements are signed with leaseholders in office buildings, the interest in commercial areas in shopping and entertainment centers does not decline and, after a certain breakdown, the pace of apartments' sale is stabilizing. Increase of accessibility of investment credits may certainly consolidate this positive tendency. Echo Investment is soon going to introduce further, equally well-prapered investments to the market, which certainly shall facilitate their crediting, executing and commercialization."