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Echo Investment SAEcho developer wants to sell more office buildings and use funds for dividends in coming years
Listed developer Echo Investment estimates that the situation on the investment market is improving and, following the sale of React development, it is preparing to sell further projects, the company's management representatives told a conference. Echo wants to use the funds to reduce debt as well as pay dividends in the coming years.
"The market was not so active last year, but activity is returning, and the investment market is getting very interesting (...). We see that the market situation is improving. We expect the effects to be visible in 2025 and that is why we emphasise the importance of disposing of assets that are ready for it," Echo's deputy CEO Maciej Drozd said.
"We want to use the funds from the transaction to reduce debt, as well as to pay dividends in the coming years," he added.
As Drozd reported, in 2025, Echo does not plan to issue bonds, and with the divestment of assets, the intention is to reduce the overall debt level so as not to refinance bonds.
"After the sale of React, we want to sell the remaining projects in 2025-2026 - we are aiming to relocate this capital (...). The goal is to grow stably and pay dividends to shareholders. (...) We intend to unlock capital and use it in other projects," CEO Nicklas Lindberg said.
On Wednesday, Echo reported that it had a conditional agreement to sell the React office building in Lodz for around EUR 32.5 million. Once the deal is finalised, the office building will become the property of Summus Capital.
The presentation displayed at the conference stated that the assets to be sold are Brain Park I and Brain Park II in Cracow, City II in Wroclaw and Libero in Katowice.
For 2023, the company paid an advance dividend of PLN 0.22 (EUR 0.05) per share. Echo did not pay out any additional funds for the previous year.
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