Successful Share Issue of Wing’s Subsidiary in Poland
Image by Roman Motizov / Shutterstock.com
Archicom, a company of Echo Investment Group focusing on residential developments, raised PLN 220 million in a new share issue. Majority-owned by WING, Echo Investment is the largest property developer in Poland. Archicom will use most of the capital raised for the purchase of plots for its future developments. The company is planning to sell 4,000 apartments per year in the future.
Archicom issued shares on September 26. The accelerated share subscription was highly successful and resulted in oversubscription. With a total of 10 million shares sold for a share price of PLN 22, Archicom raised PLN 220 million and can continue the implementation of its development plans and growth strategy, and can speed up the preparation of its planned property development projects, according to a press release sent to the Budapest Business Journal.
Archicom is planning to start the development of nearly 2,500 apartments by the end of 2023 and to sell 4,000 apartments per year in Poland in the future.
"Echo Investment-Archicom Group, Poland’s leading property developer, shares WING’s values and business approach. This successful issue of shares is great feedback, as it shows that property market investors believe the group has excellent growth potential and they are happy to buy shares issued by Archicom. The share issue will create the necessary conditions and stable funding for Archicom to reinforce its leading role in Poland," said Noah Steinberg, chairman and CEO of Wing.
Wing, a major property development and investment group in the Central European property market, made a decision in 2019 to start international expansion, based on its achievements on the Hungarian property market. Upon careful review of the regional markets, the Polish property market proved to be the most attractive investment destination for the company, based on property development opportunities and the features of the investment market, Wing tells the Budapest Business Journal.
This is why Wing sought out a strategic investment opportunity there that would also provide long-term growth potential, in addition to stable and profitable operations. Echo Investment then concluded an agreement on the purchase of a 66% stake in Wrocław-based Archicom in 2021, and the merger made the resultant group Poland’s largest residential property developer. Echo’s share has further increased since, and in the summer its entire residential property business was transferred to Archicom. As a result the group now has a clear structure, with Echo Investment focusing on the commercial business unit, and Archicom developing residential properties as Archicom in Wrocłav and under the brand name Echo Residential in other locations.
Erste Bank Hungary Q1 Earnings Close to HUF 29 bln
Hungary Welcomes Extension of China's Visa Exemption Policy
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
