Echo Investment S.A.

Regulatory Filings • Dec 23, 2022

Conclusion of the sale agreement for the sale ofthe real property in Katowice in perpetual usufruct by a subsidiary ofthe Issuer

Legal basis: Art. 17.1 MAR

The Management Board of Echo Investment S.A. (Issuer)informs that on 23 December 2022, a subsidiary of the Issuer, i.e.Face2Face - Stranraer spółka z ograniczoną odpowiedzialnością - spółkakomandytowo - akcyjna with its registered office in Kielce as the seller(Seller), and Huramitell Investments spółka z ograniczonąodpowiedzialnością with its registered seat in Warsaw as the buyer (Buyer,with the Buyer and the Seller jointly referred to as theParties),concluded an agreement for the sale of a real property located inKatowice which is in perpetual usufruct by the Seller (Sale Agreement).

Subject of the transaction

Based on the Sale Agreement, the Buyer purchased theSeller's real property and other assets, including in particular:

(a)_#160;_#160;_#160;_#160;_#160;_#160;theright of perpetual usufruct right of land located in Katowice,consisting of plots of land number: (i) 11/3, for which the DistrictCourt Katowice-Wschód in Katowice, 11thLand andMortgage Register Division maintains the land and mortgage register no.KA1K/00057550/6 and (ii) 4/23 and 11/4, for which the District CourtKatowice-Wschód in Katowice, 11thLand and MortgageRegister Division maintains the land and mortgage register no.KA1K/00068109/0, (Land), together with the ownership of twooffice buildings known as "Face 2 Face I" and "Face 2 Face II" (Buildings),along with the structures developed on this Land;

(b)_#160;_#160;_#160;_#160;_#160;_#160;theownership of the specified movable property.

As part of the transaction, the Parties alsoconcluded quality guarantee agreements for the Buildings (QualityGuarantee Agreement) and a rental guarantee agreement (RentalGuarantee Agreement). The basic provisions of the Quality GuaranteeAgreement provide for granting the Buyer a quality guarantee for theBuildings and structures located on the Land and the as-builtdocumentation, including design warranty. The basic provisions of theRental Guarantee Agreement provide for a guarantee to the Buyer that theSeller will cover rent payments and service charges for vacant spaceslocated in the Buildings, including rent reductions or rent-free periodsrelated to such vacant spaces.

The Transaction Value and the Price

The value of the transaction (Transaction Value)amounted toEUR 112,991,391plus VAT.Theamount paid at the Closing was calculated on the basis of theTransaction Value reduced by the value of, inter alia, the rent-freeperiods and other costs. As a result, the price (Price) payableat Closing amounted toEUR111,722,633 plus VAT.

The provisions of the Sale Agreement do not differfrom the provisions used in this type of transaction. The Sale Agreementcontain standard provisions for this type of transaction with respect tothe representations and warranties of the Seller and the Buyer and theliability of the Parties.