Echo Investment S.A.

Regulatory Filings • Jul 20, 2018

Completion of the joint venture agreement with R4RS.à r.l.("R4R"),a company controlled by a fund managed by one of the world's premierinvestment managers.

Following the information on entering into a jointventure agreement ("Agreement") based on which afull-function joint venture ("JVCo") under the jointcontrol of R4R andEchoInvestment S.A. (the "Company") is to be created (currentreport no 18/2018) and on the European Commission merger clearancedecision approving unconditionally conclusion of the Agreement (currentreport no 28/2018), the Management Board of the Company hereby informsthat on 20 July 2018, the Company and R4R have undertaken the followingactions required under the Agreement:

(1)they entered into the deed of amendmentof the Agreement based on which they introduced certain technicalamendments to the procedures governing the JVCo set-up;

(2)the Company acquired 30% of the sharesand votes in the JVCo and R4R acquired 70% of the shares and votes inthe JVCo; and

(3)they entered into a shareholders'agreement regulating corporate governance of the JVCo.

Pursuant to the Agreement, JVCo will operate as adevelopment platform for residential real estate for rent in Poland. TheJVCo will develop apartments for rent in four locations in Warsaw, Łódźand Wrocław. After its establishment the platform will take over fourprojects being under development and will conduct construction of morethan 1,200 apartments and another 1,700 apartments will be ready forconstruction in the next 12 months. The first tenants will be able tomove in during the fourth quarter of 2019. Under the Agreement, theCompany will provide planning, design and developments services, whileJVCo will lead the operational management.

Legal basis: Article 17 sec. 1 of MAR - insideinformation.