Referring to the information provided in the current report 18/2018 on the conclusion of a joint venture agreement ("Agreement") under which a joint venture with a full range of functions ("JV") is to be established under joint control of R4R and Echo Investment S.A. ("Company") and to the information provided in the current report 28/2018 about the decision of the European Commission expressing unconditional consent to the creation of a joint venture. The Management Board of the Company hereby notifies that on July 20, 2018 the Company and R4R took the following actions required under the Agreement:
(1) have entered into an amending agreement to the Agreement, under which certain technical changes were introduced to the procedures governing the appointment of JV;
(2) The Company acquired 30% of shares and votes in JV and R4R acquired 70% of shares and votes in JV;
(3) have entered into a shareholders agreement governing the corporate governance rules of JV. According to the Agreement, JV will operate as a real estate development platform for rent in Poland. JV will build buildings that include apartments for rent in four locations in Warsaw, Łódź and Wrocław. After creating the platform, it will take over four projects under construction and build 1,200 apartments, and another 1,700 apartments will be ready for construction in the next 12 months. The first tenants will be able to enter in the fourth quarter of 2019. On the basis of the Agreement, the Company will provide planning, design and services for the implementation of the investment, while the JV will be responsible for operational management.
Source: company website, investor relations, current and periodic reports.