Echo Polska's Hadley Dean on investing in Polish property

Echo Polska, a company offering exposure to the Eastern European market for investors seeking a rand-hedge opportunity, has recently made significant strides in the Polish property sector. CEO Hadley Dean shared insights into the company's growth and plans for the future in a recent interview with CNBC Africa. One of the major accomplishments for Echo Polska was a successful 2.2 billion capital raise, which will fuel the acquisition of five shopping centers in Poland, along with a prime development site in Warsaw. Dean emphasized the company's commitment to being a pure Polish property play, with all assets, income, and debt denominated in euros. The capital raise garnered significant interest from investors, with 17 out of 18 participants choosing to invest in the company. Dean expressed pride in the growing awareness and confidence in the Polish market among international investors, highlighting Poland's status as a country on the move, akin to Germany in the 1970s. As e-commerce continues to reshape the retail landscape globally, Dean acknowledged the challenges it poses but remained optimistic about Echo Polska's strategy to dominate retail in Poland by 2025. The company aims to take a vertical approach, focusing on enhancing the shopping experience and differentiating itself from traditional department store models. Dean pointed out the unique dynamics of the Polish retail market, with a lower base of retail stock compared to the US and the UK. The absence of department stores controlling product offerings has led to more direct brand investments in standalone stores, contributing to a distinct retail environment in Poland. Addressing concerns about the impact of Brexit, Dean reassured that Echo Polska's operations in Poland remain unaffected, with 30% of the company's portfolio consisting of office spaces. The CEO highlighted the trend of financial institutions relocating operations from Western Europe to cities like Warsaw, citing examples of major companies like J.P. Morgan and Credit Suisse moving thousands of employees to Poland. Echo Polska's focus on leveraging Poland's skilled workforce, supported by robust educational institutions and a growing number of new job opportunities, positions the company favorably amidst the changing landscape of European business relocations. In conclusion, Echo Polska's strategic approach to the Polish property market, coupled with its strong financial backing and growth prospects, presents an enticing opportunity for investors looking to diversify their portfolios and tap into the dynamic Eastern European real estate sector.