WBJ #39 2013

EXPO REAL SPECIAL EDITION Extensive real estate news & analysis, including: • Hotel space oversupply • Residential subsidy boost

• Record lease in Warsaw • Polish cities getting smart

15-27

WWW.WBJ.PL

• Investment at pre-crisis levels • Office developers optimistic

VOLUME 19, NUMBER 39 • OCTOBER 7-13, 2013 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

Since 1994 . Poland’s only business weekly in English

COURTESY OF THE MINISTRY OF REGIONAL DEVELOPMENT

The sky’s the limit The value of commercial property transactions in Poland will attain pre-crisis levels this year 21

Regional Development Minister El˝bieta Bieƒkowska wants to pump €10 billion into innovation 8 Italian Prime Minister Enrico Letta explains how to strengthen the European Monetary Union 12

Plus: • LOT demands compensation • Korona’s American dream • EC charges Gazprom • CBRE on BPOs • PMI up again

SHUTTERSTOCK

In this issue News . . . . . . . . . . . . . . . . . . . . . . .2-6 Business . . . . . . . . . . . . . . . . . . . .7-9 Finance & Economics . . . . . . . . . .11 Opinion & Analysis . . . . . . . . . . . .12 Interview . . . . . . . . . . . . . . . . .13-14 Lokale Immobilia . . . . . . . . . .15-27 Markets . . . . . . . . . . . . . . . . . . . . .28 The List . . . . . . . . . . . . . . . . . . . . . .29 Sports . . . . . . . . . . . . . . . . . . . . . . .30 Lifestyle . . . . . . . . . . . . . . . . . . . . .31

Waltz’s last dance?

Amazon in Poland

Hanna Gronkiewicz-Waltz could lose her job running Poland’s capital 4

The e-commerce giant wants to shift its logistics centers to Poland and the Czech Republic

NEWS

www.wbj.pl

President Bronis∏aw Komorowski received the Global Citizen Award from the US Atlantic Council while on a visit to the US. Apart from Mr Komorowski, this year's awards were also given to the Queen of Jordan Rania Al Abdullah and Japanese conductor Seiji Ozawa. “It is important to me that I can treat this honor as a gesture in memory of Solidarity [the Polish democratic opposition movement during communism],” Mr Komorowski said at the ceremony.

Sex scandals haunt Polish church

53.1 was Poland’s manufacturing PMI in September, up from 52.6 points in August, according to Markit Economics. Any reading above 50 indicates growth in the sector.

$18.3 million is how much Polish candle maker Korona will spend on its first production plant in the US.

3.1%

Under intense pressure from the media in recent weeks, the Roman Catholic Church in Poland seems to finally be owning up to the fact that it has a problem with pedophile priests. A recent case involving two Polish priests who served in the Dominican Republic has brought the issue of sexual molestation involving clergy to the forefront of public discussion in Poland. In late September it emerged that two Polish priests are wanted for questioning regarding allegations of sexual abuse committed by them on minors in the Dominican Republic, where they had served for many years. One of them, Father Wojciech Gil, is accused by Dominican authorities of molesting minors. Polish media reported that on several occasions Father Gil brought them on holiday to Poland.

Meanwhile, the whereabouts of the second accused Polish, Archbishop Jozef Weso∏owski, were still unknown as WBJ went to press. The Archbishop was the Vatican’s representative in the Dominican Republic and is also accused of molesting minors and “inappropriate behavior.” He was removed from his position by the pope in September when news of the allegations emerged. “The victims have been profoundly wronged. It is a very painful situation, and we sympathize with the victims because their trust has been violated. Sorry is the least that can be said,” stated Bishop Wojciech Polak, secretary of the Polish Episcopate at a press conference. Meanwhile, in an unrelated case, the church also apologized last week for the actions

of a now-former priest, Jacek S., who once served in a church on Warsaw’s outskirts. The former priest is facing 17 counts of sexual crimes including rape and sex with a minor. “We regret this, we feel embarrassment and most of all we apologize for the actions of Jacek S. against minors,” said the spokesperson of the Polish army chaplain corps, Zbigniew K´pa, at a press conference last week. Father K´pa also said the church would finance psychological and therapeutic help for the victims and their families. Last week, Poland’s Prosecutor-General Andrzej Seremet said it was possible Polish prosecutors would be sent to the Dominican Republic to help out with the investigation into Father Gil and Archbishop Weso∏owski. Remi Adekoya

is Citi Handlowy’s latest GDP growth forecast for Poland in 2014, up from an earlier 2.8% estimate.

681 were the number of Polish companies which declared bankruptcy in Q1-Q3 2013, 11 percent higher than in the corresponding period of 2012, according to Coface.

Quote of the Week “In the case of this recall vote, not participating does not mean a boycott, it is a position that a citizen takes.” PM Donald Tusk explaining why supporters of Warsaw Mayor Hanna Gronkiewicz-Waltz, who is deputy leader of the party Mr Tusk heads, Civic Platform, should not take part in the upcoming recall vote.

Figures in focus Young and unemployed Seasonally adjusted youth (under 25) unemployment (in %, as of September 2013) 80 70

61.5

Car sales see modest growth

Poland low in human capital ranking Poland ranked a low 49th out of 122 countries surveyed in the latest World Economic Forum Human Capital Index (HCI). The only EU countries behind Poland in the ranking were Hungary, Greece, Bulgaria and Romania. Over 50 indicators combined into four main groups (education and professional level; physical health and psychological welfare; employment; infrastructure, legal protection and social mobility) are considered in determining countries' human capital levels. ●

40.1

On WBJ.pl

+Data for June 2013 31.8

25.5

21.1

The IMF’s next test

Calendar

Event:

Web:

The 16th International Trade Fair for Property and Investment is a meeting place for firms and professionals. The fair features exhibition space, as well as a number of conferences focused on different aspects of real estate investment. Munich, Germany exporeal.net

POLISH RESIDENTIAL MARKET CONFERENCE

Event:

Representatives of developers, real estate agencies, banks, construction companies, architectural design studios and financial intermediaries will discuss the current state and future trends of the real estate landscape, both in Poland and in the EU. Warsaw Marriott Hotel konferencje.nowyadres.pl/en/polish-residential-market

Event:

The Polish Council of Shopping Centres’ Retail Awards are aimed at promoting high standards in the retail network and shopping mall sector. This year the jury will choose winners from over 40 applications.

Sp ain Cr oa tia +

Allianz ........................................21 Park Przemys∏owy ....................17

Azora Europe..............................21 HB Reavis ..................................17

Location:

PRCH RETAIL AWARDS GALA

Company index Polski Holding NieruchomoÊci 23 Procter & Gamble......................14

Atrium European Real Estate ..21 Grupa ING ..................................23 PwC ........................................9, 11

EXPO REAL

Source: Eurostat

Amazon ........................................7 Grupa Azoty..................................4

7-9

Web:

Alior ............................................22 GórnoÊlàski

October

Location:

7.7

e* +

This month, the International Monetary Fund and the World Bank will hold their annual joint meeting in Washington. What decisions need to be made to aid global economic growth? Log on to WBJ.pl for an analysis by Harvard economics professor Gita Gopinath.

Location:

Gr ee c

Passenger car sales in Poland are expected to amount to 280,000 in 2013, according to an estimate by industry research firm Samar. In JanuarySeptember 2013, 242,304 cars were registered in Poland, which is 3.12% more than in the corresponding period of 2012.

*Highest in EU **Lowest in EU

nd Un Fra ite d K nce ing Cz do ec m hR ep ub lic Ge rm an y* *

Komorowski honored in US

Numbers in the News

Po la

Some 72% of Poles living near shale gas exploration areas support extraction of the resource, according to a poll carried out by TNS Polska for the Ministry of the Environment. Shale gas extraction was opposed by 7% of the respondents. There were 105 valid shale gas exploration licenses as of September 1, 2013, held by 35 Polish and foreign entities.

IN THE SPOTLIGHT

Ita l Slo y va kia

Poles support shale gas exploration

OCTOBER 7-13, 2013

SHUTTERSTOCK

Fabryka Trzciny Art Center, Warsaw prch.org.pl

OCT 22 – NOV 15 Event:

Location: Web:

BELGIAN DAYS

The Belgian Days are organized by the Belgian Business Chamber together with the Embassy of Belgium in Warsaw and the Economic Representations of Brussels, Flanders and Wallonia. They will feature both cultural and business events in two Polish cities. Warsaw and Poznaƒ belgium.pl

Bank Pekao ..................7, 9, 22, 23 Home Broker..............................26 Sektora NieruchomoÊci ............21 Bank Zachodni WBK..................23 HSBC ..........................................11 Rabobank ....................................7 BBI Investment ....................17, 23 Huawei Poland ............................9 Randstad ......................................9 Blackstone ................................19 IBM ............................................14 BNP Paribas ................................7 Immofinanz Group ....................21 Renault ......................................24 Boeing ..........................................8 Investec Bank ............................21 Bohemia Motors ..........................9 IPSOS............................................4

INVESTING IN POLAND GALA

Event:

The Investing in Poland 2014 competition, organized by WBJ together with the leading chambers of commerce and industry, will select the Investments of the Year. This year the competition is divided into three categories: small, medium-sized and large investments. The winners will be selected by a jury comprised of well-known representatives of the Polish business and investment scene. Amber Room Restaurant, Warsaw wbj.pl

Location: Web:

RWE ..............................................4

Bouygues Immobilier Polska ....17 Jones Lang LaSalle ......16, 17, 21 Santander ........................7, 22, 23 BPS ............................................22 JSW ............................................28

SENER..........................................9

BRE ............................................22 KGHM ........................................28 Buro Happold ............................17 Korona ......................................2, 8 Shell ..........................................14 BZ WBK ........................................7 Kury∏owicz & Associates ..........23

Siemens......................................24

CBRE ..........................9, 13, 17, 19 Liebrecht & Wood ................17, 23 Citi Handlowy ..............................2 Lion’s Bank ................................26 Coface ..........................................2 London & Cambridge

PZU FIZ

Bank Gospodarki ˚ywnoÊciowej 7 Hochtief Development Poland ..23

Skanska ..........................17, 21, 23 Stomil Sanok................................6

Colliers International ..........18, 22 Properties ..................................19 Coyote Polska ..............................9 LOT ..............................................8 Cushman

T-Mobile ..............................17, 30

Maersk Line ..............................16 TNS Polska ..................................2

& Wakefield ..............15, 17, 19, 21 Markit Economics ..................2, 11

Tristan Capital Partners ............21

DB Schenker Rail Polska ............9 Microsoft ....................................14 Dentons ........................................9 MillwardBrown ............................4 Unibail-Rodamco ......................19 Deutsche EuroShop AG ............21 Modzelewski & Rodek ..............15

UniCredit ......................................7

Echo Investment ..................15, 21 Noble Securities ........................28 EuRoPol Gaz ................................4 Nokia ............................................8 Veolia Us∏ugi dla Ârodowiska......9 Exxon ..........................................14 Orange........................................17 Walmart........................................8 Gaz-System ..................................4 Otto Family ................................21 Warsaw Stock Exchange ..........28 Gazprom ......................................4 PAIiIZ ............................................9 GDF Suez Energia Polska ..........9 PGNiG ....................................4, 28 Warsaw’s Chopin Airport ..........22 Ghelamco ............9, 14, 15, 17, 21 PKN Orlen ..................................28 GlaxoSmithKline ........................14 PKO ......................................BP 22

WBK............................................22

GLL Real Estate Partners ........21 PMR Research ..........................22 X-Trade Brokers ........................28

NEWS

www.wbj.pl

Poland’s largest chemical holding Grupa Azoty is considering withdrawing from a planned Chinese project in order to build a production plant in India instead, Parkiet reported. The Polish chemical group already has business partners among India’s caprolactam producers and sells its technology there. “We do not rule out capital involvement in this area, especially as the market for [caprolactam] in India is developing very fast,” Grupa Azoty’s spokesperson Grzegorz Kulik told the daily.

PGNiG to withdraw from North Africa? Poland’s natural gas giant PGNiG will withdraw from its Libyan and Egyptian exploration activities, Dziennik Gazeta Prawna reported. PGNiG has already fulfilled its license obligations in Egypt. Back in August, PGNiG’s CEO Jerzy Kurella said that the company would switch its exploration efforts to more politically stable regions.

IPSOS: Consumer sentiment down The consumer optimism indicator calculated by pollster Ipsos fell by 2.56 points month-onmonth to 81.23 points in September. All factors used in the calculation of the optimism indicator demonstrated a decline in September, Ipsos said. The pollster also said that 72% of Poles think the economic situation in Poland is not going to improve, compared to 67% in August.

Poland spends more on development aid Polish spending on development aid increased by 15 percent compared to 2011 to z∏.1.4 billion in 2012. The value stands for 0.09 percent of Poland’s GDP. Throughout that year the ministry and other entities conducted 250 development projects. ●

Politics

The battle for Warsaw On October 13, Varsovians will decide whether to keep their mayor or boot her out of office Hanna Gronkiewicz-Waltz, mayor of Warsaw and deputy leader of the ruling party Civic Platform (PO), will face a recall election on October 13, in what could potentially prove the most significant political event of the year in Poland. Ms Gronkiewicz-Waltz’s problems began in earnest in the summer of this year after confusion over new garbagecollection rules that were set to come into force on July 1. The new rules were complicated and left Varsovians confused as to how much they would be paying for waste disposal and to whom. The resulting uproar led to the dismissal of Deputy Mayor Jaros∏aw Kochaniak, who was in charge of implementing the new waste disposal system, after a court declared the tender void. This however, did little to cool tempers. Varsovians were also frustrated with the slow pace of construction on the city’s second subway line, which has caused huge traffic jams. Likewise unpopular were steep hikes in the prices for public transportation implemented by the mayor. Add to that several PR slip-ups by the PO politician and the stage was set for Ms Gronkiewicz-Waltz’s political opponents to pounce.

“may” take part.

Warsaw Uprising 2013?

Hanna Gronkiewicz-Waltz, mayor of Warsaw Opposition politicians filed a petition for a recall vote on the mayor and succeeded in collecting 166,726 signatures from Varsovians supporting their efforts, significantly more than the required minimum of 133,756 needed for such a vote to take place. Ms GronkiewiczWaltz will be recalled if at least 389,430 votes are cast on October 13 and a majority vote to remove her.

Recall vote? Don’t bother The ruling party’s strategy is now to dissuade Varsovians from going to the polls, hoping that the minimum threshold of voter attendance needed to unseat the mayor is not met. Prime Minister Donald Tusk, who heads the ruling party, has publicly called for

Warsaw’s citizens to boycott the recall vote this Sunday. Mr Tusk told journalists that “Varsovians who go to vote are increasing the chances of those who want to remove the mayor. Anybody who feels Hanna Gronkiewicz-Waltz should continue to be mayor, should not participate in the recall vote.” The prime minister’s stance is not bereft of political logic. A September MillwardBrown poll revealed that of those who intend to take part in the recall vote, 75 percent will vote to remove the mayor from office. The polls also revealed that 29 percent of Warsaw’s residents will “definitely” take part in the vote while 18 percent say they

Law and Justice (PiS), PO’s main rival, is understandably encouraging Varsovians to go and vote on October 13. But the opposition party raised controversy after veterans of the Warsaw Uprising (a failed 1944 bid to defeat Nazi German occupiers) criticized a poster campaign the party organized in its get-out-the-vote campaign. In late September, PiS unveiled posters bearing a large letter W, inevitably prompting comparisons with the W-hour symbol, which signaled the outbreak of the uprising on August 1, 1944. “During the Warsaw Uprising we were united even though we came from different backgrounds. Now our symbol, just like the Smolensk catastrophe, is being used to divide people,” Zbigniew Âcibor-Rylski, head of the Warsaw Uprising Association, a veterans group, told Gazeta Wyborcza. “We are outraged,” Mr Âcibor-Rylski added. In response, PiS leader Jaros∏aw Kaczyƒski said the letter W used in its campaign was not in reference to the uprising per se but represented “a symbol of [the city] Warsaw”. “The letter W is a symbol of Warsaw, the whole history of Warsaw, and all that was great and good about it,” Mr Kaczyƒski said.

So what if the mayor is removed? Mr Tusk has said that if Ms Gronkiewicz-Waltz is re-

moved, he will appoint an acting mayor to run the city until scheduled local government elections in 2014. Such a defeat would however come as a big blow to the ruling party, which considers Warsaw one of its political bastions. Defeat for Ms Gronkiewicz-Waltz would also come on the heels of a string of losses in elections this year for the ruling party. In April, Boles∏aw Piecha of PiS won a senatorial seat in by-elections carried out in the Rybnik constituency in Silesia, beating out PO’s candidate. In July, Jerzy Wilk, also of PiS, defeated El˝bieta Gelert of Civic Platform in the second round of a closely-run mayoral election in Elblàg, northern Poland. And most recently, Zdzis∏aw Pupa, another PiS politician, was elected senator in a landslide by-election to the Senate in the southeastern Podkarpackie voivodship. Even if PiS is unable to field a candidate capable of winning an eventual mayoral election in Warsaw where the conservative party remains unpopular, defeat for Ms Gronkiewicz-Waltz would doubtlessly help feed the narrative that PO is on the decline and set to lose its grip on power in the upcoming local government elections in 2014 and parliamentary polls scheduled for 2015. The battle is for more than Warsaw. Remi Adekoya

Energy

European Commission to charge Gazprom over monopolistic practices If found guilty, the Russian firm could pay up to $15 billion in fines The European Commission is preparing to charge Russian state-controlled oil and gas giant Gazprom with abuse of its dominant position in the CEE region, Reuters reported. “It would be premature to anticipate when the next steps would be taken in this investigation, but we have now moved to the phase of preparing a statement of objections,” said EU Competition Commissioner Joaquin Almunia. The investigation has been ongoing for over a year, and covered Estonia, Latvia, Lithuania, Poland, the Czech

Republic, Slovakia, Hungary and Bulgaria. In September of 2012, the EC inspected, among other companies, state-controlled PGNiG and Gaz-System, and EuRoPol Gaz which transports gas via the Yamal pipeline through Poland. The EU regulator suspects that Gazprom may have curbed the free flow of gas across the EU and used its dominant position (the Russian firm supplies some 25 percent of the bloc’s gas) to raise gas costs by linking them to oil prices. The investigation started after Lithuania complained to the EC about Gazprom’s actions, claiming the prices they’ve been charged are unfair. According to the EC, Lithuania pays more for gas than any

other EU member. In the past, Poland also complained about being charged too much for Russian gas. However, in November 2012 PGNiG and Gazprom reached a new agreement, which lowered gas prices for the Polish firm by some 10-20 percent. Poland can also use the Yamal pipeline to import cheaper gas from Germany’s RWE. Lithuania wanted to do the same, but its attempts were nixed by Gazprom (which is one of the pipeline’s operators). According to EU law, companies can be penalized up to 10 percent of their annual revenues for breaking antitrust rules. Gazprom’s revenue for 2012 stood at $148 billion. Jacek Ciesnowski

SHUTTERSTOCK

Grupa Azoty to choose India over China?

OCTOBER 7-13, 2013

COURTESY OF THE OFFICE OF WARSAW MAYOR

The European Commission is accusing the Russian gas giant of abusing its dominant position on the market

WARSAW

POZNAN

WROCLAW

SCHEDULED 2016

SCHEDULED 2015

SCHEDULED 2016

Second phase completion 2016

First phase completion 2015

First phase completion 2016

Natural space for business located in Warsaw, Poznan and Wroclaw in key points of the cities. In and access to various amenities within the complex.

Leasing +48 22 370 14 44 T: (+48) 22 370 14 44 F: (+48) 22 820 91 40 E: info@swedecenter.pl W: www.swedecenter.pl

NEWS

www.wbj.pl

OFEs mull legal action Poland’s private pension funds (OFEs) may file a complaint to the European Commission concerning the Polish government’s plan to transfer 51.5% of their assets to the statemanaged Social Insurance Institution (ZUS), the Financial Times reported. “We think that this is nationalization without compensation,” said Ma∏gorzata Rusewicz, head of The Polish Chamber of Pension Funds.

Stomil Sanok to manufacture in China Polish rubber car-parts manufacturer Stomil Sanok is preparing to start production in China, the company’s CEO Marek ¸´cki told Parkiet in an interview. The company set up a subsidiary in the country in 2012. The subsidiary is responsible for marketing activity. “We believe that next year we will manufacture in the internal Chinese market,” Mr ¸´cki said. It can be carried out either by a subsidiary or a contractor, he added. ●

OCTOBER 7-13, 2013

Society

No country for old men – or women A recent UN ranking puts Poland behind countries such as Belarus, Sri Lanka and Nicaragua when it comes to quality of life for 60-year-olds and those older With the world getting older (by 2030, there will be more people over 60 than under 10), the need to take care of the elderly is more pressing than ever. The Global Agewatch Index compiled by the United Nations leaves no doubt that Poland has a lot of work to do. The index, which takes four factors into account: income security, health status, employment and education and an enabling environment (older people’s perception of social cohesiveness, safety, civic freedom and access to public transport), puts Poland in 62nd place out of 91 countries surveyed.

‘A terrible and cruel place’ Poland performs best in the income security domain, ranking 20th. “It has high pension coverage and a very low old age poverty rate,” the

SHUTTERSTOCK

Only 60 percent of older Poles think their life has any meaning report stated. However, when it comes to health issues, Poland is listed near the bottom, in 87th place. Poland needs to act fast, as by 2050, 35 percent of its population will be 60 or above (compared to some 20 percent currently). Jurek Owsiak, who runs the Great Orchestra of Christmas Charity (WOÂP), an annual charity drive which this year

for the first time raised money for geriatric wards, called Poland “a terrible and cruel place, where seniors are treated the worst.” In Poland, there is only one geriatrician for every 10,000 senior citizens, while in other EU member states this figure is between 2.5 and six MDs. Throughout Poland there are only 750 beds in geriatric wards.

Feeling useless Senior Polish citizens feel useless and unwanted. Only 60 percent of people over 50 feel their life has meaning. This is a worrisome result compared to other EU countries. In Germany, 100 percent of seniors are content with their life; in the UK it’s 90 percent. Poland also pales in comparison with other CEE countries. In Hungary, Slovakia and the Czech

Republic, over 80 percent of seniors have a positive outlook on life. “In other countries, senior citizens have many passions and hobbies. When they retire they finally have time to fulfill their plans. In Poland, older people after they’re done with working, have nothing better to do than sit at home and watch TV,” Janusz Czapiƒski, professor of psychology at the University of Warsaw and the lead author of a long-running research project on Polish society’s living conditions called “Social Diagnosis,” told Gazeta Wyborcza. Nevertheless, the report gives Poland much-needed hope, saying that even though the current situation for seniors is harrowing, there’s a chance for improvement. “Poland’s economic performance compared with other large EU economies means it has great potential for improving the well-being of its older citizens,” reads the report. In the UN study, Sweden was ranked as the best place for senior citizens to live in, while Afghanistan was listed as the worst. Jacek Ciesnowski

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BUSINESS

OCTOBER 7-13, 2013

www.wbj.pl

Banking

Italian UniCredit wants to expand its presence in Poland Italian banking giant UniCredit, which owns Poland’s second-largest lender Bank Pekao, has submitted a preliminary offer for Bank Gospodarki ˚ywnoÊciowej (BG˚), UniCredit CEO Federico Ghizzoni announced. BG˚ is owned by Rabobank, a Dutch lender, which has said it is considering various strategic options for its Polish unit. A UniCredit spokesman said the offer, made through UniCredit’s Polish unit, was not binding because the sale process was in a preliminary phase. The biggest Italian lender is not the only one in the run-

ning for BG˚. Business daily Puls Biznesu reported that BZ WBK, owned by Spain’s Santander, as well as France’s BNP Paribas, are also in the running, with the latter having put in the best offer and currently working through the due-diligence phase. BG˚ is the 11th-largest bank in Poland and is 98 percent owned by Rabobank. Analysts estimate the bank’s value at $1 billion. So far, no formal decisions have been made on the sale of BG˚. It is expected to be announced at the end of October or beginning of November.

UniCredit expansion The offer is the latest step in UniCredit’s long-term strategy of boosting its presence in its

core European markets, of which Poland is a part. Meanwhile, the Italian lender is withdrawing from other markets in which it has a limited presence. Earlier this year it sold its Kazakh operations and is currently mulling pulling out of Ukraine. “We are sounding out the market, it is not easy to leave countries like these. It took us two years to sell in Kazakhstan,” Mr Ghizzoni said. He also said the bank was also looking at growth opportunities in China, where it may open more branches with the aim of helping its corporate clients who want to expand there and also attracting Chinese investments into Europe. Jacek Ciesnowski

COURTESY OF BG˚

Bank Pekao owner submits offer for BG˚

Dutch-owned BG˚ is currently the 11th-biggest lender in Poland

Investment

Amazon to open logistics centers in Poland? Amazon, the world’s biggest internet retailer, will open three new logistics centers in Poland, according to daily Puls Biznesu. The e-commerce giant is looking to cut costs by moving its logistics operations from Germany to Poland and the Czech Republic (where it will open two logistics centers). The company will employ 6,000 people in Poland, plus an additional 9,000 seasonal employees. Amazon is moving east where wages are lower than in Germany. Several hundred of the firm’s German employees recently went on strike after Amazon refused to bring their pay in line with comparable jobs in the country’s distribution sector. In Poland, Amazon will

have two logistics hubs near Wroc∏aw and one in Poznaƒ, according to Polish media. Each of them will cost €50-60 million and cover an area of 100,000 square meters. The centers will service Western European markets. Panattoni will build one hub in Wroc∏aw and one in Poznaƒ, while Goodman will build the second center in Wroc∏aw. Ewa Kaucz, vice president of the Wroc∏aw Agglomeration Development Agency confirmed that talks with Amazon are ongoing, but said no deals have been signed yet. According to Puls Biznesu, Amazon wants to act fast and open the centers as soon as possible. Thus, the firm has not even discussed potential investment incentives with the Polish

SHUTTERSTOCK

Hit by high labor costs and strikes, the e-commerce giant is planning to move its logistics arm from Germany to Poland and the Czech Republic

Each logistics center will be 100,000 sqm in size and cost €50-60 million to build government. Such discussions are lengthy and take months, which Amazon apparently does not have. Construction on the first center in Wroc∏aw is

expected to start in October and should be ready to open next summer, in time to be able handle the usual Christmas shopping rush.

Still no Polish store Back in June, daily Rzeczpospolita reported that Amazon had leased space in Warsaw and would offer cloud

computing services soon. It has also registered a company called Amazon Corporate Services Poland. Despite all these moves, Amazon has yet to announce the opening of a Polish version of its online store. Poles can currently shop in overseasbased Amazon stores where up to 1 million Polish customers buy products from the e-commerce giant every month. Poles most often use Amazon’s UK store, from which they can receive free delivery if they purchase items worth £25 or more. But having a local version of the online store would be useful as the international outlets don’t ship certain items (particularly larger ones) to Poland and purchases made outside the EU are very often subject to various custom fees. Kamila Wajszczuk, Jacek Ciesnowski

BUSINESS

www.wbj.pl

OCTOBER 7-13, 2013

Investment

Korona will be manufacturing its products in Virginia in an effort to boost sales in the world’s largest economy Korona, one of the world’s largest candle makers, will build a production plant in the US. The value of the investment is estimated at $18.3 million and the company will employ about 170 people in the facility, which will be located in Pulaski county, Virginia. The Polish company currently produces 8.7 million candles a day in its Polish plant located in Wieluƒ near ¸ódê. Korona’s products are usually

sold by other companies under their own brand. Now the company wants to expand its presence in the US. It already supplies retail chain Walmart with its products. Recently, the US retail giant announced an initiative to sell more American-made products, which prompted Korona to open a factory in the country.

sion. “Our vision is to become a supplier for global customers, so we need to be where our customers are. We also dream an American dream; we want to become the number one private-label candle manufacturer in the world within the next few years,” he added. In return for its investment, Korona will receive incentive packages from the local and state governments worth nearly $2 million, which will be used to help get the facility up and running. The company will also be eligible for tax exemptions. The plant is expected to be opened in late 2014.

American dream “We have to be where our customers are and the United States candle market is the largest in the world. So it’s a very good idea to come here and try to be successful,” said company chairman Friedrich Rather announcing the deci-

Jacek Ciesnowski

SHUTTERSTOCK

Polish candle maker to open US factory

Korona produces 8.7 million candles daily

Airlines

With the Dreamliners’ technical problems piling up, LOT is insisting it receive z∏.100 million in compensation from the plane manufacturer What was supposed to be a “game-changer” is turning out to be a disaster for cashstrapped state-owned airline LOT. Boeing had promised that its latest planes would be cost effective and by using lighter materials and new technologies, would consume 20 percent less fuel. The Dreamliners were supposed to be LOT’s flagship aircraft and boost ticket sales for lucrative long-haul routes, especially for first class and

ensure that we seek compensation from the producer with full determination,” Treasury Minister Wlodzimierz Karpiƒski said, commenting on the issue.

business class seats. But in January this year, just two months after the first new plane landed in Warsaw, all Boeing 787 Dreamliners were grounded due to technical issues with its batteries. They were not allowed to fly until June of this year. LOT has estimated its losses due to the Dreamliner grounding at z∏.100 million and is demanding that Boeing pay it that amount in compensation. “I’m angry. ... I want to

Getting closer Boeing and LOT have been discussing potential compensation for months, but apparently only recently have the two sides come closer to reaching a compromise. “Our meeting in June was groundbreaking. Boeing finally understood that LOT is undergoing serious problems because of Dreamliner failures,” said deputy Treasury

Minister Rafa∏ Baniak, before leaving on another round of discussions with the plane producer. He added that since LOT has received z∏.400 million in public aid and is about to ask for another tranche, every cent counts. Despite Dreamliners being airborne again, LOT continues to have problems with the machines. Back in September one of its planes was forced to land in Iceland due to problems with the plane’s antenna. Additionally, two Boeing 787s used by the Polish airline were not fitted with fuel filters in some of their engines, LOT

COURTESY OF LOT

LOT determined to get compensation from Boeing

LOT’s patience with its Dreamliners is wearing thin announced after checking the planes. The Polish airline is now waiting for an explanation

on the issue from the aircraft producer. Jacek Ciesnowski

EU funds

Poland to spend €10 billion on innovation

COURTESY OF THE MINISTRY OF REGIONAL DEVELOPMENT

Poland trails other EU countries when it comes to innovation, mainly due to poor cooperation between business and academia

Regional Development Minister El˝bieta Bieƒkowska The Ministry of Regional Development wants to set aside €10 billion for companies that

cooperate with universities on high-tech innovative products. “We have quite a lot of inno-

vative companies,” El˝bieta Bieƒkowska, Poland’s minister of regional development, told Reuters. “We have to really push them and give them a chance to develop, by giving them a lot of money,” she said. The Ministry of Regional Development is in charge of allocating the €73 billion Poland will receive from the EU’s 2014-2020 budget for the purpose of closing the gap between Poland and more developed EU members. Ms Bieƒkowska said she thinks Poland has a lot of potential in developing highly innovative technologies, but companies frequently overlook that potential and are more interested in purchasing technologies from multinational corporations rather than investing them in Polish R&D firms and university institutes.

“Our companies do not spend money on their own innovations. They prefer to buy ideas from abroad. We will try to change this way of thinking,” Ms Bieƒkowska said. The minister also added that Polish companies could follow the model of Nokia in its growth years.

Stunted innovation In the latest Innovation Union Scoreboard, compiled by the European Commission, Poland placed 24th out of 27 EU member states surveyed. Poland’s Supreme Audit Office (NIK), a body responsible for supervising all government activity, said that despite the cash from state coffers funneled to R&D projects, their results have little effect on the innovativeness of the Polish economy. Based on the audit conduct-

ed by NIK in 2010-2012, universities completed nearly 5,000 research projects, altogether worth some z∏.730 million, and obtained 906 patents and other forms of intellectual property rights. Moreover, only 6 percent of all research projects (283) were designated for practical use or ordered by businesses, out of which only 95 eventually found some real-life application. Interestingly, 66 percent of the projects which were implemented come from two out of the 16 universities surveyed, both technical universities. The reason behind Poland’s poor technology transfer between science and business and thus low innovativeness is the fact that the criteria for awarding government science grants promote universities with more patents granted and

patent applications rather than those involved with practical research, NIK wrote in its report.

Not enough tech in tech parks NIK also audited eight technology parks, whose creation and operations have to date required z∏.975 million in outlays. The survey revealed that only a third of all the firms operating in tech parks are in fact technology-related. Only 20 percent of all the companies located in tech parks implemented a practical technological solution between 2010 and 2012. As many as 85 percent of these implementations were conducted by companies from one tech park, the Wroc∏aw Technology Park, the report stated. Beata Socha

BUSINESS

OCTOBER 7-13, 2013

www.wbj.pl

Investment of the Year As part of its mission to support foreign investment in Poland, Warsaw Business Journal aims to recognize companies that have made a large, positive contribution with their investments in Poland. To accomplish this goal, WBJ is organizing a competition for “Investment of the Year,” to be presented at the Investing in Poland Gala ceremony in October 2013.

Investing in Poland competition

Turning capital into jobs This year, investors will be awarded statuettes in three categories As part of its annual Investing in Poland project, Warsaw Business Journal Group will be handing out awards to the best foreign investments in Poland at a gala on October 23 at the Amber Room restaurant in Warsaw. Although this is the second year in a row Warsaw Business Journal Group will be handing out prizes to investors, this time around instead of one Investment of the Year award, three statuettes will be given to top investors: for a small investment, involving up to 10 new jobs being created, medium-sized investments, which resulted in 11-99 new workplaces and large investments, namely those creating 100

jobs or more. Chambers of commerce active in Poland have each nominated up to three investments, one per category, carried out by companies from their countries. To qualify for consideration, a nominated investment project must have been completed between September 2012 and August 2013. In the small investment category the companies nominated are: Coyote Polska from France, Spanish SENER and German DB Schenker Rail Polska. Medium-sized investments include Dutch Bohemia Motors, Belgian Ghelamco Poland and French Veolia Us∏ugi dla Ârodowiska, while big investments nominated for the award involve GDF Suez Energia Polska from France and Chinese Huawei Poland.

The project The competition and gala represent the final phase of the Investing in Poland project, which also consists of the publication Investing in Poland, an annual guide for investors looking for investment opportunities in Poland, and a conference. Nearly 200 top executives, as well as representatives from the Polish Information and Foreign Investment Agency (PAIiIZ), participated in two discussion panels and a case study at the Investing in Poland 2014 conference held at the Villa Foksal restaurant in Warsaw on September 17. The event marked the launch of the fifth issue of the annual publication. The first panel focused on the current investment landscape in Poland and what the country can do to continue to

attract foreign companies. The second panel was on the BPO sector, its future, current trends and major obstacles. The conference also marked the launch of this year’s Investing in Poland publication. The business intelligence guide contains an overview of each of Poland’s 16 voivodships, as well as their major cities, special economic zones and industrial and technology parks. Additionally, the publication contains a “Trendbook” section, which comprises analyses

of 10 of the most prominent trends in Poland’s investment landscape. Partners of the project

include PAIiIZ, PwC, Bank Pekao, Randstad, Dentons and CBRE. Beata Socha

FINANCE & ECONOMICS

OCTOBER 7-13, 2013

www.wbj.pl

PMI highest since April 2011 RPP keeps rates flat, as expected The National Bank of Poland’s Monetary Policy Council (RPP) decided to leave interest rates unchanged at its October sitting. The decision was in line with economists’ expectations. Between November 2012 and July 2013, the RPP cut the benchmark interest rate from 4.75 percent to a record low

SHUTTERSTOCK

Poland much closer to the most developed economies. At present, Polish wages amount to only 33 percent of what people earn in Germany and in the US. Out of 21 countries featured in the PwC report, only India, China, the Philippines and Malaysia will record higher growth. PwC experts stressed that

high salary growth will translate into labor-cost growth, which will negatively influence the competitiveness of the Polish economy. They added that while salaries are expected to grow by 6 percent annually, labor efficiency will grow by only 4 percent each year. KW

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our forecast of economic growth gradually recovering from the Q1 2013 bottom. We expect GDP growth to increase from 1 percent y/y in 2013 to 2.6 percent in 2014,” Ms UrbaƒskaGiner said.

Oct. '11

labor market,” Agata Urbaƒska-Giner, CEE economist at HSBC, was quoted as saying in the statement. Poland’s manufacturing sector is back on the upswing she added. “Overall the positive PMI reading in Q3 this year supports

Source: The National Bank of Poland

The National Bank of Poland’s reference interest rate

Poland’s manufacturing sector is back on the upswing

Polish salaries will nearly triple by 2030 – report By 2030, the average salary in Poland will have increased by 172 percent compared to its 2011 level, according to a forecast published by advisory firm PwC. In 2011 Polish salaries were at an average level of $1,153 gross, in 2030 they are expected to be $3,137. Such rapid growth will bring

if we were to have a different view,” Marek Belka, head of both the central bank and the council, said at a press conference after the sitting. The NBP’s reference rate remains at 2.50 percent, the lombard rate at 4.00 percent, the deposit rate at 1.00 percent and the rediscount rate at 2.75 KW percent.

2.50 percent. The council has since then declared it would keep the rate flat at least until the end of 2013. As it did in September, the RPP said that rates were put on hold as Poland faces “low inflation pressure and a moderate scale of expected recovery.” “I think it is the universal view and it would be surprising

Flat rate

Nov. '11

Poland’s manufacturing PMI grew for the third consecutive month and amounted to 53.1 in September, according to a statement released by HSBC and Markit Economics. The figure was at its highest point since April 2011. September was also the third consecutive month with a headline PMI reading higher than 50, which indicates improving business conditions. As new orders and industrial output continued to grow, employment in the manufacturing sector also increased in September, the statement said. The rate of new job creation was the highest since May 2007. “This is very promising against the prevailing weakness of consumer demand since mid-2012 on the back of a weak

Poland’s current account sees surplus in second quarter Poland’s current account surplus was €362 million in the second quarter of 2013, the National Bank of Poland said. In Q1 2013 there was a current account deficit of €2.31 billion and in Q2 2012 the deficit was €2.56 billion. The NBP said that total

surplus was influenced by a €2.15 billion surplus in current transfers, a €1.52 billion surplus on services and a €1.19 billion surplus on trade. At the same time, there was a €4.63 billion deficit on revenue. The ratio of the current account balance to GDP was

0.4 percent in Q2 2013. The total value of the current account and the capital account balance was positive and amounted to €3.65 million, the central bank said. The ratio of the combined account balance to GDP was 3.9 perKW cent.

OPINION & ANALYSIS

www.wbj.pl

OCTOBER 7-13, 2013

Europe’s responsible solidarity Enrico Letta

ext year will be crucial for the European Union. EU citizens will elect a new European Parliament, which will vote for a new president of the EU Commission. There will be a new president of the European Council and a new high representative for foreign and security policy as well. This change of top EU personnel represents an ideal opportunity to debate what Europe stands for, and how to create a more stable, integrated, and prosperous union – one based on solidarity, interdependence, and enlightened self-interest. Over the past few years, Europe has made extraordinary progress in responding to the financial crisis. But the future of Europe’s Economic and Monetary Union (EMU) depends on three crucial components: greater economic convergence, greater openness within the single market, and greater resilience to asymmetric shocks. Achieving these goals does not depend on (further) technical discussions, but on forging a new political consensus in favor of a more supranational approach.

First, greater economic convergence within the EMU requires a stronger framework for the coordination of member states’ economic policies. Indeed, the new European Semester – the EU’s annual round of policy advice and surveillance of member states – is one of the main advances made in response to the crisis. This system reflects the principle that “economic policies are a matter of common interest.” A proposal now stands to extend ex ante coordination to major economic reforms and to introduce some form of binding contractual arrangements between EU institutions and member states, which would ensure that the reforms Europe needs can be delivered. But these reforms are often complex and painful to implement. Some require financial investments that are not possible in a period of fiscal retrenchment, and some place too high a demand on voters’ patience. While EU citizens are ready to accept the sacrifices needed to reinvent their economies, they need to see a payoff on the horizon. So, if we are serious about the need to support structural reform in member states, greater surveillance and policy coordination must be matched by a system of limited and targeted financial incentives. These incentives can expand the range of

SHUTTERSTOCK

Stronger framework

options for governments struggling with fiscal consolidation and provide a signal to the European public that the EU is a partner supporting their countries’ reform efforts.

Single market Second, a better EMU needs a real single market, which is Europe’s best means of restoring growth and righting internal imbalances. But, so far, progress toward the abolition of Europe’s remaining trade barriers has been slow, and signs of resurgent economic nationalism are spreading throughout the continent. So far, we have liberalized national markets on the assumption that private companies would merge and integrate across borders. But this has resulted only in a patchwork of interlocking national markets, rather than a true single market, which is one reason why the EU lacks industries of a true continental scale. For example, the EU has roughly 100 operators in the telecoms sector; the US has just five, and China has only three.

The solution cannot be a simple discussion of new directives or regulations. A new approach is needed. Only if we give up our national reflexes will we be able to move the single market to its next stage of development. Finally, a better EMU should be more resilient to asymmetric shocks.

“A better EMU needs a real single market, which is Europe’s best means of restoring growth.” Ideally, this requires some form of risk-sharing and financial solidarity. Here, the EU is not starting from scratch; important steps were taken during the crisis. The European Financial Stability Facility, the European Stability Mechanism, and the European Central Bank’s “outright monetary transactions” scheme are all forms of collective insurance.

Yet every move toward greater financial solidarity among member states has met with resistance and fueled a growing divide between debtor and creditor countries. Solidarity in Europe cannot be construed as a moral obligation of some to help others; there simply is no sense of community in the current EMU that could support permanent fiscal transfers from one region to another. But this does not mean that Europe needs to abandon the search for better ways to pool its strengths. Solidarity can also be interpreted as enlightened self-interest, a form of reciprocity from which everyone benefits in turn – without permanent transfers.

Shaken foundations Viewed from this perspective, it might be possible to create a fiscal capacity for the EMU, at least initially, that could provide the financial incentives for implementation of major reforms at the national level, expanding later to other stabilization functions and perhaps issuing bonds

to support public productive investments at the EU level. Such a fiscal capacity would be based on the principle of budgetary neutrality over time. The EMU’s old architecture and its political foundations have been shaken. We must build a new economic edifice atop new political foundations. A purely intergovernmental approach will not work. Common EU-wide solutions are necessary, although they require member states’ willingness to pool a greater share of their sovereignty. This might be tricky, given today’s general disenchantment with Europe. But offering a clear prospect of a better and fairer EU is the best way to mobilize public opinion and face down anti-European political forces ahead of next year’s European Parliament election. ● Enrico Letta is prime minister of Italy Copyright Project-Syndicate, 2013 Project-syndicate.org

Editorials are the opinions of WBJ’s editorial board. Other opinions are those of the authors alone. Comments, opinions and letters should be sent to editor@wbj.pl. Please include a name and contact information and clearly indicate if they are to be considered for publication.

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REAL ESTATE EDITOR

JACEK CIESNOWSKI (JCIESNOWSKI@WBJ.PL) BEATA SOCHA (BSOCHA@WBJ.PL)

KAROLINA KOWALSKA (KKOWALSKA@WBJ.PL)

POLITICS EDITOR

EWA BONIECKA KATARZYNA RYBNIK ¸UKASZ WRÓBEL

REMI ADEKOYA (RADEKOYA@WBJ.PL)

REPORTER

KAMILA WAJSZCZUK CONTRIBUTORS

COLUMNISTS

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MANAGING DIRECTOR MONIKA STAWICKA

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(ABREJWO@WBJ.PL)

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INTERVIEW

OCTOBER 7-13, 2013

www.wbj.pl

Real estate market

Poland benefits from BPO demand Karolina Kowalska: Poland is currently the destination of choice for companies operating in the BPO sector in Central and Eastern Europe, according to a recent report CBRE prepared together with Hays. What makes Poland so attractive? Colin Waddell: The business process outsourcing (BPO) sector is still growing in Poland. European-based corporations are carrying out their own cost-benefit analysis and concluding that sub-continent locations, such as India,

are not always the optimal choice. However, much is coming down to what level of value-add service is required and the labor pool that is generally best suited to carry out these services. Poland is becoming a major beneficiary of this trend as business process outsourcing can be effectively done closer to home – and within the European Union.

“Poland has all the attributes that the BPO sector is seeking.” Poland has all the attributes that the BPO sector is seeking: cost effectiveness, laborpool size, labor-pool quality and a large number of Euro-

pean languages spoken by citizens. The industry is continuing to develop and companies such as CBRE are also outsourcing much of our European corporate client activity into Poland. CBRE’s Corporate Outsourcing center in Mokotów has grown from 70 to over 250 people in a little under three years, and will exceed 300 this time next year – due to further secured accounts. We are now looking for locations elsewhere, other than Warsaw, to develop the model. What does CBRE’s outsourcing center provide? Our Corporate Outsourcing center does all the “stuff” that corporate real estate occupiers are looking to divest from: lease administration, client accounting, portfolio management and facility

COURTESY OF CBRE

WBJ sits down with Colin Waddell, managing director at CBRE Poland, to talk about the booming BPO sector and changes in the Polish office market

Honorary patronage

The fourth edition of Zacznij.biz competition – idea – business – success has started! To participate in the competition, register at www.zacznij.biz.pl and fill in the proper form. Applications are being accepted to November 12, 2013. Who should apply to Zacznij.biz: • micro- and small enterprises with big growth potential, operating in the hi-tech sector • academics: researchers, graduate students and students of technical universities, who want to commercialize their innovative ideas • entrepreneurs with the projects operating in the ICT sector with global growth potential The idea behind the contest is to promote entrepreneurship, assist in preparing business model and attract investors – business angels – to work with the best ideas. Contestants will get: • free trainings and workshops • business model generation • pitching • opportunity to pitch in front of the investors The most promising ideas will be presented at the Final Gala in February 2014.

Material co-funded by the European Union under the European Regional Development Fund

Colin Waddell

INTERVIEW

www.wbj.pl

management. We manage corporate real estate for clients who want to centralize and outsource all their real estate responsibilities to one or more providers. Automatically the service is often more efficient and certainly more cost-effective. Here in Poland we have teams of people dedicated to corporate client accounts, in particular the European functions of global financial companies. These clients wish to focus on their core business and outsource corporate responsibilities (and liabilities), such as real estate, to specialists. Our banking clients want to focus on banking and not real estate. This trend is developing quickly. We would be delighted to secure our first Polish financial company, however the local industry is not quite ready to take the real estate outsourcing leap – yet. Why not? Multinational companies in banking, insurance and other investment groups have caught on to the efficiencies that can be achieved [by outsourcing]. Fuel companies like Shell and Exxon or manufacturers like IBM, GlaxoSmithKline, Procter & Gamble, have been outsourcing their real estate management for many years. Shell is a good example of an immense multinational company that looks for efficiencies. In principle, they simply have to achieve efficiency to meet shareholder demand. Our everyday lives rely on outsourcing services to people or groups who invariably have more experience and can do the job better, faster and cheaper. Most of us would not try to fix our own car these days, of course, we outsource this service to an auto-repair center. Despite Poland’s increasing attractiveness, India is still the top BPO destination in the world, isn’t it? India has benefited from having a huge pool of young, university-educated people that also happen to speak English as a second or first language. The Indian education system is one of the best and most rigorous in the world. However, several of our new and existing clients are beginning to strip out several value-added services and are relocating to Central Europe, in particular Poland. There are several practical reasons for this such as the time zone, commercial skills that are easier to infuse closer to European headquarters and the quality of languages spoken. They value the benefits of outsourcing services closer to their headquarters these days. Additionally, the pool of

German, French, Italian, Spanish, Dutch and Scandinavian speakers is far greater in Central Europe than in India. Nonetheless, our research suggests that India will still continue to attract BPO, despite India’s macroeconomic uncertainty. How can Poland compete with India then? The fact that Poland is a European country, an important EU member and has a business friendly approach is attractive to corporations that want to invest in BPO. However, access to a large skilled labor pool is the paramount advantage. Companies need to know that there is a pipeline of young educated people to recruit – either graduates or people who have outsourcing center experience. BPO communities such as Krakow, Poznaƒ, Tri-City and increasingly Wroc∏aw have these credentials. Your report also underlined the importance of cooperation between companies and universities in creating new courses of study... For decades, industry has sponsored certain universities to mold courses that would educate students in a certain

“It is true that there is an over-supply scenario developing in Warsaw’s [office market].” way. They are also helped through grants or scholarships. For the BPO sector it’s in their own interest to be able to fund or promote courses that would support that industry. Microsoft has gone one step further, via its Partnership for the Future initiative, by providing secondary schools with software and training programs to groom students into the workplace. The report also states that the BPO sector is shaping the demand for office space. In Warsaw there has been 12 percent growth this year in this sector. How is it going to change next year or in 2015 when Ghelamco delivers its 100,000-sqm Warsaw Spire tower? Demand is set to surpass 600,000 sqm in 2013 and possibly beyond 650,000 sqm. It seems an enormous amount but, crucially, net-absorption rates are stable and tracking the long-term average. It is true that there is an oversupply scenario developing in Warsaw. However, it will be peripheral and secondary buildings that will be most

affected. Not all the proposed development projects will or can be realized; almost all require strong business cases to commence and that means significant pre-letting. The Spire development is an ambitious development that has been able to successfully secure a significant percentage of pre-letting and should continue to do so. The existing generation of active developers in Warsaw are proven experts and know how to time their run to commencing a development. More broadly, if you look at office stock levels compared to other European business centers, Warsaw still has a long-term growth story and is still tracking demand. Unlike almost any other European city, central Warsaw has multiple locations where a high tower development such as Rondo 1 or WFC is technically feasible under the current city plan. As a result, Warsaw will, for the foreseeable future, have a more volatile vacancy and rental rate. What do you think will rent rates will be in the next couple of years? Usually, greater vacancy levels result in rent rates softening and this is already happening in Warsaw. We can see a big difference from one year to another. Real estate costs always play a significant part of any office occupier’s operating expenditure. In principle, this would be a good time for a BPO service provider to take advantage of the competitive rent rates that can now be achieved in the current market. In your report, Warsaw ranked 61st most-expensive office market in Europe. Are we growing more expensive due to the increased BPO activity? Comparatively, Warsaw is attracting more office-based business than any other Central European city. Political stability, fast improving infrastructure, competitive employment costs and a quickly developing skilled workforce is helping job-creation levels. We anticipate a further 100,000 new jobs will be created in Warsaw over the next six to eight years which equates to another million sqm of new space. It is natural that this increase in demand will increase occupational costs. However we expect the convergence to Western European levels (excluding exceptions like West-End London and Paris) to be gradual – assuming cost levels in general rise along with inflation and consumer spending rates. Compared to other business capitals in Europe, Warsaw is very likely to remain competitive. ●

OCTOBER 7-13, 2013

LOKALE IMMOBILIA

W a r s a w B u s i n e s s J o u r n a l ’s w e e k ly s u p p l e m e n t o n re a l e s t a t e , c o n s t r u c t i o n a n d d e v e l o p m e n t

Retail

Modzelewski & Rodek to build Q22

Despite lower transaction volumes in the first six months of 2013, experts believe the demand will surpass supply in the months to come More than 80 percent of new retail supply in 2013 is expected to come onto the market in Q3 and Q4 with the delivery of nearly 450,000 sqm. This will include space in Galeria Katowicka in the capital of Silesia’s voivodship, Poznaƒ City Center in Wielkopolskie, Galeria Bronowice in Kraków and Riviera Gdynia in northern Poland. New modern retail supply totaled nearly 200,000 sqm in H1 2013, increasing the total floorspace to 11.2 million sqm by the end of June 2013. The

Warsaw Spire’s B building goes up

biggest retail scheme to open was Europa Centralna in Gliwice in the southwestern voivodship of Silesia totaling 67,000 sqm and combining a traditional shopping center with retail park functions. Other new retail schemes launched in H1 2013 include Galeria Warmiƒska in Olsztyn, Zamkowe Tarasy in Lublin, Galeria Bursztynowa in Ostro∏´ka, Galeria Neptun in Starogard Gdaƒski and phase two of Ogrody in Elblàg. Apart from newly-constructed space, remarketed shopping centers appear an attractive alternative for tenants seeking strong retail schemes.

Lengthy negotiations Retail transaction volume settled at around €247 million in the first half of 2013, according Continued on p. 19 ➡

COURTESY OF IMMOFINANZ GROUP

More than 80% of new retail supply in 2013 will come in H2

Echo Investment has selected Modzelewski & Rodek as the general contractor for its Q22 office building in downtown Warsaw. The company will construct the building shell for z∏.98.5 million. Located at the intersection of Al. Jana Paw∏a II and ul. Grzybowska, on the site of the former Mercure hotel, the 155-sqm investment will offer 50,000 sqm of space on 39 storeys. It is scheduled for completion in Q1 2016.

Developer Ghelamco has completed the shell of the B building of its Warsaw Spire office investment in the Warsaw’s Wola district. The 220-meter, 49-storey development is located on a plot bordered by ul. Grzybowska, ul ¸ucka, ul. Towarowa and ul. Wronia and will consist of two smaller 55-meter buildings and a 220meter tower. Building B will host the European Union agency Frontex, which is to move to the development in September 2014.●

The sale of Silesia City Center was closed in Q3 this year for €412 million

Industrial

Despite fewer completions, warehouse take-up rises The Polish industrial market is expecting a major supply increase, shaped by the development of container ports

In this issue Retail space in demand . . .15, 19 Seaports and warehouses .15-16 Office market overheating . . .17 First “Outstanding” BREEAM .17 Colliers interview . . . . . . . . . . .18

Atrium 1 record lease . . . . . . . .23 Hochtief-PHN JV . . . . . . . . . . . . .23 Plac Unii delivered . . . . . . . . . . .23 Smart cities . . . . . . . . . . . . . .24-25 Residential subsidy program .26

COURTESY OF PORT GDYNIA

Investment market . . . . . . . . . .21 Hospitality oversupply . . . . . . .22

OCTOBER 7-13, 2013, LI 18/39

The Port of Gdynia plans major modernization

The Polish warehouse market observed a rise in transaction volume in H1 2013 of around 3 percent compared with the second half of 2012 and it is showing signs of stability, according to a recent report by Cushman & Wakefield. Although at the same time the market saw a decrease in new warehouse completions by 30 percent, the occupancy market boasted improved

results. As of the end of June 2013 total modern warehouse stock reached 7,678,000 sqm, a rise of 2 percent compared with the end of 2012. The highest concentration of warehouse space in Poland is in the Warsaw region and in several regional markets. With 2,728,000 sqm of warehouse space, Warsaw together with its suburbs accounts for 36 percent of the country’s total stock. Large regional warehouse destinations of Upper Silesia, Poznaƒ, Central Poland and Wroc∏aw account for a total of 4,950,000 sqm. Improving road infrastructure has also facilitated the development of other regions, in particular Tri-City,

Kraków, Rzeszow, Szczecin and Lublin.

Toruƒ,

Take-up increase Modern warehouse take-up in H1 of 2013 stood at 868,000 sqm, reflecting a significant rise compared with the 660,000 sqm transacted in the same period of 2012. Approximately 500,000 sqm of take-up was recorded in the second quarter of 2013 alone. Occupiers’ interest focused mostly on warehouses in the Warsaw region (33 percent of total take-up). Other regions with a significant share included: Wroc∏aw (21 percent), Upper Silesia (20 percent) and Continued on p. 16 ➡

Warsaw Business Journal presents Real Estate weekly newsletter • Know about the newest projects before they’re on the market • Keep up to date on the latest tenders and auctions • Learn the latest trends in Poland’s dynamic office, residential and retail sectors • Find out who’s who in Polish real estate To subscribe: e-mail subscribe@wbj.pl or call +48 22 639 85 68, ext. 201 and sign up for free two-week no-obligation trial subscription

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Despite fewer completions, warehouse take-up rises

Big tenants Major warehouse lease transactions in Poland in H1 2013 Building

Company

Panattoni Park Stryków Prologis Park Wroc∏aw V Panattoni BTS Opole

➡ Continued from p. 15 Central Poland (12 percent). New lease agreements accounted for 58 percent of total take-up, lease extensions made up 31 percent, and lease expansions around 11 percent. Demand for warehouse space came predominantly from logistics operators and distribution companies (37 percent). A significant share of take-up also come from retail chains (13 percent), the automotive industry (10 percent) and light production (8 percent). The steady growth of ecommerce is also a driver of leasing activity, which is projected to expand quickly in the coming years.

Fewer developments Development activity slowed in the first half of 2013. Some

148,000 sqm came onto the market, with the Wroc∏aw region accounting for the largest share in total volume (41 percent). Central Poland made up 13 percent, Upper Silesia 12 percent, Warsaw and Tri-City 10 percent each and Poznaƒ 9 percent. At the end of the first half of 2013 around 260,000 sqm of warehouse space was under construction, 20 percent more than in December 2012. Most of these projects were on a built-to-suit basis, which are specifically constructed to meet the design, location and technical specifications of a given occupier. The highest concentration of modern warehouse space under construction is in Wroc∏aw (33 percent), Poznaƒ (19 percent) Warsaw (16 percent) and Upper Silesia (13 percent).

Seaports ready to grow Large warehouse space is currently planned on the Nabrze˝e Bu∏garskie part of Gdynia waterfront. Its owner, Port of Gdynia Authority (Zarzàd Morski Portu Gdynia, ZMPG), wants to create a new loading and logistics area in the Western part of the port. The new warehouses, currently being built in the port of Gdynia, represent modern port-centric class-A warehouses, which, according to Jones Lang LaSalle’s “Polish Container Ports: Adding Depth to the Logistics Market” report, correspond with the needs of the most demanding companies and are a relatively new trend in Poland. According to JLL’s experts, the growth of container terminals, especially the deepwater

ones, will have a positive influence on the Polish industrial warehousing market. “We expect that industrial market will continue to grow in the coming years,” said Jan Jakub Zombirt, senior research analyst at Jones Lang LaSalle. “We have been observing increased container traffic at the terminals in Gdaƒsk and Gdynia for the past several years. The inflow of products and the opening of new transportation opportunities will stimulate the logistics sector, including transshipment centers located in Poland,” Mr Zombirt added.

Shipment rerouting Mr Zombirt underlined that large container ships from, for example Asia Pacific, that previously were shipped directly into

Storage options Existing stock (sqm)

Stock under construction (sqm)

Vacancy rate

Take-up (sqm)

Headline rents (€/sqm/month)

Effective rents (€/sqm/month)

Warsaw

2,728,000

41,000

15.9%

286,000

4.50-5.80 (inner city) 2.40-4.00 (suburbs)

3.50-5.00 (inner city) 1.90-3.20 (suburbs)

Upper Silesia

1,478,000

33,000

5.8%

170,000

2.90-3.50

2.50-3.10

Poznaƒ

1,041,000

50,000

3.6%

66,000

3.00-3.60

2.30-2.90

Central Poland

1,021,000

8,000

16.5%

108,000

2.40-3.95

1.90-3.10

795,000

84,000

5.5%

179,000

3.00-3.90

2.40-3.00

Wroc∏aw

Source: Cushman & Wakefield

Poland’s warehouse market overview City/agglomeration

OCTOBER 7-13, 2013

Goodman Sosnowiec Logistic Center Panattoni Park ¸ódê South Skalski Logistic Park

Size (sqm)

Castorama

50,000

Eko Holding

35,000

Polaris

34,000

ILS

29,000

Racticel Komfort Snu

21,000

Dirks Consumer Logistics

20,000

Tradis

18,000

Prologis Park Wroc∏aw V MLP Pruszków I

Electrolux

18,000 Source : Cushman & Wakefield

one of the major hubs of Northern Europe such as Rotterdam or Hamburg and then were forwarded to Poland on smaller feeder vessels, quite recently have set sail into the Baltic Sea. Moreover, the only major port eastwards of the Danish Straits capable of servicing these vessels is Gdaƒsk’s Deepwater Container Terminal, which is now becoming a major transshipment hub for the Baltic region.

A budding business “For now, the container ships traffic affects the warehouse market in Poland at a small but noticeable degree,” Mr Zombirt explained. “The first logistics investments located near the harbors are a green shoot of what may be observed in the near future. The pipeline in Gdaƒsk is impressive: as much as 500,000 sqm

of warehouses could potentially be built within the Pomeranian Logistics Centre port-centric project, while today’s supply throughout the entire TriCity region totals a modest 184,000 sqm,” Mr Zombirt added. JLL expects the increasing container traffic in Poland’s seaports to soon reach critical mass, which will raise awareness of logistic operators, freight forwarders and corporates. “Subsequently, they might consider switching to one of the Poland’s ports in order to optimize supply chain costs. Currently the only large container shipping operator present in Gdaƒsk is Maersk Line, but certainly other companies are watching Polish and Baltic markets and considering entry,” Mr Zombirt added. Karolina Kowalska

OCTOBER 7-13, 2013

LOKALE IMMOBILIA – SPECIAL EXPO REAL EDITION

Office

Warsaw is the undisputed leader with over 4 million sqm of office space available, but demand in regional cities is also on the rise In the first half of 2013, the Polish office market continued its upward trend. With some 152,000 sqm of new office space delivered in the first six months of this year (a 30 percent increase y/y according to data collected by Cushman & Wakefield), the 4 million sqm threshold has been broken. But tenants are moving away from the central locations. Only 4,000 sqm were delivered in Warsaw city center in H1 2013. The majority of new space (over 100,000 sqm) was built in the capital’s southern Mokotów district, which now has some 1.1 million sqm of office space and is quickly catching up to the city center, which has only some 180,000 sqm more. With the office stock increasing, vacancy rates are also rising. In the first six months of 2013, they rose by 1.5 percentage points and reached 10.5 percent. Still, the rental rates only fell slightly and currently stand at €1725.5 in central locations and €11.5-16.5 per sqm in non-

central ones). Cushman & Wakefield experts expect this trend to remain stable in the coming quarters particularly in modern office buildings. The largest offices completed in H1 2013 in Warsaw include HB Reavis, Konstruktorska Business Centre (48,000 sqm) and Ghelamco’s T-Mobile Office Park (36,000 sqm). Some 154,000 sqm of office space was scheduled to be delivered in the second half of the year, including the recently completed Bouygues Immobilier Polska’s Miasteczko Orange (43,700 sqm) and Liebrecht & Wood and BBI Investment’s joint venture, Plac Unii mixed-use scheme (41,300 sqm), among the biggest ones. By 2015, the office market in Poland’s capital city is expected to grow by 500,000 sqm, a 20 percent increase, according to a CBRE report. Currently only 32 percent of the space currently being developed has been preleased. Usually however, the top schemes are delivered with most of the office area leased long before construction is completed. Warsaw is the leader not only in Poland but in the entire CEE region. The second city in the region when it comes to office stock is Budapest, with some 3.1 million sqm of space.

Existing office stock

Warsaw, including:

Stock (sqm)

Rents (€/sqm/month)

Vacancy (percent) 10.5

4,011,150

11.5-25.5

Warsaw central locations

1,287,000

17-25.5

9.87

Warsaw non-central locations

2,724,150

11.5-16.5

10.79

Kraków

604,156

13-15

2.71

Wroc∏aw

509,719

13-16

12.37

Tri-City

410,421

13-15

11.24

Katowice

300,355

13-14

8.29

¸ódê

301,769

12-14

14.97

Poznaƒ

290,804

14-16

14.66

Source: Cushman & Wakefield, July 2013

COURTESY OF BOUYGUES IMMOBILIER

Office space on the rise despite higher vacancy rates

Miasteczko Orange was completed in August 2013 BPO drives office demand The two biggest office markets outside of the capital are the southern cities of Kraków and Wroc∏aw (some 605,000 and 509,000 sqm of office stock respectively). These two cities have a large number of BPO and SSC centers and are among the top 100 outsourcing destinations in the world (second and 19th respectively), which drives up the already high demand for new office space. Kraków has the lowest vacancy rate among all major Polish cities, at 2.7 percent. With no major office stock increases (only one office building was delivered in H1 2013 offering some 1,800 sqm), rents are at a stable level of €13-15 sqm per month. Wroc∏aw on the other hand received 40,000 sqm of office space in H1 2013, while another 40,000 is in the pipeline and expected to be delivered by the end of the year. The bulk of new stock came from finishing the construction of Sky Tower (28,000 sqm of office space) and Skanska’s Green Towers complex (10,800 sqm) earlier this year. The vacancy

rate in the city is at 12.4 percent (a rise of 4.4 percent) with rents at €13-16 sqm/month.

Regional growth In other regional cities, TriCity is the undisputed leader when it comes to office space, with a total of 410,000 sqm, 51,000 sqm of which were added in the H1 of 2013. ¸ódê (301,000 sqm), Katowice (300,00 sqm) and Poznaƒ (290,000 sqm) remain less popular regional cities. Still, office stock continues to rise, even in regional cities. Currently, 512,500 sqm of office space is being developed, according to data compiled by Jones Lang LaSalle, with 191,200 sqm most likely to be delivered this year. With vacancy rates stable in most cities, developers continue to deliver new schemes. Only in Q2 2013, construction on some 100,000 sqm of office space was launched. Because of the high number of new projects expected to be ready within the next few months, JLL experts predict that the vacancy rates will increase in most of the markets. Jacek Ciesnowski

First ‘Outstanding’ BREEAM certificate in Poland Goeppert-Mayer, a 7,800-sqm office scheme situated in Katowice, the capital of the Silesia voivodship, has been awarded an “Outstanding” BREEAM certificate. This is the first office project in Poland and second in Europe to have received the highest BREEAM rating. The investor behind the project, GórnoÊlàski Park Przemys∏owy (GPP), hopes to attract tenants by offering significantly lower service costs.

The building hosts a tri-generation system, which uses natural gas to simultaneously produce electricity, heat and cooling for the building. A year-long analysis revealed that energy consumption in the building is 50 percent lower than in standard class-A office schemes. Apart from the class-A office space, the scheme houses a conference center and a restaurant. “This is an investment which will meet the requirements of even

the most demanding tenants from the BPO/SSC/R&D/ITO sectors,” Miros∏aw Czarnik, GPP’s CEO said. Buro Happold prepared the design and the building for the certification process. “Achieving the highest standard in BREEAM certification requires the development meet at least 85 percent of all the requirements which focus on the sustainability and comfort of the building’s tenants,”

Marek Dàbrowski from Buro Happold said. The building is a part of the GPP Business Park complex, which is currently under construction. The investor has already launched construction on two more office projects within the complex. They are scheduled for completion in Q2 and Q3 of 2014. Once completed, the entire GPP Business Park will offer 30,000 sqm of Beata Socha office space.

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LOKALE IMMOBILIA – SPECIAL EXPO REAL EDITION

OCTOBER 7-13, 2013

Investment market

Investors increasingly looking toward Poland

Which real estate sector is the most attractive in terms of investment? In recent times, we have seen clearly that dominant retail schemes in major Polish catchments have been attractive. By definition, there are very few of these “trophy” retail assets and many of them have been traded in the past couple of years. Given their trading success and the substantial barriers to entry for potential competing schemes, properties such as Z∏ote Tarasy, Manufaktura and Silesia City Center attracted core capital at benchmark yields. So far in 2013, high-quality office and logistics properties with longer lease terms have also been successful in attracting capital at benchmark yields, both in Warsaw and in major secondary cities. Core investors are, as usual, focused on property fundamentals but also currently pre-occupied with lease-term duration and are willing to compromise on pricing in exchange for longerterm income security from prime assets.

There were many spectacular transactions in the retail market this year, including the sale of the Silesia City Center shopping mall for €412 million. This is concrete proof that Poland is attractive for investors isn’t it? Absolutely. Many of the larger transactions that have taken place or that are currently underway have been equity deals at declining yields, further demonstrating investor confidence in the Polish market. We’ve observed that average transaction volume is up as there have been fewer deals than in the past but much larger ones. Moreover, the availability of credit in Poland is substantial and growing both with regards to foreign and domestics lenders. Additionally, the pricing of that financing is trending towards that found in other northern European markets. Even though GDP growth has slowed down recently, the Polish macroeconomic story remains positive. The country has not seen a ratings downgrade like so many other countries in the European Union. Poland remains very competitive in respect to educated labor costs and occupier costs and continues to attract foreign direct investment. The modernization of infrastructure – largely the motorways, airports and deep seaports – is also having a positive impact as efficiencies are starting to be realized and capacity from other Western

European markets shifts eastwards. Have there been any new players emerging on the investment market in Poland this year? Has our market attracted any new investment funds? There are a number of new investors active in the Polish market, however they are generally not acquiring assets directly. Many investment managers looking to acquire properties in Poland at present have new sources of capital in segregated accounts and a lot of that new capital is inbound from Asia. In addition, there are a number of new German investors considering entry into Poland directly as are a handful of insurance companies and pension funds. We are also seeing a number of new domestic investors become active although their interest is focused on smaller assets. How much money are investment funds ready to spend in the Polish real estate market this year? We expect investment volumes in Poland to total between €3.0 to 3.5 billion in 2013. Notwithstanding the very recent political and fiscal problems in the United States, we see strong momentum in the Polish investment market with all planned closings on track, but some deals always get pushed into the next year, largely due to administrative or regulatory reasons. Of course, there is substantially more capital available than what is being invested and the challenge is mostly a lack of opportunities. How does the Polish real estate market look like when compared with other markets? Poland is an increasingly important market from a European perspective. In 2012, Polish investment volumes represented almost 10 percent of total European investment volumes (excluding Russia). In comparison, the Nordic countries combined registered 2012 volume represented approximately 14 percent of total activity. We can’t forget that Poland accounts for just 3 percent of overall EU GDP. From a CEE perspective (excluding Russia), the Polish market dominates the region and accounted for approximately 65 percent of total volume last year. ●

Mr Gregory-Eaves says a lot of new capital coming into Poland is from Asia High growth, low debt, good rating Where European countries stand 4% LATVIA

AAA

AA AAA ABBB+ BBB BB+

LITHUANIA

AA+

ESTONIA

2012 REAL GDP GROWTH

Karolina Kowalska: Is Poland attractive as an investment market? Neil Gregory-Eaves: Yes, Poland is perceived as an attractive investment market with continued prospects for both short-term and long-term growth. We have seen a new European real estate investment map emerge after the financial crisis which is much less east–west delineated and now more north–south focused. Poland is a beneficiary of this trend and is increasingly being included in most international investors’ focus, together with Germany, France, the UK and the Nordic states. At the same time, yields and capital values in Poland remain quite attractive vis-à-vis these other northern European markets. For example, prime office yields in Germany and the Nordic markets start at below 5 percent, whereas prime office yields in Warsaw are roughly at the 6 percent level.

That said, traditional logistics properties – namely those with shorter lease terms – are also in favor with yields compressing and a number of such transactions in Poland currently underway. Like with retail properties, investor demand comes from both strategic industry buyers, who have teamed up with sovereign wealth or pension fund capital, as well as most investment managers with an allocation for logistics properties. The recent return to logistics is a wider European trend and not that surprising given that most investors believe in a European recovery, the growth in consumer demand that will follow and the fact that warehousing is viewed as a derivative asset of retail. Another factor in Poland is the growth in e-commerce and the potential for Poland to continue growth in manufacturing and distribution.

COURTESY OF COLLIERS INTERNATIONAL

Lokale Immobilia sits down with Neil Gregory-Eaves, international director for Eastern Europe at Colliers International, to talk about the investment market in Poland

DENMARK SLOVAKIA

LUXEMBOURG

POLAND MALTA GERMANY FINLAND

IRELAND

U.K. BULGARIA

0 AUSTRIA

HUNGARY

CZECH REPUBLIC

FRANCE

BELGIUM

-1

BB B-

SWEDEN

ROMANIA

ITALY

NETHERLANDS

-2

SPAIN

BBB-

SLOVENIA

PORTUGAL

-3 GREECE

-4 DEBT AS A PERCENTAGE OF GDP -5 0

100

150

170%

Source: Colliers

OCTOBER 7-13, 2013

LOKALE IMMOBILIA – SPECIAL EXPO REAL EDITION

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More than 80% of new retail supply in 2013 will come in H2 to a Cushman & Wakefield report. The figure, roughly half the value recorded during the same period last year, did not result from weakening demand, which continues to be strong especially for prime retail properties but from lengthy negotiations related to signing final sale agreements, the report stated. The volume is expected to pick up following the final purchase agreement for Silesia City Center in Katowice for €412 million and Galeria Dominikaƒska in Wroc∏aw for €151.7 million. Currently the sale process of five shopping centers in major Polish cities is underway. The shopping centers are part of Charter Hall’s portfolio. There are also other transactions underway that remain undisclosed. “All this should give us a total of €2.5 billion. At the end of 2013 we expect a similar volume of transactions to that seen in 2012,” said Przemys∏aw Felicki, associate director at CBRE. The largest deal in the Polish retail market in the first half

of 2013 was the sale of a 23 percent stake in Z∏ote Tarasy by the Warsaw Municipality to the French fund Unibail-Rodamco, which has thus become the sole owner of the property. The second-largest transaction was the acquisition of the portfolio of three Echo shopping centers in Radom, Piotrków Trybunalski and Tarnów by UK fund London & Cambridge Properties for €67 million, the first such substantial purchase by this investor since 2006.

Another year of recovery “After the slowdown of the market due to the crisis of 2008, 2009 and 2010, we now see a third year of recovery, as many funds are deciding to invest in Poland and have it on their shortlist of targets,” Mr Felicki said. “It’s fair to say that there are more investors and cash to give away on the market than products themselves. This is the product of Poland’s recent positive economic indicators and the country’s stability. In addi-

tion, EU funds for the period 2014-2020 should translate into investment and employment growth,” Mr Felicki added.

Thorough due-diligence However, Mr Felicki stressed that the crisis has made investors more careful than ever before. “They decide to buy a shopping mall only after very thorough due-diligence, including catchment, tenant mix and the revenue generated by the premises. They don’t want to pay for a full income if they do not believe it is sustainable,” Mr Felicki added. According to CBRE experts, due to a shortage of shopping malls available for purchase in major Polish cities, investors are increasingly looking to buy space in smaller towns with populations of 200,000-300,000 residents. Such an example was Blackstone’s acquisition of the Twierdza K∏odzko shopping mall in K∏odzko, Lower Silesia, last year. What attracts investors is also the relatively low average saturation of retail space in

SHUTTERSTOCK

➡ Continued from p. 15

Z∏ote Tarasy in Warsaw Poland. According to the C&W report, shopping center density is the highest in the Wroc∏aw and Poznaƒ agglomerations and lowest in the Katowice agglomeration and Szczecin. At the end of June 2013, Toruƒ and Radom posted the highest vacancy rate (6.2 percent), while the lowest vacancy rate was in Szczecin (2.2 percent) and, interestingly, Warsaw (2.3 percent). “Even in Warsaw there are white spots on the retail market such as the Bia∏o∏´ka and Wilanów districts, where there is room for more shopping malls. There is no shopping center in Warsaw that has empty units and tenants are rather planning expansion than reduction of their retail space,” Mr Felicki added. Karolina Kowalska

Retail stock in major cities Number of retail schemes (shopping centers, specialized centers, outlets) in cities with over 200,000 inhabitants City/Agglomeration

Existing

Under Construction

Warsaw Agglomeration

Katowice Agglomeration

Tri-City Agglomeration

Wroc∏aw Agglomeration

Poznaƒ Agglomeration

Kraków Agglomeration

¸ódê Agglomeration

Lublin

Szczecin Agglomeration

Bydgoszcz

Bia∏ystok

Radom Agglomeration

Toruƒ

Cz´stochowa

Kielce

0 Source: Cushman & Wakefield, July 2013

OCTOBER 7-13, 2013

LOKALE IMMOBILIA – SPECIAL EXPO REAL EDITION

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Investment

Real estate Q3 investment volume exceeds €1 billion

The volume of real estate transactions in the third quarter of 2013 stood at €1.04 billion, with over a half of that sum (€575 million) coming from the retail segment, according to an analysis from real estate advisory Jones Lang LaSalle. The office real estate market came in second with deals worth €210 million, while deals for industrial space were worth €140 million and deals for mixed-use schemes came in at €115 million. The biggest transaction closed between July and September 2013 was the purchase of Silesia City Center by Allianz from Austrian Immofinanz Group in Katowice, Silesia voivodship (€412 million). The sale of Silesia City Center

was also the biggest deal in the entire CEE region. “Poland, which accounts for 70 percent of 2013 transactions in Central Europe, remains a leading market in the region,” said Agata Seku∏a, JLL head of retail investment for Central Europe. The second largest deal was Galeria Dominikaƒska (€151.7 million), which was sold by a joint venture comprising the Otto Family and Deutsche EuroShop AG to shopping center investor, manager and developer Atrium European Real Estate. The shopping center is located in Wroc∏aw, Lower Silesia. The two largest office space transactions concluded in Q3 were Mokotów Nova in Warsaw, sold for €121 million by Ghelamco to investment fund CCPIII, managed by Tristan Capital Partners, and Aquarius Business House in Wroc∏aw, bought by Spanish investor Azora Europe from Echo Investment for €42 million.

A very good year

In the first three quarters transaction volume reached some €2.064 billion and is expected to exceed €3.1 billion by the end of the 2013, JLL experts said. The figure is comparable with 2007 levels, and a 15 percent increase compared to 2012 volumes. Most of the transactions recorded in the first nine months of the year were office deals, worth a total of €830 million, followed by retail with €780 million. Industrial and mixed-use property deals were less significant, bringing in €325 million and €115 million respectively. The value of hotel space deals came in at a mere €14 million in the first three quarters of 2013. Similarly to previous years, German and US investors dominated the investment market with nearly 50 percent of all real estate acquisitions in the first half of 2013, according to a report compiled by Cushman & Wakefield. However, Polish investors are becoming

Q3 deals

Q1-Q3 deals

Breakdown of real estate transactions concluded in Q3 2013 (total volume €1.04 billion)

The breakdown of real estate transactions concluded in Q1-Q3 2013 (total volume €2.064) €115 million

€14 million

€115 million €325 million €140 million

Retail Office €780 million Industrial

€210 million

€575 million €830 million

Mixed-use Hotel

Source: Jones Lang LaSalle

COURTESY OF GHELAMCO

The transaction volume is expected to come in at over €3 billion for the whole of 2013, a level comparable with precrisis figures

The sale of Mokotów Nova in Warsaw for €121 million was the largest office transaction in Q3 in Poland increasingly active, with acquisitions worth some €192 million in H1 2013, which corresponds to 17.6 percent of all transactions. “The stronger position of domestic investors is likely to increase the stability of the Polish market and stimulate other market players to invest,” the report reads.

JLL analysts believe 2013 is a very good year for the retail investment market. “If investors execute their plans and manage to finalize deals that are scheduled to be concluded in Q4, the total volume of retail transactions may reach €1.7 billion, significantly exceeding 2012’s €1.07 billion,” Ms Seku∏a said.

Deals pending

Southern boom

There are several major property deals expected to be finalized in the fourth quarter of the year, including for the Le Palais office scheme and the Wola Park retail center in Warsaw, as well as the Charter Hall retail portfolio located predominantly in southern Poland (Kraków, Katowice, Gliwice and Wroc∏aw) as well as in northwestern Szczecin.

Experts also note a growing interest in office schemes, particularly in southern cities, like Wroc∏aw, Lower Silesia. In late September Skanska Property Poland signed a sales agreement for its Green Day office building in Wroc∏aw for €43.3 million. The investment, scheduled for completion in Q1 2014, was purchased jointly by Investec Bank and GLL

Real Estate Partners. The deal is scheduled to be finalized in the first quarter of 2014 when property rights are transferred. Earlier this year Skanska sold another office scheme in Wroc∏aw, the 24,000-sqm Green Towers complex, for nearly €64 million to Polish fund PZU FIZ Sektora NieruchomoÊci. “Office markets outside Warsaw continue to attract increased attention from companies searching for leading investment products. The result of this year’s transactions will be increased investor interest in 2014, which will probably result in the improved liquidity of the regional markets,” Tomasz Puch, JLL’s head of office and industrial investment said. Beata Socha

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OCTOBER 7-13, 2013

Hospitality

A year of oversupply? During the first two quarters of 2013, 80 hotels were opened in Poland, with the highest number recorded in the Mazowieckie (12 hotels), Wielkopolskie (eight hotels) and Lower Silesia (seven hotels) voivodships. A majority of the hotels were opened in cities which already have the highest supply of hospitality facilities such as Warsaw, Poznaƒ and Wroc∏aw, all very strong business hubs in Poland. For instance, the 116-room Hampton by Hilton Hotel opened on September 18 at Warsaw’s Chopin Airport. Data reveal a continuation of the relatively high growth rate experienced in the last couple of years in Poland’s hotel infrastructure. This growth was most visible in 2012, the year UEFA’s European soccer championships where co-hosted by Poland

and Ukraine. But hotel construction has hardly slowed since then.

Experts divided The increase in hotel supply has experts divided as to the future of the hotel business. Alex Kloszewski, head of the hospitality department at Colliers International Poland believes the industry has nothing to fear. “2013 is turning out to be a very good year for most cities. This is a direct effect of Euro 2012’s excellent promotion of Poland.” There are no major events scheduled in Poland this year that could attract large crowds of foreign visitors, perhaps with the exception of the UN Climate Summit to be held in November in Warsaw. However, according to Mr Kloszewski, 2013 will still be a good year for the industry when it comes to overall occupancies in branded hotels, with an expected drop of 3 to 4 percent in average daily rates compared to last year’s prices. PMR Research analysts, on the other hand, say 2013 will

SHUTTERSTOCK

Eighty hotels were opened in H1 2013 in Poland, continuing the growth trend recorded last year

The Bristol hotel in downtown Warsaw turn out to be a year of high supply and low demand. Though the second half of the year will bring an economic recovery, which should have

some positive influence on the hospitality industry, market growth will not exceed 1 percent year-on-year, PMR analysts stated.

Estimates from the Tourism Institute show that the number of tourists visiting Poland will decrease slightly this year to 14.7 million compared to 14.8 million in 2012. It is worth noting though that the 2012 figure represented an 11 percent year-on-year increase compared to 2011.

No cash shortage “Polish banks are ready to finance hotel projects with loan-to-value levels at maximum 65 percent and it’s easier to finance projects for budget hotels which can prepare professional feasibility studies,” according to a report published by sector magazine Âwiat Hoteli. “We see that some banks such as PKO BP, Bank Pekao, BPS, Alior, WBK-Santander and BRE still like our sector, but of course, they will only finance hotel projects that are in the best locations, such as city centers, and have known and experienced global brands,” said Mr Kloszewski.

More guests after 2014 The 2013 decline in foreign visits to Poland will be followed by growth in the following years. The Tourism Institute forecasts that the number of tourists who will visit Poland in 2014 should reach 15 million and will continue to grow by an average of 400,000 each year thereafter. According to PMR, 2014 should usher in more discernible growth in the industry. “We can probably expect reasonable growth in revenue per available room and occupancy rates in most cities in 2014,” Mr Kloszewski said. “This will be more noticeable in the second part of the year, due to an expected GDP growth rate of 2.2 to 2.5 percent as well as some of EU infrastructure funds being absorbed in the country. All in all, 2014 will be a good year for the hotel industry in Poland,” Mr Kloszewski added. Karolina Kowalska

Polish hospitality Hotel openings in 2013 Hotel name

Number of stars

City

Number of rooms

Warsaw

367

Renaissance by Mariott

Warsaw

250

Hampton by Hilton

Warsaw

116

2/3

Warsaw

206

Puro

Kraków

128

DoubleTree by Hilton

Warsaw

197

DoubleTree by Hilton Conference Center

Sound Garden

Source: Poland Research and Forecast 2013

OCTOBER 7-13, 2013

LOKALE IMMOBILIA – SPECIAL EXPO REAL EDITION

www.wbj.pl

Office

Record leasing transaction

Hochtief to construct PHN tower

BZ WBK leased over 12,000 sqm in Skanska’s flagship office scheme for 12 years

Warsaw Stock Exchange-listed Polski Holding NieruchomoÊci, one of the largest companies in the Polish real estate sector, has signed an agreement with Hochtief Development Poland, a subsidiary of Hochtief Projektentwicklung, for the development of an office project on ul. Âwi´tokrzyska 36.

COURTESY OF SKANSKA PROPERTY POLAND

Bank Zachodni WBK, a subsidiary of Santander Group, has signed a leasing agreement with Skanska Property Poland for 12,200 sqm of office space in the Atrium 1 office building for 12 years, making it the biggest leasing transaction in Poland in the last few years. “For BZ WBK, the third biggest bank in Poland, the choice of Atrium 1 was only natural,” said Pawe∏ Dziedzina, business property management director at BZ WBK. “The bank will have its main office in the building and its flagship branch on the ground floor,” Mr Dziedzina added. Construction on the 15storey, 16,300-sqm building is now nearing its final stages, as the project has been growing at a pace of one floor per week over the last few months. It is scheduled for completion at

Hochtief Development Poland will take up a 50-percent share in an SPV responsible for the project while PHN will provide the land, which is across the street from another Hochtief development – the Rondo 1 office tower, which was completed in 2006. The construction, which will be 150-meters tall with an area of 44,000 sqm, will be erected on the site of an existing office building. However, the pre-investment concept and capacity study, prepared earlier by Polish-Belgian Office of Architecture may be changed, PHN representatives

said. “We shall verify conceptual data and, as part of the analyses and works being carried out, we shall prepare an investment which will be costeffective, meeting the highest standards and optimized for the needs and requirements of the market,” said Pawe∏ Laskowski-Fabisiewicz, vicepresident of PHN. PHN has not yet revealed the date of the planned demolition of the existing structure on ul. Âwi´tokrzyska 36 as the company has offices there and also leases space to its tenants. Karolina Kowalska

Plac Unii delivered

BZ WBK will lease 12,200 sqm in Atrium 1 the end of the year. The building, called by Skanska Property Poland its “flagship” project, features a number of energy-efficient solutions. The geothermal heating and cooling system, with probes reaching a depth of 200 meters below ground level, will cut operating costs

Polski Holding NieruchomoÊci will build an office tower on ul. Âwi´tokrzyska in the heart of Warsaw in conjunction with Hochtief

by 20 percent, Skanska said. The building will be able to accommodate 2,000 people and will be the latest addition to a complex of commercial buildings that the company has been developing along Al. Jana Paw∏a II since the 1990s. Karolina Kowalska

The Plac Unii office-retail complex, located on a triangular plot between ul. Waryƒskiego, ul. Pu∏awska and ul. Boya ˚eleƒskiego in the Polish capital, is scheduled to open on October 12, the two companies responsible for the development, Liebrecht & Wood and BBI Investment announced. The retail part of the center, which includes designer brand stores, service outlets,

restaurants and cafes, will operate under the name of Plac Unii City Shopping. Designed by the Kury∏owicz & Associates architectural studio, the scheme comprises three buildings connected by a glass roof at a height of 30 meters above the ground. It comprises two six-storey office structures and a 90-meter mixed-use tower, offering a total of 56,800 sqm, including 15,500 sqm of retail space on

three storeys. It also boasts 41,300 sqm of class-A office space anchored by Grupa ING, which will occupy 11 out of the total 21 office floors available in the investment. The Plac Unii complex was developed thanks to a €105 million loan from Bank Pekao, granted at the beginning of 2012. It allowed the developers to complete the construction of the third of three buildKarolina Kowalska ings.

www.wbj.pl

LOKALE IMMOBILIA – SPECIAL EXPO REAL EDITION

OCTOBER 7-13, 2013

Smart cities

Learning how to be smart

By Katarzyna Rybnik, Beata Socha

Polish cities are adopting European sustainability solutions, but the country as a whole is still far from being “green” Poland has put a lot of strain on city authorities, who are faced with issues such as insufficient housing, traffic congestion and growing energy consumption, which if unresolved, may lead to the deterioration of living standards. In order to prevent that and to promote development and innovation, Polish cities are under increasing pressure to implement more efficient and “intelligent” solutions that will provide their citizens with tools for further development but will also allow them to enjoy a high quality of life.

Quality of life So what exactly makes a city “smart?” Definitions vary, but all include a prevalence of sustainable solutions, such as a

SHUTTERSTOCK

Poland isn’t immediately associated with sustainability and environmental protection. With its heavy reliance on industry and coal as a primary energy source, Poland has had an uneasy task in meeting European standards for environmental protection and energy efficiency. Still, as the country’s economy strives to shift from one based on industry to one driven by innovation, officials at all levels, including local government authorities, are beginning to realize that environment plays an important role in the country’s future and are looking to adopt a more sustainable approach towards development. The rapid expansion of the main metropolitan areas in

Polish cities are begining to realize the importance of sustainable solutions

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strong reliance on efficient public transport and green solutions in construction. Smart cities also focus on providing high-quality education, promoting civic involvement, diversity and equality, fostering innovation in business, and maintaining environmental friendliness. Lukas Stockinger from TINA VIENNA Urban Technologies & Strategies, said a smart city “uses a holistic approach focusing on energy systems mobility, buildings and infrastructure resulting in radical protection of resources, a high, socially fair quality of life and productive use of innovations and new technology.” In European smart city rankings, Polish cities usually place in the middle of the pack. Still, despite having significantly less experience in implementing sustainable solutions than, say, Copenhagen, Stockholm or Vienna, they are putting a lot of effort into closing the gap. In 2013, the French Embassy, in cooperation with the National Fund for Environmental Protection and Water Management and Renault, held a competition and a series of seminars called “Eco-Miasto” (“Eco-City”), which aimed to promote sustainable transport and energyefficient construction among

Polish cities. In the fall of 2013 the jury will announce the most sustainable cities from among the 23 contenders. Two of those contenders, Warsaw and Bydgoszcz, have been implementing sustainable solutions for years and are some of the “smartest” cities in Poland.

Warsaw: clean but congested As the capital city of Poland and its business center, Warsaw is the leader among Polish

than the European average). What drags Warsaw’s score down in this area is the lack of an effective strategy for reducing congestion, as well as municipal promotion of environmentally friendly transport. However, Warsaw has been improving on both these counts in recent years. It established a citywide public bicycle sharing system in 2012 called Veturilo, which allows access to a bike at 128 stations around the capital. It has also constructed several park-and-

“Warsaw outperforms most European medium-sized cities in categories such as energy, building and air quality.” cities in terms of modern architecture and transportation solutions. In fact, Warsaw’s extensive public transport network rivals that of even the most developed European cities. As much as 70 percent of the city’s population uses public transport, or cycles or walks to work, according to the Green City Index, compiled by Siemens. By comparison, in Amsterdam, the percentage is only 62, and in London it is 63. This high score is the result of high density of public transport routes (57 percent more dense

ride stations allowing commuters from city suburbs easy access to public transport. Warsaw’s subway system is under development too, with the second line currently under construction and scheduled to be delivered in 2014. Both these solutions are aimed at reducing traffic congestion and consequently CO2 emissions, making the city greener and more convenient to live in. Interestingly, it was Warsaw’s effective management of environmental issues that pushed the city up to 16th place among the 30 European

major cities included in the Green City Index. It ranked 5th in the environmental governance category and was surpassed only by Brussels, Copenhagen, Helsinki and Stockholm. The Polish capital also outperforms most European medium-sized cities in categories such as energy, building and air quality. The average energy consumption in Warsaw stood at 49.81 gigajoules (GJ), which is significantly less than the 80.87 GJ average among main European cities. Varsovians, however, consume 71.5 percent more water than an average European city dweller.

Lifelong learning One of the most important impulses for Warsaw’s development in recent years was the 2012 UEFA European soccer championships, which was cohosted by Poland. The event brought significant investments to the capital and left it with a first-class stadium and an improved road network, which are stepping stones to other investments that should lead to more modern and innovative projects that will be at Varsovians’ disposal for years to come. Becoming a smart city does not only mean more construction sites, but also a more effi-

LOKALE IMMOBILIA – SPECIAL EXPO REAL EDITION

SHUTTERSTOCK

OCTOBER 7-13, 2013

Szczecin has created a website providing real-time information about traffic conditions in the city cient way of managing its growing population and simultaneously improving people’s living standards. By opening facilities such as the Copernicus Science Centre, or expanding the network of universities of the third age, Warsaw is facilitating its citizens’ access to education and implementing the EU’s initiative of lifelong learning. It also supports entrepreneurship, particularly among young people with its extensive academic business incubator programs. Being a smart city also means learning from the best. In May 2013 Warsaw hosted a conference titled “Europolis. Smart city of tomorrow” organized by the Robert Schuman Foundation. The conference brought together experts from Austria, Germany, Finland, France and Spain who discussed how cities can be smart, sustainable and inclusive at the same time and how they can develop to cater to the growing needs of their residents. Warsaw is also a member of Eurocities, a European organization of 140 members, established in 1986, which facilitates the exchange of eco-friendly, innovative and sustainable solutions on problems connected with transport, development and quality of life.

Bydgoszcz: becoming greener The Eurocities organization currently has 10 Polish members, including Bydgoszcz, a city located in north-central Poland which has been a full member of the association since 2005. Despite having almost 60 percent of its area covered by forests, Bydgoszcz is not considered an exceptionally green city. Throughout its 650-year history, it has been an important industrial and trade center, particularly due to its convenient location, with water-

ways E40 and E70 linking the city to both Western and Eastern Europe. Its authorities have, however, adopted a very proactive approach to innovation, sustainable development and ecology. The city has participated in a number of national and international conferences and contests and has gained recognition as one of the most progressive and environmentally aware midsized European cities. In 2011, the city won Eurocities’ cooperation award for its revitalization project of its Mill Island. The Eurocities association recognized Bydgoszcz’s collaboration with various stakeholders on the project of transforming a postindustrial island into a cultural, leisure and business center. The same project also made it to the top five finalists of European Commission’s 2013 “RegioStar” competition in the “CityStar” category, which distinguishes integrated approaches to sustainable urban development. The contest was ultimately won by Berlin. Bydgoszcz is all about becoming green these days. In 2011 the city took part in the Local Accountability for Kyoto Goals (LAKS) project, organized by the Aeris Futuro Foundation, which promotes sustainable development of local communities. “As part of the LAKS project, Bydgoszcz has developed its first Climate Adaptation and Mitigation Plan and adopted a goal of reducing greenhouse gas emissions by 18.7 percent by 2020,” said Anna Rok, project officer at the Eurocities association.

Szczecin: virtual revolution Situated in northwestern Poland, on the Polish-German border and on the Baltic Sea, Szczecin’s location plays an important role in making it a gateway for foreign investors

and tourists. The city’s main focus in becoming “smart” is making the life of its residents easier. To that end, city authorities created a website providing real-time information about traffic conditions in the city. Data is collected through a network of cameras monitoring city roads. The website informs drivers and cyclists of currently conducted and planned roadworks, changes in traffic organization and estimated travel time. In its efforts to become a smart city, Szczecin has begun implementing a project creating a widespread network of free wi-fi hotspots. “Thanks to EU funding which financially supported 75 percent of the wifi project, we have been able to set up free wi-fi spots in most cultural institutions, hospitals and schools,” said Tomasz Klek, a Szczecin City Hall representative. The city is not only trying to make living in Szczecin convenient, but also promotes environmental awareness among its residents. It is in the process of setting up so-called “ecoports” – places where people can leave unused electronic equipment such as batteries, TVs, computers, radios, and chemical products.

No longer a secondary issue Despite these hopeful examples, Poland as a whole is still a long way from becoming sustainable. Eurocities’ Anna Rok believes that the main obstacle preventing Poland from becoming a “smart” country is “the low priority of sustainable development issues in Polish administration, particularly at the national level. Most of our political leaders still consider sustainable development a secondary issue, something to be dealt with when all other problems are solved.” ●

www.wbj.pl

LOKALE IMMOBILIA – SPECIAL EXPO REAL EDITION

OCTOBER 7-13, 2013

Residential

New apartment subsidy scheme adopted Due to strict price limits, the government program is expected to mainly benefit developers who build on the outskirts of major cities The Sejm, Poland’s lower house of parliament, has sanctioned a new government program, the so-called “Mieszkanie dla M∏odych,” which aims to assist young Poles in the purchase of their first apartment as well as stimulate the

crisis-wracked residential sector. The government has earmarked z∏.3.5 billion for the program to be spent between 2014 and 2018. Subsidies can be obtained for the purchase of an apartment on the primary market or for the construction of a house. The program applies to people under the age of 35 who do not own any house or apartment. The government believes as many as 115,000 families and individuals can benefit from the program.

The subsidy can be used to increase the down payment potential buyers make and also to assist them with their mortgage payments. The option to increase a buyer’s down payment was added to the program in response to stricter mortgage policies implemented by banks. “This will be a major incentive for the primary market. We must remember that in January 2014 the new [mortgage policy] recommendation will enter into force and this requires a minimum 5 percent down pay-

Unrealistic? Price limits in major Polish cities in the new program vs. average market price (in z∏.) of 1 sqm of new apartment space 10,000 Program ceiling

Average market price

8,000

6,000

4,000

2,000

aw Wr ocł

zaw Wa rs

Szc zec i

ń Rze szó w

Poz na

ole Op

n zty Ols

Łód

lin Lub

lce

ków Kra

Kie

wic Ka to

Gd ań s ilek k op ols ki wW rzó Go

Bia

łys tok Byd go szc z

Source: Dziennik Gazeta Prawna

ment [when buying a flat or house],” Marcin Krasoƒ, analyst at Home Broker said. Moreover, with an average of 351 apartments per 1,000 residents, one of the lowest in the EU, there are plenty of families in Poland looking to purchase their own apartment. Demand will not be an issue, “provided there are appropriate offers from developers and provided banks are willing to grant loans,” Mr Krasoƒ said.

Ceiling too low? There are, however, restrictions as to the size of potential apartments and their price per sqm. The limit for apartments is set at 85 sqm and for houses – at 110 sqm of usable area. “This program is much more limited that the previous government subsidy program [operating between 2007 and 2012],” Bartosz Turek, an analyst from Lion’s Bank, said. The price limits set by the program may seem on the low side. For example, the limit for Warsaw is z∏.5,541 per sqm, while the average price on the primary market currently stands at roughly z∏.8,100. The limit for Kraków is z∏.4,444, while the average price for a sqare meter in that city is

approximately z∏.6,800. The disparity is not so significant in smaller cities such as Bia∏ystok or Lublin, and in some it even exceeds the market price, like in ¸ódê, where the limit was set at z∏.4,624 per sqm, while the average price per sqm there is around z∏.3,800. Mr Krasoƒ however does not believe that the low price limits will be deal-breakers. “The previous government subsidy program had even lower price limits and there was still a lot of interest. Obviously, you won’t buy an apartment in the city center or in the Mokotów district, but a place in Bia∏o∏´ka could be within your reach,” the Home Broker expert said. Mr Krasoƒ added that the new program may result in downward pressure on apartment prices. “If a developer has prices set at, say z∏.6,000 and sees that the limit is just 78 percent lower, he may be convinced to reduce prices.”

Too little too late Some analysts say that only developers with investments located on the outskirts of major cities can count on increased demand. Besides, macroeconomic data already

point to an economic recovery in Poland so the residential developers’ market may no longer benefit as much from a cash injection. “The program could have been useful this year when Poland’s economy really needed a push. The residential market is already seeing signs of a rebound and it is likely the new program is simply coming too late,” Mr Turek added. “Moreover, a program that supports only the primary market and ignores the secondary market may cause serious inequality between the two,” Mr Turek said. The program is aimed not only at the real estate market. It is a part of the government’s pro-family policy – the more children a family has, the bigger the subsidy it can receive. Single people and families without children are eligible for subsidies of up to 10 percent of apartment and house prices while families with one child (including single-parent households) can apply for 15 percent support. An extra 5 percent subsidy can be obtained if the family has another child within five Beata Socha years’ time.

MARKETS

www.wbj.pl

OCTOBER 7-13, 2013

Stocks report

world stock indices DJIA

NASDAQ

14,996.48 (Oct 3 close)

S&P500

3,774.34 (Oct 3 close)

-2.16% (for the week)

FTSE100

1,678.66 (Oct 3 close)

-0.35% (for the week)

DAX

6,453.88 (Oct 4 close)

-1.18% (for the week)

-0.90% (for the week)

US politics have negative impact

NIKKEI 8,622.97 (Oct 4 close)

14,024.31 (Oct 4 close)

-0.44% (for the week)

-4.98% (for the week)

CHANGE: 11.81% (year to October 3)

CHANGE: 21.27% (year to October 3)

CHANGE: 14.79% (year to October 3)

CHANGE: 7.08% (year to October 4)

CHANGE: 10.85% (year to October 4)

CHANGE: 31.21% (year to October 4)

52-week high: 15,709.58

52-week high: 3,819.28

52-week high: 1,729.86

52-week high: 6,875.60

52-week high: 8,767.97

52-week high: 15,942.60

52-week low: 12,471.49

52-week low: 2,810.80

52-week low: 1,343.35

52-week low: 5,605.60

52-week low: 6,950.53

52-week low: 8,488.14

¸ukasz Wróbel Noble Securities SA Issues related to US budget negotiations and the approaching deadline for raising the so called “debtceiling” dominated international markets last week. The most notable implication for investors is the negative impact of the political gridlock on private sector activity in the fourth quarter and on corporate earnings. That’s why the main indices on Wall Street saw downward pressure and unless comments suggesting a deal appear soon, sellers may continue pricing in a negative scenario. On the upside, if a deal is done regarding both the debt limit and the budget bill, we could see a relief rally. Global business surveys for September serve as further evidence that the world is experiencing a steady

Major indices WIG

50,601.24 (October 4 close)

WIG30

2,559.40 (October 4 close)

04.10

02.10

03.10

30.09

01.10

26.09

27.09

25.09

24.09

23.09

19.09

09.09

04.10

10.09

02.10

03.10

01.10

27.09

30.09

26.09

18.09

11.09

25.09

2,200

23.09

44,000

24.09

2,280 19.09

45,400

20.09

2,360

17.09

2,440

46,800

13.09

48,200

16.09

2,520

12.09

49,600

09.09

2,600

10.09

51,000

20.09

52-week low: 2,286.99

18.09

Change year to October 4: -2.47%

17.09

52-week low: 43,145.55

13.09

52-week high: 2,629.86

Change year to October 4: 5.18%

16.09

Change for the week: -0.76%

11.09

52-week high: 50,982.03

12.09

Change for the week: -0.43%

Top 5 SKYLINE CELTIC POLIMEXMS MEXPOLSKA REINHOLD

Closing 1.13 2.90 0.19 1.19 0.71

% change (week) 52-week high 41.25 2.18 28.89 8.87 26.67 0.80 22.68 5.75 22.41 0.71

52-week low 0.80 2.22 0.09 0.85 0.22

Top 5 LPP CCC ALIOR GTC TPSA

Closing 9,477.00 117.70 90.05 7.43 8.55

% change (week) 10.07 4.16 2.89 2.62 2.27

52-week high 9,600.00 121.00 97.68 10.25 15.29

52-week low 3,462.24 51.75 59.50 6.58 5.83

Bottom 5 IVMX IDEATFI ALTERCO CCENERGY EUIMPLANT

Closing 5.08 1.71 1.00 0.12 0.07

% change (week) -27.32 -23.66 -14.53 -14.29 -12.50

52-week low 4.25 1.31 0.61 0.11 0.06

Bottom 5 EUROCASH BORYSZEW GRUPAAZOTY JSW ENEA

Closing 44.90 0.53 74.10 72.50 14.02

% change (week) -8.37 -7.02 -5.00 -4.48 -4.43

52-week high 66.56 0.64 88.50 94.15 16.09

52-week low 37.17 0.38 46.51 57.70 11.70

52-week high 8.00 3.49 4.38 0.27 0.14

Currency report

No interest rate hikes this year

Other indices WIG20

2,394.59 (October 4 close)

mWIG40

3,322.87 (October 4 close)

Change for the week: -1.15%

52-week high: 2,628.36

Change for the week: 0.80%

52-week high: 3,338.30

Change year to October 4: -8.82%

52-week low: 2,177.02

Change year to October 4: 29.37%

52-week low: 2,373.93

2,500

Adam Narczewski X-Trade Brokers DM SA

3,400 3,320

2,400

3,240 2,300 3,160 2,200

04.10

03.10

02.10

01.10

30.09

27.09

26.09

25.09

24.09

23.09

20.09

19.09

17.09

18.09

13.09

12.09

16.09

SOURCE: WSE

04.10

02.10

03.10

01.10

30.09

27.09

26.09

25.09

24.09

23.09

20.09

19.09

18.09

17.09

16.09

04.10

03.10

02.10

01.10

30.09

27.09

26.09

25.09

290

24.09

12,000

23.09

298

19.09

12,400

20.09

306

17.09

12,800

18.09

314

16.09

13,200

13.09

322

12.09

13,600

11.09

330

09.09

11.09

52-week low: 296.29

14,000

10.09

09.09

52-week high: 353.00

Change year to October 4: -3.04%

13.09

52-week low: 9,660.90

322.11 (October 4 close)

12.09

Change year to October 4: 28.32%

NewConnect Change for the week: 1.65%

11.09

52-week high: 13,513.64

09.09

13,513.64 (October 4 close)

Change for the week: 1.25%

10.09

04.10

03.10

02.10

01.10

30.09

27.09

26.09

3,000

10.09

sWIG80

25.09

24.09

23.09

19.09

20.09

17.09

18.09

16.09

13.09

12.09

11.09

09.09

3,080

10.09

2,100

recovery led by the developed economies. Investors on the Warsaw Stock Exchange didn’t have many internal factors to react to apart from the decision of National Bank of Poland on interest rates (no changes in a slightly optimistic outlook) and surprisingly strong sentiment in the manufacturing sector (PMI rose to 53.1 pt., economist expected 52.2 pt.). The WIG20 traded around the 2,400 level. Telecoms and financials continue to outperform with most big banks ending the week above levels from the previous Friday while commodities-related stocks remained the weakest segment of the market. JSW, PGNiG, KGHM and PKN Orlen saw their share prices fall by more than 3 percent. ●

It was an eventful week. The US Congress failed to approve an annual budget, which meant over 700,000 government employees had to go on an unpaid leave. This in turn meant that certain macroeconomic data was not published, including the monthly US labor market report. More crucial though will be mid-October when the US Congress needs to raise the country’s debt limit. If the limit is not increased, then the US will be technically bankrupt. In Europe, the ECB kept interest rates unchanged and its head Mario Draghi stated the central bank expects a recovery in the region next year. All this caused the EUR/USD to reach $1.36, its highest level since February of this year with chances for

further increases. In Poland, a PMI manufacturing reading of 53.10 positively surprised investors while the Monetary Policy Council (RPP) acted as markets expected by keeping Poland’s benchmark interest rate at its current historic low of 2.5 percent. Marek Belka, who heads the National Bank of Poland and the RPP, stated that interest rates will not change at least until the end of 2013. This kind of forward guidance was expected so the z∏oty’s reaction was not drastic. The local currency appreciated on the improving sentiment in the euro zone. The EUR/PLN declined from z∏.4.23 to the z∏.4.20 area, while the more volatile USD/PLN tumbled from z∏.3.13 all the way to z∏.3.03. ●

currency rates 3.1812 04.10

SOURCE: NBP

3.1647 03.10

01.10

3.2067

3.1905

3.1800

30.09

02.10

3.1758 3.1

27.09

0.0961 04.10

0.0963

0.0966

100JPY/PLN

3.3

03.10

02.10

0.0966 01.10

0.0961 30.09

0.09

27.09

0.0965

3.4312 04.10

03.10

02.10

01.10

30.09

27.09

3.4

RUB/PLN

0.10

3.4310

3.4488

3.4512

3.4500

CHF/PLN

4.9784 04.10

5.0218

3.4506

3.5

03.10

5.0615 02.10

5.0587 01.10

30.09

5.0333 27.09

3.0951

3.0902 04.10

4.9

5.0452

GBP/PLN

5.1

03.10

3.1212 02.10

3.1170 01.10

30.09

3.1328 27.09

4.2105

4.2065 04.10

3.0

3.1227

USD/PLN

3.2

03.10

4.2231 02.10

4.2230 01.10

30.09

4.2310 27.09

4.2

4.2163

EUR/PLN

4.3

THE LIST

OCTOBER 7-13, 2013

www.wbj.pl

Business Gudie

Regional Municipal Authorities Listed alphabetically by voivodship A guide to Polish business and industry

Name

www.bookoflists.pl

Przewodnik po polskim biznesie i gospodarce

Address Tel./Fax E-mail Web page

ul. Jagielloƒska 3, 85-950 Bydgoszcz 52 349-7913/52 349-7294 The Voivode’s Office of Kujawsko-Pomorskie Voivodship pok@bydgoszcz.uw.gov.pl www.bygdoszcz.uw.gov.pl Pl. Teatralny 2, 87-100 Toruƒ 56 621-8600/56 621-8723 The Marshall’s Office of Kujawsko-Pomorskie Voivodship punkt.informacyjny@kujawsko-pomorskie.pl www.kujawsko-pomorskie.pl ul. Jezuicka 1, 85-102 Bydgoszcz 52 585-8913/52 585-8623 Bydgoszcz City Hall urzad@um.bydgoszcz.pl www.bydgoszcz.pl Pl. Powstaƒców Warszawy 1, 50-153 Wroc∏aw 71 340-6000 The Voivode’s Office of Lower SIlesia Voivodship info@duw.pl www.duw.pl Wybrze˝e S∏owackiego 12-14, 50-411 Wroc∏aw 71 776-9053 The Marshall’s Office of DolnoÊlàskie Voivodship umwd@dolnyslask.pl www.umwd.dolnyslask.pl ul. Nowy Targ 1-8, 50-141 Wroc∏aw 71 777-7777/71 777-8655 Wroc∏aw City Hall kum@um.wroc.pl www.wroclaw.pl ul. Spokojna 4, 20-914 Lublin 81 742-4100/81 742-4102 The Voivode’s Office of Lubelskie Voivodship pok@lublin.uw.gov.pl www.lublin.uw.gov.pl ul. Spokojna 4, 20-074 Lublin 81 441-6600/81 441-6602 The Marshall’s Office of Lubelskie Voivodship info@lubelskie.pl www.lubelskie.pl Pl. Króla W∏adys∏awa ¸okietka 1, 20-109 Lublin 81 466-1000/81 466-1001 Lublin City Hall urzad_miasta@lublin.eu www.um.lublin.eu ul. Jagielloƒczyka 8, 66-400 Gorzów Wielkopolski 95 711-5600 The Voivode’s Office of Lubuskie Voivodship urzad.wojewodzki@lubuskie.uw.gov.pl www.lubuskie.uw.gov.pl ul. Podgórna 7, 65-057 Zielona Góra 68 456-5200/68 456-5296 The Marshall’s Office of Lubuskie Voivodship kancelaria.ogolna@lubuskie.pl www.lubuskie.pl ul. Sikorskiego 3-4, 66-400 Gorzów Wielkopolski 95 735-5500/95 735-5670 Gorzów Wielkopolski City Hall um@um.gorzow.pl www.gorzow.pl ul. Piotrkowska 104, 90-926 ¸ódê 42 664-1000 The Voivode’s Office of ¸ódzkie Voivodship sekretariat@lodz.uw.gov.pl www.lodz.uw.gov.pl Al. Pi∏sudskiego 8, 90-051 ¸ódê 42 663-3000 The Marshall’s Office of ¸ódzkie Voivodship info@lodzkie.pl www.lodzkie.pl ul. Piotrkowska 104, 90-926 ¸ódê 42 638-4000, 42 638-4004 ¸ódê City Hall uml@uml.lodz.pl www.lodz.pl ul. Basztowa 22, 31-156 Kraków 12 392-1200/12 422-7208 The Voivode’s Office of Ma∏opolskie Voivodship urzad@malopolska.uw.gov.pl www.malopolska.uw.gov.pl ul. Rac∏awicka 56, 30-017 Kraków 12 630-3107/12 630-3126 The Marshall’s Office of Ma∏opolskie Voivodship urzad@malopolska.mw.gov.pl www.malopolskie.pl Pl. Wszystkich Âwi´tych 3/4, 31-004 Kraków 12 616-1200/12 616-1721 Kraków City Hall umk@um.krakow.pl www.krakow.pl Pl. Bankowy 3/5, 00-950 Warsaw 22 695-6995 The Voivode’s Office of Mazowieckie Voivodship info@mazowieckie.pl www.mazowieckie.pl ul. Jagielloƒska 26, 03-719 Warsaw 22 597-9100/22 597-9290 The Marshall’s Office of Mazowieckie Voivodship urzad_marszalkowski@mazovia.pl www.mazovia.pl Pl. Bankowy 3/5, 00-950 Warsaw 800-707-047 Warsaw City Hall sekretarzmiasta@um.warszawa.pl www.um.warszawa.pl ul. Piastowska 14, 45-082 Opole 77 452-4125/71 452-4478 The Voivode’s Office of Opolskie Voivodship bok@opole.uw.gov.pl www.opole.uw.gov.pl ul. Piastowska 14, 45-082 Opole 77 541-6510/77 541-6512 The Marshall’s Office of Opolskie Voivodship umwo@umwo.opole.pl www.umwo.opole.pl Rynek-Ratusz, 45-015 Opole 77 451-1800/77 541-1322 Opole City Hall urzad@um.opole.pl www.opole.pl

Official

Ewa Mes Voivode

Piotr Ca∏becki Marshall

Rafa∏ Bruski Mayor

Aleksander Skorupa Voivode

Rafa∏ Jurkowlaniec Marshall

Rafa∏ Dutkiewicz Mayor

Jolanta Szo∏no-Koguc Voivode

Krzysztof Hetman Marshall

Krzysztof ˚uk Mayor

Jerzy Ostruch Voivode

El˝bieta Polak Marshall

Tadeusz J´drzejczak Mayor

Jolanta Che∏miƒska Voivode

Witold St´pieƒ Marshall

Hanna Zdanowska Mayor

Jerzy Miller Voivode

Marek Sowa Marshall

Jacek Majchrowski Mayor

Jacek Koz∏owski Voivode

Adam Struzik Marshall

Hanna Gronkiewicz-Waltz Mayor

Ryszard Wilczyƒski Voivode

Józef Sebesta Marshall

Ryszard Zembaczyƒski Mayor

Name

The Voivode’s Office of Podkarpackie Voivodship

The Marshall’s Office of Podkarpackie Voivodship

Rzeszów City Hall

The Voivode’s Office of Podlaskie Voivodship

The Marshall’s Office of Podlaskie Voivodship

Bia∏ystok City Hall

The Voivode’s Office of Pomorskie Voivodship

The Marshall’s Office of Pomorskie Voivodship

Gdaƒsk City Hall

The Voivode’s Office of Âlàskie Voivodship The Marshall’s Office of Âlàskie Voivodship

Katowice City Hall

The Voivode’s Office of Âwi´tokrzyskie Voivodship The Marshall’s Office of Âwi´tokrzyskie Voivodship

Kielce City Hall

The Voivode’s Office of Warmiƒsko-Mazurskie Voivodship The Marshall’s Office of Warmiƒsko-Mazurskie Voivodship

Olsztyn City Hall

The Voivode’s Office of Wielkopolskie Voivodship

The Marshall’s Office of Wielkopolskie Voivodship

Poznaƒ City Hall

The Voivode’s Office of Zachodniopomorskie Voivodship The Marshall’s Office of Zachodnipomorskie Voivodship

Szczecin City Hall

Address Tel./Fax E-mail Web page

ul. Grunwaldzka 15, 35-959 Rzeszów 17 867-1000/17 867-1950 kancelaria@rzeszow.uw.gov.pl www.rzeszow.uw.gov.pl Al. ¸ukasza Ciepliƒskiego 4, 35-010 Rzeszów 17 850-1700/17 850-1701 urzad@podkarpackie.pl www.si.podkarpackie.pl Rynek 1, 35-064 Rzeszów 17 788-9900 umrz@erzeszow.pl www.rzeszow.pl ul. Mickiewicza 3, 15-213 Bia∏ystok 85 743-9315/85 743-9231 bok@bialystok.uw.gov.pl www.bialystok.uw.gov.pl ul. Kardyna∏a Stefana Wyszyƒskiego 1, 15-888 Bia∏ystok 85 665-4549/85 665-4567 kancelaria@umwp-podlasie.pl www.wrotapodlasia.pl ul. S∏onimska 1, 15-950 Bia∏ystok 85 869-6000/85 869-6209 prezydent@um.bialystok.pl www.bialystok.pl ul. Okopowa 21/27, 80-810 Gdaƒsk 58 307-7695/58 307-7317 zok@gdansk.uw.gov.pl www.gdansk.uw.gov.pl ul. Okopowa 21/27, 80-810 Gdaƒsk 58 326-8555/58 326-8556 info@pomorskie.eu www.urzad.pomorskie.eu ul. Nowe Ogrody 8/12, 80-803 Gdaƒsk 58 323-6000/58 302-3941 umg@gdansk.gda.pl www.gdansk.pl ul. Jagielloƒska 25, 40-032 Katowice 32 207-7777 www.katowice.uw.gov.pl ul. Ligonia 46, 40-037 Katowice 32 207-8888/32 207-8291 kancelaria@slaskie.pl www.slaskie.pl ul. M∏yƒska 4, 40-098 Katowice 32 259-3909/32 253-7984 urzad_miasta@katowice.eu www.katowice.eu Al. IX Wieków Kielc 3, 25-516 Kielce 41 342-1800/41 342-1834 bok09@kielce.uw.gov.pl www.kielce.uw.gov.pl Al. IX Wieków Kielc 3, 25-516 Kielce 41 342-1530/41 344-5265 obsluga.interesantow@sejmik.kielce.pl www.sejmik.kielce.pl Rynek 1, 25-303 Kielce 41 367-6000/41 344-2763 coi@um.kielce.pl www.um.kielce.pl Al. Pi∏sudskiego 7/9, 10-575 Olsztyn 89 523-2444/89 527-7447 info@uw.olsztyn.pl www.uw.olsztyn.pl ul. Emilii Plater 1, 10-562 Olsztyn 89 521-9000/89 521-9569 do.ba@warmia.mazury.pl wrota.warmia.mazury.pl Pl. Jana Paw∏a II 1, 10-101 Olsztyn 89 527-3111/89 535-1558 bok@olsztyn.eu www.olsztyn.eu Al. Niepodleg∏oÊci 16/18, 61-713 Poznaƒ 61 854-1774 informacje@poznan.uw.gov.pl www.poznan.uw.gov.pl Al. Niepodleg∏oÊci 18, 61-713 Poznaƒ 61 626-6666/61 626-6744 info@umww.pl www.umww.pl Pl. Kolegiacki 17, 61-841 Poznaƒ 61 878-5200 prezydent@um.poznan.pl www.poznan.pl Wa∏y Chrobrego 4, 70-502 Szczecin 91 430-3500 zuw@szczecin.uw.gov.pl www.szczecin.uw.gov.pl ul. Korsarzy 34, 70-540 Szczecin 91 480-7292 dgu@wzp.pl www.wzp.pl Pl. Armii Krajowej 1, 70-456 Szczecin 91 424-5931/91 424-5322 boi@um.szczecin.pl www.szczecin.pl

Official

Ma∏gorzata Chomycz-Âmigielska Voivode

W∏adys∏aw Ortyl Marshall

Tadeusz Ferenc Mayor

Maciej ˚ywno Voivode

Jaros∏aw Dworzaƒski Marshall

Tadeusz Truskolaski Mayor

Ryszard Stachurski Voivode

Mieczys∏aw Struk Marshall

Pawe∏ Adamowicz Mayor

Zygmunt ¸ukaszczyk Voivode

Miros∏aw Seku∏a Marshall

Piotr Uszok Mayor

Bo˝entyna Pa∏ka-Koruba Voivode

Adam Jarubas Marshall

Wojciech Lubawski Mayor

Marian Podziewski Voivode

Jacek Protas Marshall

Piotr Grzymowicz Mayor

Piotr Florek Voivode

Marek Woêniak Marshall

Ryszard Grobelny Mayor

Marcin Zydorowicz Voivode

Olgierd Geblewicz Marshall

Piotr Krzystek Mayor

SPORTS

www.wbj.pl

OCTOBER 7-13, 2013

Cycling

Soccer

A Pole comes close to cycling heaven

Kings of their own castle While Legia Warszawa dominates in Poland’s T-Mobile Ekstraklasa, they have so far lost both games played in the Europa League

Polish cyclists had a good showing at this year’s UCI World Road Championships

After the first 10 rounds of games in Poland’s premier soccer league, the T-Mobile Ekstraklasa, Legia Warszawa is sitting comfortably in the top spot with eight wins and two losses, five points ahead

SHUTTERSTOCK

Rafa∏ Majka ished 11th in this year’s Tour de France and registered good results in a few other races. Przemys∏aw Niemiec and Rafa∏ Majka finished this year’s Giro di Italia sixth and seventh respectively, which is the best result ever for Polish cyclists. The aforementioned cyclists along with Sylwester Szmyd, Micha∏ Go∏aÊ and Maciej Bodnar all cycle in top professional teams. Most of them are cur-

rently placed in the position of assistant, which means their role is to help their team leaders achieve the best result possible. Mr Majka however is seen as a potential group leader who has the ability to contest for the top spot in one of the most prestigious races such as the Tour de France, the Giro di Italia or Vuelta a Espana. Jacek Ciesnowski

X-NEWS.PL/T-MOBILE EKSTRAKLASA

The main attraction of every UCI World Road Championship is the Elite road race. This year’s edition was won by Portugal’s Rui Costa, who became the first ever cycling world champion from his country. However, for the most of the seven and a half hour-long race it was Pole Bart∏osz Huzarski who was the talk of the town. Mr Huzarski led the pack for most of the race, namely for some 240 kilometers, before being overtaken just two laps before the finish line. In the end, the 33-year-old Pole finished 52nd but left a good impression on pundits and fans. Maciej Paterski finished the race 19th and Micha∏ Go∏aÊ was 33rd. Still one Pole left the championship, held in Florence, with a medal. Micha∏ Kwiatkowski won the Elite team time trial with his professional cycling group Omega Pharma-Quickstep. The whole 2013 season was relatively successful for Polish cyclists. Mr Kwiatkowski fin-

of Górnik Zabrze, which is currently second. Despite the fact that the Warsaw side has been plagued with injuries this season, its coach, Jan Urban, could easily create two teams that would both have a good shot at the Polish championship. But that which passes for exceptional in Poland’s premier soccer league has so far proven insufficient for European club competitions. After failing to advance to the

Champions League group stage, the Warsaw side got the opportunity to play in the Europa League. However, fans’ hopes for a repeat of the club’s result from two seasons ago, when Legia reached the knockout phase, are currently slim after the team lost its first two group games. The first loss, 0:1 to Lazio in Rome, was expected as the Italian side was always considered the group favorite. Despite the loss, Legia had a decent showing, especially in the first half. But the second loss against Apollon Limassol of Cyprus last Thursday was a display of pure ineptitude. The Warsaw side dominated the whole game but was not able to put the ball in the back of the net and after one mistake, Apollon launched a counterattack, which resulted in Gastón Sangoy scoring the only goal of the game in the 56th minute. After two rounds, Legia is the only team in its group, which also includes Turkish side Trabzonspor, without a point and it seems likely their European journey will end in December after the last round of group games.

Legia defender Tomasz Jod∏owiec

Jacek Ciesnowski

Company Christmas Party at Hyatt Regency Warsaw Invite your guests, business partners and co-workers to a special Christmas Party in Q Club, the Exclusive Restaurant! Q Club is an exclusive club-style restaurant. It is the perfect place for informal meetings and private events. It is a stylish club with a separate and spacious dance-floor, stage, bar, open kitchen and dining section, all for your exclusive use. Start off by enjoying a welcome glass of wine and then discover the lavish festive buffet, which offers a large choice of chef’s Christmas dishes. There are non-alcoholic beverages, as well as a fine selection of wine, beers and spirits. A magical Christmas atmosphere is guaranteed. Special festive table decorations, Christmas tree, lights and background music are all provided and a Christmas gift from the hotel. You will receive an aromatic hot wine and Christmas gingerbread. The offer includes: • A welcome glass of wine (red or white) • Lavish Christmas buffet with a large choice of festive dishes • A beverage package including both non-alcoholic and alcoholic drinks (served for up to 4 hours) • Christmas decorations, Christmas tree, lights and background music • A toast with aromatic hot wine • Christmas gingerbread for all invited guests Additionally, there are special room rates (1 December 2013-6 January 2014) for your guests. For more information or Q Club reservations, please contact 48 22 558 10 16 or email: emilia.noster@hyatt.com. Hyatt Regency Warsaw Belwederska Avenue, 23 00-761 Warsaw Email: warsaw.regency@hyatt.com www.warsaw.regency.hyatt.com

LIFESTYLE

OCTOBER 7-13, 2013

Film festival

www.wbj.pl

Exhibition

First peek at Oscar winners Cracks and anomalies Warsaw Film Festival October 11-20 Kinoteka, Multikino Z∏ote Tarasy Warsaw

To many Varsovians the “Eastern Wall” is synonymous with three high-rise concrete buildings and several smaller ones, together forming a “wall” alongside ul. Marsza-

∏kowska in the heart of Warsaw, opposite the iconic Palace of Culture and Science. Built between 1962 and 1969, the buildings are examples of Soviet Realism in Poland. Agnieszka Kalinowska, the author of the “Eastern Wall” exhibition held in the BWA

romantic comedy starring James Gandolfini (in his penultimate movie) opposite Julia Louis Dreyfuss, “La Vénus à la fourrure,” the latest Roman Polaƒski production and “The Complex,” by Nakata Hideo, the director behind the cult horror film “The Ring.” All of the festival entries will take part in a competition for the audience

choice award. The Warsaw festival is one of 14 events recognized by the International Federation of Film Producers Associations, alongside the festivals in Cannes, Venice and Berlin. Jacek Ciesnowski

For more information visit: wff.pl/en/

COURTESY OF BWA WARSAW

WARSAW FILM FESTIVAL

Since 1985 the Warsaw Film Festival has been screening critically acclaimed movies months before they became worldwide hits. Some of the world’s best directors have been awarded at the Warsaw Film Festival, including Roberto Begnini, Alan Parker, Peter Greenaway and Jim Jarmush. “Our aim is to show a film before it wins an Oscar, to introduce a director to Warsaw audiences before he or she wins an award at the Cannes festival,” organizers write on their website. This year films from 51 countries will be screened at the WFF. The main portion of the festival is the annual International Competition. This year’s edition will award a winner out of 15 entries (including two Polish ones). Six of these films will have their world premiere in Warsaw. The festival also features best documentary and best short film competitions. Dozens of movies are screened at the festival each year. This year’s highlights include “Enough Said,” a

Eastern Wall BWA Warsaw September 27-November 16

gallery in Warsaw, draws inspiration from the Polish reality of the 1960s and 1970s. Her pieces, made predominantly with paper, resemble industrial scrap or decorations made by unskilled industrial workers. The exhibition attempts to portray the nature of social interactions characteristic of the Soviet era, where arbitrary rules collide with human imprecision and carelessness. The artist emphasizes the irregularities arising from human involvement which create cracks and anomalies in otherwise repetitive and mundane structures. One of the show’s pieces, called “Pattern,” resembles a haphazard wall ornament put together without much attention to detail or precision. Some of the exhibits are displayed on hand-made tables, also a part of the exhibition, while others hang on the gallery walls, thus blurring the distinction between sculpture, painting and installation. Agnieszka Kalinowska, a Poznaƒ Academy of Fine Arts graduate, has had her exhibitions displayed in Warsaw, Vienna, Copenhagen and New York. Beata Socha

To advertise in WBJ’s classifieds section, contact Agnieszka Brejwo, at (+48) 222-577-526 or abrejwo@wbj.pl