WBJ #15 2012

UEFA’s boss gives Poland and Ukraine mixed reviews ahead of Euro 2012 3

Europe looks to France ahead of the presidential election 2

WWW.WBJ.PL

Poland is to alter a law that threatened wind power investments 4

VOLUME 18, NUMBER 15 • APRIL 16-22, 2012 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

REAL ESTATE

COURTESY OF GLOBAL PARTNERS INVESTMENT FUND

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Since 1994 . Poland’s only business weekly in English

Green dream WBJ presents a special report on green technology made in Poland

9-11

COURTESY OF CLEAR BLUE

• Skra stadium site • Gemini Park extension • Bia∏o∏´ka district prospects 14-17

Chinese firm LiuGong reveals its plans for the newly-acquired HSW 6

Interview: Marjan Šetinc Slovenia’s ambassador to Poland calls for deeper European integration 8

In this issue

SHUTTERSTOCK

News . . . . . . . . . . . . . . . . . . . . . . .2-3 Business . . . . . . . . . . . . . . . . . . . .4-5 Company in Focus . . . . . . . . . . . . . .6 Interview . . . . . . . . . . . . . . . . . . . . . .8 Cover Story . . . . . . . . . . . . . . . . .9-11 Opinion & Analysis . . . . . . . . . . . .12 Lokale Immobilia . . . . . . . . . . .14-17 The List . . . . . . . . . . . . . . . . . . .18-19 Markets . . . . . . . . . . . . . . . . . . . . . .20 Lifestyle . . . . . . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

Smolensk legacy

Bumpy road

The second anniversary of the plane crash exposed divisions and realpolitik 3, 12

Polish car production slumps on the back of falling euro-zone demand 4

NEWS

www.wbj.pl

Barriers to business According to the latest “black list” published by the Polish Confederation of Private Employers Lewiatan (PKPP Lewiatan), Poland is still home to a number of barriers to doing business. The latest list, the company’s ninth annual publication, includes 366 items that act as barriers to business growth, reported Rzeczpospolita.

This figure constitutes a significant increase on the 170 barriers that were listed in the 2008 edition. Employment issues, tax difficulties and laws governing public procurement were seen as the most significant barriers to doing business in Poland. ●

100,000

On April 22, French voters will go to the polls in the first round of voting for their next president. If, as expected, no candidate garners over 50 percent support, then a second round of voting will take place on May 6.

An April voter survey carried out by polling agency CSA had the current president, Nicolas Sarkozy, with 30 percent support in the first round and his main rival, the socialist François Hollande, just behind him with 29 percent support.

All the other candidates are far behind the two front-runners, who appear all but guaranteed to make it to the forecast run-off, where Mr Hollande is expected to beat Mr Sarkozy by 54 to 46 percent, according to CSA voter research.

A major election in Europe’s second-largest economy is always important for

other countries on the continent, including Poland, but this particular election, or rather its expected outcome, has caused no little worry among EU members.

This largely stems from the fact that in a March speech, Mr Hollande said he would “renegotiate” the recently-signed EU fiscal treaty on budgetary discipline, adding that the pact focuses on austerity alone and does little to spur economic growth.

This ruffled feathers not only in Brussels and Berlin but also in Warsaw as Prime Minister Donald Tusk has a lot staked on the fiscal treaty, which he signed in March in the face of significant skepticism in Poland.

While the fiscal pact only needs the ratification of 12 of the 25 signatory countries for it to come into effect, it’s hard to imagine the treaty going ahead,

or being able to calm financial markets, without France firmly behind it. Without French support for the pact, Mr Tusk would be put in a politically tough spot and anti-EU sentiment in Poland would likely strengthen.

However, Mr Hollande now seems to be back-tracking on the issue of the pact.

On April 3, Pierre Moscovici, Mr Hollande’s campaign manager, told journalists that his boss would merely push for “add-ons” to make sure the treaty contained more progrowth policies, but would not request a fundamental re-write.

This has helped calm politicians’ and markets’ nerves somewhat but Mr Hollande’s eventual European policy is still an unknown and Warsaw, as the rest of Europe, will definitely be watching the elections closely.

Remi Adekoya

is how many new jobs could be created after the deregulation of the first 49 professions on Justice Minister Jaros∏aw Gowin’s list.

30% is the amount by which analysts predict the Polish mining sector’s net profit will increase in 2012.

z∏.195 million is the total cost of building the new passenger terminal at the ¸ódê W∏adys∏aw Reymont Airport.

5.1% was the percentage of GDP equal to Poland’s public finance deficit in 2011, according to Marek Belka, president of the National Bank of Poland.

Quote of the Week “In my case, time doesn’t heal wounds” Law and Justice leader Jaros∏aw Kaczyƒski on TVN24, talking about how he feels today about the death of his twin brother Lech Kaczyƒski in the fatal Smolensk plane crash in April 2010

Figures in focus Output down Industrial production in February 2012, percentage change compared with same month of the previous year, selected EU27 countries 9 6 3 0 -3 -6

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WBJ.pl assesses the effects of the economic crisis on the office market in the southern Polish city of Kraków, asking what the latest developments mean for companies choosing to locate there.

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Is the crisis still affecting the Kraków office market?

*Highest growth in EU27 **Largest fall in EU27

-9

Lat

On WBJ.pl

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Polish copper miner KGHM hopes to acquire shale gas from deposits in Lower Silesia, CEO Herbert Wirth told Dziennik Gazeta Prawna.

US gas exploration firm Geoexplorers International has reportedly offered its help. Gas leaks, a relatively common occurrence in many of KGHM’s mines, are seen by the company as offering a potential supply of salable gas.

KGHM is also planning to team up with gas monopoly PGNiG to search for shale gas elsewhere in Poland.

French presidential elections

ia*

KGHM to search for shale gas

Numbers in the News

vak

Dalia Grybauskaite, the president of Lithuania, has rejected an invitation from Polish President Bronis∏aw Komorowski to attend a meeting with him and leaders of the other Baltic states before the NATO summit in Chicago next month. The official reason given by the Lithuanian president’s office is that “NATO currently does not address questions significant to Lithuanian, Latvian, Estonian and Polish leaders.”

However, many will see this as representing a worsening of PolishLithuanian relations, which have been sour of late.

IN THE SPOTLIGHT

Slo

Lithuanian president snubs Komorowski

APRIL 16-22, 2012

COURTESY OF THE EUROPEAN PARLIAMENT AND THE WORLD ECONOMIC FORUM

2

Sources: Eurostat, individual countries' estimates

Company index Acciona ......................................10 Ernst & Young ..............................9 JSW ..............................................2

DATELINE

April/May

APRIL 17 REAL GREEN SYMPOSIUM & FAIR

Web:

Expert presentations, debate, discussion groups, workshops, exhibition and luncheon examining the business case for green building in emerging Europe.

Warsaw Marriott Hotel ceeqa.com/realgreen

17

9TH CEEQA GALA

Event:

The annual CEEQA Gala is firmly established in the sector calendar as the black-tie gathering of the year for real estate business leaders, and one of Europe’s premium real estate events.

Warsaw Marriott Hotel ceeqa.com

Event:

Location:

Location: Web:

Event:

Location: Web:

During this edition of the Belgian Escapade, organizers are planning many cultural and business events such as a Business Mixer accompanied by a tasting of Belgian products and the opening of a René Magritte photography exhibition.

Kraków belgium.pl

APANET ......................................10 Freeland Studios........................23

KPMG..........................................14 KSM Energia ..............................10

Arpid ..........................................14 Gant Development ....................16

23-25 INTERNATIONAL HR CONGRESS & EXPO Event:

Location: Web:

The 15th edition of Poland’s HR Congress is under the motto “HR - What’s the game we play?”. The event will explore the strategic role of HR within organizations.

Warsaw kongreskadry.pl

Lidl..............................................15 Asket ..........................................11 GE ................................................4 Murapol ......................................16 Bank BPS ....................................4 Géant ..........................................15

Behringer ..................................23 Global Partners

Peter Nielsen & Partners ..........6 PGE ............................................11

Bliska..........................................14 Real Estate Management ..........15

1-3 ANNUAL INVESTMENT MEETING 2012

BOIG Consulting ........................15 GTC ......................................14, 20

Location:

OBI ..............................................16

Biazet..........................................16 Investment Fund ........................14 Opel ..............................................4

MAY Event:

Netia ............................................4

Bank Gospodarki ˚ywnoÊciowej 5 Gemini Holdings ........................15 Nordex SE ..................................10

BIG InfoMonitor............................4 GREM Gemini

Web:

18-29 BELGIAN ESCAPADE

American Heart of Poland ........14 Fiat................................................4 KGHM ....................................2, 20

This emerging markets FDI-focused event provides institutional, corporate and individual investors with a comprehensive set of guidelines for their future investment decisions in high-growth regions.

Dubai aimcongress.com

10 PRCH RETAIL HORIZONS Event: The Polish Council of Retail Centres’ Retail Horizons 2012 Conference gathers executives, investors, developers, administrators and retail chains from the Polish shopping center market.

Location: Warsaw Web: prch.org.pl

PKN Orlen ..............................5, 11 PKO BP ........................................5 Bose International

Guangxi LiuGong Machinery ......6 Rabobank ....................................5

Planning and Architecture ........16 Hebe ..........................................14

Real ............................................15

Carrefour....................................15 Hitachi ........................................14 Reinhold Polska ........................14 Colliers International Poland ....16 Hochtief Polska..........................14 RWE Innogy ................................10 Cushman & Wakefield ..............15 Home Broker..............................17 RynekPierwotny.com ................17 Deloitte ......................................14 Huta Stalowa Wola ......................6

Sunex..........................................10 SwedeCenter..............................14

DOMREL ....................................10 IBM ............................................14 Tesco ....................................15, 16 E. Leclerc ..................................16 IDM ..............................................5 Trac Tec ......................................14 E.ON Energy Projects ..................4 Intellinet ....................................14

Vesta Wind Systems ....................4

Echo Investment ........................16 Jeronimo Martins Dystrybucja ..14 Volkswagen ..................................4 EDP Renováveis ........................10 Jones Lang LaSalle ..................13 Warsaw Stock Exchange ..........16 Eiffage Budownictwo Mitex ......16 JSK Architekci............................14 X-Trade Brokers ........................20

NEWS

APRIL 16-22, 2012

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Smolensk tragedy

3

Euro 2012

A tragedy that once united Poles has now turned into what could be a long-lasting wedge in Polish society As was the case in 2011, last week’s anniversary of the Smolensk airplane catastrophe in which President Lech Kaczyƒski and 95 others died, was marked separately by the Polish government and by supporters of Law and Justice (PiS) and its leader, Jaros∏aw Kaczyƒski.

On April 10, Prime Minister Donald Tusk attended a special ceremony at the Powàzki Military Cemetery in Warsaw along with Defense Minister Tomasz Siemoniak and Chief of General Staff Mieczys∏aw Cieniuch. There was also an official Polish delegation, led by Minister of Culture Bogdan Zdrojewski, to the

scene of the crash near Smolensk, in Russia, while President Bronis∏aw Komorowski attended a special mass to commemorate the anniversary in Warsaw.

Meanwhile, Jaros∏aw Kaczyƒski, the twin brother of Lech Kaczyƒski, spent most of April 10 in the vicinity of Krakowskie PrzedmieÊcie, around the Presidential Palace.

Mr Kaczyƒski and his supporters consider the area in front of the palace to be special, since it is where hundreds of thousands of Poles gathered in the days after the tragedy to pay their respects to the late president and his wife, Maria Kaczyƒska, who also died in the plane crash.

The ‘real prime minister’ Later last Tuesday, Mr Kaczyƒski addressed the crowd on Krakowskie PrzedmieÊcie.

He was introduced by the

speaker as the “real prime minister of Poland.” “[Those on the plane] were betrayed. We now know that for sure … it was disgraceful to hand over the investigation [to Russia], disgraceful to lie just as it was disgraceful to insult all those fallen and the fallen president of Poland,” said Mr Kaczyƒski.

“What we were told for months were lies, big shameless lies. But we are close to the truth. Antoni Macierewicz’s team is coming close to the truth with great strength and determination,” said the PiS leader.

Here, Mr Kaczyƒski was referring to the special team set up by PiS MP Antoni Macierewicz, which is investigating the circumstances surrounding the Smolensk plane crash. Mr Macierewicz has suggested foul-play was involved, as has Mr Kaczyƒski

himself, who said recently he feels that his brother was “murdered.”

The Polish government’s official report into the crash, released last year, continues to be contested by PiS. The report said that poor cooperation between airplane crew members and inadequate pilot training were two key factors behind the crash. It also stated that the crew was given incorrect information by the Russian air-traffic controllers and that there was poor lighting at Smolensk airport. Following the publication of the report, the relevant Polish air force squadron was disbanded, and Prime Minister Tusk accepted the resignation of then-Defense Minister Bogdan Klich.

The PM has so far resisted calls to reopen the investigation, but the accident remains in the spotlight, with the recent exhumation of victims’ bodies following doubts about the accuracy of initial Russian autopsies, and pledges from the government to “push hard” for the return of the plane wreckage from Smolensk. Polish prosecutors also announced last week that they will be sending a query to Russian authorities concerning the fact that the Tu-154 wreckage appears to have been washed clean by the Russians.

An April poll conducted by Gazeta Wyborcza indicates that 18 percent of Poles believe Lech Kaczyƒski was assassinated and 32 percent think that both the Polish and Russian governments are hiding the truth about the Smolensk catastrophe.

Remi Adekoya

2012 co-hosts Pitches at Poland’s four host stadiums will need to be replaced, he said Michel Platini, the president of the Union of European Football Associations (UEFA), criticized Euro 2012 co-hosts Poland and Ukraine last week, over aspects of the two countries’ preparations for the tournament which begins on June 8.

Mr Platini, who visited both Warsaw and Ukrainian host city Lviv on April 12, said the pitches at each of Poland’s four host stadiums – in Warsaw, Gdaƒsk, Wroc∏aw and Poznaƒ – will need to be replaced.

UEFA’s president also expressed worries that hooliganism could rear its ugly head during the tournament.

“I hope we won’t need the police,” the AFP reported him as saying during his visit to Warsaw’s National Stadium.

“But we all know that the

world isn’t as nice as I’d like it to be, so of course we need security, people to protect the stadiums, to look out for the hooligans who’ll come, and that’s why the Polish government has a security system in place,” he added.

Mr Platini, who met Ukraine’s President Viktor Yanukovych in Lviv, also leveled criticism at the high cost of accommodation in that country. He called those who have hiked room rates, “bandits and crooks.”

In order to solve the problem, Mr Yanukovich has ordered his government to investigate price hikes and ensure hotel rates are kept at reasonable levels.

Asked about the situation in Poland, Mr Platini said, “I complained in Ukraine. In Poland it’s about right.”

On the whole, Mr Platini said he was pleased with preparations for the tournaGareth Price ment.

COURTESY OF WIKIMEDIA COMMONS

Jaros∏aw Kaczyƒski said those who died in the Smolensk tragedy were “betrayed”

COURTESY OF FACEBOOK/PRAWO I SPRAWIEDLIWOÂC

Smolensk second anniversary UEFA boss Platini shows deep divisions in Poland criticizes Euro

Mr Platini called Ukrainian hoteliers who hiked prices “bandits and crooks”

BUSINESS

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Automobiles

Poles optimistic, but tighten belts

Netia reduces workforce Poland’s second-largest telecoms company, Netia, has announced sweeping job cuts, while many staff who are being kept on are set to see their conditions of employment altered, reported Parkiet. In total, 519 people are expected to lose their jobs, or almost 20% of the company’s current workforce, most of them working for the recently acquired Telefonia Dialog.

Beer prices set to rise Beer prices in Poland are set to increase by as much as 10% from next year, reported Dziennik Gazeta Prawna. The reason for the rise is that from 2013 Polish producers will have to use mainly Polishproduced, and therefore more expensive, hops to produce their beer. As of next year, beer will have to contain 75% domestically-produced hops, and later on, this proportion will grow to 90%. Currently, Polish hop producers supply about 50% of the total. ●

Total arrears rose by z∏.1.4 billion between November 2011 and March 2012

COURTESY OF WIKIMEDIA COMMONS

Finding shale gas in Poland could result in a drop in natural gas prices in 2015 or 2016, Treasury Minister Miko∏aj Budzanowski told Dziennik Gazeta Prawna.

Minister Budzanowski also said that Poland’s shale gas reserves are likely greater than the 346-768 billion cubic meters recently estimated by the Polish Geological Institute.

Household debt

Consumer Car production plummets at Polish debt levels automobile plants rise in Poland

Many Polish citizens are optimistic about their financial situation, reported Rzeczpospolita.

Some 58% of respondents to a recent survey by research company Market Side described their financial situation as “average,” while 27% said their finances were “good.” In total 13% of those surveyed felt their finances were in a “bad” state. However, 37% of respondents said they had consciously decided to reduce their spending.

Shale to lower gas prices?

APRIL 16-22, 2012

The Fiat Panda is the most successful model built at the plant in Tychy

The industry is going through a rough patch, with orders for new vehicles falling due to problems in the euro zone The ongoing financial crisis has taken its toll on Poland’s car industry, with production plummeting in March according to figures from market research institute Samar.

Last month, just over 64,400 cars rolled out of Polish factories, representing an annualized fall of 26 percent,

Samar said in a report. In month-on-month terms, output fell by 6.7 percent.

Poland’s three main car producers, Volkswagen, Fiat and Opel, saw y/y falls of 6 percent, 30 percent and 31 percent respectively.

The drop in production figures was caused by a fall in the sale of vehicles to key economies in Western Europe, said Rafa∏ Or∏owski, an analyst at industry portal AutomotiveSuppliers.pl.

Mr Or∏owski added that the economic situation in that part of the world is likely to

deteriorate further over the coming months, since “the crisis in Italy is not likely to end any time soon.” However, he also added that for the time being no factory is at risk of being closed down.

The leader in the Polish automotive sector is Italian carmaker Fiat, which controls 57.2 percent of the market. Its most successful model, which is produced at a plant in Tychy, is the Fiat Panda. Over 35,000 Fiat Pandas were produced in Poland during the first quarter of this year.

Roberto Galea

The number of Poles who weren’t able to make debt repayments on time in March 2012 amounted to 2.16 million, a figure higher by almost 75,000 than in November 2011, according to a report by economic data company BIG InfoMonitor.

The report says that the total amount of arrears, that is, payments gone unmet for at least 60 days, reached z∏.35.75 billion in March, an increase of z∏.1.4 billion since November 2011.

“In our view, the sharp increase in the number of debtors at the end of the first quarter of 2012 may be a temporary phenomenon, caused by a number of factors,” Mariusz Hildebrand, chairman of the board at BIG InfoMonitor, said in the report.

“First of all, the beginning of the year is a period when debt portfolios are verified and assessed, and a time in which there is an active attempt [by lenders] to recover arrears, hence the growing number of entries into the debt register. Another factor may be the number of outstanding cash loans that were taken out before the Christ-

mas period,” he added.

Joanna Nowicka-Kempny, president of the board at Bank BPS, said in a commentary that personal debt levels have likely risen because Poles are striving to improve their living standards.

This, she said, is “divorced from a rational economic calculation by households, and from an analysis of the risk of job losses and the ability to earn.”

“The rising debt situation demands consistent consumer education,” she added, explaining that consumers should be made more aware of the content of small print and of legal regulations related to getting loans.

BIG InfoMonitor found that residents of Silesia and Mazowieckie held the largest share of the total unmet payments in March, with inhabitants of those two voivodships being in arrears by z∏.6.95 billion and z∏.4.92 billion respectively.

Around 60 percent of Poles have a loan of around z∏.5,000 to repay, though Poland’s most-indebted person owes z∏.96.4 million, the organization found.

The average Polish borrower is 30-39 years of age, lives in the Silesia or Mazowieckie voivodship and owes around Gareth Price z∏.16,500.

Energy

Wind investors relieved with potential new energy bill The government is reconsidering an amendment to an act that could have jeopardized investments in the renewable energy sector Janusz Pilitowski, director of the Economy Ministry’s renewable energy department, had good news for investors gathered at the XIVth Wind Energy Forum in Warsaw last week.

“We are going to restore the obligation to buy energy from renewable sources at a guaranteed price,” said Mr Pilitowski.

The government also plans to keep subsidies for current and planned wind farms unchanged for 15 years after commissioning, he added.

Polish Wind Energy Association president Krzysztof Prasa∏ek, whose organization represents investors in Poland such as E.ON Energy Projects, GE and Vestas Wind Systems, said his organization welcomed the new proposals.

Negotiations concerning

the Renewable Energy Sources Act will “decide the fate of renewable energy sources development in Poland, and certain proposed provisions [of the original proposal] directly jeopardize further growth of

the [wind energy] sector in our country,” he said in a statement.

Proposed amendments to the bill caused “strong emotions in the industry,” added Mr Prasa∏ek.

The Polish government submitted a draft in December that would have reduced financial support for onshore wind farms, boosted subsidies for

costlier technologies and scrapped an obligation for utilities to buy fixed-rate power from renewable sources. The new plan was aimed at saving the state up to z∏.1 billion, but investors argued that it would jeopardize investments, especially in Poland’s emerging wind sector.

The Ministry of Economy received opinions from around

100 organizations concerning the bill. A new draft law is expected to be presented in May with the earliest date for its adoption seen in January 2013.

The Energy Regulatory Office found that 488 wind energy plants, with a total capacity of 1,480 megawatts, were up and running in Poland as of September 2011.

Alice Trudelle

Wind power

A growing sector

Market shares of leading wind farm manufacturers and suppliers in Poland, November 2011

Installed capacity of wind power in Poland, in megawatts, from 2005 to Q3 2011 1,500 1,200

11% 10%

35%

Enercon

Nordex

Fuhrländer

Repower

Gamesa

Siemens

900 Source: URE, PSEW

4

600

16% 300

8% 7% 1%

12%

GE

Vestas 0

Source: Renewable Energy Institute

2005

2006

2007

2008

2009

2010

IX 2011

BUSINESS

APRIL 16-22, 2012

Public tender

Rabobank announces call for remainder of BG˚’s shares

Dutch banking giant Rabobank last Wednesday announced a public tender to buy all outstanding shares in Bank Gospodarki ˚ywnoÊciowej (BG˚), in which it already holds a 60 percent stake.

“Rabobank intends to obtain 100 percent of the shares in BG˚,” bank spokesperson Milou Verhaegh told AFP. Rabobank called for the sale of shares representing 40.02 percent of BG˚’s share capital. According to DM PKO BP, an intermediary in the call, it offered z∏.72.50 per share which works out at z∏.1.25 billion in total, Reuters reported.

The tender, which was launched after the Warsaw Stock Exchange closed last Wednesday, valued the company well above BG˚’s closing price of z∏.46.96.

The beginning of the subscription order acceptance period is May 2, 2012 and will in principle last up to and including May 31, 2012, Rabobank said in a statement.

COURTESY OF BG˚

The Dutch company’s offer values the outstanding 40 percent in the Polish bank at z∏.1.25 billion

BG˚’s share price rose strongly after the call Poland’s Treasury holds a 25.51 percent stake in BG˚, which at the offered price would net the ministry around z∏.800 million.

“The Treasury Ministry will look into the tender for BG˚ shares, which was announced

by Rabobank International Holding, together with its parent company,” Treasury Ministry spokesperson Magdalena Kobos told the Polish press Agency (PAP). “It is an interesting offer, and we will certainly look into it,” she added.

On Thursday, BG˚ stock leaped by as much as 51.94

percent in intraday trading to z∏.71.35.

Bank BG˚ debuted on the Warsaw Stock Exchange on May 27, 2011. At the time, it was considered one of the most unsuccessful privatization attempts made under the watch of former Treasury Minister Aleksander Grad. Disappointed by the lukewarm interest in the stock offer, the Treasury reduced the stake to be floated from 37.2 percent to just 12 percent and dropped the issue price to z∏.60 per share from z∏.90.

Roberto Galea

Oil

Competition watchdog investigates Orlen Oil for alleged price fixing The PKN Orlen subsidiary is suspected of fixing its Platinum motor oil prices with its distributors Poland’s Office for Competition and Consumer Protection (UOKiK) has launched an

investigation to determine whether Orlen Oil, a whollyowned subsidiary of giant PKN Orlen, is guilty of price fixing.

According to data collected by the watchdog, Orlen Oil, a manufacturer and distributor of oils for cars, trucks and agricultural and industrial equipment, committed its authorized distributors not to sell its high-end

Platinum oils for less than the price it indicated, and reserved the right to end contracts if lower prices were applied.

“Such action may be considered as restrictive to competition. Fixing of prices with trading partners is illegal. Trading partners should act independently and follow their own economic calculations,” UOKiK wrote in a statement.

Should the investigation confirm wrongdoing, UOKiK could impose a financial penalty of up to 10 percent of Orlen Oil’s revenue. Specific results for the subsidiary are not included in PKN Orlen’s financial statements. However, the operating profit for the firm’s refining segment, of which Orlen Oil is a part, was z∏.2.1 billion for full-year 2011. ¸ukasz Prokopiuk, an analyst at brokerage IDM SA, said he did not expect the proceedings to affect investor confidence, or the company’s stock price. “There is no reason for these allegations. We have a free market so that margins are not steered,” he said.

Izabela Depczyk

www.wbj.pl

5

6

COMPANY IN FOCUS

www.wbj.pl

APRIL 16-22, 2012

Construction equipment

It is rare that a foreign company enters the Polish market knowing its production costs will be higher than in its home market, but that is precisely the step which has been taken

by Chinese construction equipment manufacturer Guangxi LiuGong Machinery.

LiuGong, which recently completed the purchase of the civilian construction arm of Huta Stalowa Wola, a steel

mill and manufacturing firm owned by the Polish state, hopes the takeover will give it improved access to major European markets, as well as an expert workforce and advanced methods of production. While the company has declined to reveal the cost of the transaction, Polish media sources estimate it at z∏.250300 million.

Why Poland?

The HSW takeover gives LiuGong lower labor and manufacturing costs than it would have had in many alternative European locations, while also providing it with a technological edge.

“For us, coming from

China, the investment is a cost-up,” said David Beatenbough, chairman of the board of the new entity, LiuGong Machinery Poland and vice president of Guangxi LiuGong Machinery.

“A Chinese production base for equipment earmarked for European markets, being so far away, would eat up any cost benefits we would have by being located in China,” said Mr Beatenbough, adding that this was especially the case for larger equipment such as excavators.

“But had the facilities been located in Germany, for example, it probably wouldn’t have made sense.”

The company chose HSW

Polish expertise The manufacturing facilities, processes and expertise LiuGong has inherited from HSW are “among the best in the world,” according to Mr Beatenbough.

Polish engineers now working at LiuGong Poland are especially adept in the art of heat treatment, which is needed to change the material properties of metal used in the construction of machine-parts. Steel used in parts-production needs to be heated and cooled to specific temperatures and at different rates to ensure it has the right properties.

“Knowing when to do what is the real art of heat treatment – Polish engineers excel here,” said Mr Beatenbough.

LiuGong has also come to Poland to

learn. Small teams of Chinese engineers will visit Poland to observe production processes first-hand, before taking this newly acquired knowledge back to China.

“Polish engineers think logically because of the education system here; training is very rigorous in Poland and is based on proving answers. In China, the theoretical education is good, but the education system doesn’t give [students] a chance to prove or apply what they learn. It is more hands-on in Poland, with a focus on problem-solving.”

Polish engineers will also visit China to learn about processes there, exchanging ideas and helping LiuGong Poland to benefit from Polish-Chinese synergies. ●

Legal News Contact: Miros∏aw Stefanik ms@pnplaw.pl

EU Commission exceeds powers over greenhouse gas emissions The European Court of Justice (ECJ) confirmed in its judgment (cases: C-504/09 P Commission vs. Poland and C-505/09 P Commission vs. Estonia) dated March 29 that the European Commission exceeded its powers when it imposed a maximum number of greenhouse gas emissions allowances on Poland and Estonia.

Based on the directive 2003/87/EC dated October 2003, in 2006, Poland and Estonia notified the Commission about their national plans concerning distribution of allowances (“KPRU”) for the years 2008– 2012. Through two decisions in 2007, the Commission recognized an inconsistency between the KPRUs and some of the criteria contained in the relevant EU directive, deciding that the total annual number of emissions allowances those countries intended to grant should be reduced.

Poland, supported by the Czech Republic, Romania, Hungary, Lithuania, Slovakia and the UK, and Estonia, supported by the Czech Republic, Lithuania, Latvia, Slovakia and the UK, filed a complaint to have the Commission’s decisions declared invalid. At

the same time, the Commission was supported by Denmark.

The Court of Justice decided that the directive did not define any method for the preparation of a national plan for the distribution of emissions allowances. In fact, it was found to do just the opposite – it stipulates that EU members should establish the total number of allowances which are to be distributed, taking into account national energy policy and national programs for dealing with climate changes.

Thus, member states have at their disposal defined parameters when it comes to applying the directive, and consequently when it comes to choosing what they consider to be the most appropriate method for achieving the purpose of that directive.

and Poland primarily because of the quality of the Polish company’s bulldozer range and production facilities, which gives LiuGong a readymade production base for export purposes.

Key for LiuGong is Poland’s location on the doorstep of Western European markets, which the Chinese company hopes to tap.

“Germany is LiuGong Poland’s core market … we will gradually move out into other countries,” said Mr Beatenbough.

The company also holds the Polish engineers who worked for HSW in high regard (see box).

“We like to think our Chinese engineers are fast and flexible, but engineers here in Poland are very serious and very logical … they understand quality here.”

Development plans LiuGong plans to continue production of bulldozers at HSW’s plant, using designs drawn-up by the Polish company, while also developing R&D activities and upgrading equipment in the future.

In terms of manufacturing expansion, LiuGong is adopting a wait-and-see approach at present, since it is still finding its feet in Poland and figuring out its priorities.

“With the downturn, things at HSW have been pretty slow for the last few years. So we’re trying to boost production as quickly as we can,” said Mr Beatenbough.

Aside from bulldozers, the Polish plant also turns out larger machines involved in coal and gas mining. LiuGong is now installing a new excavator production line at the plant, and expects the first excavators to begin rolling off the production line as early as May.

Home market In addition to its export ambitions, LiuGong Poland also expects to find business opportunities in its adopted market.

David Beatenbough says the manufacturing facilities, processes and expertise LiuGong has inherited from HSW are “among the best in the world” Poland is currently experiencing a road-building and infrastructure boom as it chases economic convergence, meaning contractors require construction equipment machinery on a large scale.

The company also sees potential for business from companies prospecting for shale gas in Poland, since it produces equipment needed to prepare the ground for drilling and for helping to treat waste products.

The company’s TD-40E Dressta bulldozer can be used in this capacity, leveling the ground and helping to dispose of contaminates. “You need to move a lot of earth to treat waste fluids from shale gas drilling,” said Mr Beatenbough.

Despite the opportunities afforded by the Polish market, LiuGong’s rationale for investing in the country was based mainly on the international leverage it offers.

“We have to look after our home market, but our focus is global,” said Mr Beatenbough.

“There’s no way we could justify the expenditure just by

serving the Polish market.”

The company sees its biggest growth markets as being anywhere where largescale mining operations are taking place. HSW had a strong presence in many such countries, including Russia and CIS states, thus giving LiuGong Poland access to those markets.

Chinese interest LiuGong is not the only Chinese company to have entered the Polish market in recent months, with banks and a law firm also expanding into the country, while Chinese investment funds have recently expressed an interest in buying other Polish state-owned assets. Not being privy to Chinese government talks, Mr Beatenbough wasn’t able to say whether LiuGong’s takeover is part of a concerted investment drive by China in Poland.

“I can say that our company’s decision to invest was based entirely on the merits of HSW,” he said.

Gareth Price

Admission of cheaper medicinal products inconsistent with EU law In accordance with the judgment of the ECJ on the case C-185/1 Commission/Poland, Polish provisions allowing the sale of cheaper medicinal products which do not have a market-admission permit (PDO) but are similar to medicines which have PDOs, violate EU law. ●

BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE

COURTESY OF CLEAR BLUE

The Chinese company has completed the takeover of Huta Stalowa Wola's civilian unit and is now eyeing export opportunities in nearby markets

COURTESY OF CLEAR BLUE

LiuGong to benefit from Polish-Chinese synergies

LiuGong’s TD-40E Dressta bulldozer can be used to help dispose of waste products from shale gas drilling

8

INTERVIEW

www.wbj.pl

APRIL 16-22, 2012

Slovenia

Marjan Šetinc, ambassador of the Republic of Slovenia to Poland, talks to WBJ about the EU's fiscal pact, the role Slovenia plays in the Balkans and Polish-Slovenian relations Ewa Boniecka: Slovenia joined the EU in 2004, at the same time as Poland, and adopted the euro three years later. How is the present situation in the euro zone affecting your country?

Marjan Šetinc: After joining the EU, Slovenia managed to meet the conditions for adopting the euro very quickly.

Being encircled by euro-zone countries and heavily dependent on exports – 70 percent of Slovenia’s trade is with the euro zone – a quick adoption of the euro was a necessity from the point of view of business. Slovenian businesses had been constantly exposed to currency fluctuation shocks and surprises. It was also a relief for most ordinary citizens who had for years been losing money in currency exchange offices. In 2009, the euro saved us from deeper recession.

Nevertheless, the crisis that hit Slovenia in 2011 was considerable; we recorded an economic contraction of 0.2 percent [of GDP] in that year.

Though the percentage looks small, the recovery will, in light of the present condition of our economy and people’s lower purchasing power, take longer than expected. It will be mostly dependent on the overall eurozone recovery.

Is Slovenia ready to fulfill all the provisions of the European fiscal pact?

It is clear that certain adjustments must be made to public spending. This cannot be done overnight. The adjustments will take time, you cannot completely eradicate public spending and public investments. Public spending generates production and a considerable number of

jobs. Citizens with empty pockets will not be able to stimulate production. We have to keep certain mechanisms of growth in place and carry out austerity measures in such a way as to avoid negative growth. Slovenia has a smaller public debt than Poland, but of course our economy is not the same size as Poland’s – our domestic market is much smaller. Our economy is heavily export-based, so the recession outside of Slovenia affects us much more than it affects Poland, especially at a time when domestic spending is decreasing.

Slovenia has always been a very strict defender of the principle of financial discipline in the EU. The fiscal pact is in line with principles we fully endorse.

For the EU to play a global role alongside other global economic powers, as was the declared ambition of the EU countries’

“The EU cannot be left to eurozone members alone” 27 heads of state, it needs a common economic policy. The basis of this is a common currency and a common fiscal policy. The first is there and the second should be implemented in the future. Poland has cleverly sensed the importance of not being left out of the process of building deeper EU structures by insisting that it be present in euro-zone meetings. The EU cannot be left to euro-zone members alone.

Does Slovenia support deeper integration of the EU in all

aspects: economic, financial and political?

Slovenia has historically identified itself with Europe and has been a strongly pro-European country; our location in the heart of Europe makes isolation impossible. Even Switzerland cannot afford to follow an isolationist approach.

Although we look at the European Union as a community of sovereign countries we are aware that there is no way forward, as I already mentioned, in the new and emerging world order without deeper integration and a redefining of national sovereignty.

Polish Foreign Minister Rados∏aw Sikorski, in his speech in Berlin in February, conveyed to the European public precisely this. It is clear that the EU’s ideals must be reinvigorated: solidarity, care for common values, sharing the good and the bad ... The economic and financial crisis exposed the limits of each individual EU member state’s dependence on what is going on in the EU and elsewhere.

Sovereignty is, no matter what, limited by the interdependence of nations and this is no less true for the EU. I think deeper integration is a necessity and, no doubt, inevitable. It is not a matter of whether we want it or not.

How do you view the facts that Croatia will become a member of the EU in July next year, and that Serbia has obtained the status of an official candidate for EU membership?

In my opinion, these developments are very important and positive. During its presidency of the Council of the EU in 2008, Slovenia devoted a lot of energy to the Balkans – it was our priority.

We could not finish the job at the time. It took a few more years, and thanks to Hungary and Poland, who helped create

COURTESY OF MARJAN ‚ETINC

Relying on Europe

“There is no way forward without deeper integration,” says Mr Šetinc this situation, Croatia will be able to join the EU next summer, exactly on July 1, 2013.

The admission of Croatia to the EU is important for Slovenia but also for other aspiring countries, since it sends a message that enlargement is continuing. We are neighbors and have many ties: economic, cultural and social. Just one example of this is a nuclear plant located in Slovenia, close to the border with Croatia, in which both countries hold a 50 percent stake. Maintenance, power sharing, nuclear waste and pricing, etc., all require cooperation and mutual engagement.

For the other Balkan countries, the road to EU accession has been bumpier and will take longer. However, these countries’ prospects for joining the EU have helped push democratic processes forward and we are proud to have assisted them in this.

Relations with Poland are seen

by Slovenia as being integral to

the development of closer ties between the southern, northern and eastern parts of Europe. How does this play out in practice?

Slovenia is often invited to Visegrad Group [comprising the Czech Republic, Hungary, Poland and Slovakia] meetings and our mutual relations with Poland are very good and have been for a long time. Our presidents and prime ministers exchange views at various forums, while many things between us are based on personal relations. Our countries have signed agreements and memorandums in practically all the major areas of bilateral relations, and they are being implemented successfully.

How are Polish-Slovenian economic and trade relations developing?

The value of our mutual trade in 2011 exceeded €1.1 billion and is steadily growing, with a considerable surplus on our side. There are some Slovenian investors in Poland who are

sending favorable messages to others to follow. I regret that this is not the case the other way round.

Some Slovenian brands are well known and popular in Poland. There are no skiers who would not have heard of Elan skies or Alpina ski boots.

Pharmaceutical products from Slovenian companies Krka and Lek have been on the Polish market since the mid1970s. Gorenje refrigerators and other kitchen appliances are quite common in Polish households. There are some foreign brands produced in Slovenia, the largest of which is no doubt Renault – the Clio has been produced in Slovenia for quite some time.

Slovenia has considerable export capacity; Poland is our sixth- or seventh-largest trade partner . Up until now, however, there has been little expansion of Polish firms into Slovenia. Our companies seem to be more active in seeking partners in Poland, especially for developing joint businesses. ●

COVER STORY

APRIL 16-22, 2012

www.wbj.pl

9

Technology

Poland’s green evolution

Liam Nolan

This Sunday millions across the world will celebrate Earth Day, a global annual event that aims to raise public awareness about the environmental challenges facing the planet. In Poland, government bodies, NGOs, schools and universities across the country will mark April 22 with a series of events.

Not everyone would agree the country has much to celebrate: Poland’s green credentials are arguably shaky. The fact that it generates 90 percent of its electricity from polluting coal makes Poland one of the top emitters of CO2 in Europe. And the country’s stubborn – and isolated – opposition to more ambitious EU climate legislation is not helping that image either.

But that’s not the whole story. Scratching a little below the surface, one finds that Poland is in fact devoting substantial resources to preserv-

ing the environment and developing green technology.

Its entrepreneurs are answering the call, putting forward a wide range of innovative solutions that are gaining a stronger foothold in Poland and foreign markets. Smalland medium-sized companies, often led by young entrepreneurs, are gradually making their marks in a market that barely existed 10 years ago.

Ernst & Young ranked Poland 10th in the world for its wind energy potential

Funds Although its not always the image Poland projects in Brussels, where in March it singlehandedly blocked the adoption of EU-wide higher CO2 reduction targets, the country is spending big on environmental protection.

The National Fund for Environmental Protection and Water Management (NFEP&WM) estimates that between 1989 and 2010, it concluded over 16,000 contracts allocating over z∏.30 billion for financing environmental projects. Since 2004 a large portion of this money Continued on p. 10 ➡

SHUTTERSTOCK

Polish companies are making technology that’s good for the planet

COVER STORY

www.wbj.pl

Lighting up: APANET Green System

➡ Continued from p. 9 has come from EU structural funds. Under the 2007-2013 EU budget, Poland has benefited from €67 billion in EU structural funds, of which €17.8 billion was assigned to

of street lighting costs by controlling separate lights when full power is not necessary.”

APANET’s main product, the tiny ‘GLS controller,’ enables savings on street lighting without the need to install additional cables.

APANET has installed its light saving devices in the Polish town of Jelenia Góra, and has recently installed over 700 energy-saving light controllers along the new A1 motorway.

The company is currently negotiating with Warsaw’s local authorities in the hope of installing GLS controller devices on some of the city’s streetlights. “Our products could help the city reduce CO2 emissions and save costs,” said Mr Lis. APANET works with Paris-based Streetlight Vision, whose software enables the GLS controller to operate. The company is now eyeing the German market. ●

protect the environment. This translates into hundreds of projects including wind farms, municipal water and waste management schemes, and the promotion of “greener” social habits. The cost of each

SHUTTERSTOCK

Founded in 2010, APANET Green System was nominated as one of last year’s GreenEvo finalists for its range of energy saving devices for streetlights. Mother company APANET describes itself as one of the largest manufacturers of devices working in LonWorks (local operation network) technology in the CEE. The Wroc∏aw-based firm, which funds its own research and development program and employs a small team of dedicated engineers, outsources its products to Polish manufacturing companies.

APANET Green System is involved in designing and selling power consumption reduction systems for various applications.

“Smart street lighting projects are quite new throughout Europe,” said Andrzej Lis, a member of the board at APANET Green System. “Our products can save up to 60 percent

of these projects ranges from a few million to a few billion z∏oty.

The NFEP&WM is responsible for administering most of these schemes, and also coordinates the imple-

mentation of projects cofinanced by the Norwegian Financial Mechanisms and the EEA Financial Mechanism.

Proof that all this investment has produced results is the reduction of both greenhouse gas emissions and the amount of untreated sewage discharged into water or on to the land. The fund estimates that in the past two decades, they have been reduced, respectively, by 63 and 90 percent.

Entrepreneurs Another positive effect of investing in environment protection is that it has fostered innovation among Polish entrepreneurs. According to the Environment Ministry, Poland is now home to 510 green technology companies, employing approximately 25,000 staff. They work at wind farms, biomass plants, solar collectors, and on energy efficiency solutions, geothermal energy development, and a raft of water and gas treatment technologies.

In order to support the most innovative companies, the Environment Ministry has launched GreenEvo – the Green Technology Accelerator. The program aims to foster innovation in the sector and to help Polish green technologies win greater shares of foreign markets.

The program is now launching its third annual competition.

Each year GreenEvo selects approximately 20 companies involved in the development of green technologies, which it then helps to find sources of financing and navigate through Polish legislation, rules and regulations, including procedures leading to patent protection.

GreenEvo winners also benefit from support for all steps

APRIL 16-22, 2012

linked to expansion abroad.

This includes marketing assistance to effectively promote the fact that Polish green technologies are often unique, and when not, the fact that they are often cheaper than their foreign counterparts. Support is also given for identifying potential markets and gathering information about specific legislation and standards applicable in target countries, as well as in finding partners.

“Green innovation, in its widest sense, is definitely one of the priorities of the Ministry and we’ve convinced our colleagues from the government to concentrate our efforts [in this respect],” Beata Jaczewska, undersecretary of state for the Environment Ministry told WBJ. Among the ministry’s priority sectors for green technologies are those that address low-emission, clean coal, waste management support, renewable energy, water and waste water, energy saving technologies and software solutions capable of supporting such technologies.

The 2011 competition featured a range of innovative technologies developed by entrepreneurs from across Poland. These technologies are used in Poland, across the EU, and as far afield as Africa and Southeast Asia. WBJ took a closer look a three of them: solar panel and collector producers Sunex, biomass firm Asket, and street lighting innovators APANET Green System (see boxes). Many others, such as Poland’s only heat recovery specialists Energoinstal, or Ecotech Polska, which specializes in the neutralization and recovery of hazardous waste and which began trading on the Warsaw Stock Exchange last November, also show that

Poland is capable of leading the way when it comes to green tech.

What options for Poland?

Taking a step further, which sustainable technologies can be viewed as viable green options for Poland’s energy needs? One that seems to be gathering some momentum is wind. A 2011 report by Ernst & Young ranked Poland 10th in the world with regards to its wind energy potential.

According to the PSE Operator, Polish wind farms produced 2,800 gigawatts of electricity in 2011. That figure is still very modest compared to the country’s total energy production, which amounted to 157,414 GW in 2010. But the European Wind Energy Association predicts that Poland will increase its total wind power capacity 26-fold by 2020.

“We see Poland as one of the leaders in promoting renewable energies in the Central and Eastern European region,” said Grzegorz Zieliƒski, senior banker with the Power and Energy Utilities team at the European Bank for Reconstruction and Development in Warsaw. So far the EBRD has financed wind farm energy projects totaling over 400 MW in Poland through long-term debt financing.

Spanish Acciona and EDP Renováveis, Polish firms DOMREL and KSM Energia and German groups Nordex SE and RWE Innogy are some of the companies currently operating wind energy farms in Poland. There are signs that more investment could be on its way, including capital for building the country’s first offshore wind farms.

Andrzej Kraszewski, for-

Sunex: solar solutions NewConnect-listed Sunex, another GreenEvo 2011 nominee, is a leading European manufacturer of solarenergy based heating solutions. Based in Racibórz, Silesia voivodship, Sunex produces a wide range of solar-powered heating and cooling systems.

Other key products include heating tanks, pumps, fittings and heating regulators, as well as solar collectors.

Firmly geared towards foreign markets, the firm exports 60 percent of its products. Sunex president Romuald Kalyciok said that Germany is the company’s prime export market, with other destinations including Austria, France, Spain, Portugal, the Netherlands and Slovakia.

Due to its rapid expansion in foreign markets, the company has in recent years

SHUTTERSTOCK

10

enjoyed a 50 percent increase in annual sales. The firm funds its own research and development.

“Green technologies in Poland have gained popularity in recent years, and municipal offices are contributing great incentives for environmental protection,” said Mr Kalyciok. ●

COVER STORY

APRIL 16-22, 2012

mer environment minister and now senior lecturer at Warsaw University of Technology’s faculty of environmental engineering, says that some “very serious investors” are interested in offshore and inland wind farms in Poland. One illustration of this is high demand among foreign investors for renewable energy licenses in Poland. Mr Kraszewski says he expects many will then sell the rights on to financial markets or to foreign investors.

Polish firms are also getting into action, with PGE and PKN Orlen having both applied to the Ministry of Transport to develop 3.4 GW and 2 GW of offshore wind power, respectively.

But Poland is not about to turn its back on coal, and according to Mr Kraszewski, achieving energy efficiency and advances in clean coal technologies should be the Polish renewable sector’s number one priority.

“We have to experiment in technologies which are capable of converting CO2,” he said. According to him, technological know-how related to clean coal technology represents the sector’s largest knowledge gap.

Although Mr Kraszewski said “lots of promising experiments are underway” in solar energy, he identified wind farms, both inland and offshore, as the second-most promising green energy sector for Poland.

Both Mr Kraszewski and his colleague Krzysztof Wojdyga, also from the Warsaw University of Technology’s fac-

ulty of environmental engineering, said investments in biomass schemes should also be part of Poland’s strategy.

“The commitments taken by Poland to achieve at least a 15 percent reduction of CO2 emissions [on 1990 levels by 2020] cannot be achieved without the use of biomass,” said Mr Wojdyga.

Green future When it comes to growing the share of renewables in Poland’s energy mix, a lot still needs to be done, and work is expected to progress at a gradual pace. Poland needs to “compromise between the need for economic growth and environmental protection,” said Environment Ministry Undersecretary of State Beata Jaczewska.

“We have never questioned the [EU climate change legislation’s] political goals or the need for CO2 reduction,” she added. However, Poland has different macroeconomic circumstances than other EU member states, and needs to apply a better-tailored approach to CO2 reductions than that which the current universal EU legislation proposes, Ms Jaczewska said.

But some believe that more can be done. Rafa∏ Serafin, president of the Environmental Partnership Foundation (FPDS), a Krakówbased NGO that promotes sustainable development, said he recognized that green technologies are part of the government’s agenda but added that there has been lit-

tle progress in engaging the wider public on the issue of climate change. “Environment is not seen as a major political issue in Poland. If not for the external pressure of EU funding, we would not be having this discussion at all,” he told WBJ. According to Mr Serafin, the push for environmental solutions in Poland will come from local communities.

“There is a growing interest in environmental issues at the local level as it is a solution to economic or social problems,” he said.

Others believe that Poland will have no choice but to turn increasingly to green solutions, since the cost of traditional energy sources will continue to rise. “Adding up the costs related to worn-out infrastructure in power plants, the growing price of coal and forthcoming payments for emissions, it probably means that 1 MW hour produced by classical energies will lose competitiveness with the modern energy producing sector,” said former Environment Minister Andrzej Kraszewski.

According to him, by 2020 the cost of 1 MW hour produced by the green energy sector and the classical energy sector will be the same.

A combination of EU pressure, increased private investment in the sector and a growing realization among companies that going green can save production costs, looks likely to stimulate the growth of Polish green technologies during the course of this decade. ●

Asket: biomass innovation Undeterred, Serwis AKPiA’s engineers spent two years developing the first straw briquetting press machine, BIOMASSER®. Ms Pokrzywa said that the initial interest was so large, that it decided to establish Asket as a separate firm.

The company now exports BIOMASSER® throughout the EU, as well as Australia and most recently, Tanzania. The company’s success abroad translated into a sevendigit turnover in 2011, said Ms Pokrzywa.

“But Poland is not exactly ready for accepting these (green) solutions because there is no infrastructure in villages, towns and cities,” she added.

The company offers machines with production capacity ranging from 50kg to 280kg per hour as well as larger production lines, with a maximum capacity of 1,120kg per hour. Asket’s prize product, BIOMASSER® MOBILE, is a transportable machine for straw and hay briquetting which can be bought as an entire unit.

The company has so far exported units to Sweden and Latvia. ● COURTESY OF ASKET

Since 2005, Poznaƒ-based Asket has been focusing on the production of briquettes made from straw, hay and wooden chips, which can be used as an alternative to solid fuels like wood and coal. Contrary to many other technologies available for biomass production, Asket’s BIOMASSER®, a straw briquetting press machine, does not require pre-drying of straw and does not use any additives or glues.

The result is 100 percent ecological briquettes, produced on a simple, transportable and low-energy consumption machine. The firm has won many prizes for its simple, yet innovative technology in the last few years, including in the 2011 GreenEvo competition.

After initial research, Asket’s mother company, Serwis AKPiA, found that no briquetting machines for straw existed on the market. “There were no machines available for straw usage, only machines for saw dust.

When we talked about straw, others laughed and told us to forget about it, that it was a waste of time,” said Barbara Pokrzywa, the company’s business development director.

www.wbj.pl

11

12

OPINION & ANALYSIS

www.wbj.pl

APRIL 16-22, 2012

Does Kaczyƒski really believe his brother was murdered?

In

an April interview with Onet.pl, Law and Justice (PiS) party leader Jaros∏aw Kaczyƒski said he now “has a feeling that [my twin brother] Lech Kaczyƒski was murdered.”

This came just before the second anniversary of the April 10, 2010 plane crash in Smolensk which claimed the life of then-President Lech Kaczyƒski and 95 others, including many of the top military commanders of the Polish armed forces.

Although Mr Kaczyƒski later added that he “could not be certain” that it had been an assassination, his message was clear.

Mr Kaczyƒski has now wholeheartedly joined the conspiracy theorists who believe the late president was murdered on the orders of the Kremlin. Indeed, 18 percent of Poles agree that Lech Kaczyƒski was assassinated, while 32 percent say that both the Polish and Russian governments are “hiding the truth” about the Smolensk catastrophe, indicates an April poll carried out by Gazeta Wyborcza.

What’s the need?

This poll seems to indicate that

all, because of those 32 percent of Poles who think the Polish and Russian governments are hiding the truth.

The Smolensk catastrophe is an emotional chain that holds many conservative voters in Poland together and he who is able to dominate the Smolensk narrative gets the ear of those Poles. When asked about the most important events in post-communist Poland in an opinion poll, PiS supporters placed the Smolensk catastrophe in second place, after the death of John Paul II and ahead of Poland’s accession to the EU.

Jaros∏aw Kaczyƒski and his party have been at least partially successful in propagating the view that the Polish government, led by Mr Kaczyƒski’s main political rival, Prime Minister Donald Tusk, directly or indirectly helped cause the death of the late president.

But in my opinion, the PiS leader does not truly believe that his brother was assassinated. Not because the current leadership of the Kremlin is incapable of ordering an assassination, since there seems to be ample evidence to the contrary, but because even the most far-seeing political analyst would be hard-put to find any tangible benefits for the Russian government from taking out the late Polish president.

Lech Kaczyƒski was not in any way a threat to the Kremlin or its policies and was far too minor a geo-political player to warrant assassination in such spectacular fashion. Besides, Russian security services know subtler methods of handling such matters.

Jaros∏aw Kaczyƒski is no fool. He must be well aware of all of this, so why is he suggesting something he likely doesn’t believe? Well, first of

Politics, but not only ...

Mr Kaczyƒski is also battling to keep his supremacy on Poland’s right. He has now lost six elections in a row and thus some are questioning his ability to lead Poland’s conservatives to victory. His former number two, Zbigniew Ziobro, recently announced the inauguration of his own political party, Solidarna Polska Zbigniewa Ziobro. Mr Kaczyƒski wants to make sure all the available emotional and political “benefits” deriving from the Smolensk catastrophe accrue to him and to him only.

He made that quite clear when he addressed his supporters in front of the Presidential Palace on April 10, saying that strength is in unity and “those who are dividing us are not working for victory, they are serving the other side.”

Having said all that, one should definitely not discard the real emotions which Mr Kaczyƒski must feel about the catastrophe. It is said that the bond between twins is like no other and Jaros∏aw Kaczyƒski was always very protective of his brother, who was widely perceived to be the weakerminded of the two.

I think Jaros∏aw Kaczyƒski does believe that Mr Tusk is indirectly responsible for his twin brother’s death by having done everything to belittle Lech Kaczyƒski’s presidency when he was alive and, as a consequence, not providing the April 10 delegation to Smolensk with the secure transport befitting a head of state.

The state of relations between the PM and then-President Kaczyƒski is best illustrated by an incident in 2008 when, after a quarrel over who should represent Poland at an EU summit in Brussels, Mr Tusk’s office refused to

allow the president to use an official plane, forcing him to charter an aircraft. Today, with his brother dead, Jaros∏aw Kaczyƒski is unlikely to forgive Mr Tusk for what he feels was a deliberate effort to rubbish his brother

“The Smolensk catastrophe is an emotional chain that holds many conservative voters in Poland together” and the post he held.

All this means more negative emotions in Polish politics and an even lower chance of Poland’s two major parties, Donald Tusk’s Civic Platform and Mr Kaczyƒski’s PiS, being able to work together on any kind of political initiative. ● Remi Adekoya is Warsaw Business Journal’s politics editor. Read his blog, “The business of politics” on WBJ.pl

Europe’s short vacation

S

ince last November, the European Central Bank, under its new president, Mario Draghi, has reduced its policy rates and undertaken two injections of more than €1 trillion of liquidity into the euro-zone banking system. This led to a temporary reduction in the financial

commitment to austerity and structural reform. And the decision to combine the euro zone’s new bailout fund (the European Stability Mechanism) with the old one (the European Financial Stability Facility) significantly increased the size of the euro zone’s firewall.

A brief honeymoon

“The trouble is that the euro zone has an austerity strategy but no growth strategy” strains confronting the debt endangered countries on the euro zone’s periphery (Greece, Spain, Portugal, Italy, and Ireland), sharply lowered the risk of a liquidity run in the eurozone banking system, and cut financing costs for Italy and Spain from their unsustainable levels of last fall.

At the same time, a technical default by Greece was avoided, and the country implemented a successful – if coercive – restructuring of its public debt. A new fiscal compact – and new governments in Greece, Italy, and Spain – spurred hope of credible

But the ensuing honeymoon with the markets turned out to be brief. Interest-rate spreads for Italy and Spain are widening again, while borrowing costs for Portugal and Greece remained high all along. And, inevitably, the recession on the euro zone’s periphery is deepening and moving to the core, namely France and Germany. Indeed, the recession will worsen throughout this year, for many reasons.

First, front-loaded fiscal austerity – however necessary – is accelerating the contraction, as higher taxes and lower government spending and transfer payments reduce disposable income and aggregate demand.

Moreover, as the recession deepens, resulting in even wider fiscal deficits, another round of austerity will be needed. And now, thanks to the fiscal

compact, even the euro zone’s core will be forced into front-loaded recessionary austerity.

Meanwhile, the credit crunch in the euro-zone periphery is intensifying: thanks to the ECB long-term cheap loans, banks there don’t have a liquidity problem now, but they do have a massive capital shortage.

Faced with the difficulty of meeting their 9 percent capital-ratio requirement, they will achieve the target by selling assets and contracting credit – not exactly an ideal scenario for economic recovery.

To make matters worse, the euro zone depends on oil imports even more than the United States does, and oil prices are rising, even as the political and policy environment is deteriorating. France may elect a president who opposes the fiscal compact and whose policies may scare the bond markets. Elections in Greece – where the recession is turning into a depression – may give 40-50 percent of the popular vote to parties that favor immediate default and exit from the euro zone. Irish voters may reject the fiscal compact in a referendum. And there are signs of austerity and reform fatigue both in Spain and

Italy, where demonstrations, strikes, and popular resentment against painful austerity are mounting.

Even structural reforms that will eventually increase productivity growth can be recessionary in the short run. Increasing labor-market flexibility by reducing the costs of shedding workers will lead – in the short run – to more layoffs in the public and private sector, exacerbating the fall in incomes and demand.

Finally, after a good start, the ECB has now placed on hold the additional monetary stimulus that the euro zone needs. Indeed, ECB officials are starting to worry aloud about the rise in inflation due to the oil shock.

No growth strategy The trouble is that the euro zone has an austerity strategy but no growth strategy. And, without that, all it has is a recession strategy that makes austerity and reform self-defeating, because, if output continues to contract, deficit and debt ratios will continue to rise to unsustainable levels.

Moreover, the social and political backlash eventually will become overwhelming.

That is why interest-rate spreads

Remi Adekoya

Nouriel Roubini in the euro-zone periphery are widening again now. The peripheral countries suffer from severe stock and flow imbalances. The stock imbalances include large and rising public and private debt as a share of GDP. The flow imbalances include a deepening recession, massive loss of external competitiveness, and the large external deficits that markets are now unwilling to finance.

Without a much easier monetary policy and a less front-loaded mode of fiscal austerity, the euro will not weaken, external competitiveness will not be restored, and the recession will deepen. And, without resumption of growth – not years down the line, but in 2012 – the stock and flow imbalances will become even more unsustainable. More euro-zone countries will be forced to restructure their debts, and eventually some will decide to exit the monetary union. ● Nouriel Roubini is a professor at NYU’s Stern School of Business and Chairman of Roubini Global Economics.

Copyright: Project Syndicate, 2012. 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.

PUBLISHER VALKEA MEDIA SA CO-MANAGING EDITOR

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REAL ESTATE EDITOR

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APRIL 16-22, 2012

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13

Expert commentary

Global property markets experiencing upswing Lokale Immobilia talks to Colin Dyer, Chief Executive Officer of real estate advisory Jones Lang LaSalle, about the global property market and the prospects for the CEE region Izabela Depczyk: What is the current general condition of real estate markets across the world in the face of the ongoing economic uncertainty?

Colin Dyer: Since 2010, real estate markets have largely been in a continued cautious upswing. From 2010 onwards we started to see a gradual improvement in demand for real estate space and we saw a gradual improvement in the levels of transaction activities in the real estate sales markets around the world. The only pause in the process of gradual, cyclical upswing was of course during the second half of 2011, because of the worldwide uncertainty caused by the euro crisis.

Whilst the euro crisis is still not resolved, my general global comment would be that markets are now assuming that the crisis is contained. We are seeing the companies who use commercial real estate beginning to take decisions and increase their activity in taking space. We are seeing more transactions worldwide in the investment sales market. That’s the general global picture.

Are the markets now more or less aligned as far as their condition and growth are concerned, or do you perhaps see growing differences between particular continents or regions?

Markets vary from region to region. In Asia, the economies are still growing steadily.

People are concerned that China’s growth has fallen to 8 percent, and frankly speaking, that’s not a disaster. I mean, we would be very happy with 8 percent growth in Europe and in the US. But nevertheless people feel a little cautious and are still keeping a close eye on what’s happening in Europe because the banking systems worldwide are obviously linked up, and if there are issues in Europe, it affects the Asian capital markets as well.

The US is the other biggest real estate market in the world. I think one would be surprised at how strongly the US is growing. Last year we saw unemployment rates falling, confidence rising, and the US economy has gained more momentum than people around the world understand.

Europe is, again, a very different picture across the economies. If you take it in the real estate sense Spain and Italy are extremely low confidence and low activity.

The economies are not growing, there has probably even been negative growth this quarter. As you move north through Europe things get better. France and Germany have a normal level of activity. Confidence is beginning to recover a little bit. In Russia, in general, we are seeing strong activity. Russia has experienced growth in demand for space and investment sales. It is very healthy at the moment. In Eastern Europe the situation differs from country to country.

While Poland is healthy and strong and activity levels are good, we see less demand and less activity in the other countries of Eastern Europe.

type which fared quite well, especially over the last two years. I know the situation is a bit different in Hungary and Romania and increasingly it is also that the quality of the retail is important. So centers which are poorly sited or poorly managed, have not gained or maintained their value, whereas good centers which are well managed have in general done very well.

What are the prospects for Central and Eastern Europe in the next few years? Do you agree with the common perception of the region as being a safe haven for international investors?

Prospects for CEE are looking very good.

We think of the world in terms of maturity of markets and those are obviously in Western Europe and the US. Markets offering the most growth are in China and India. They grow between 7 and 10 percent per year.

Eastern Europe as a whole will remain very attractive in the next five years.

Poland is in a strong shape, the Czech Republic’s economy is also in good shape.

Although some of the other countries in the region like Hungary and Romania have some challenges, I think that they will work through them, because as part of the European Union the Eastern European countries still have some way to go, to bring their economies and GDP per capita, from $15,000-18,000 per capita, up to the mid twenty thousands of dollars per capita.

These are also countries in which large corporations want to invest.

If we look at this region as a company over the next five years, we see very good prospects and we are very confident in continuing to build businesses in the region and to invest in companies in the region.

As to whether it is a safe haven for international investors, I would not say as much.

You have to remember investors are still recovering their confidence from 2009 and so they are still very cautious. At the moment, in Eastern Europe, only Poland and the Czech Republic, particularly Poland, have got clear, positive perceptions in the eyes of international investors. Poland is coming up to the level of a credible and strong Eastern European economy, and investors are seeing it increasingly in that light. Investors do and will continue to view the other countries of Eastern Europe with caution.

Could other emerging markets, for example in Asia, be major competitors for CEE? One should be cautious when saying that CEE competes with Asian emerging countries because investors are seeing these regions very differently and as offering very different prospects. If you take one example, Indonesia, an investor going there is looking at a population of almost 240 million people, with a large domestic economy, coming from a very low GDP per capita base of much less than $5,000. Compare this to Poland or the Czech Republic where GDP per capita is north of $15,000. The investor going into Indonesia is looking for really rapid long-term growth of the Indonesian economy, with a comparatively high level of risk. Whereas in slightly more established Eastern European countries, there is a lower level of risk, but also a potentially slower rate of growth.

Where you do see linkage in the international markets is in the major cities around the world. So take for example San Francisco, New York, London, Paris, Tokyo, Sydney, Singapore and Hong Kong; that is a global market and you often see truly sophisticated, international investors viewing their allocations of capital between those cities. And they are always forming a kind of global market on their own.

Which sectors and which assets, globally, now look most promising and which seem to be most threatened by the crisis?

There are very different pictures around the world. For example, multifamily housing in the US and apartment buildings in China have been very robust and resilient. Shopping centers have been very strong in many countries including Eastern European countries, like Poland. Beyond that, asset type varies hugely by geography. In Eastern Europe, like in Poland, the retail asset class still has a lot of potential especially in the smaller cities because they are under-supplied. However, the number of these cities, which are actually under-supplied, diminishes in time. But I would say retail is the asset

BROUGHT TO YOU BY JONES LANG LASALLE

What is the future of real estate financing? Will bank financing come back or will investors and developers have to increasingly look for alternative sources of financing?

Again, this differs across the world. In Asia, banks are in very good shape in general. They have not suffered much from the consequences of the great financial crisis. US bank lending is coming back quite healthily. Banks are beginning to lend to commercial real estate players. They are cautious and the covenants are conservative but nevertheless there is money available. The securitised markets are beginning to cautiously recover as well. There have probably been about $50 billion of CMBS (Commercial Mortgage Backed Securities) issued so far this year. In Europe, generally, banks are limiting their exposure to risk, they are very careful giving loans to the real estate sector. In that context financing is hard to come by. Europe is the area with the biggest financing challenges and it’s being met by private equity debt funds, insurance companies and some banking loans.

How has the global economic crisis and its effects on the property markets affected global real estate consultancies like Jones Lang LaSalle?

There has been a very strong bifurcation of performance and results. At the bottom end of the performance range, Grubb & Ellis and DTZ, which went bankrupt, and then at the other end there are some succesfull global companies, such as Jones Lang LaSalle, where we grew our revenues by around 20 percent for full-year 2011. So for us the market challenges over the last two years have actually been very good, and we managed to grow our business. We had the confidence in the last 18 months to open businesses in South Africa, to buy a company in Switzerland, we have also opened new offices across China, Sri Lanka and India, among others. We are investing for growth.

Are there any new emerging areas of the real estate business on which property consultancies will be increasingly focused this year?

I wouldn’t say new or emerging. The real estate sector is one that’s growing. The commercial real estate sector is growing worldwide. Why? Because in every country, even the mature ones, urbanization is continually increasing. It is very slow obviously in Western Europe, it is very rapid in China and India, but overall, across the globe, there is a continuing increase in urbanization, which means that all of the classic sectors are growing. Industrial real estate, residential, multi-family, retail and office are all growth sectors on a worldwide basis. And from our perspective, there are no new sectors or classes emerging; it’s simply the continued growth in each of those sectors on a worldwide basis. ●

The Gemini Park Bielsko-Bia∏a mall will be extended by 16,000 sqm by Q3 2013

A new Warsaw bridge should spur residential development in the city's Bia∏o∏´ka district

15

17

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

GTC leases space in Katowice, Kraków Warsaw Stock Exchangelisted developer Globe Trade Centre has signed lease agreements for a total of almost 11,000 sqm of office space at its Francuska Office Centre and GTC Office Centre projects in Katowice and Kraków, respectively. The new tenants are Trac Tec (1,200 sqm), American Heart of Poland (1,000 sqm), KPMG (800 sqm) and Arpid (340 sqm) in Katowice and Intellinet (1,500 sqm) in Kraków.

IBM, Deloitte and Hitachi have extended their leases in GTC Office Centre. ●

In this issue Warsaw’s Skra site . . . . . . . . . .14 Business Garden Warszawa … 14 Gemini Park extension . . . . . . .15 CE investment volumes . . . . . .15 Kwadrat Retail Park . . . . . . . . .16 E. Leclerc in Galeria Amber . . .16 Białołęka district prospects . .17 Property-related stocks . . . . . .17

New developer for Skra sports stadium site in Warsaw Reinhold Polska has signed a deal with Global Partners Investment Fund to take over the day-today running of the project Developer Reinhold Polska is now working on the redevelopment of the RKS Skra sports club plot located at the intersection of ul. ˚wirki i Wigury and ul. Wawelska, in Warsaw’s Ochota district.

The plot of land was previously acquired by developer Global Partners Investment Fund in 2006, when the company bought the perpetual usufruct rights to the site.

However, Global Partners Investment Fund’s plans to build Park Âwiat∏a (Park of Light), a mixed-use high-rise complex on the site, encountered opposition from Warsaw

Global Partners’ Park Âwiat∏a development met opposition from Warsaw City Hall “We signed an agreement with Global Partners Investment Fund to initially take over the day-to-day managing of the project, and to come up with a viable business plan for the 20hectare site which is both com-

City Hall. The development never got off the ground because the zoning plan for the area around Pole Mokotowskie park, where Skra is situated, envisions structures not larger than 12 meters tall.

mercially viable as well as providing a future for the Skra sports club,” Padraic Coll, managing director at Reinhold Polska, told Lokale Immobilia.

Now the plan is for the site to host a mix of sports-related

facilities and commercial activity, with the dominant feature being sports related, Mr Coll said.

“We are currently examining different possibilities and combinations of ideas in order to ensure the long-term viability of the area,” Mr Coll added.

Although there is currently no date set for the commencement of construction on the project, Mr Coll said that Reinhold Polska hopes to present its plans to Warsaw City Hall within the coming months.

“The concept for the whole area will first be presented to the City Hall for their opinions together with a development program. We hope to do this in the next few months,” he said.

Reinhold, which entered the Polish market in 2005, has offices in Warsaw, Katowice, Kraków and Wroc∏aw.

Izabela Depczyk, David Ingham

Office

Business Garden Warszawa first phase topped out The first two buildings in the complex are scheduled to be delivered in Q3 Developer SwedeCenter last week held a topping out ceremony at the construction site of the first phase of its Business Garden Warszawa office complex in Warsaw. The two buildings, which will deliver a total of approximately 32,000 sqm of leasable space, will be ready in Q3 this year.

The whole Business Garden Warszawa development will comprise seven buildings with a total area of some 90,000 sqm. The first structures will provide 14,600 sqm and 17,500 sqm, with the former building also housing con-

ference and hotel space.

The investment is to be characterized by sustainable building solutions. SwedeCenter is planning to obtain LEED certification of energy efficiency and environmental performance for most structures in the complex.

“Business Garden in Warsaw is a project of which we are particularly proud. It reflects our long-term and innovative approach to the investments which are built by us,” said Roger Andersson, country manager at SwedeCenter.

Hochtief Polska is the general contractor of the first phase of Business Garden Warszawa, construction on which has been underway since February last year. The

COURTESY OF ADVANCED PUBLIC RELATIONS

Jeronimo Martins Dystrybucja has moved its offices to a newly delivered building in Warsaw’s Mokotów district. The company’s new headquarters is located on the capital’s ul. Dolna and also accommodates a 470sqm Biedronka store.

Construction on the building, which comprises over 16,000 sqm of space, lasted two years. The facility houses approximately 5,000 sqm of office area which will also accommodate the group’s subsidiaries Hebe and Bliska.

APRIL 16-22, 2012, LI 17/15

Revitalization

COURTESY OF GLOBAL PARTNERS INVESTMENT FUND

JM Dystrybucja moves to new Warsaw HQ

•

The whole Business Garden Warszawa scheme will comprise some 90,000 sqm complex was designed by the JSK Architekci studio.

SwedeCenter has been present in the Polish commercial

property market since the early 1990s. The company is currently involved in projects including Business Garden Poznaƒ, Busi-

ness Garden Wroc∏aw, Brama Portowa in Szczecin and Waterfront in Gdynia.

Adam Zdrodowski

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

APRIL 16-22, 2012

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

Shopping centers

Investment market

Gemini Park Bielsko-Bia∏a extension to launch in mid-2012

Central European investment volumes disappointing in Q1

The mall will get another 16,000 sqm by the third quarter of next year Real estate investor and developer Gemini Holdings is planning to launch work to extend its Gemini Park Bielsko-Bia∏a shopping center in southern Poland in mid-2012. The mall’s leasable space is due to be increased to 43,500 sqm by the third quarter of next year.

The facility opened for business in May 2009 and currently comprises 90 stores, restaurants and points of service.

Major tenants include a Real hypermarket, a Cinema City

multi-screen movie theater and stores of clothing and footwear brands.

Gemini Holdings has been active in the Polish market since 1993 and was previously involved in the development of projects for retail chains including Géant, Carrefour, Tesco and Lidl throughout Poland.

Apart from the BielskoBia∏a project, the company’s own schemes include Gemini Park Tarnów, which was completed in 2010 and comprises 42,500 sqm of space. Cushman & Wakefield has recently been appointed a co-agent for the commercialization of both developments.

“Cushman & Wakefield leases premises in both shopping centers in cooperation with GREM Gemini Real Estate Management and BOIG Consulting,” Magdalena Gniazdowska, an associate at the retail department of Cushman & Wakefield, said in a statement.

“It will also participate in the commercialization of the new part of the shopping center in Bielsko-Bia∏a. We aim to solicit new tenants offering household appliances and electronics, multimedia and designer clothing,” Ms Gniazdowska said.

Investment in the region is expected to bounce back strongly in upcoming months Investment activity in the core Central European markets of Poland, the Czech Republic, Slovakia, Hungary and Romania amounted to just €847 million in the first quarter of 2012, compared to €1.3 billion invested in the region in the same period of last year, according to a recent report by Cushman & Wakefield.

Adam Zdrodowski

Poland continued to lead the region in the first quarter of this year, with €728 million having been invested in the country in that period, a slight increase on the last quarter of 2011, the study said.

Activity in the Czech Republic, Slovakia and Hungary was negligible while in Romania the investment volume reached €99 million, the highest level since Q1 last year. However, even in the latter market, activity remained limited, with only 12 transac-

Dropping off

COURTESY OF FIRST PUBLIC RELATIONS

Annual CE investment volumes (in € millions)

The extended mall will feature 43,500 sqm of GLA

Country

2010

2011

2012 (estimate)

Poland

1,957.33

2,588.34

2,250.00

The Czech Republic

479.5

2,234.04

1,500.00

Hungary

240.67

728.49

400.00

Romania

241.58

327.51

350.00

Slovakia

53.00

349.03

100.00

Source: Cushman & Wakefield

15

tions recorded in Q1 2012.

“In isolation the Q1 figures appear disappointing but given the level of activity ‘on the ground’ we anticipate a strong bounce back in CE volumes for Q2,” Charles Taylor, partner at Cushman & Wakefield, said in a statement.

He admitted that raising finance remains a challenge but said that equity buyers or those with access to debt are taking the opportunity to buy quality assets.

“With an interesting pipeline of investment product now coming to the market, we anticipate a much more active second half of the year, particularly in Poland and the Czech Republic,” Mr Taylor said.

Cushman & Wakefield predicts 2012 investment volumes will reach €4.75 billion, compared to €6.1 billion last year, which will reflect financing difficulties and a more restrictive supply of investment products in markets such as Hungary, the company said in the report.

Adam Zdrodowski

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

Murapol bonds on Catalyst Residential developer Murapol floated 25,000 bonds on the Warsaw Stock Exchange’s Catalyst bond market on April 12.

Thanks to the issue, the company raised z∏.25 million that will help it finance the purchase of a plot of land in Wroc∏aw and carry out developer projects in Wroc∏aw and Poznaƒ. “This is not the first issue of Murapol bonds on Catalyst, but the largest one so far,” Micha∏ Sapota, vice president of Murapol’s management board, said in a statement.

Gant launches new Wroc∏aw project Developer Gant Development has launched construction on the first phase of its Nord House multifamily residential project in Wroc∏aw, Lower Silesia voivodship. The scheme is located on ul.

Kamieƒskiego in the city’s northern Kar∏owice neighborhood and will deliver a total of 570 apartments. ●

APRIL 16-22, 2012

Shopping centers

E. Leclerc hypermarket in Galeria Amber The mall will be located in downtown Kalisz Warsaw Stock Exchange-listed developer Echo Investment has secured an E. Leclerc hypermarket for its under-construction Galeria Amber shopping center project in Kalisz, Wielkopolskie voivodship. The tenant will take up 5,500 sqm of space at the 33,500-sqm mall.

“The E. Leclerc hypermarket is a perfect complement of the varied offer of Galeria Amber. Stores of this kind work very well in large regional shopping malls,” Marcin Materny, director of Echo Investment’s shopping center department – foreign projects, said in a statement.

The Galeria Amber scheme will be located at the

intersection of ul. GórnoÊlàska and ul. Trasa Bursztynowa in downtown Kalisz, in the vicinity of the city’s main bus and railway stations. The project will accommodate 140 stores and points of service.

“Shopping centers based on a similar functional and transport scheme – Z∏ote Tarasy in Warsaw, Galeria Krakowska [in Kraków] and Galeria Ba∏tycka in Gdaƒsk – are just a few examples confirming the efficiency of such solutions,” Mr Materny said.

A preliminary architectural concept of Galeria Amber was furnished by the Bose International Planning and Architecture studio. Eiffage Budownictwo Mitex is the general contractor of the investment, which is scheduled to be completed in Adam Zdrodowski Q2 2013.

COURTESY OF ECHO INVESTMENT

16

Galeria Amber will deliver 33,500 sqm of space in Q2 2013

Kwadrat in Bia∏ystok secures two key tenants Biazet, the investor behind the planned Kwadrat Retail Park retail project in Bia∏ystok, Podlaskie voivodship, has secured a Tesco Extra hypermarket and an OBI DIY store for the development. The tenants will occupy 14,700 sqm and 11,200 sqm of space at the facility,

respectively.

Scheduled to open in the second quarter of 2014, Kwadrat Retail Park will offer 52,000 sqm of leasable retail space and 6,000 sqm of office area. The project will comprise parking space for 1,500 cars.

The investment will be the

Expert’s opinion

A greener future for Poland’s property market?

Sustainable building is an increasingly important concern for Poland’s property market. Devin Saylor, head of Colliers’ green certification services for the CEE region, tries to dispel some of the myths associated with green building.

1. Green buildings are more expensive to construct This is the most common misconception and the greatest barrier to green building in Eastern Europe. Moreover, it is simply not true. Proper planning and well executed strategies can go a long way towards making buildings “green.”

Early green projects did cost more due to inexperience with certification systems, research required for new products and limited supply of products and materials. Unfortunately, that perception remains today.

Many features found in sustainable buildings are also important for Class A buildings.

So, it depends on how costs are categorized. According to a recent survey by Colliers International, tenants and builders both perceive the premium for green buildings to be between 10 and 20 percent. In fact, we are finding additional costs, if any, to be less than 2 percent in Eastern Europe.

2. Green Building is just a trend Utilizing technologies and strategies that

have been proven to lower energy and operating costs, create superior and healthier indoor quality, achieve higher rents, command higher sales prices and minimize the impact on the environment should be considered good business practices, not embracing a trend.

According to a study by Pike Research, green building certification programs are expected to increase by 780 percent and certify a cumulative 50 million net square meters of floorspace by 2020. Another study conducted by RICS shows that rental rates are 6 percent higher and selling prices about 16 percent higher for green buildings.

3. Green building certification is just a marketing tool Many developers and building owners are convinced their buildings are “green.” But when evaluated against a ratings system, these buildings often fall short of energy, water and materials use standards that would be required to achieve a certification.

Green building certificates provide measurable indicators of performance easily recognized by the real estate market. If the market continues to favor green certifications, tenants and investors might soon not even consider non-certified green buildings. ●

BROUGHT TO YOU BY COLLIERS INTERNATIONAL POLAND

largest retail park in Podlaskie voivodship, Dariusz Siemieniako, member of the management board of Biazet, said in a statement. The planned development will be built on a plot of land that currently houses Biazet’s production plant.

“After securing OBI, one of

the largest DIY operators in the market, and Tesco Extra, one of the biggest hypermarkets in Poland, we are going to commence the process of securing other tenants for Kwadrat Retail Park,” stated Marcin Gudz from the retail agency of Colliers International Poland.

His company is an exclusive leasing agent for the Kwadrat Retail Park scheme.

The company soon plans to start negotiations with clothing store chains which it wants to launch at Kwadrat, Mr Gudz added.

Adam Zdrodowski

Property-related stocks Security

Closing price on April 12

% change (week)

52-week low

52-week high

% change (year)

Total shares

Market value (z∏. mln)

BUDIMEX

85.40

-0.35

64.00

109.20

99.50

25,530,098

2,180.27

CELTIC

13.65

-9.72

13.82

22.70

20.50

34,068,252

465.03

DOMDEV

35.50

0.00

23.50

50.80

47.00

24,670,397

875.80

ECHO

4.03

-5.84

3.05

5.55

4.87

420,000,000

1,692.60

ELBUDOWA

111.50

0.00

87.00

168.00

159.50

4,747,608

529.36

ENERGOPLD

1.90

0.00

1.81

4.00

4.10

70,972,001

134.85

ERBUD

18.03

6.50

14.65

39.09

40.17

12,644,169

227.97

GANT

7.69

-4.35

5.85

14.17

14.00

20,499,953

157.64

GTC

6.66

6.05

6.10

21.45

21.10

219,372,990

1,461.02

HBPOLSKA

0.85

-2.30

0.70

2.35

2.49

210,558,445

178.97

JWCONSTR

5.80

-1.02

4.36

15.50

14.47

54,073,280

313.63

LCCORP

1.42

0.00

0.85

1.60

1.57

447,558,311

635.53

MARVIPOL

8.48

-2.42

7.22

9.95

9.05

36,923,400

313.11

MIRBUD

1.83

-6.15

1.83

4.30

4.56

75,000,000

137.25

MOSTALWAR

14.75

-2.38

14.65

42.81

44.65

20,000,000

295.00

MOSTALZAB

1.40

-4.76

1.07

2.89

2.74

149,130,538

208.78

ORCOGROUP

14.80

1.23

14.00

38.20

37.99

17,053,866

252.40

PBG

33.70

-3.55

33.40

174.10

184.30

14,295,000

481.74

PLAZACNTR

2.60

-1.14

1.80

5.15

4.20

297,174,515

772.65

POLAQUA

6.00

-2.60

4.53

18.99

17.20

27,500,100

165.00

POLIMEXMS

1.26

0.00

1.19

3.56

3.50

521,154,076

656.65

POLNORD

14.70

0.34

11.03

33.30

31.72

23,798,439

349.84

RANKPROGR

14.80

4.08

8.60

16.97

11.20

37,145,050

549.75

ROBYG

1.51

-1.31

1.04

2.13

2.05

257,390,000

388.66

RONSON

1.02

-2.86

0.77

1.58

1.41

272,360,000

277.81

TRAKCJA

1.07

-0.93

0.65

3.70

3.51

232,105,480

248.35

ULMA

65.80

-2.66

57.00

88.00

82.30

5,255,632

345.82

UNIBEP

5.70

0.18

4.47

7.75

7.85

33,927,184

193.38

WARIMPEX

4.20

3.70

2.95

10.89

10.06

54,000,000

226.80

ZUE

7.51

-4.82

5.07

12.92

13.60

22,000,000

165.22

APRIL 16-22, 2012

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

17

Residential

The Maria Sk∏odowska-Curie Bridge in Warsaw has significantly reduced travel times from the Bia∏o∏´ka district to downtown Warsaw The Warsaw district of Bia∏o∏´ka was for many years characterized by inadequate transport links, a factor which made traveling to the heart of the capital a difficult undertaking for the district’s 90,000 residents.

However, with the opening of the new Maria Sk∏odowskaCurie Bridge (also known as the North Bridge) on March 24 this year, travel times to the capital’s center have been significantly reduced.

Previously, the only route out of Bia∏o∏´ka towards the center was along ul. Modliƒska and then across the Vistula River on either the Grota Roweckiego Bridge or the Gdaƒski Bridge. This meant an average travel time by car during peak hours of about 90 minutes.

But now, the new 795meter-long bridge, which connects Bia∏o∏´ka on the east bank of the Vistula with Bielany on the west, allows

Bia∏o∏´ka residents to cross the river much earlier, providing direct access to the M∏ociny metro station and thus a much quicker journey to the city center.

“The long-awaited commissioning of the North Bridge has radically changed the situation of the inhabitants of Bia∏o∏´ka,” said Jaros∏aw J´drzyƒski, an analyst at real estate portal RynekPierwotny.com.

“The positive effects of the improved road infrastructure have enriched this part of the capital which now has its own new crossing,” Mr J´drzyƒski added.

Price rises?

In terms of the residential property market Bia∏o∏´ka’s primary and secondary housing markets have seen a decline in prices over the past four years, but demand for properties in the area is still high. This is because the average price per sqm is a third lower than prices in downtown Warsaw, making it an attractive proposition, especially for first-time buyers.

“Bia∏o∏´ka is one of the cheapest places in the capital,” said Robert Latuszek, an

analyst from Home Broker.

Prices in the area range from z∏.5,200–z∏.6,990 per sqm in the primary market, because developers are buying land at much cheaper prices than in other areas of Warsaw, Mr Latuszek added.

But despite the benefits created by the Maria Sk∏odowska-Curie Bridge, property prices have yet to be driven up.

A factor which could explain this is the district’s large new supply, said Robert Moszczyƒski, an analyst at RynekPierwotny.com. A significant number of investments are now under construction in the area, which has led to fierce competition in a bid to entice new buyers.

And it is unlikely that prices will change in the near future.

“Prices should remain at current levels, responding only to wider market changes,” said Home Broker’s Mr Latuszek.

Potential for growth However, analysts agree that low prices both for developers and buyers, added to residents’ ability to travel to downtown Warsaw in a relatively short time will spur growth in the future.

“It is obvious that the new

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COURTESY OF WIKIMEDIA COMMONS

New Warsaw bridge to boost Bia∏o∏´ka housing market?

The Maria Sk∏odowska-Curie Bridge during the building stage bridge … gives Bia∏o∏´ka a new, and completely different dimension, which in time, will be appreciated by a growing crowd of people looking for the best location to live,” Mr J´drzyƒski said.

Mr Latusek was more cautious in his assessment but

still said he believes the area has the potential for growth in the future.

“It is difficult to fully predict the increase in new development investments, but the possibilities are large because of the sizable area of land still available. Looking at the east

side of the North Bridge investment opportunities in the area are relatively high and probably we will be able to count on an increase in primary market deals throughout Bia∏o∏´ka in the future,” he said.

David Ingham

18

THE LIST

www.wbj.pl

APRIL 16-22, 2012

Construction & Real Estate

Major Office Space in Poland Ranked by net rentable office space (sqm)

Total number of Number of floors / underground Number of parking spaces underground / floors / Number of Number of outside parking elevators spaces

Amenities

✓ ✓

1998

CA Immo Real Estate Management Poland: Piotr Buchwald, 22 540-6530 CA Immo Real Estate Management Poland: Aleksandra Stronias, 22 5406530

Kohn Pedersen Fox Associates; Biuro Projektów Architektury J&J; Epstein GREP Porr International

-

✓ ✓

2008

Cushman & Wakefield Cushman & Wakefield

WND Ghelamco Ghelamco

✓ ✓

✓ -

✓

2011

WND DTZ: 22 222-3000

Pracownia Architektoniczna Jaspers & Eyera Partners Ghelamco Poland Ghelamco Poland

✓ ✓

✓ WND

WND WND

WND WND

2010

Kancelaria Brochocki: Szymon Chachu∏a; Filip Krasiƒski; Jones Lang LaSalle: Grzegorz Boczek; Piotr Woêny FMP Polska

RKW Rhde Kellerman Wawrowski/UBM UBM Realitaetenentwicklung; CA Immo International WND

✓ ✓

✓ ✓

✓ ✓

✓ ✓

✓ ✓

2008

CA Immo Real Estate Management Poland: Kamila Wierusiƒska, 22 5406540 Cushman & Wakefield

AMC - Andrzej M. Cho∏odzyƒski Hochtief Development Poland Hochtief Development Poland

✓ ✓

✓ ✓

✓

✓ ✓

✓ ✓

✓ ✓

2003

Cushman & Wakefield Cushman & Wakefield

Norman Foster WND WND

686 128

✓ ✓

✓ ✓

✓ ✓

✓ ✓

✓ -

✓ ✓

2009

Immofinanz: Hubert Majda, 665-165158; Ma∏gorzata Karczewska, 607015-305 WND

WND WND WND

11 3 10

405 115

✓ ✓

✓

✓ ✓

✓ ✓

✓ WND

✓ ✓

2000

Cushman & Wakefield Cushman & Wakefield

Kury∏owicz & Associates Mostostal Export Mostostal Export

Nokia Siemens Networks; Getin Noble Bank; Polski Bank Przedsi´biorczoÊci; Wprost; Centrum Projektów Europejskich

13 2 16

532 46

✓ ✓

✓ ✓

✓ ✓

✓ ✓

-

✓ ✓

2009

Colliers International REMS

JSK Dipl. Ing. Architekten Curtis Development/IVG Poland Decoma

2,000

Sygnity; Roche; McKinsey; Grant Thornton; Ikea

6 1 3

200 400

✓ ✓

✓ ✓

✓ ✓

✓ ✓

-

✓ ✓

2010

Echo Investment:41 333-3333 WND

Litoborski & Marciniak Echo Investment WND

23,974 28,813

4,419 420

Google / NSN / Nasza Klasa; UPS; Ghelamco; KPMG

9 2 12

397 -

✓ ✓

✓ ✓

✓ -

✓ ✓

-

✓ ✓

2008

Knight Frank: 71 790-2710 Knight Frank: 71 790-2710

Ghelamco Ghelamco Ghelamco

Park II 13 Trinity ul. Suwak 1/3, 02-672 Warsaw

23,878 26,127

699 1,550

BNP Paribas Bank; Sygma Banque; Olympus; Xerox; Northern Medical

10 3 12

651 43

✓ ✓

✓ ✓

✓ ✓

✓ ✓

✓ ✓

✓ ✓

2007

WND DTZ: 22 222-3000

Konior & Partners, Atelier Architekci Ghelamco Poland Ghelamco Poland

Buma Square 14 ul. Wadowicka 6, 30-415 Kraków

23,660 WND

4,516 288

Sabre Polska; Tesco Polska; LUX MED; Provident Polska; Le Premier

6 WND

761

✓ ✓

✓

✓ -

✓ ✓

-

✓ ✓

2007

Carmel Investments: Piotr Kiliaƒski, 604-227-846 Carmel Investments: Piotr Kiliaƒski, 604-227-846

DDJM Grupa Buma WND

Brama Zachodnia 15 Al. Jerozolimskie 92, 00-807 Warsaw

23,122 23,953

445.0 386.0

Ericsson; GTECH Polska; First Data Polska; Sephora Polska; CFE Polska

16 3 8

474 -

✓ ✓

-

✓

✓ ✓

✓ -

✓ ✓

2000

EHL Real Estate Poland: 22 310-0586 Knight Frank: 22 596-5050

WND WND NCC

¸u˝ycka Office Park 16 - zespó∏ 5 budynków ul. ¸u˝ycka 6, 81-512 Gdynia

22,500 33,000

WND WND

Geoban; Nordea; SSE Sony Pictures; VTS; Allcon

5 1 3

429 271

✓ ✓

✓ ✓

✓

✓ ✓

✓

✓ ✓

2010

¸u˝ycka Investment: Halina Gniadecka, 58 660-1998 ¸u˝ycka Investment: 58 660-1900

Aedas Polska Allcon Investment Allcon Budownictwo

IO-1 17 ul. Pu∏awska 182, 02-670 Warsaw

21,468 21,468

WND WND

Ciech; Pekao Leasing; Arcadis; TVN

16 3 4

246 25

✓ ✓

✓ ✓

✓ ✓

✓ ✓

✓ ✓

✓ ✓

2007

WND WeCare

WND WND WND

Centrum Biurowe Francuska A, B 18 ul. Francuska 34, 40-028 Katowice

21,370 22,200

WND WND

Ruch; KPMG; American Heart of Poland; Millennium Bank

9 2 3

370 24

✓ ✓

✓

✓ -

✓ ✓

-

✓

2010

Jones Lang LaSalle: Kamil Kr´pa, 503-120-823 GTC

WND GTC WND

Empark Mokotów Business 19 Park - Mars ul. Wo∏oska 7, 02-675 Warsaw

21,300 21,300

-

WND

8 8

1,567

✓ ✓

✓

✓ ✓

✓ ✓

✓

✓ ✓

1997

Jones Lang LaSalle: Anna Kaêmierska, anna.kazmierska@eu.jll.com, 668280-967 AIG/Lingoln Polska

JEMS Architekci Globe Trade Centre WND

Equator II 20 Al. Jerozolimskie 96, 00-807 Warsaw

21,038 21,302

300 251

Medicover; Wydawnictwo Szkolne i Pedagogiczne; Regus

18 3 7

256 -

✓ ✓

✓ ✓

✓ ✓

✓ ✓

✓ -

✓

2011

Jones Lang LaSalle: Pawe∏ Lothammer, 668-282-756 WND

APA Wojciechowski Karimpol Polska Porr

City Gate 21 ul. Ogrodowa 58, 00-875 Warsaw

20,012 25,000

1,350 500

Sony; Puma; X Trade Brokers; Western Union; Lukoil

14 2 6

226 7

✓ ✓

✓

✓ ✓

✓ ✓

✓ -

✓ ✓

2001

Ogrodowa-Inwestycje: Ewa Raczyƒska, 22 520-2745 Ogrodowa-Inwestycje: 22 520-2745

Adam Tyliszczak; Roman Abramczuk Echo Investment Echo Investment

Warsaw Towers 22 ul. Sienna 39, 00-121 Warsaw

19,862 39,000

1,289 390

Accenture; P&G; Linklaters; KUKE; Gessel i Wspólnicy

16 3 6

197 -

✓ ✓

✓

✓ ✓

✓ ✓

✓ ✓

✓ ✓

1999

CA Immo Real Estate Management Poland: Tomasz Jaroszewski; Beata Rodziewicz, 22 540-6540 Cushman & Wakefield

Tadeusz Spycha∏a Warimpex Polska PORR Hochbau

Office Centre 23 Prosta ul. Prosta 51, 00-838 Warsaw

19,546 20,957

839 572

Presspublica; Raiffeisen Leasing; Pracj.pl; Caterpillar; Lux Med

11 3 10

282 -

✓ ✓

✓ ✓

✓ ✓

✓ ✓

-

✓ ✓

2006

Jones Lang LaSalle: Anna Aleksiejuk, Tomasz Czuba, 22 318-0000 DTZ: Agnieszka Chmarzyƒska, 22 222-3000

Konior & Partners Architects Ghelamco Poland WND

Sienna Center 24 ul. Sienna 73, 00-833 Warsaw

19,388 32,000

215 317

Roedl & Partner; PKP; WP; Neinver; Sener

9 2 9

192 62

✓ ✓

✓ ✓

✓ ✓

✓ ✓

✓ ✓

✓ ✓

1998

CA Immo Real Estate Management Poland: Tomasz Jaroszewski; Beata Rodziewicz, 22 540-6540 Cushman & Wakefield

Leszek Klejnert; Jerzy Czy˝ Waresco CBC France

Business Center Bitwy Warszawskiej 25 ul. Bitwy Warszawskiej 1920r. 7, 7A, 7B, 02-366 Warsaw

19,068 33,560

147 1,048

Grupa ˚ywiec; Shell; ORIX; OCE Poland; PZPN

7 2 12

410 -

✓ ✓

✓ ✓

✓ ✓

✓ ✓

✓ ✓

✓ ✓

2002

CA Immo Real Estate Management Poland: Tomasz Jaroszewski; Beata Rodziewicz, 22 540-6540 Cushman & Wakefield

Konior & Partners, Ludwik Konior Ghelamco Group Ghelamco Poland

65,000 103,000

WND WND

Ernst & Young; Frontex; Volkswagen Bank; Domaƒski Zakrzewski Palinka; Baker McKenzie

42 2 22

485 -

✓ ✓

✓ ✓

✓

✓ ✓

✓ ✓

✓ ✓

49,783 70,788

WND WND

CMS Cameron McKenna; Chadboume & Park; Weil, Gotshal & Manges; DLA Piper; World Bank; Rothschield; Wyborowa; Google

32 4 15

350 -

✓ ✓

✓

✓

✓ ✓

✓ ✓

3 Marynarska Business Park ul. TaÊmowa 7, 02-677 Warsaw

43,700 89,900

WND WND

Netia; Play; Tebodin Poland; Colgate Palmolive; IPSOS

11 3 16

1,200 200

✓ ✓

✓ ✓

✓ ✓

✓ -

4 Mokotów Nova ul. Wo∏oska 22, 02-675 Warsaw

40,755 WND

WND WND

Ghelamco; Cargill; Hyundai; Medicover

15 3 19

972 90

✓ ✓

✓ ✓

✓ ✓

Poleczki Business Park A1, A2 5 ul. Poleczki 33-35, 02-822 Warsaw

40,000 45,000

3,000 2,000

ARiMR; US Pharmacia; Sharp; Kapsch; UBM Polska; Porr Polska

5 1 24

778 102

✓ ✓

✓ WND

Lipowy Office Park 6 ul. ˚wirki i Wigury 31, 02-091 Warsaw

39,121 64,000

400 252

Bank Pekao; Tavola

9 2 20

445 19

✓ ✓

Metropolitan 7 Pl. Pi∏sudskiego 1, 00-078 Warsaw

37,000 55,000

3,655 WND

BNP Paribas; Dom Development; DZ Bank Polska; Cushman & Wakefield; Gide Loyrette Nouel

9 2 9

400 7

Park Post´pu 8 ul. Post´pu 21, 02-676 Warsaw

34,300 36,000

WND WND

Lux Med; Pekao Financial Services; Abbott Laboratories

6 2 12

FOCUS 9 Al. Armii Ludowej 26, 00-609 Warsaw

31,800 WND

WND WND

Deutsche Bank; Inteligo; Coca Cola; BRE Bank; Glaxo

Horizon Plaza 10 ul. Domaniewska 39A, 02-672 Warsaw

31,344 34,470

3,126 2,004

Malta Office Park 11 ul. Abpa Antoniego Baraniaka 88, 61-131 Poznaƒ

26,000 28,000

Bema Plaza 12 Pl. Bema 2, 50-265 Wroc∏aw

Rank

Structural cabling / Fiber-optic link

Skidmore, Owings & Merill, AZO, Epstein Hochtief Development Polska Hochtief Polska

Sprinklers / Own UPS Power Backup

MGPA: 22 595-2700 Hochtief Development Poland

Suspended ceilings / Kitchens

2006

Major tenants

Openable windows / Access control

Architect / Developer / General contractor

Commercial / Warehouse

Raised floors / Open space

Leasing agent / Building manager

Net rentable office space / Total usable space

Air-conditioning / 24-hour security

Year completed

Rentable space (sqm)

www.bookoflists.pl

Building name / Address

1 1 Rondo Rondo ONZ 1, 00-124 Warsaw Warszawskie Centrum

2 Finansowe ul. Emilii Plater 53, 00-113 Warsaw

THE LIST

APRIL 16-22, 2012

Total number of Number of floors / underground Number of parking spaces / underground Number of floors / outside parking Number of spaces elevators

19

Amenities

✓ ✓

2008

WND Colliers Internetional REMS: Justyna Dru˝yƒska, 22 331-7800

Grupa 5; Roman Dziedziejko Eko Park Internetional SPS Construction

✓ WND

✓ ✓

2008

WND DTZ: 22 222-3000

E&L Architects SEGRO Hochtief

WND WND

WND WND

WND WND

WND

DTZ: Anna Wereszczyƒska, 22 222-3000 Buma Services; DTZ

WND WND WND

✓

✓ ✓

✓

✓ ✓

2000

NAI Estate Fellows: 22 379-7300 NAI Estate Fellows: 22 379-7300

Biuro Projektów Kazimierski i Ryba Apollo-Rida Ilbau Polska

✓ ✓

✓ ✓

✓ ✓

✓ -

✓ ✓

2006

WND DTZ: 22 222-3000

Konior & Partners Ghelamco Poland Ghelamco Poland

✓ ✓

✓

✓ -

✓

-

✓

2009

WND WECHTA

Archikwadrat WND WND

270 WND

✓ ✓

✓

✓ ✓

✓ ✓

✓

✓ ✓

1999

Jones lang LaSalle: Katarzyna Pearce, 668-280-922; Grzegorz Boczek, 501-532-555 WND

Tadeusz Spycha∏a WND WND

20 WND 7

173 -

✓ ✓

✓ ✓

✓

✓ ✓

✓ ✓

✓ ✓

2001

Knight Frank Knight Frank

Pracownia Architektoniczna Ewy i Stanis∏awa Sipiƒskich Von der Heyden Group Bilfinger Berger Polska

Tauron PE; PricewaterhouseCoopers; Grupa ˚ywiec; PTWP; Northgate Arinso

13 3 6

200 30

✓ ✓

✓ ✓

✓ ✓

✓ ✓

-

✓

2010

Jones Lang LaSalle: Kamil Kr´pa, 503-120-823 Cushman & Wakefield: Piotr Przy˝ycki, 22 820-2020

WND Ghelamco Poland WND

200 300

Carlsberg; Johnson & Johnson; Lafarge; Janssen-Cilag; Schneider Electric

8 1 4

396 207

✓ ✓

✓ ✓

✓

✓ ✓

✓ -

✓

2007

AIB PPM: Daniel Pater, 22 653-4660 Knight Frank

Aukett Fitzroy Robinson Quinlan Private Golub Management Hochtief

15,400 17,800

760 100

Samsung; Investors TFI; Boston Consulting Group; AIP Business Link; Qualia Development

17 2 6

124 -

✓ ✓

✓ ✓

✓ ✓

✓ ✓

✓ ✓

✓ ✓

2010

S+B Plan & Bau Warschau: Izabella Kieler, izabella.kieler@sb-gruppe.at; 609-307-099 Strabag

Ernst Hoffman Architekten S+B Plan & Bau Warschau S+B Plan & Bau Warschau

Ochota Office Park 3 38 Al. Jerozolimskie 181, 02-222 Warsaw

15,300 25,498

-

PTC

8 2 6

265 71

✓ ✓

✓

✓ ✓

✓

-

✓

1999

Mahler Property Services: Piotr Buchwald, 22 540-6530 Mahler Property Services

Aula Planconsult Mahler Project Pia-Piasecki

Altus 39 ul. Uniwersytecka 13, 40-007 Katowice

15,220 65,361

4,427 WND

Qubus Hotel; Kino Helios; Capgemini; Steria Polska

34 3 17

550 -

✓ ✓

✓ ✓

✓

✓ ✓

✓ ✓

✓ ✓

2003

Knight Frank: Grzegorz Pytlarz Knight Frank: Magdalena Nawrat

Biuro Architektoniczne ARKAT mgr in˝.

Dieter Paleta Business Centre 2000 Mostostal Zabrze Holding

Libra Bussines Centre B 40 Al. Jerozolimskie/ul. Daimler, 02-460 Warsaw

15,150 15,150

WND -

PWN; Infovide-Matrix

10 2 8

WND WND

✓ ✓

✓ ✓

✓ ✓

✓ ✓

✓

✓

2012

WND Jones Lang LaSalle: Ewelina Ka∏u˝na, 604-616-922

WND Sami Architekci WND

Saski Crescent 41 ul. Królewska 16, 00-103 Warsaw

15,017 19,300

347 82

AMG.net; Jones Lang LaSalle; Avantis; Ove Arup; Embassy of Austria

9 2 5

170 -

✓ ✓

✓ ✓

✓

✓ ✓

✓ ✓

✓ ✓

2003

CA Immo Real Estate Management Poland: Kamila Wierusiƒska; Beata Rodziewicz, 22 540-6540 Cushman & Wakefield

Aukett/APA Wojciechowski AIG Lincoln Bouygues

Atrium Centrum 42 Al. Jana Paw∏a II 27, 00-867 Warsaw

14,684 19,371

2,227 414

UPC Polska; Apsys; Nordea; Medicover; Emmerson

9 2 8

209 -

✓ ✓

✓ ✓

✓

✓ ✓

✓ -

✓ ✓

2001

Knight Frank DTZ: 22 222-3000

Biuro Projektów Kazimierski i Ryba Architekci Skanska Skanska

Platan Park I 43 ul. Poleczki 21, 02-822 Warsaw

14,261 29,681

14,374

WND

2 5

436

✓ ✓

✓

✓ ✓

✓ ✓

✓ -

✓ ✓

1999

Platan Group: Oliwer Richter, 607-919-969 Platan Group: 22 545-0245

APA Markowski Wojciechowski Top 2000 Kubis Construction

Catalina Office Center 44 Al. WyÊcigowa 6, 02-681 Warsaw

14,200 21,000

876 70

Karmar; Fiat Auto Poland; Fiat Bank Polska; PRA International; Chevron

10 2 4

151 65

✓ ✓

✓ ✓

✓ ✓

✓ ✓

✓ -

✓ ✓

2009

CBRE: Konrad Najechalski, 510-000-479 Colliers International

Szaroszyk i Rycerski Catalina Investment Karmar

Ochota Office Park 2 44 Al. Jerozolimskie 181, 02-222 Warsaw

14,200 22,203

-

PTC; Rettenmaier Polska; Payroll Center; BSH Sprz´t Gospodarstwa Domowego

7 1 WND

89 96

✓ ✓

✓

✓ ✓

✓

-

✓

1998

CA Immo Real Estate Management Poland: Piotr Buchwald, 22 540-6530 Mahler Property Services

Aula Planconsult Mahler Project Pia-Piasecki

Silver Forum 46 ul. Strzegomska 2-4, 53-611 Wroc∏aw

14,092 20,779

1,180 524

Nokia Siemens Network; PZU; BRE Bank; Selena; Vorwerk

6 1 5

165 125

✓ ✓

✓

✓ ✓

✓ ✓

✓ ✓

✓ ✓

2007

GE Real Estate Poland Hochtief Development Poland

Archicom Studio WND Archicom RI

Empark Mokotów Business Park - Orion 47 ul. Post´pu 18B, 02-676 Warsaw

13,200 13,200

-

WND

12 2 3

245 1,567

✓ ✓

✓

✓ ✓

✓ ✓

✓

✓ ✓

1999

Jones Lang LaSalle: Anna Kaêmierska, anna.kazmierska@eu.jll.com, 668-280-967 AIG/Lingoln Polska

JEMS Architekci Globe Trade Centre WND

Empark Mokotów Business Park - Neptune 48 ul. Post´pu 18, 02-676 Warsaw

13,100 13,100

-

WND

12 2 3

212 1,567

✓ ✓

✓

✓ ✓

✓ ✓

✓

✓ ✓

1998

Jones Lang LaSalle: Anna Kaêmierska, anna.kazmierska@eu.jll.com, 668-280-967 AIG/Lingoln Polska

JEMS Architekci Globe Trade Centre WND

Empark Mokotów Business Park - Sirius 48 ul. Post´pu 18A, 02-676 Warsaw

13,100 13,100

-

WND

12 2 3

201 1,567

✓ ✓

✓

✓ ✓

✓ ✓

✓

✓ ✓

1999

Jones Lang LaSalle: Anna Kaêmierska, anna.kazmierska@eu.jll.com, 668-280-967 AIG/Lingoln Polska

JEMS Architekci Globe Trade Centre WND

Quattro Forum 50 ul. Legnicka 51-53, 54-203 Wroc∏aw

12,772 WND

935 241

Lukas Bank; PKO BP; Deichmann Obuwie; PZU; Lux Med

7 1 3

135 81

✓ ✓

✓

✓ ✓

✓ ✓

-

✓ ✓

2004

Anna Wasilewska Knight Frank: Martyna Màdra, 71 790-2710

Dorota Jarodzka-Âródka, Archicom Studio ACP Archicom RI

Empark Mokotów Business 26 Park - Taurus ul. Wo∏oska 5, 02-675 Warsaw

18,700 18,700

-

WND

13 3 6

315 1,567

✓ ✓

✓

✓ -

✓ ✓

✓

✓ ✓

Park A 27 Millennium ul. ˚aryna 2A, 02-593 Warsaw

18,344 25,000

343 570

Millennium Bank; VIP Catering

7 2 9

304 90

✓ ✓

✓ ✓

✓ ✓

✓ ✓

✓ ✓

Tulipan House 28 ul. Domaniewska 50, 02-672 Warsaw

17,895 20,062

WND WND

Aster; ACP Pharma; HUAWEI

6 2 6

481 -

✓ ✓

WND WND

✓ ✓

✓ ✓

Rondo Business Park 29 ul. Lublaƒska 38, 31-476 Kraków

17,766 23,090

WND WND

Capgemini; Statoil; ArcelorMittal; Deltavista

WND WND WND

WND WND

WND WND

WND WND

WND WND

Renaissance Tower 30 ul. Skierniewicka 10A, 01-230 Warsaw

17,570 18,341

467 -

PTK Centertel; Vol-au-Vent

15 1 4

265 16

✓ ✓

✓ ✓

Trinity Park I 31 ul. Domaniewska 52, 02-690 Warsaw

17,530 28,429

361 1,061

Axel Springer; Philip Morris

10 3 12

540 185

✓ ✓

Szyperska Office Center 32 ul. Szyperska 14, 61-754 Poznaƒ

17,119 26,416

1,680 200

Marshall’s Office; Regional Court; Alior Bank

8 1 6

110 150

Europlex 33 ul. Pu∏awska 17, 02-515 Warsaw

16,700 24,700

WND WND

Accenture Services; Elavon; Liberty Seguros

13 3 16

Poznaƒskie 34 Centrum Finansowe Pl. Andersa 5, 61-894 Poznaƒ

16,249 28,441

1,500 295

BZ WBK; Polkomtel; Medicover; PricewaterhouseCoopers; Ciber Polska

Katowice Business Point 35 ul. Âciegiennego 3, 40-114 Katowice

16,200 17,500

WND WND

Business Park F 36 WiÊniowy ul. I∏˝ecka 26, 02-135 Warsaw

15,900 16,400

Zebra Tower 37 ul Mokotowska 1, 00-640 Warsaw

Rank

Structural cabling / Fiber-optic link

JEMS Architekci Globe Trade Centre WND

Sprinklers / Own UPS Power Backup

Jones Lang LaSalle: Anna Kaêmierska, anna.kazmierska@eu.jll.com, 668-280-967 AIG/Lingoln Polska

Suspended ceilings / Kitchens

2001

Openable windows / Access control

Architect / Developer / General contractor

Commercial / Warehouse

Raised floors / Open space

Leasing agent / Building manager

Net rentable office space / Total usable space

Air-conditioning / 24-hour security

Year completed

Rentable space (sqm)

www.wbj.pl

Building name / Address

Major tenants

Notes: WND = Would Not Disclose. Research for the list was conducted in November 2011/January 2012. Companies not responding to our survey are not listed.

To the best of WBJ ’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Corrections or additions to The List should be sent, on official letterhead, to Warsaw Business Journal, attn. Joanna Raszka, ul. Elblàska 15/17, 01-747 Warsaw, via fax to (+48) 22 639-8569, or via email to wbjbol@wbj.pl. Copyright 2011, Valkea Media SA. The List may not be reprinted or reproduced in whole or in part without prior written permission of the publisher. Reprints are available.

20

MARKETS

www.wbj.pl

APRIL 16-22, 2012

Stocks report

world stock indices DJIA

NASDAQ

12,986.58 (April 12 close)

S&P500

3,055.55 (April 12 close)

-0.56% (for the week)

FTSE100

1,387.57 (April 12 close)

-0.81% (for the week)

DAX

5,710.5 (April 12 close)

-0.75% (for the week)

-0.23% (for the week)

Short and volatile

NIKKEI225 6,743.24 (April 12 close)

9,524.79 (April 12 close)

-0.47% (for the week)

-2.49% (for the week)

CHANGE: 4.75%

CHANGE: 15.36%

CHANGE: 8.65%

CHANGE: 0.19%

CHANGE: 10.99%

CHANGE: 11.27%

(year to April 12)

(year to April 12)

(year to April 12)

(year to April 12)

(year to April 12)

(year to April 12)

52-week high: 13,289.08

52-week high: 3,095.36

52-week high: 1,414.00

52-week high: 6,103.73

52-week high: 7,600.41

52-week high: 10,207.91

52-week low: 10,404.49

52-week low: 2,298.89

52-week low: 1,074.77

52-week low: 4,791.01

52-week low: 4,965.80

52-week low: 8,135.79

Andrew Nawrocki WBJ market analyst Despite a four-day week for the main WIG indices, Polish stocks experienced volatile sessions last week.

On the first day of trading, on Tuesday, Polish stocks played catch-up with their Western peers, with most stocks experiencing heavy losses. A 10-percent spike in the CBOE Volatility Index on Tuesday alone rattled investors, with indices falling sharply throughout Europe and North America.

Not helping the situation were increasing worries surrounding Spain’s economy, as well as its ever growing 10-year bond yield. Both the WIG and blue-chip WIG20 shed about 1.5 percent, with KGHM being hit hardest, falling 4.3 percent.

On Wednesday, stocks rebounded, largely thanks to the European Central

Major indices WIG

41,053.82 (April 12 close)

WIG20

2,278.58 (April 12 close)

12.04

11.04

10.04

05.04

04.04

03.04

02.04

30.03

29.03

28.03

27.03

26.03

23.03

12.04

11.04

10.04

05.04

04.04

03.04

02.04

30.03

29.03

2,200 28.03

40,000

27.03

2,240

26.03

40,600

23.03

2,280

22.03

41,200

21.03

2,320

20.03

41,800

19.03

2,360

16.03

42,400

15.03

2,400

14.03

43,000

22.03

52-week low: 2,089.84

21.03

Change year to April 12: 3.85%

20.03

52-week low: 36,549.47

19.03

52-week high: 2,932.62

Change year to April 12: 7.14%

16.03

Change for the week: 0.67%

15.03

52-week high: 50,371.74

14.03

Change for the week: 0.62%

Top 5 IFCAPITAL BGZ AMPLI BORYSZEW EUROMARK

Closing 13.90 71.35 2.40 0.80 2.09

% change (week) 52-week high 80.52 14.97 48.96 71.40 15.94 3.49 14.29 1.23 12.37 3.99

52-week low 0.45 38.00 1.15 0.39 1.00

Top 5 GTC LOTOS PKOBP ASSECOPOL PEKAO

Closing 6.66 29.35 33.90 50.70 149.10

% change (week) 6.05 3.75 3.04 2.99 2.12

52-week high 21.45 49.50 46.66 55.45 179.00

52-week low 6.01 21.30 27.95 34.50 115.10

Bottom 5 INTAKUS JAGO BEST WISTIL ONE2ONE

Closing 0.26 0.13 21.00 22.40 1.30

% change (week) -29.73 -23.53 -19.23 -18.55 -18.24

52-week low 0.21 0.09 4.60 5.33 1.25

Bottom 5 GETIN PBG PGE BRE KGHM

Closing 1.92 33.70 18.80 285.30 143.00

% change (week) -18.30 -3.35 -1.57 -1.38 -1.24

52-week high 7.77 176.90 25.07 352.00 200.30

52-week low 3.37 31.00 15.98 203.30 102.40

52-week high 1.45 0.87 36.50 33.02 5.82

Currency report

Further depreciation?

Other indices sWIG80

10,158.87 (April 12 close)

WIG-Banki

5,827.06 (April 12 close)

12.04

11.04

10.04

05.04

04.04

03.04

02.04

30.03

29.03

28.03

27.03

26.03

23.03

12.04

11.04

10.04

05.04

04.04

03.04

02.04

30.03

29.03

28.03

5,700

27.03

41.0

26.03

5,800

23.03

41.6

22.03

5,900

21.03

42.2

20.03

6,000

19.03

42.8

16.03

6,100

15.03

43.4

14.03

6,200

22.03

52-week low: 4,944.19

21.03

Change year to April 12: 5.12%

20.03

52-week low: 40.00

19.03

52-week high: 7,387.49

Change year to April 12: 0.87%

16.03

Change for the week: 1.86%

15.03

52-week high: 59.10

14.03

Change for the week: -1.23%

44.0

Adam Narczewski X-Trade Brokers DM SA

12.04

11.04

10.04

05.04

04.04

03.04

02.04

30.03

29.03

28.03

52-week low: 8,218.71

27.03

22.03

21.03

12.04

11.04

10.04

05.04

04.04

41.85 (April 12 close)

52-week high: 12,932.00

SOURCE: WSE

NewConnect

03.04

02.04

30.03

29.03

9,900 28.03

2,400

27.03

10,040

26.03

2,440

23.03

10,180

22.03

2,480

21.03

10,320

20.03

2,520

19.03

10,460

16.03

2,560

15.03

10,600

14.03

2,600

20.03

Change year to April 12: 18.07%

19.03

52-week low: 2,076.52

16.03

Change year to April 12: 12.97%

15.03

Change for the week: 0.64%

14.03

52-week high: 2,987.72

26.03

2,474.42 (April 12 close)

23.03

mWIG40 Change for the week: -0.09%

Bank pledging to buy more bonds throughout the old continent. Helping the mood for market bulls was a relatively uneventful macroeconomics calendar for the day, with many investors still hoping to ride the wave higher for equities. The WIG posted a 0.86 percent rise, while the WIG20 gained 1.15 percent.

On Thursday, European stocks got a push from both Asia and North America, as rumors surfaced that Asia’s slowdown won’t be as dramatic as previously thought.

Construction and energy stocks did particularly well, with GTC gaining 5.7 percent, while KGHM and Lotos regained some losses.

On Friday, stocks opened lower, with the WIG finishing the day down 0.94 percent. ●

The z∏oty had a volatile time of it last week, mainly as a result of changing global sentiment towards risky assets.

After the previous week’s worse-than-expected US nonfarm payrolls reading, markets dived on the first trading session of last week.

More bad news arrived from Spain and Italy where bond auctions were not as successful as had been expected, causing credit default swaps (insurance against default) for Spanish bonds to reach historic highs.

The situation calmed down as the weekend approached. The EUR/USD kept advancing throughout the week to reach its weekly high of $1.3211 after news that the European Central Bank might buy bonds from financially troubled euro-

zone member states.

Friday’s news that Chinese GDP growth slowed to a lower-than-expected 8.1 percent in Q1, pushed the market back and the EUR/USD finished the week at $1.3140.

The z∏oty mirrored global sentiment and during the first days of the week tumbled to reach its monthly high against the euro (z∏.4.18) and the dollar (z∏.3.18).

Despite hawkish statements from members of the rate-setting Monetary Policy Council, the z∏oty was unable to regain ground. Friday’s inflation report showed that Polish CPI dropped to 3.9 percent on an annual basis.

If the negative global sentiment remains, the EU/PLN and USD/PLN could see higher levels this week. ●

currency rates 3.9248 13.04

SOURCE: NBP

3.9246 12.04

3.9739 11.04

3.8588 06.04

3.9272

3.8543 05.04

0.1079

0.1075 13.04

3.5

10.04

PLN-100JPY

4.2

12.04

0.1074 11.04

0.1076 10.04

06.04

0.1076 05.04

3.4728

3.4765 13.04

0.10

0.1078

PLN-RUB

0.12

12.04

3.4966 11.04

3.4732 10.04

06.04

3.4526 05.04

5.0698

5.0580 13.04

3.4

3.4584

PLN-CHF

3.6

12.04

5.0910 11.04

5.0592 10.04

5.0418 06.04

13.04

12.04

11.04

10.04

06.04

05.04

5.0271

3.1765

3.1818

3.2034

3.1904

3.1678

PLN-GBP

5.5

4.5

05.04

4.1740

4.1779 13.04

3.0

3.1814

PLN-USD

3.5

12.04

4.2008 11.04

4.1756 10.04

06.04

4.1544 05.04

4

4.1565

PLN-EUR

5

22

LIFESTYLE

www.wbj.pl

APRIL 16-22, 2012

Concert

Reenactment

Back to black

International knights

Metal fans have a treat in store this May, because legendary American headbangers Metallica are coming to Poland as the headline act at the third annual Sonisphere Festival.

And even better for fans of the band’s earlier recordings, they will play their 1991 release “The Black Album” in its entirety. The album, which contains the classic rock tunes “Enter Sandman,” and “Nothing Else Matters,” has sold

more than 25 million copies worldwide, and was ranked 252nd in Rolling Stone’s top 500 albums of all time in 2003.

In total the band, which was formed back in 1981, have sold more than 100 million albums and are regarded as one of the most influential metal groups of all time.

Other acts set to play at this year’s festival include Machine Head, Black Label Society and Acid Drinkers.

April 30 – May 3, 10 am – 8 pm Battle of the Nations Fort Bema, ul. Bema 3 Warsaw COURTESY OF WIKIMEDIA COMMONS

May 10 Sonisphere Festival 2012 Lotnisko Bemowo Warsaw

For more information log on to pl.sonisphere.eu

Metallica's James Hetfield (right) and Kirk Hammett

David Ingham

Exhibition

The 2012 edition of the Battle of the Nations offers those interested in medieval history and live-action sword fighting, an opportunity to step back in time at a four-day reenactment festival.

Competitors from across Europe are set to take part in a number of full-combat challenges across five separate disci-

plines. These include the oneon-one “Duel” and “Professional fights,” “Group battles,” which involve two teams of five, “Mass battles” and “All vs All,” which will include some 300 fighters in a full-scale battle.

There will also be numerous other interactive and educational displays, as well as refreshments and food to keep all the family entertained.

For more information log on to battleofthenations.pl David Ingham

COURTESY OF CULTURE.PL

April 11 through June 30 The Warsaw Ferment History Meeting House ul. Karowa 20, Warsaw

The photos capture the spirit of Warsaw’s postwar avante-garde scene

Photographer Irena Jarosiƒska was among the first women in postwar Poland to work as a press photographer.

This new exhibition is comprised of her photos from the 1950s and 1960s and provides pictures of Warsaw as it recovers from the damage wrought

during World War II, as well as a unique view of the avantgarde artistic scene in which the photographer was involved.

The previously unpublished photos reflect the atmosphere of the intellectual and cultural climate of the time and offer a unique glimpse into the capital’s past.

For more information log on to dsh.waw.pl David Ingham

COURTESY OF BATTLEOFTHENATIONS.PL

Warsaw rising

Medieval knights preparing for battle

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LAST WORD

APRIL 16-22, 2012

www.wbj.pl

23

Tech Eye

Not the worst gadgets, not the best nology” are seemingly incapable of taking decent photographs of their products. It’s as though there is just one photographer in China, a fellow with a pinhole camera and a bad case of epilepsy, who travels from factory to factory taking promotional shots.

So even if we wanted to write about some of those craptastic products, there’s little point since the accompanying photos would look more like the work of a senile Dadaist than professional product images. As such, we’ve decided to write about the next best thing this week: gadgets that are ludicrous, rather than just terrible.

On that note, we present the iNuke Boom, a delightful bit of nonsense from Behringer (behringer.com) which marries an iPod/iPhone dock with a gigantic, rectangular speaker system. This behemoth (which weighs over 700 lb/317 kg) houses two 12-inch woofers, a pair of 18-inch subwoofers and two 1.75-inch highfrequency drivers which can apparently break glass; total system output amounts to 10,000 watts. Oh, and “volume control goes all the way to ‘11.’”

The iNuke Boom costs a not-

insignificant $29,999 and demands a complete rethink of your living room furniture arrangement.

Maybe it can pull double duty as a

sculpted and hand-cast in urethane resin, with a cradle for an iPhone. According to its maker, design and fabrication shop Freeland Studios (free-

COURTESY OF BEHRINGER

while, we’re practically drowning in spam, and not just from Gary, prolific, sociopathic pen pal that he is.

Somebody has apparently given Techeye’s email address to every factory in China, so we’re getting offers for everything from sock warmers to glow-in-the-dark nose-hair trimmers and inflatable love dolls dipped in goat-musk.

The absolute dregs of technology, in other words.

But you know what? We might be tempted to write about it (goat-musk is due for some good press), except that these selfdescribed purveyors of “hihg tech-

COURTESY OF FREELAND STUDIOS VIA ETSY

In a perfect world, groupies dressed like Daphne from ScoobyDoo and She-Ra: Princess of Power would be knocking on Techeye’s door at all hours of the night, wearing a speedo would be a criminal offense (a felony when perpetrated by men aged 40+) and there would never be any spam in our inbox.

Unfortunately we don’t live in a perfect world. Techeye’s only groupie is Gary, a chemist from Westward Ho!, England, who’s pushing 50 and – judging by the feculent, intricately posed photos he recently sent us – seems to enjoy speedos quite a lot. Mean-

dining table.

Another technological oddity, and one that’s also related to the iPhone (surprise, surprise), is the iRetrofone Base, which looks just like the phone your grandpa might used to have had (assuming your grandpa had a time machine and an anachronistic love of Apple products).

Thankfully it’s considerably cheaper than the iNuke Boom ($29,804 cheaper, to be precise) and doesn’t require ropes, pulleys and a team of donkeys to move around.

The iRetrofone Base is pretty straightforward – it comprises a base unit and receiver, hand-

landstudios.com), the device is compatible with all iPhones.

There’s a Retrofone app available on iTunes that lets you complete the faux-rotary experience.

Freeland Studios is selling iRetrofone Bases via Etsy (etsy.com) for $195 – shipping outside North America will cost you an extra $60. That’s a bit pricey for a hunk of molded resin, in our opinion, but perhaps acceptable for hipsters rocking a newfangled retro-chic lifestyle, oldsters with a modern mien or anyone depressed by the extinction of rotary phones. ●

Ever gotten mail from a be-speedoed chemist? Let us know: techeye.wbj@gmail.com