WBJ #41 2011

Poland’s political divide between east and west remains stark

The EC has put forth a five-point plan to address the debt crisis 6

WWW.WBJ.PL

Santander is in prime position to take over Kredyt Bank

VOLUME 17, NUMBER 41 • OCTOBER 17-23, 2011 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

REAL ESTATE

COURTESY OF JEMS ARCHITEKCI

Lokale Immobilia

Since 1994 . Poland’s only business weekly in English

The fallout

Full post-election political coverage 2, 3, 4, 5, 11

• Port Praski • Industrial parks • Rogowski interview 15-19

Reacting to change Franklin Templeton Investments’ director for CEE tells WBJ that his firm is confident about Poland’s future 9

A guide to Polish business and industry

Przewodnik po polskim biznesie i gospodarce

Exhibition and convention venues 21

¸UKASZ MAZUREK/WBJ

In this issue News . . . . . . . . . . . . . . . . . . . . . . . . .2 Elections 2011 . . . . . . . . . . . . . . .3-5 Europe News . . . . . . . . . . . . . . . . . .6 Business . . . . . . . . . . . . . . . . . . . .7-8 Interview . . . . . . . . . . . . . . . . . . . . .9 Opinion & Analysis . . . . . . . . .10-11 In depth . . . . . . . . . . . . . . . . . .12-13 Lokale Immobilia . . . . . . . . . .15-19 Markets . . . . . . . . . . . . . . . . . . . . .20 The List . . . . . . . . . . . . . . . . . . . . . .21 Lifestyle . . . . . . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

All that glitters …

Orange squeezed

Investing in gold is becoming more popular in Poland. Will it remain a good investment? 12-13

Yulia Tymoshenko has been sentenced to seven years in jail. What now for Ukraine and the EU? 6, 11

NEWS

www.wbj.pl

Poland praised for Euro 2012 preparations UEFA President Michel Platini said he was very satisfied with Polish preparations for the Euro 2012 soccer championships, during a tour of host cities Gdaƒsk, Poznaƒ, Warsaw and Wroc∏aw last week. Mr Platini said he was pleased with “not only the stadiums but the whole infrastructure – roads, airports, train stations, which will be very useful for the people in Poland and Ukraine after Euro 2012.” Nine months ahead of the event, the Polish government estimates around 80% of the preparations are completed. ●

10.2%

The Democratic Left Alliance

DATELINE

October This event includes a series of workshops and lectures to promote local projects in Poland and Central and Eastern Europe. Location: InterContinental Warszawa hotel, Warsaw. pppinstitute.com

Partnership Idea. This event will feature several discussion panels on PPP in Poland and around the world. Hosted by economist Robert Gwiazdowski. Location: Plac Kolegiacki 17, Poznaƒ. bpcc.org.pl

COMMERCIALIZATION OF INNOVATIVE SCIENCE

Event:

During this conference, participants will learn about the opportunities and methods for commercializing scientific achievements and innovations. Location: Warsaw International Expocentre EXPO XXI. komercjalizacja-nauki.pl

INTERNATIONAL PPP FORUM

Event:

Public and Private Sector Cooperation – the

Figures in focus Political costs 2011 parliamentary campaign costs by party, in z∏oty per vote gained 20 15 10 5

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Source: Puls Biznesu

Company index AEW Europe ..............................16 Goodman Group ........................18 Polit Elektronik ..........................15

amazon ......................................23 Grupa Capital Park ....................15 Pronox ........................................12 Amber Gold ................................12 Grupa Mostostal ........................16 AP Holding SKA ........................17 Heitman......................................16

RENEWABLE ENERGY FORUM

Event:

This event will feature explanations of Poland’s law on renewable energy sources and discussions on the role of environmental funds in financing renewable energy, as well as their effectiveness in support of the renewable energy sector. Location: Warszawskie Centrum EXPO XXI, Warsaw. zpfeo.org.pl/konferencje

OFFICE IN POLAND CONFERENCE

Event:

This conference, focused on Poland’s office real estate market, features more than 30 speakers representing the full spectrum of views and opinions, and nearly 200 participants actively operating in the Polish office market, organizers say. Location: Marriott Hotel, Warsaw. konferencje.nowyadres.pl

Robyg..........................................19 Rogowski Development ............19

Arcad ..........................................16 Hochtief Polska..........................15 Ronson Development ................19 Atrium ........................................16 HSBC Bank Polska ......................2 Rossmann ............................15, 17 AXI IMMO....................................16 IDMSA ........................................13 Bank BPH ..................................13 Impel ..........................................16

In this third edition of the forum, the issue of nuclear power safety will be the main topic of discussion. Location: Courtyard by Marriott Warsaw Airport, Warsaw. topconsult.nazwa.pl/nowa_tcct

Law and Justice MP and spokesperson Adam Hofman explains his party’s stance regarding the leader of Palikot’s Movement, a libertarian party that came in third in this month’s parliamentary elections. He added that his party has a “serious problem” with Mr Palikot.

Allegro Group ............................15 Gremi Media ..............................12 Presspublica ..............................12

18-19 NUCLEAR POWER POLAND 2011 Event:

“[Janusz Palikot] exists, but for us it’s as if he doesn’t exist.”

Allegro ........................................12 gowebtrade.com ........................20 Port Praski ................................15

17-19 POLAND AND CEE – MUNICIPAL AND GOVERNMENT PROJECTS Event:

Quote of the Week

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PiS Angels hang up their wings Law and Justice (PiS) had hoped to lure a new segment of the electorate with its Angels, a group of seven young and attractive female candidates. But none of them, including “Miss PiS” and Angelina Jolie-lookalike Sylwia ¸ugowska, made it to the Sejm. Log on to WBJ.pl to find out happened to these ambitious women

is how much less political parties spent on campaign advertising in October’s parliamentary election than they did in the election four years ago, according to Equinox, a media house.

On WBJ.pl

30%

Adam Zdrodowski, Andrew Kureth

was the amount per vote that Janusz Palikot spent on his campaign. Civic Platform spent z∏.5.2 per vote, and the Democratic Left Alliance spent z∏.16.7 per vote.

(RP

ing fifth in the parliamentary elections, behind new party Palikot’s Movement (RP) and the rural Polish People’s Party (PSL). The party, which governed Poland from 1993-1997 and from 2001-2005, had previously been one of the strongest in Poland. However, since losing power in the 2005 elections, in which it fared poorly, it has struggled to gain traction. There was hope that the

z∏.0.70

Heads are likely to roll soon in Poland’s Democratic Left Alliance (SLD) party after the grouping’s surprisingly poor performance in the country’s parliamentary elections on October 9. Party leader Grzegorz Napieralski has already announced that he will be stepping down, with his successor due to be selected during an upcoming party congress. SLD finished a disappoint-

was the surprisingly large share of the vote gained by Palikot's Movement, making it the third-largest party in the Sejm, Poland’s lower house of parliament.

Grzegorz Napieralski

party would do better under Mr Napieralski, who finished an impressive third in last year’s presidential elections. However, younger voters who had previously tended to favor SLD’s socially liberal platform this year seem to have decided that RP was a better option. Formed less than a year ago, RP received 10 percent of the vote in the elections. Last week Mr Napieralski announced that he would be meeting with the party’s leadership to speed up the organization of a party congress, at which new leaders would be chosen. Currently, front-runners to replace Mr Napieralski are Warsaw MP and former Minister of Internal Affairs Ryszard Kalisz and Euro MP Wojciech Olejniczak, who headed the party from 2005 to 2008. Meanwhile, former Prime Minister and Foreign Minister W∏odzimierz Cimoszewicz and former President Aleksander KwaÊniewski, both of them prominent SLD figures in the party’s heyday, have signaled their readiness to help the grouping out, as long as the causes of its electoral defeat are discussed honestly and its whole leadership is replaced.

Poland’s Internal Security Agency (ABW) arrested 19 people suspected of illegal manufacture, possession and trade in explosives on October 11 and 12. The arrests are part of a nationwide operation initiated on the basis of information provided by Norway, in addition to data contained in the manifesto of Anders Behring Breivik, the ABW said in a statement. Mr Breivak has admitted to killing 77 people after he detonated a bomb in Oslo on July 22, before going on a shooting spree at a youth camp on Utøya Island.

Numbers in the News

Pol an

Polish arrests linked to Norway killings

IN THE SPOTLIGHT

Mo ve

Former Polish President and Solidarity leader Lech Wa∏´sa will fly to New York following an invitation from protesters involved in the ongoing Occupy Wall Street protests. “How could I not respond?” Mr Wa∏´sa told Lublin-based newspaper Dziennik Wschodni. “The thousands of people gathered near Wall Street are worried about their future, about the fate of their country. This is something I understand.” The former shipyard worker and Nobel Peace Prize winner has not specified when he intends to fly to the US.

OCTOBER 17-23, 2011

Pa liko t's

Wa∏´sa supports Occupy Wall Street

SHUTTERSTOCK

BZ WBK ..................................7, 13 Invesco........................................16 CA Immo ....................................16 Ipopema Securities......................7

Ruch ..........................................18 Santander ....................................7 Segro ..........................................18

CB Richard Ellis Polska ............15 Jeronimo Martins Distribution ..15 Skanska Property Poland..........15 Comperia.pl................................12 Kredyt Bank ................................7 SPS Construction ......................18 Cushman & Wakefeld ............9, 16 Lektronix Poland........................17 Standard & Poor’s ................6, 20 Deka ..........................................16 Limito ........................................17 Technicolor Polska ....................15 Döllken ......................................17 Long Bridge ..............................18 Tieto Poland ..............................16 Domino’s Pizza ..........................15 Lorencic Polska ........................17 TNS OBOP ....................................5 eBay............................................12 LOT ..............................................2 ECE ............................................16 Lotos ............................................7 Echo Investment ........................16 Mecom........................................12

TNT Express ..............................17 Transpoint International ............17 Unibail Rodamco........................16

EcoCorner ....................................8 Meyer Bergman ........................16 Union ..........................................16 Eiffage Budownictwo Mitex ......16 Mierzejewski Kasprzycki Vantage Development ................16 Elektrim......................................15 Czaplicki ....................................18 Emmerson..................................18 Naftogaz ......................................6 Equinox ........................................2 Nielsen & Partners Law Office ..6 Ernst & Young ............................15 Norgips ......................................15 Franklin Templeton

Warsaw Stock Exchange ..........13 Wealth Solutions........................13 World Gold Council ....................13

Opek ..........................................18 Wrobis ........................................16

Investments..................................9 Pernod Ricard ............................12 X-Trade Brokers Gant Development ....................16 Poczta Polska ............................12 Dom Maklerski ..........................20

ELECTIONS 2011

OCTOBER 17-23, 2011

www.wbj.pl

Politics

Poland to have new coalition government by November 22 The first plenary session of the new parliament will take place on November 8 and a new government will be sworn-in by November 22, while Prime Minister Donald Tusk will recommend Minister of Health Ewa Kopacz as the new Sejm speaker, Mr Tusk revealed during a press conference last Thursday. The Prime Minister emphasized that both he and his current coalition partner, the Polish Peoples’ Party (PSL), are interested in continuing their political cooperation. “I have confirmed to the president that I have completed

the first serious discussion with [PSL leader] Deputy Prime Minister Waldemar Pawlak and that we both have the unequivocal intention of forming a coalition,” said Mr Tusk. Mr Tusk also revealed that PSL is “interested in its current areas of activity” when it comes to the division of ministries in the government. The junior coalition party is currently in charge of the Economy Ministry, the Ministry of Labor and Social Policy and the Agriculture Ministry. Mr Tusk’s comments suggest that this will remain the case.

A female speaker Regarding his support for Ms Kopacz as the new Sejm speaker, Mr Tusk said that he “rejects the argument that if a politician is to be efficient and rule firmly, he has to be a man.”

“It really is not like that. I have come across many female administrators who have a very firm hand and can govern better than men,” he said. Mr Tusk was responding here to the views of some in Polish politics that believe Ms Kopacz may have trouble controlling the 460 members of Poland’s lower house of parliament. The prime minister also stated that no one should expect “revolutionary” changes in his government, adding that five or six ministers will keep their positions. “The changes will be more than cosmetic but there will be no revolution turning everything upside down,” he said, adding that Poles had voted for stability and continuation in the recent elections.

Internal opposition When asked what would happen to the current parliamentary speaker, Grzegorz Schetyna, a prominent PO politician, the PM said that although Mr Schetyna was a close friend and ally, “he had been aspiring to the role of rival and leader of the internal opposition.” “We have to be sure that everyone will work towards effective and efficient governance.” Political observers suggest that this could be a warning signal for Mr Schetyna, who is widely regarded as the number-two man in PO. He is expected to be given a ministerial position, although it is not yet clear which one. The prime minister will present his government’s plans for the next four years in the first week of December. Remi Adekoya

COURTESY OF PO

Prime Minister Donald Tusk has unveiled his plans for the new post-election government

Ewa Kopacz is Prime Minister Tusk’s choice as new speaker of the Sejm

Janusz Palikot

Party leadership

Huge win for Palikot’s party

Kaczyƒski to remain Law and Justice leader

The ultra-liberal Palikot’s Movement is expected to ruffle some feathers

SHUTTERSTOCK

The third-place finish of Palikot’s Movement (RP) was the biggest surprise of the October 9 parliamentary elections. Headed by Janusz Palikot, the flamboyant former member of the ruling Civic Platform (PO) party, RP won 10 percent of the vote on a platform that includes legalization of soft drug use, liberalization of abortion laws and support for same-sex civil unions. Following talks with President Bronis∏aw Komorowski, Mr Palikot said last week that his party would be in the opposition but that its opposition would not be “total,” TVN24 reported, citing unnamed sources. Mr Palikot has also urged the president to back the creation of a government of experts and professionals. RP has reportedly not asked for any ministerial positions, but

The party has also revealed its thoughts on Janusz Palikot: “For us it’s as if he doesn’t exist”

Mr Palikot is one of Poland’s most controversial politicians has not ruled out providing advisors to the government. RP received 23.3 percent of the votes of those aged between 18 and 25 years. It seems the party struck a cord with Poland’s youth, many of whom are dissatisfied with the performance of the PO government, which relied heavily on

the youth vote in its victory four years ago. Mr Palikot, a businessman from the eastern Polish city of Lublin, proposes an 18 percent flat-tax rate on personal income tax, corporate income tax and VAT, and a reduction in the size of government. His party supports state-

subsidized in vitro fertilization, and is vehemently anti-clerical. Many are expecting to see fireworks when RP comes up against the conservative Law and Justice (PiS) party, even though the latter has said that it planned to ignore Palikot’s Movment. Ella Pa∏ka, Andrew Kureth

Organizator

18 - 20 listopada 2011 r. Hotel Aquarius ***** Kołobrzeg Partner

Partnerzy główni Patroni medialni

Zapisy i szczegóły:

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Jaros∏aw Kaczyƒski has said that he will stay on as leader of the conservative Law and Justice (PiS) party, despite its second-place finish in the recent parliamentary election. In 2008, the head of PiS promised to step down if his party did not win the 2011 parliamentary vote. In the end, PiS came in a distant second to Civic Platform (PO). Last Wednesday, Mr Kaczyƒski explained that his change of mind was influenced by three years of experience, including the April 2010 Smolensk catastrophe. Regarding his party’s second-placed finish in the election, party spokesperson and MP Adam Hofman told Polish radio station Radio Zet that Mr Kaczyƒski was not to blame. Instead, he said that the loss was caused by a higher

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Aleksander Grad Minister Skarbu Państwa Partnerzy Organizacyjni

turnout than his party had expected. Internal party polls had predicted PiS would receive more votes than Prime Minister Donald Tusk’s PO party, but the predictions were based on there being fewer voters than the number that was actually cast, Mr Hofman said. Mr Hofman admitted that PO was able to effectively mobilize its electorate. He also blamed “negative PR” from PO, which he said his party had not been able to counter. In the interview, Mr Hofman also revealed his party’s thoughts on Janusz Palikot, the leader of Palikot’s Movement (RP). That party claimed third place in the parliamentary elections, gaining 10 percent of the vote, on a platform that included anti-clerical and pro-abortion planks. “[Mr Palikot] exists, but for us it’s as if he doesn’t exist,” Mr Hofman said, adding that the party has a serious problem with Mr Palikot.

Konferencja realizowana w ramach programu

David Ingham

ELECTIONS 2011

www.wbj.pl

OCTOBER 17-23, 2011

Election results

Some ministers in PM Donald Tusk’s coalition government failed to impress voters

Cezary Grabarczyk, the much-criticized Minister of Infrastructure and one of Civic Platform’s most powerful politicians, also performed poorly, though he earned enough votes to return to parliament. Mr Grabarczyk received fewer votes in his ¸ódê

COURTESY OF EUROPEAN PARLIAMENT

There were several ministers in Prime Minister Donald Tusk’s government who didn’t fair

well in the parliamentary elections on October 9. The biggest loser was Jolanta Fedak, the current Minister of Labor and Social Policy, who failed to make it into parliament from her Zielona Góra constituency, after receiving roughly 1.4 percent of the vote.

Minister of Infrastructure Cezary Grabarczyk earned fewer votes in his ¸ódê constituency than first-time MP John Godson

district than his party colleague and first-time MP, Nigerianborn John Godson. For a politician viewed as one of the most influential in the ruling Civic Platform (PO) party, this was a heavy blow to take. Another minister who performed below par was Finance Minister Jacek Rostowski, who received just over 1 percent of the vote in Warsaw, though he managed to secure a seat in the next parliament. The current Minister of Education, Katarzyna Hall, also had a less-than-impressive showing, winning around 2.4 percent of the vote in her Gdaƒsk constituency. Out of the above ministers, it is widely expected that Mr Rostowski will hold on to his position as finance minister, while Mr Grabarczyk and Ms Hall are expected to lose theirs. It is still unclear what will happen with Ms Fedak, as she is a minister who has been

COURTESY OF PO

Ministers get voters’ cold shoulder

Jolanta Fedak failed to make it into parliament put forward by junior coalition member the Polish People’s Party (PSL), and is a close ally of its leader Waldemar

Pawlak. Ministers are not required to be members of parliament. Remi Adekoya

LGBT issues

Poland will get its first openly gay MP, too Poland will have its first openly transgender MP after Anna Grodzka, from the Palikot’s Movement party (RP), gained 19,451 votes in the Kraków II electoral district, winning a place in the lower house of parliament, the Sejm. Ms Grodzka, founder and president of transgender advocacy NGO Trans-Fuzja, says her victory means she will also

become the world’s only transsexual MP. “Today, Poland is changing. I am the proof,” Ms Grodzka told the AFP. Robert Biedroƒ, cofounder of the Campain against Homophobia, who also ran with RP and was elected in Gdynia, will become the first openly homosexual MP in the Polish parliament. Many political experts believe that the libertarian party’s surprisingly strong per-

formance is proof that there have been some deep changes in Polish society over the past few years. Ms Grodzka explained on her blog that after working for years to fight discrimination against sexual minorities and transgender people, she wanted this battle to be fought more broadly. “Palikot’s Movement gives me this opportunity. I will use it,” she wrote. Ms Grodzka, who completed her sex change last year,

had been politically active with the Democratic Left Alliance (SLD) for a number of years but became disenchanted with the party. SLD as an alliance has “rotted, as did Polish democracy. SLD politicians for several years now only seek their interests and the interests of mainstream voters, forgetting that democracy is not dictatorship of the majority,” Ms Grodzka wrote on her blog. Alice Trudelle

COURTESY OF FLICKR/RADEK

Transsexual lawmaker enters parliament

Anna Grodzka won 19,451 votes in Kraków

ELECTIONS 2011

OCTOBER 17-23, 2011

Election breakdown

Poland divided The parliamentary elections showed that Poland is still sharply divided between east and west The results of Poland’s parliamentary elections showed a deep political divide between Poland’s voters in the east and those in western and central regions. Out of Poland’s 16 voivodships, 11 voted overwhelmingly for the Civic Platform (PO) party, while most of eastern Poland voted strongly in favor of Law and Justice (PiS), according to figures from pollster TNS OBOP. Of the five voivodships that were won by PiS – Ma∏opol-

skie, Lubelskie, Podkarpackie, Podlaskie and Âwi´tokrzyskie – four (all but Ma∏opolskie) are located along Poland’s socalled “Eastern Wall,” on the poorer, more rural, eastern edge of the country. PO received the most support in the Pomorskie voivodship (in Poland’s north), at 51.4 percent, and the lowest in the Lubelskie voivodship (in the southeast) at 22.2 percent. PiS, meanwhile, was most strongly supported in the southeastern Podkarpackie voivodship (48.6 percent) and received the lowest level of support (19.8 percent) in the Lubuskie voivodship (near Poland’s western border).

The Polish Peoples’ Party (PSL) received the highest support (at 20.1 percent) in the Âwi´tokrzyskie voivodship followed by 15.5 percent in Lubelskie, 12.5 in Podlaskie and 11.2 percent in Podkarpackie. Palikot’s Movement, meanwhile, was most strongly supported in Zachodniopomorskie at 12.7 percent and the lowest in Podkarpackie, at 6.8 percent of the vote. Overall SLD received less than 10 percent of the vote in all of the voivodships except in Wielkopolskie, where it received 10.5 percent of the vote. The lowest support for SLD came from Ma∏opolskie, at 5.3 percent.

International media

Democratic development, markets relieved International press generally reported the result of Poland’s elections in a positive light Reports in newspapers and on websites, radio and television around the world put a positive spin on the results of Poland’s elections. Almost without exception, these reports reminded readers that under Prime Minister Donald Tusk Poland had been the only EU country to get through the global economic crisis without slipping into recession. They also made a point of reporting that by virtue of Civic Platform’s victory, Mr Tusk has become the first Polish prime minister since communism to be elected to two consecutive terms. Some said that the

results showed that Poland’s democracy was developing apace, while others reported relief on the markets at the results. Here is a look at what some of them said: The New York Times reported that “analysts hailed the vote for continuity as a sign of political maturity in Poland.” This election proved “another step in the democratic development of the largest of the Eastern European countries to join Western institutions.” Financial markets “greeted with relief” Poland’s parliamentary election results, reported the Financial Times. Reuters reported that “investors hailed the outcome as a guarantee of political and economic stability in the European Union’s largest eastern member in turbulent times.”

Time magazine reminded readers that Poland holds the EU presidency and this election of the pro-European party “will likely calm nerves in Brussels as leaders there tackle the ongoing euro zone crisis.” Neighboring Germany’s Der Spiegel wrote in its English-language online edition that “more than half of Poles who were eligible to vote stayed home on Sunday,” because “many Poles regard [their politicians] as incompetent, petty, uneducated and often even corrupt.” Though the re-election of Civic Platform is generally expected to lead to a continuation of cordial relations with Moscow, RIA Novosti, Russia’s state-owned news agency, wrote that Poles were “pragmatists, not Russophiles.” Veronika Joy

www.wbj.pl

Civic Platform

Law and Justice

Demographic differences Those in Poland’s largest cities (with populations of over 500,000) voted largely in favor of PO, at 52 percent, compared to 24.7 percent for PiS. Moreover, some 10.2 percent of those in Poland’s largest cities voted for Palikot’s Movement, while 6.9 percent voted for SLD. Those living in villages gave 36.4 percent of the vote to PiS compared to 28.7 percent for PO and 15.2 percent for PSL. Voters between the ages of 26 and 39 voted mostly in favor of PO, with 43.5 percent, compared to the 29.3 percent who voted for PiS, while Janusz Palikot from Palikot’s Movement received the most voter support (23.3 percent) from those aged between 18 and 25. Meanwhile, among those 60 years of age and over, the vote was relatively evenly split between those who voted for PO (39.5 percent) and those who voted for PiS (38 percent). This age group also showed the

lowest support for Palikot’s Movement at 4.9 percent. Overall, female voters showed a stronger preference for PO (42.4 percent) than male voters (36.5 percent). And almost twice the number of male voters (13 percent) compared to female ones (7.3 percent) chose to vote for Janusz Palikot. Support for PiS was roughly the same for both sexes, at around 30 percent. Unemployed voters cast their ballots evenly both for PiS and PO at about 32.5 per-

cent. Similarly, retirees and those receiving pensions gave 39.1 percent of the vote to PO and 37.8 percent to PiS. Polish farmers showed the least amount of support for PO at 13 percent, compared to 40.8 percent for PiS and 32.3 for PSL. Private entrepreneurs, and directors and specialists, however, showed a preference for PO at 48.9 and 51 percent, respectively. Ella Pa∏ka

DAILY EXECUTIVE DIGEST Poland A.M. gives you the biggest Polish stories of the day. Have the most valuable news delivered to your inbox each weekday morning.

Polish business body prepares list of demands for new government An influential Polish business association has presented a list of 36 recommendations that it says the new government should implement within its first year in office. The list was presented at a Polish Confederation of Private Employers Lewiatan (PKPP Lewiatan) conference held at the end of last week. The government should take quick action to protect the Polish economy “before the downturn,” PKPP Lewiatan said. This will ensure the protection of jobs and rev-

enues to the state budget, the organization said. To achieve these goals the government should also improve regulation and increase the efficiency of public institutions that support the economy. The list PKPP Lewiatan presented included a proposal to create a ministry of entrepreneurship – a body that would be similar to the US Small Business Administration. Robert Gwiazdowski, president of the Adam Smith

Center, a pro-business think tank, however, has said he would prefer to avoid the expansion of the new administration. “As Ronald Reagan put it, government is not the solution to the problem, it is the problem,” he told Dziennik Gazeta Prawna. He said he would prefer that the government focused on deregulation, or more specifically on the elimination of non-harmonized and useless regulations. Gareth Price

S i g n u p f o r a 2 - w e e k f r e e - t r i a l ! w w w. p o l a n d a m . p l G e r m a n v e r s i o n : w w w. p o l e n a m m o r g e n . p l

EUROPE NEWS

www.wbj.pl

Standard & Poor’s downgraded Spain’s sovereign debt rating last Thursday citing slowing growth and a weakening financial system. In an announcement, the agency knocked Spain’s rating down one notch, from AA to AA-. It also kept the country’s rating on a negative outlook. In a statement S&P said “the financial profile of the Spanish banking system” was a concern.

Gdaƒsk’s port competes with Hamburg The Gdaƒsk seaport will now be able to compete with some of the largest ports in Europe for the custom clearance of large vessels, such as those originating from China, reported Dziennik Gazeta Prawna. Up until now, the German port of Hamburg was regarded as more attractive by importers due to its more advanced infrastructure. ●

European debt crisis

European Commission sets out five-point debt crisis rescue plan The euro zone’s bailout fund will also be expanded, following ratification by the Slovak parliament The European Commission has laid out a comprehensive road map to help Europe exit the sovereign debt crisis. The Commission’s plan outlines areas of action “designed to break the vicious circle between doubts over the sustainability of sovereign debt, the stability of the banking system and the European Union’s growth prospects,” the body said. The plan “charts Europe’s way out of the economic crisis,” Commission President Jose Manuel Barroso said in a speech. It contains five planks that include actions to ensure “all doubt is removed” about the sustainability of Greece’s economy. The plan includes

Mr Barroso said the plan “charts Europe’s way out of the economic crisis” the release of the latest tranche of European bailout funds. Banks may also have to set aside significant amounts of capital to help guard against

Contact: Miros∏aw Stefanik ms@pnplaw.pl

On October 27, 2011 a new act will come into force that will amend the Act on Banking Law. The new act will change the provisions concerning the possibility for banks to commission entrepreneurs to act as agents to deal with various banking services. Above all, the act will extend the scope of activities that may be commissioned without a permit from the Financial Supervision Authority, Poland’s banking-sector watchdog. These activities include the conclusion of and amendment to credit or loan agreements concluded with micro- or small entrepreneurs and debt collection in relation to banks’ receivables. The new law will also deal with the issue of sub-outsourcing, which is the outsourcing of banking activities by parties to whom bank-related services have already been outsourced. Finally, the act will also introduce a prohibition on contractual limitation of liability of the entrepreneur towards the bank for damages caused to clients as a result of nonperformance or inadequate performance of an outsourcing agreement.

Payment services – new act In connection with the harmonization of provisions of payment services across the European Union, a new act on payment services will become binding in Poland on October 24. The act regulates the execution of payment services (by banks, among others). It defines the con-

that do, however, should not be able to pay out dividends or bonuses, Mr Barroso said. If this requirement is accepted, euro-zone banks may have to set aside as much

Gareth Price, Andrew Kureth

Ukraine

Legal News

Amendment to the provisions on bank outsourcing

future losses. Moreover, those that are not able to cover their losses can dip into the European Financial Stability Facility (EFSF), the euro zone’s bailout fund. Those lenders

as €200 billion in assets. The EC’s five-point plan also calls for a “prudent valuation of all sovereign debt,” which could mean investors take a 21 percent “haircut” on loans to the Greek government. In reality, this step could, some analysts say, prompt a near complete writeoff of the value of Greek bonds, as well as sharp discounts on loans to Ireland, Portugal and other nations. The plan also envisions the expansion of the EFSF to €440 billion. That measure appeared to be in jeopardy early last week when the Slovakian parliament rejected it. Politicians, however, cobbled together enough support to ratify it on Thursday, meaning all 17 euro-zone countries have now voted in favor of the EFSF expansion plan, completing the approval process.

ditions of transparency related to contractual provisions, as well as requirements concerning information about payment services. Moreover, it defines parties’ rights and duties resulting from agreements on performance of payment services. It also defines the rules by which payments institutions and payment services agencies should conduct their activities.

Transforming perpetual usufruct into ownership: rule changes From October 9, 2011 the rules on granting title to municipal and State Treasury land have been changed. In particular, starting from October 9, an application for transformation of perpetual usufruct rights to a real estate into ownership rights may also be submitted by legal persons. This means that jointstock and limited liability companies, and not only natural persons – as was the case before – can apply. New provisions have also been introduced which are aimed at allowing transformations when there are several or several dozen perpetual usufructuaries. Earlier, all perpetual co-usufructuaries of a given real estate had to submit a relevant motion. Now it is enough that the motion for transformation is submitted by perpetual co-usufructuaries whose joint share in the right of perpetual usufruct equals at least 50 percent and the remaining cousufructuaries do not submit any objections to such a motion. ●

BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE

Yulia Tymoshenko sentenced to seven years in prison Polish and EU leaders have decried the ruling – but Ukraine says it isn’t final Former Ukrainian Prime Minister Yulia Tymoshenko has been sentenced to seven years in prison by a judge in Kiev. The sentence was the maximum demanded by prosecutors for alleged abuses of power concerning a gas contract she signed with Russia in 2009. Ms Tymoshenko has also been ordered to pay UAH1.5 billion (about z∏.600 million) – the amount prosecutors said the state petroleum entity Naftogaz had lost as a result of the deal. As the judge read out his verdict, Ukraine’s former prime minister is reported to have stood up and spoken over him, calling on her followers to “fight on,” according to the BBC. “We will fight and defend my good name in the European court ... we have to be strong and defend Ukraine from this authoritarianism,” Ms Tymoshenko told her supporters in court. The news of Ms Tymoshenko’s sentence was greeted with dismay in Brussels, with the president of the European Parliament, Poland’s Jerzy Buzek, saying in a statement that the “solution

SHUTTERSTOCK

S&P cuts Spain’s rating

OCTOBER 17-23, 2011

COURTESY OF THE EUROPEAN PARLIAMENT

Ms Tymoshenko told her supporters to “fight on” applied to Tymoshenko is reminiscent of Soviet times and the investigation was politically motivated.” Poland’s Foreign Ministry has said Ukraine is jeopardizing its image in the eyes of European leaders. “The manner in which the trial is conducted and today’s conviction are an example of politicization of the Ukrainian judiciary. Ukraine’s image as a country that is undertaking a fundamental pro-European transformation has been tarnished,” Poland’s foreign ministry said in a statement. It seems likely, however, that the story could soon take a

new turn. Ukrainian President Viktor Yanukovych made clear in an official statement that the court’s decision was “not final” and might be changed following an appeal. “The appeal court still is ahead. And, of course, the decision it takes and under which legislation it takes this decision will have great significance,” he said. Many observers expect the Ukrainian parliament to adopt amendments to the criminal code, which would annul the provisions used as the legal basis for Yulia Tymoshenko’s conviction. David Ingham

BUSINESS

OCTOBER 17-23, 2011

M&A

Santander poised to take over Kredyt Bank Spanish bank Santander made a binding offer at the start of October for the purchase of Belgian financial group KBC’s 80 percent holding in Polish lender Kredyt Bank, several Polish media reported, citing anonymous sources. Later reports, also citing unnamed sources, said American fund Apax plans to join forces with Santander to buy Kredyt Bank. Spokespeople at both KBC and Santander declined to comment on the reports, although Virginie Lauwers of KBC said that the divestment process is ongoing. The Belgian firm is selling its 80 percent stake to help it pay back the €7 billion in aid given to it by the Belgian government during the 2008-2009 financial crisis. News of bilateral talks between the Spanish banking group and KBC emerged a few weeks ago. Based on its stock price, a 100 percent stake in Kredyt Bank is estimated to be worth around z∏.3.6 billion. If Santander takes over Kredyt Bank, the value of the Spanish group’s Polish banking assets would amount to around z∏.100 billion, as Santander is already a majority

COURTESY OF KREDYT BANK

The Spanish lender could become the third-largest player in the Polish market

Kredyt Bank is valued at z∏.3.6 billion shareholder in BZ WBK and Santander Consumer Bank. “Santander is an active player and has rich expectations. A takeover of Kredyt Bank would make it the third-largest player on the Polish market,” said Tomasz Bursa, an analyst at Ipopema Securities. Speaking about the possibility of a merger between Kredyt and BZ WBK, Mr Bursa said it would make

sense from the point of view of business diversification. “A merger would create a well-diversified lender, as BZ WBK is more involved in corporate banking while Kredyt is more strongly involved in the mortgage market. This will cause competition in the sector to increase visibly, which will be a risk for other banks,” Mr Bursa added. Gareth Price

Oil refining

Lotos to miss z∏.1 billion net-profit target, says CFO The z∏oty’s recent weakness against the dollar means it is likely Lotos, Poland’s secondlargest oil refiner, will miss its full-year net profit target of z∏.1 billion, Mariusz Machajewski, the company’s chief financial officer, told Bloomberg. Mr Machajewski said the company would likely have to pay a one-off accounting charge of “several hundred million z∏oty” related to revaluation of its dollar-denominated debt. “I do not think this is a negative signal for responsible investors because the z∏oty ... will not impact our core activities,” Mr Machajewski said. “Our operating result will be good.” Following the completion

COURTESY OF LOTOS

The refiner expects to incur a large one-off cost related to the weakened z∏oty

Poland’s second-largest oil refiner still expects “good” operating results of development work that significantly increased its refining capacity, Lotos earlier this year forecast a net profit of over z∏.1 billion for 2011 earlier this year. The refiner’s chief executive repeated this forecast in September.

The Polish currency has seen significant falls against the world’s major currencies recently as investors have pulled money from assets that they perceive to be risky – like the z∏oty – in the wake of the euro-zone debt crisis. Gareth Price

www.wbj.pl

BUSINESS

www.wbj.pl

OCTOBER 17-23, 2011

Small business

Eco-friendly firm takes Polish success abroad

The majority of the firm’s products are designed, produced and sold in Poland itive view of green thinking, and to show that such thinking can be innovative, fashionable and stylish.” The vast majority of EcoCorner products sold in Poland, which include EcoRecord notebooks (100 percent recycled, made with vintage vinyl records, currently the company’s bestseller), and an EcoFurniture line, are also designed and produced here.

Going international Building on its success at home, this summer EcoCorner launched in the UK.

The expansion represents around half of the initial investment. In 2008, Mr Mazur invested around z∏.25,000 from his own savings to start the company, and has invested a further z∏.10,00015,000 for the UK launch. In Poland, EcoCorner mainly targets professionals with the disposable income to spend on the firm’s relatively high-end products. While UK average earnings are much higher than in Poland, that hasn’t necessarily made things easier for the firm. “We are still developing

our UK strategy,” explained Matthew Malacha, who is responsible for developing the business outside of Poland. “When we first decided to expand there we thought what worked in Poland would work in the UK, but we soon saw that the mentality of consumers is completely different. The eco-market is still fresh and new in Poland, there isn’t really any competition. Poles also want our products because they are rare, whereas in the UK there are hundreds of ecological companies, so the competition is much more fierce,” he explained. The company is currently in talks to enter into partnership with some established online eco-product retailers. “Once the company has a proper position in the UK, we would love for it to generate 30 to 40 percent of our business. We think this is achievable given that the potential market is much bigger in the UK than it is in Poland, due to higher incomes and a bigger population,” said Mr Mazur. “Afterwards, we would love to expand to the rest of Europe, like France, Germany Spain. With our experience in the UK,

the process should be much easier and faster,” he added.

Mainstream or exclusive? Asked whether there were any plans to go into partnership with mainstream retailers in Poland, Mr Mazur admitted this was a difficult decision. The key here, he explained, is to strike a balance between being successful and maintaining an exclusive image. “On the one hand we would love to partner with mainstream retailers like

Empik for revenue, but on the other hand we know that we would lose a part of our authenticity,” he said. “We are doing everything we can to be independent. We are working with independent artists, we are selling our products in some small galleries – our idea is not to be exactly in the mainstream. But that’s not so easy,” Mr Mazur said, referring to the difficulties of maintaining authenticity while at the same time maximizing potential revenue. Alice Trudelle

COURTESY OF ECOCORNER

Maciej Mazur, founder and owner of online store EcoCorner, a retailer of environmentally-friendly products, is proving wrong a lasting stereotype about Poland– namely, that Poles aren’t interested in environmentally friendly products.The success of his company, which was among the first to offer “green” lifestyle products in Poland and is now the leading online retailer in that sector, shows that many Poles are indeed hungry for eco-friendly products. Despite having launched in 2008, as the global financial crisis hit in earnest, EcoCorner has more or less doubled its profit every year over the period. “The success of our company in Poland, where people have lower incomes than in the West, contradicts the stereotype that Poles are not particularly eco-conscious,” said Mr Mazur. “Our main goal is to promote a more pos-

COURTESY OF ECOCORNER

After its launch this summer in the UK, EcoCorner is eying further expansion to France, Germany and Spain

EcoCorner’s notebooks are 100 percent recycled, and made with vintage vinyl records

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INTERVIEW

OCTOBER 17-23, 2011

www.wbj.pl

Investing

Adjusting to a changing market Borno Janekovic, director for the CEE Region at Franklin Templeton Investments, talks with WBJ about the outlook for the euro zone, Poland’s economic strengths and where to look for investment opportunities in a market beset by uncertainy

In your experience, what is the level of sophistication of Poles when it comes to using financial services? The fact that you have financial institutions offering iPads to clients if they decide on their product says something about the level of sophistication of the market here. In a more sophisticated market, you wouldn’t hear about such offers. Also, people don’t spend much time thinking about their pensions in the future, but that is not only the case in Poland. How has the current atmosphere of anxiety affected people’s approach towards the future? Does it make them even less inclined to plan ahead? That might be the case, but the best way is to look at things historically and ask whether the kind of things happening today have happened before. The answer is: yes. Which kind of solutions have worked in such cases in the past? Firstly, not keeping all your eggs in one basket: diversify your portfolio. And keeping it all in cash has not been a good idea in the past, since cash is, in the end, just printed paper. Real estate is usually a good

idea, but what happens if the property is not yours and you have a mortgage on it in Swiss francs? Then you might have a problem. Stocks have traditionally been good options. On the issue of anxiety again, the fact that everything is so connected now and you can move money from Brazil to China in a matter of seconds means we will now often have situations where markets will be up 20 percent one week and down 20 percent the next. People will simply have to get used to that. Is the fact that Poland is not in the euro zone helping it today? Yes, that is currently working in Poland’s favor. Looking back at the last three years, we see Poland has handled the crisis well. Why? Healthy levels of FDI, but also the economy’s flexibility regarding the z∏oty. While the Swiss National Bank has set a fixed exchange rate which it aims for vis-a-vis its currency, Poland has not done that. When you set such a fixed rate, you are inviting speculators who will try to test you and speculate against your currency. The Polish National Bank has left itself room for maneuver. Of course, Poland can still afford to have its own currency because it has a large domestic market unlike, for example, Slovakia. What future do you foresee for the euro? Nobody can accurately predict short-term currency values, but we can look at imbalances today and forecast what they will lead to in the

Cumulative exports after the first eight months of this year totaled €89.3 billion, 15.3% higher than for the same period last year, while imports came to €98.4 billion, a 15.1% y/y increase, according to information from the Central Statistical Office. The rapid increases are due mostly to fluctuations in exchange rates and the overall low value of the z∏oty, according to Tomasz Kaczor, chief economist at Bank Gospodarstwa Krajowego.

Prices of consumer goods and services grew by 3.9% y/y in September, the Central Statistical Office announced last week. That’s slower than the market had forecast and down from the 4.3% y/y seen in August. September brought lower prices of food, soft drinks and transportation. On the other hand, clothes and shoes became more expensive, but their prices increased less than in the same period of 2010.

Borno Janekovic believes the long-term economic outlook for Poland is positive term? Maybe, as well. The euro zone has one currency and one monetary policy but 17 different fiscal policies. That seems unsustainable in the long run. There are two possible scenarios I foresee. The first is that France, Germany and some other country will form a sort of core group of the EU with all the consequences that will have. The second is that we will see a stronger grip of the strong on the weak with institutions like the European Financial Stability Facility (EFSF) playing a

“For those well-prepared, a bear market is not a calamity but an opportunity” long term. If today a Greek tourist can go to New York and buy a coffee in Starbucks or a laptop cheaper than in Greece, then we know there is an imbalance somewhere. It’s because of the strong euro, but why is the euro so strong? Is the euro zone doing so well? No. Will the euro get stronger? Yes, maybe in the short term. But could it get back to parity with the dollar in the long

Exports and imports up

Inflation takes a breather

COURTESY OF FRANKLIN TEMPLETON INVESTMENTS

Remi Adekoya: What is the outlook for Poland’s economy, taking into consideration the current euro zone crisis? The perspectives are good, especially if you consider the long term and not just the short term. In the short term, economic perspectives are usually seen as super good or super bad. They tend to be perceived on one or other side of the extreme. Poland, meanwhile, has a growing middle class. People are growing richer, have more disposable income and are living longer. They have to think about their future income when they are retired as the pensions they receive from the state will not be enough. We currently have an office in Warsaw with about 20 employees and an office in Poznaƒ with about 300 employees. We are planning to increase the number in Poznaƒ to 500 employees as we are very happy with the skilled labor that we find in Poland. This shows our confidence in the country.

much bigger supervisory role. So do you think the euro zone will survive? When it comes to the euro zone, the US, for example, seems to doubt the willingness of Europeans to save the euro. But the fact is that European politicians want it to survive because it’s part of the whole big European idea and this idea is very good and has brought peace and stability to

Europe. They will do everything to make it survive. Talking about the US, can you explain why its bonds are now selling at all-time lows despite the national deficit problem and negative news coming out of the market? When we consider bonds, we look at the level of debt and whether the country is growing. The US has high debt and is not growing particularly fast, just like the euro zone and Japan. So we have no investments in these countries’ bonds. We like Asia, we like Poland and we like several countries in Latin America. We wonder why any time the environment gets riskier, everybody buys US bonds. It happens every time until people pause for breath and take a look at the fundamentals. On the other hand, the doom and gloom news regarding the US is also exaggerated. A lot of economists are now saying world growth will be fueled by the emerging economies. Do you agree with that sentiment? Emerging markets are definitely doing very well. But we should start reconsidering

that term “emerging markets.” The term is usually perceived as meaning economies with higher-risk rates than the so-called developed economies. But many countries labeled emerging markets today have large foreign reserves and are growing. So which is the emerging economy, Italy or Poland? Greek bonds were rated Anot so long ago and now that country might default. So investors’ perception of emerging economies is changing. So in general, do you think the global economic outlook is not as gloomy as is being portrayed by some? I’ll answer that with some remarks that our founder Sir John Templeton made in 1949 when there was a bear market. “Right now, there is a bear market, but it will be temporary because people don’t remain pessimistic forever.” “There are numerous reasons why the stock market may go down today, but there are also numerous reasons why it may go up today,” and “for those prepared in advance, a bear market is not a calamity but an opportunity.” ●

Warsaw attractive to investors Warsaw ranked 21st place on a Cushman & Wakefield survey of the most attractive cities to develop a business in Europe, up three notches from last year and ahead of Vienna and Prague. The cost of office space and employing workers were cited as Warsaw’s main advantages. Still, there remains much to be done – those surveyed gave the quality of life and environmental conditions in the capital the lowest marks.

Car production down Only 70,500 passenger cars and delivery vans left Polish factories in September. That’s about 11.6% less than in the same month in 2010. September was the seventh month this year that has seen a decline in domestic car production. Only in February and August did Polish plants manage to manufacture more automobiles than in the corresponding periods of 2010. ●

OPINION & ANALYSIS

www.wbj.pl

OCTOBER 17-23, 2011

What do the election results mean for Polish foreign policy?

Ryszarda Formuszewicz

“The main parties need to avoid the risk of sliding into demagogic or even populist slogans about foreign policy” political parties did concentrate more on domestic issues to attract potential voters. The parliamentary elections of 2011 were hardly business as usual, however, as they were held in the middle of Poland’s first ever turn at the head of the EU Council. When the election date was set, concerns were voiced that the functioning and efficiency of the Polish presidency would be at risk, and that the election campaign would dominate government activities during the presidency. Although the risk of serious complications was considered slight due to the reduced role of the rotating presidency since the Lis-

bon Treaty entered into force, it was not altogether excluded.

Flexible coalition The victory of the ruling Civic Platform (PO) party, led by Prime Minister Donald Tusk, along with the likelihood that the current governing coalition with the Polish People’s Party (PSL) will remain in place, should create a stable foundation for the continuation of Poland’s foreign policy – a welcome outcome for its partners in the European Union. The tone of Poland’s foreign policy for the next four years will be set by PO, which retains the Ministry of Foreign Affairs. As the most likely coalition partner, PSL seems to be aware of its relatively limited expertise with foreign policy. That was apparent in PSL’s rather modest foreign policy presentation in its election manifesto, a nod to the preferences of PSL voters. It also signals a flexible approach from PSL to any coalition negotiations. Having to resign itself to play-

ing the role of junior partner, it is reasonable for PSL to adopt a flexible position in areas less relevant to its target group and to develop a more principled approach to its own priorities.

COURTESY OF KPRM

onventional wisdom holds that foreign policy is not a major influence on voters’ choices in national elections. Whether this generalization holds for Poland is debatable, but in this year’s elections Polish

created an opportunity for the ruling coalition’s partners to emphasize their own positions on certain issues that tend to be blurred when working in unison. Differences were apparent, for example, with respect to the possible adoption of the single currency. In a questionnaire survey conducted by the Polish Institute of International Affairs (PISM), PO claimed that a referendum on future euro accession is not necessary, while PSL said a referendum would be advisable if there are serious doubts or differences of opinion.

Tougher opposition Therefore, the Polish People’s Party will insist on maintaining control of the Ministry of Agriculture. This will guarantee influence over Common Agricultural Policy (CAP), a key issue in European policy, and also on the Multiannual Financial Framework negotiations regarding this particular scope. But the election campaign also

Political rivals of the future ruling coalition will keep a watchful eye on the government’s foreign policy. Because of different assessments of challenges and threats to Poland, critical comments can be expected from the three opposition parties. This is especially true for Law and Justice (PiS), the strongest opposition group in parliament, as foreign policy forms an important part of that

Collaboration is critical for Baltic Sea Region

ext week in Gdaƒsk, around 700 representatives of national and local governments, business, academia and various organizations will gather for the Baltic Development Forum. It is an important event. This year’s meeting is the 13th since its inception in 1999 and its venue, Gdaƒsk – where the Solidarity movement was born, setting in motion the peaceful reunification of Europe – is a timely reminder of how far the region has come in terms of growth and integration. However, delegates also know well that the conference takes place at a critical time for the world economy. On the positive side, we can note that the Baltic Sea Region has performed better than Europe as a whole during the first phase of the financial crisis. Even so, the outlook is uncertain. Companies and other borrowers know that bank financing is scarce. Availability of long-term loans at acceptable terms is limited. This is a problem at a time when we need to invest and build for the future. The European Union strategy

for the Baltic Sea Region aims to make the region environmentally sustainable, competitive, accessible, safe and secure. These priorities tie in well with the overall EU 2020 targets of smart, sustainable and inclusive growth. As the EU’s long-term financing arm, the European Investment Bank continues to play an important role in this work in the region, where we are, by far, the largest international long-term lender. Over the last five years (2006-2010), our annual lending volume has doubled from around €4-5 billion to about €10 billion. The largest recipient country is Poland, which received 45 percent of EIB loans granted in the Baltic Sea Region during these years. The EIB has financed rail projects, broadband networks, wastewater treatment plants, bridges, tunnels, roads, port facilities, energy projects and a large number of research, development and innovation projects. For large infrastructure projects which receive structural funds financing, we also assist with feasibility studies, project manage-

ment and other work through programs such as the Joint Assistance to Support Projects in the European Regions (JASPERS). Looking ahead, it is evident that the difficult times in the world economy require the Baltic Sea Region to focus even more on “smart growth.” This means making the investments that can really pay off in higher longterm growth. In the public sector, it is about providing better education and better professional skills. In the private sector, it means encouraging innovative companies with high growth potential. Equally important, in my view, is for us to strive towards further regional integration. Through increased interaction and collaboration, the Baltic Sea Region can create larger markets, reduce costs and provide more investment and career opportunities for people within and outside of the region. The Baltic Development Forum – this year with the prime ministers of Poland, Estonia, Finland and Lithuania as lead speakers – is one example of the very active collaboration in the region.

Such initiatives help bring forward the investments that are needed in cross-border infrastructure, in energy, in the environment and in other sectors. Several such projects are already under way. One of the about 50 projects that we finance in the region every year is the Estlink 2 power cable project. Linking Estonia and Finland and part-financed by the EIB, it will almost triple transmission capacity when completed in 2014. By connecting the Baltic States with the rest of the Nordic grid, Estlink 2 reduces price discrepancies and helps ensure supply at times of peak loads. It is one of the key projects under the Baltic Energy Market Interconnection Plan (BEMIP), launched at the initiative of the EU Commission in 2008. Another example is the Wroc∏aw water and wastewater treatment program in Poland, also part-financed by the EIB. This project will greatly improve public health and environmental protection not only locally but also in the region and beyond by reducing the

party’s self-image. Another active participant in the debate on foreign policy will be the Democratic Left Alliance (SLD). This party strongly emphasizes its expertise and achievements in foreign and European policy. SLD even delivered a separate policy document devoted specifically to this domain. However, SLD’ serious defeat in the election significantly reduced their parliamentary representation and will probably weaken their voice with regard to foreign policy for a long time. Finally, it is difficult to assess the future stance of the third-largest political force in parliament, newcomer to the political scene, Palikot’s Movement (RP). On the one hand, a major focus on domestic policy issues can be expected. But on the other hand, this party may hype up some specific foreign-policy issues, especially those that could have a polarizing effect on Polish society. In order to avoid the risk of sliding into demagogic or even populist slogans about foreign policy issues as a result of polarization, all the main political groupings should strive to ensure a high-quality foreign policy debate over the current parliamentary term. ● Ryszarda Formuszewicz is an analyst at the Polish Institute for International Affairs (PISM). pism.pl

Matthias Kollatz-Ahnen pollution load of the Oder River and the Baltic Sea. Projects like these are vital components of long-term growth which is smart, sustainable and inclusive. To ensure such a future, increased partnership among national and

“The Baltic Sea Region has performed better than Europe as a whole during the first phase of the financial crisis” local governments, businesses, civil society organizations and others is a critical factor. I have no doubt that people in the Baltic Sea Region will work with determination towards those objectives. ● Matthias Kollatz-Ahnen is vicepresident of the European Investment Bank with special responsibility for the Baltic Sea Region

OPINION & ANALYSIS

OCTOBER 17-23, 2011

www.wbj.pl

Have Poles created a monster? Remi Adekoya

fter making history on October 9 by becoming the first prime minister in post-communist Poland to lead his party to back-toback parliamentary election victories, Donald Tusk is now flexing his muscles to let everybody know who’s the boss. It all started with his first postelection interview last week, when he told current affairs weekly Polityka

“Greater men than Donald Tusk have fallen victim to vanity after lesser victories” that he didn’t plan to make any changes to government until after December 31 this year, when Poland finishes its term as president of the European Union. The comments sparked controversy, with headlines such as: “Donald Tusk has appointed himself prime minister,” dominating the media the next day. His party colleagues also expressed surprise, saying they had not

been informed of Mr Tusk’s intentions. Usually, a PM-elect emerges after the president has designated him as such, formally handing him the mandate to form a majority in parliament and create a government. Of course, due to Civic Platform’s (PO) resounding election victory, President Bronis∏aw Komorowski would have asked Mr Tusk to form a government anyway. But the impression created was that the PM was arrogantly jumping the gun. Donald Tusk later backed down from his Polityka comments and announced last Thursday that a new government would be in place by November 22 and that he had the president’s full support for his plans.

loyal to the PM, to replace Mr Schetyna as speaker of the Sejm, one of Polish politics’ most important positions. The PM also referred to Mr Schetyna as the “leader of the internal opposition [in PO] and someone who had been aspiring to the role of rival,” at the press conference. One of Mr Schetyna’s allies has described Mr Tusk’s coments as “a declaration of war.” Mr Tusk has not yet specified what position he will offer Mr Schetyna in his new government. This delay has widely been interpreted as a public slap in the face for Mr Schetyna, who was once Donald Tusk’s personal friend and closest political ally.

Pre-emptive strike All of this was to be expected. Mr Tusk’s move is understandable in a Machiavellian context. It was a preemptive strike. The PM knows there are difficult times ahead. The world is bracing for a second economic crisis, one which would likely hit Poland far harder than the previous one did. But even before that is felt, the government is probably going to have to make some spending cuts in order

A declaration of war? At the same press conference, Mr Tusk also made some interesting comments regarding Sejm Speaker Grzegorz Schetyna, the number-two man in PO. Mr Tusk said he would be recommending Health Minister Ewa Kopacz, who is known to be fiercely

to balance the budget. All this means that within a short period of time, Mr Tusk’s popularity is likely to slip significantly. It is in such situations that a pretender usually makes his play for the crown. The only person in PO strong enough to attempt a party coup is Mr Schetyna, so the PM is doing everything he can to weaken his position in the party.

A sign of things to come? The more pertinent question for Poland is whether all of this – a oneoff display of brutal but perfectly understandable political maneuvering – is a sign of things to come. Due to his historic win, Mr Tusk now enjoys the kind of hero worship Tony Blair did in the Labor Party after his 2001 re-election victory. Things did not end well for Mr Blair, as he went on to defy opposition from outside and inside his party to embark on the Iraq War. The decision tainted his reputation and will likely be what he is most remembered for. Donald Tusk might not have to decide whether to take Poland to war or not, but he will certainly have to

Yanukovych’s gamble

ast Tuesday’s decision by a Ukrainian court to sentence former Prime Minister Yulia Tymoshenko to seven years in prison while the country’s legislators look to implement a legal solution that would decriminalize her offense constitutes a bet on the part of Ukrainian President Viktor Yanukovych that he can get away with sidelining a political foe without harming Ukraine’s European prospects. Though Mr Yanukovych claims that he has no control over an independent judge passing the verdict, few believe that such a politically sensitive case would be left alone by the government. Ukraine isn’t exactly known for its independent judiciary.

European aspirations.” Even the Polish Ministry of Foreign Affairs, arguably the biggest supporter of Ukraine’s European integration, released a statement admitting that “Ukraine’s image as a country that is undertaking a fundamental pro-European transformation has been tarnished.” The severity of the reaction in Brussels and throughout EU member states suggests that European leaders will hold Yanukovych accountable for what’s been described as a “political trial” and a “violation of democracy and the rule of law” by some of Ukraine’s closest supporters in Europe, heavyweight Polish MEPs Jacek Saryusz-Wolski and Pawe∏ Zalewski.

Swift reaction The reaction to the ruling was swift and strong. EU diplomacy chief Catherine Ashton said that “justice is being applied selectively in politically motivated prosecutions.” Wilfried Martens, head of the European People’s Party, the biggest party in the European Parliament, called for suspending the signing of an association agreement with Ukraine and said that “the court process and the decision is shameful for a country that has

Difficult to defend The conviction has made it very difficult for Ukraine’s friends to argue the case for its closer integration with the EU through the association agreement and the free-trade agreement to be signed at the end of the year. Mr Yanukovych might have overplayed his hand. Whether or not the EU decides to cancel his planned October 20 trip to Brussels will be the best indicator of this.

Ms Tymoshenko’s conviction was received in Warsaw with much consternation, but without surprise. Poland has made closer ties between the EU and Ukraine one of the main priorities of its EU Presidency. Poland hoped the association agreement would be a crowning achievement of its six-month stint at EU’s helm. Over many months, Polish diplomacy has been working to avoid the train wreck of Tymoshenko’s conviction. Poles know that Ms Tymoshenko is no saint, and have made the case to the Ukrainian government that she is using the trial to focus attention on herself both domestically and internationally. Polish President Bronis∏aw Komorowski met frequently with President Yanukovych to make sure that he fully understood the consequences of her sentencing. Nevertheless, Ms Tymoshenko’s trial overshadowed the Eastern Partnership summit that took place in Warsaw in mid-September, and now the guilty verdict threatens to derail the important free-trade agreement between the EU and Ukraine, which would solidify Ukraine’s path towards European integration. Mr Yanukovych has made it very difficult for Ukraine’s friends to help him.

make decisions that will have farreaching consequences for the lives of millions of Poles. Greater men than Donald Tusk have fallen victim to vanity after lesser victories. If the PM eliminates all those who disagree with him from his immediate circles then he will be left with sycophants and adoring fans. That would not bode well for Poland, especially in the face of the difficulties ahead. The PM now has a cooperative president, a party grateful to him for keeping them in power and, crucially, the backing of many in the media. If ever there was a time when muchneeded reforms could be made in Poland, that time is now. But if there is nobody by his side but yes men, then Poland could end up being stuck with a capricious emperor. Let us hope that Donald Tusk understands the importance of political dissent, and that Poles will not wake up one day to discover they have created a monster. ● Remi Adekoya is WBJ’s politics editor. Read his blog “The business of politics” on WBJ.pl

Micha∏ Baranowski

Plenty of motives Mr Yanukovych’s motives for going through with the trial were both political and economic. The guilty verdict bars Ms Tymoshenko from taking part in the next parliamentary elections, in which she and her supporters would be the biggest challenge for Yanukovych’s Party of Regions. Convicting Tymoshenko also serves as a shot across the bow to other opposition leaders in Kiev, as well as to backbenchers in Yanukovych’s party. The timing of the verdict is even better explained by economic factors. Yanukovych’s administration is trying to renegotiate the extremely costly gas deal with Russia that Tymoshenko signed and for which she was sentenced. The agreement costs Ukraine millions of dollars in inflated gas prices at a time when Ukraine, facing an economic crisis, can least afford it. The conviction, which characterizes signing the agreement as a crime and an abuse of power, will strengthen Ukraine’s case to renegotiate the deal. Russian Prime Minister Vladimir Putin appeared worried by this turn of events and called the guilty verdict “dangerous and counterproductive.”

The most likely scenario for the coming weeks is for President Yanukovych to support a quick change of the law, which would decriminalize Tymoshenko’s offense, leading to her release. Mr Yanukovych’s hope is that

“Mr Yanukovych has made it very difficult for Ukraine’s friends to help him” this will quiet the European criticism, and he will be able to carry on business as usual. That might not be the result. European leaders are unlikely to accept anything less than Tymoshenko’s swift release, the return of her full rights to political participation, and the cessation of any other trials of opposition leaders. That would be hard for Mr Yanukovych to do without losing face. ● Micha∏ Baranowski is a senior program officer with the German Marshall Fund’s Warsaw Office.

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IN-DEPTH: INVESTING IN GOLD

www.wbj.pl

Changes at Pernod Ricard

OCTOBER 17-23, 2011

Investment in gold

Golden opportunity

French beverage company Pernod Ricard has announced that it will be making several structural changes to its operations in Poland. Poznaƒ-based Wyborowa, a producer of vodka and one of Pernod’s main Polish assets, will continue to focus on production and export of its Luksusowa and Wyborowa brands, while the Warsaw branch of Pernod Ricard Polska will start to focus on “all distribution activities, including sales and marketing of all Pernod Ricard’s international and local brands represented in the Polish market,” a Pernod representative said at a recent conference.

Gremi Media buys Presspublica

Lingerie and cigars Pronox, a Polish electronic equipment producer and provider, is planning a radical change of strategy that its management hopes will allow it to sell more exclusive products, reported Parkiet.The firm, which has recently signed a bankruptcy agreement, will now focus on the production of luxury merchandise including lingerie, alcohol, cigars and coffee. ●

Roberto Galea

SHUTTERSTOCK

Grzegorz Hajdarowicz, a Kraków-based entrepreneur and owner of Gremi Media, has acquired 100% ownership of Presspublica, after purchasing a 48.99% share in the company from the State Treasury. Sources quoted by Rzeczpospolita said the transaction value was z∏.55 million. Gremi Media had purchased a 51.01% stake in Presspublica several months ago from British publishing house Mecom for z∏.80 million, giving the group control over titles including Rzeczpospolita and Parkiet.

In Poland, as elsewhere, gold has become a popular investment alternative. And as long as uncertainty in the euro zone lingers, experts expect the price to remain high In times of economic and political strife, gold has long been considered a safe haven for investors, with the price of the shiny yellow commodity shooting up during wars, depressions and other periods of uncertainty. Investors simply feel a sense of safety with gold; no bond, share or financial instrument is quite as tangible. Nevertheless, just a few weeks ago, with panic in Europe reaching a fever pitch, the price of gold plummeted. But why? Economists seem to agree that the phenomenon constituted a simple correction following gold’s dramatic rise. Despite the drop, the price of gold remains nearly 40 percent higher, in z∏oty terms, than it was just a year ago. Polish individual investors first started buying up gold on a large scale in 2004, when gold for investment purposes was relieved of VAT. And

according to the Mint of Poland, interest in gold from buyers in Poland has shot up along with its popularity in the rest of the world. In 2010 private investors bought around 1,500 kg of gold in the country, the Mint says. This year that demand is expected to grow by an estimated 15-20 percent. Though the volume pales in comparison to that traded in Western markets, the popularity of gold as an investment is clearly rising rapidly in Poland.

Buy and hold With the popularity of gold on the rise, so are the number of businesses looking to help Poles make their investments. As in the West, the internet has become a favorite tool. Along with websites dedicated to trading gold, several firms have taken to selling gold on Allegro – Poland’s top auction website, akin to what Brits or Americans might be familiar with in eBay.

Dominusarx is just one of several companies currently selling gold bars on Allegro. Dariusz Garski, the firm’s coowner, explained that following payment, the top bidder receives his or her gold in the mail. “Once the buyers think it is time to sell, they can take the ingot back to the shop and sell it at the current market price,” said Mr Garski. But Mariusz Przybylski from the Mint of Poland said that some of the gold sold through these channels is of

unknown origin, and may not be completely pure. The ingots sold by official points such as the Mint are certified, numbered and monitored for purity. “Apart from this,” Mr Przybylski said, “the owner of such ingots can rest assured that a large institution will buy any amount of gold at the trading price on the London market, minus a commission.” Such commissions can be hefty though, according to Jacek Kasparczyk from price

comparison website Comperia.pl. Another downside is the high administration and storage fees charged by such institutions.

Virtual gold There are other solutions for those not willing to hold onto the gold themselves or pay storage fees. Gdaƒsk-based firm Amber Gold has been heavily marketing its gold deposit accounts, with a guaranteed return of up to 15 percent for 60 months. This figure

Alternative commodity markets available to Polish consumers Wine: A “Bordeaux Portfolio” could see profits of 40 percent over a year. The price is increased by demand from Asian countries, especially China, where Premiere Crus from the French region’s top chateaux is sometimes given as a gift between business partners and consumed by the nouveau riche. The minimum

recommended investment is around £2,500. Land: The premise of this form of investment is to buy land in rural areas in the hope of it becoming a city suburb and seeing a hefty return. Return on investment could be over 500 percent in four years. Typically, the minimum recommended investment is

z∏.100,000. Whisky: A whisky portfolio – of professionally selected Irish (whiskey) and Scottish Single Malts – could see a return of up to 144 percent. The recommended investment period is three to five years. The minimum recommended investment is €5,000. ●

IN-DEPTH: INVESTING IN GOLD

OCTOBER 17-23, 2011

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Legal Eye

“The tense situation in the euro zone and other signs of deterioration in the global crisis are likely to result in a quick improvement in the price of gold”

Solid gold returns

SHUTTERSTOCK

Judith Gliniecki is a Partner with Wierzbowski Eversheds judith.gliniecki@eversheds.pl Sovereign credit ratings downgraded, market turbulence, stagnant housing prices: Where can you put your money these days? Despite the uncertainty, there is no lack of choices. Like me, you are probably regularly receiving calls and e-mails from various financial advisors with yet another great investment offer. Among other things, globalization has meant more investment opportunities as only a few legal restrictions exist anymore. The problem starts with trying to sort through all the information, solicitations and advertisements to find an appropriate investment. While there may not be many limits on investment options, they exist on the claims that can be made in advertising.

Unfair practices mines combined, according to data from the World Gold Council. A simpler option for individual investors is to trade in gold certificates with a 1:1 ratio of the price of the commodity (based on monthly futures), said Robert Raszczyk, an economist from BZ WBK Brokerage. Mr Raszcyk said such investments bring in returns equivalent to the change in the price of gold traded on global markets. With ETFs, an investor might also choose to include other commodities in the portfolio.

is well above Poland’s top bank deposit interest rates, at about 7.5 percent. Despite this, experts contacted by WBJ warned that it is best to stick with a certified institution even if the return might be lower. When contacted by WBJ, Amber Gold declined to comment. Other available options include Exchange-Traded Funds (ETFs), which can be traded on the Warsaw Stock Exchange. On a global scale, gold traded on ETFs in 2010 alone amounted to 2,100 metric tons – equal to the yearly production of all the world’s

Maciej Bitner, chief economist at Wealth Solutions, a fund-management firm, said that ETFs are a better option than buying physical gold, as the hidden costs are minimal and the return on investment could be up to 10-15 percent.

Timing is key The weakening of the z∏oty against the dollar has worked to the benefit of Polish investors, as the exchange rate has somewhat broken the fall in the price of gold. And IDMSA analyst Kamil Oziemczuk said that the price of gold could continue downward for

Rise and shine

SHUTTERSTOCK

Price of gold, per ounce, PLN (8th of each month or closest date)

6,000

5,000

4,000

3,000

Oct

Nov Dec 2010

Jan

Feb March Apr

May

Jun 2011

Jul

Aug

Sept

Oct

Source: Kursyzlota.pl

another few months. “We are in a period of consolidation and we should expect prices to hit a level of around $1,400 [per troy ounce].” Mr Oziemczuk said now is a good time to start investing. The first phase of a recession usually results in a sharp increase in the price of gold, while the second phase is characterized by a dropping trend because of market corrections, Mr Oziemczuk explained. “The tense situation in the euro zone and other signs of deterioration in the global crisis are likely to result in a quick improvement in the price of gold,” wrote Maciej Bitner in a comment at the end of September. “US inflation should also positively affect the price of gold. The situation in 2008 – when the high increase in prices quickly gave way to deflation – should not repeat itself this time around.” These opinions are reiterated by Bank BPH chief economist Maja Goettig, who said that while it is hard to predict the exact movement of gold, the economic climate indicates that its price is set to rise. Most experts agree that the price of gold should increase but only as long as there is turmoil in the European Union. And judging by the many unresolved problems still plaguing Europe’s financial system, a solution to the bloc’s debt crisis may still be a long way off. ●

Improper advertising practices are classified as unfair competition under Polish law. This means that a whole murky area of “it’s just not right” can come into play. In addition to complying with law (such as special restrictions on advertising alcohol), advertising should not cross the line of decency or impinge on human dignity. Especially important in these times of uncertainty, fear as a sales tactic is also illegal. The information in an advertisement is supposed to be truthful. If someone is promising “solid gold” returns, they need to be able to back up that claim. An advertisement may not be misleading, if that half-truth could influence your decision whether or not to buy something. Perhaps equally important in an area like investment services where trust is paramount, advertising may not be hidden under a gloss of supposedly neutral information.

Comparisons On a related subject, however, it is possible to make some comparisons in an advertisement. Certainly, a showing of historical returns versus other comparative indicators is a favorite selling device for those touting investment opportunities. A whole number of factors come into play in determining whether a comparison is permissible. Above all, the comparison

must be “apples to apples” and it is best if it can be backed up with some objective standard. This is the reason for all those references to rankings and other statistics published by various financial media organizations. Many other factors apply in determining whether a comparison is proper, including that an advertisement cannot serve to discredit the competition or play off on the renown of a competitor. The penalties for unfair advertising can be severe, involving penal fines or even imprisonment.

Restrictions Since Poland’s accession to the European Union, the world is potentially an oyster for an investor in the country. Who remembers the extensive prohibitions from the Foreign Exchange Act in Poland on foreign investments from the 1990s? For that matter, the world has come a long way. From the 1930s to 1970s, for example, US citizens could not own gold bullion without special permission. However, before getting excited about some exotic investment opportunity, it is a good idea to take a look at those remaining investment restrictions. Poland’s Foreign Exchange Act requires that investors obtain individual foreign exchange permits from the National Bank of Poland to make more unusual investments. For gold, the restrictions are related to the country from which it is to be purchased. You may purchase gold from a person or a company resident in a country that is a member of the European Union, European Economic Area or Organization for Economic Cooperation and Development. Also, a general foreign exchange permit allows the purchase of gold from someone hailing from one of the more than 60 nations with which Poland has signed a Bilateral Investment Treaty. While this sounds fairly comprehensive, some major countries, such as South Africa and Brazil, still fall outside of the ambit of either of these. Thus, if you want to purchase Krugerrands, you may want to buy them from someone in Poland. ●

Warsaw’s Wilanów is losing its popularity with residential developers

Rogowski Development is planning new housing projects in Warsaw

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

Rac∏awicka Point fully leased Grupa Capital Park has leased the last available space in its Rac∏awicka Point office building in Warsaw. Tenants at the 2,444 sqm property, which is located at the intersection of ul. Rac∏awicka and ul. Wo∏oska in the capital’s Mokotów district, are Technicolor Polska, Norgips, Polit Elektronik, Rossmann and Domino’s Pizza. Grupa Capital Park has been active in the Polish real estate market since 2005. ●

In this issue Port Praski zoning . . . . . . . . . . .15 Skanska’s Green Towers . . . . .15 Delta44 in Wrocław . . . . . . . . . .16 Aquarius Business House . . . .16 Investment in CE . . . . . . . . . . . .16 Property-related stocks . . . . . .16 Industrial parks . . . . . . . . . . . . .17 Luxor Residences in Warsaw .18 Wilanów developments . . . . . .18 Rogowski Development interview . . . . . . . . . . . . . . . . . . . . . . .19

Port Praski zoned for skyscrapers The new development would transform the skyline of Warsaw’s east bank The zoning plan for the longneglected Port Praski (Praga Port) river port neighborhood of Warsaw’s Praga Pó∏noc district, has been completed by Warsaw City Hall, and is expected to be voted on in the near future. If approved, the redevelopment of the area, which will be situated next to the planned Stadion subway station, will include four skyscrapers with heights of 100m, 120m, 140m and 160m respectively, a move which is set to completely transform the Praga skyline. In addition, residential units will be built on the waterfront. A park and recreational area will be built in the southern part of the 38-hectare plot. In terms of the potential profitability of the project,

The planned redevelopment of Port Praski could transform the waterfront and surrounding area in Warsaw’s Praga Pó∏noc district Mikolaj Martynuska, a director at CB Richard Ellis Polska, believes it will be a success. “I am convinced this project may be a commercial suc-

cess if it is planned and targeted properly. Assuming that the project will be structured in the right manner, I have no doubt it will be profitable for

the developer. The only question is the time line of the potential return,” he said. But with regard to the skyscrapers, which form a central

part of the proposed development, Mr Martynuska believes this will be a more long-term project in terms of seeing return. “In this sense, proper phasing of the whole development is one of the key issues which will finally build value of the entire project,” he said. The development plan can currently be viewed up to November 8, 2011, on the 19th floor of the Palace of Culture and Science from 8 am to 4 pm, Monday to Friday. Port Praski was built during the interwar period to serve as a reloading dock and winter port. The facility comprised three port basins and several buildings and was closed in 1963 when its functions were taken over by another of the capital’s ports – Port ˚eraƒ. Most of the land covered by the newly drafted zoning plan is owned by Elektrim’s subsidiary Port Praski. David Ingham

Office development

Construction starts on Green Towers’ second phase The scheme will deliver 11,600 sqm of leasable space Developer Skanska Property Poland has begun construction work on the second phase of the Green Towers office complex project in Wroc∏aw. The scheme, which will comprise two 10-storey towers, is being built over two phases – one for each of the towers. The second phase of the scheme, which is located on ul. Strzegomska, will offer 11,600 sqm of leasable area. The value of the whole investment is €48 million. Completion of the first phase of the project is scheduled for the end of the first half of 2012. The whole scheme is expected to be delivered at the end of 2012.

“We have decided to launch the second phase due to the great potential of Wroc∏aw and its image of a dynamic city eager to support new investments. We also see increasing demand for office space in green buildings, both among future tenants and investors,” Waldemar Olbryk, president of Skanska Property Poland, said in a statement. In January of this year, Ernst & Young signed a lease agreement for 1,800 sqm of office space in building A, while two further lease contracts were concluded in September 2011, one of which was with Allegro Group. That company will take up approximately 1,500 sqm of space in the same building. The other contract was

signed for the lease of commercial space in both build-

ings. That space will host canteens, which will be run by a

COURTESY OF SKANSKA PROPERTY POLAND

Construction company Hochtief Polska held a topping-out ceremony to mark the completion of a Jeronimo Martins Distribution office building in its shell-andcore phase. The building in question is located on ul. Dolna in Warsaw’s Mokotów district. Construction on the facility began 15 months ago and completion is planned for the first quarter of 2012. The nine-storey building, which will comprise 18,540 sqm of space, will feature a commercialservice area on the ground floor as well as a five-storey underground parking lot.

OCTOBER 17-23, 2011, LI 16/41

Redevelopment

COURTESY OF JEMS ARCHITEKCI

JMD office building topped out

•

local catering company and cover a total area of approximately 500 sqm. “Green Towers is an exceptional project, both in terms of its architectural design and location. I am confident that the tenants who have selected Green Towers will be satisfied with the sustainable solutions applied in the project. The green, innovative technologies will not only ensure an excellent working environment, but will also result in significant savings for the tenants”, Mr Olbryk said. Green Towers is a class-A green-office complex, built in compliance with the principles of sustainable development. It is a LEED pre-certified office building.

The value of the whole investment is €48 million

David Ingham

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

LOKALE IMMOBILIA – REAL ESTATE

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Murawa Office Park award The Murawa Office Park building in Poznaƒ won this year’s “Best Office Development for Poland” category and was the only office building in Poland to receive a “Five Star” title at the 17th annual European Property Awards, which were held on September 23 in London. Murawa Office Park is a collection of five interconnected threestorey class-A buildings. The buildings are linked by glass passageways, and offer a total of 7,500 sqm.

Bogatynia mall open for tenants AXI IMMO has commenced the commercialization of Gant Development’s Park Handlowy Bogatynia retail project in Bogatynia, Lower Silesia voivodship. Located between the city’s ul. Daszyƒskiego and ul. Spó∏dzielcza and scheduled to open in the summer of 2012, the scheme will deliver a total of 7,000 sqm of leasable space. ●

OCTOBER 17-23, 2011

Contractor selected for Investment in region to reach Wroc∏aw Delta44 project €6 billion in 2011 Real estate investment activity in Central Europe has continued to accelerate in recent months, with a total of €2.32 billion having been invested in Q3 2011 in the property markets of Poland, the Czech Republic, Hungary, Romania and Slovakia, according to a recent report by Cushman & Wakefield. The figure marked a considerable increase on the €706 million invested in the region in the second quarter of this year. C&W experts predict that with a number of new transactions now in the due-diligence phase and expected to close in Q4, the total annual investment volume in Central Europe could reach €6 billion by the end of 2011. “Transaction activity is back at 2005 levels and Q4 2011 is expected to be strong in Poland, Czech and Hungary. That said, we cannot ignore the increasing economic uncertainty which is starting to impact on investor confidence and also the availability of finance,

both of which could slow market activity in the closing months of this year,” stated Charles Taylor, partner at Cushman & Wakefield. Some €4.61 billion has been invested in Central Europe so far this year, with the Czech Republic (€1.9

“Transaction activity is back at 2005 levels”

COURTESY OF PUBLICON

The Delta44 development will offer 3,857 sqm of leasable space

billion) and Poland (€1.82 billion) having been the two major target markets. “Looking at the transaction pipeline, however, we anticipate Poland to regain the main spot as we move into the final quarter,” the C&W report said. According to the study, some of the most active investors in Central Europe this year are CA Immo, AEW Europe, Atrium, Unibail Rodamco, Deka, Union, Invesco, Heitman, ECE and Meyer Bergman.

Developer Vantage Development has selected Grupa Mostostal’s Wrobis as the general contractor of its Delta44 office and service building in Wroc∏aw, Lower Silesia voivodship. Construction on the project, which will be located on the city’s ul. Dàbrowskiego, is set to launch within the next few weeks and finish in the last quarter of 2012. “We are glad that the investment will be built by Wrobis, one of the most experienced and best-known con-

Adam Zdrodowsk i

Property-related stocks Closing price on Oct 13

% change (week)

52-week low

52-week high

% change (year)

Total shares

Market value (z∏. mln)

BUDIMEX

74.00

7.25

64.00

109.20

-22.51

25,530,098

1,889.23

CELTIC

18.80

-1.10

15.55

60.55

N/A

34,068,252

640.48

DOMDEV

25.00

6.34

23.50

50.80

-45.65

24,560,222

614.01

ECHO

3.81

12.72

3.24

5.55

-28.79

420,000,000

1,600.20

ELBUDOWA

107.40

5.09

98.00

183.00

-41.95

4,747,608

509.89

ENERGOPLD

2.70

0.37

2.45

4.10

-28.95

70,972,001

191.62

ERBUD

18.95

-4.05

14.70

61.00

-62.48

12,644,169

239.61

GANT

8.40

10.09

7.30

19.70

-57.98

20,499,953

172.20

GTC

12.25

3.03

9.33

24.98

-45.80

219,372,990

2,687.32

HBPOLSKA

0.85

4.94

0.70

3.40

-75.07

210,558,445

178.97

JWCONSTR

7.65

17.69

6.10

18.00

-57.50

54,073,280

413.66

LCCORP

1.09

4.81

0.85

1.69

-34.34

447,558,311

487.84

MARVIPOL

7.77

2.24

7.22

12.81

-28.65

36,923,400

286.89

MIRBUD

2.54

3.25

2.25

4.75

-38.94

75,000,000

190.50

MOSTALWAR

25.00

12.61

19.70

68.00

-60.88

20,000,000

500.00

MOSTALZAB

1.29

5.74

1.07

3.55

-63.46

149,130,538

192.38

ORCOGROUP

17.57

11.20

15.70

40.00

-44.22

17,053,866

299.64

PBG

82.50

16.69

56.05

227.50

-64.71

14,295,000

1,179.34

PLAZACNTR

1.95

4.28

1.80

5.15

-61.39

297,174,515

579.49

POLAQUA

7.80

-1.27

7.50

20.60

-55.22

27,500,100

214.50

POLIMEXMS

1.70

13.33

1.23

4.30

-61.10

521,154,076

885.96

POLNORD

13.99

23.48

11.03

38.16

-63.51

23,798,439

332.94

RANKPROGR

9.38

4.11

8.64

13.60

-6.20

37,145,050

348.42

ROBYG

1.07

0.00

1.04

2.13

N/A

257,390,000

275.41

RONSON

0.95

-6.86

0.94

1.66

-44.12

272,360,000

258.74

TRAKCJA

1.75

10.76

1.39

4.97

-61.96

232,105,480

406.18

ULMA

61.90

-1.59

57.00

88.00

-21.55

5,255,632

325.32

UNIBEP

6.17

-0.32

4.47

10.30

-26.98

33,927,184

209.33

WARIMPEX

5.77

4.91

5.30

10.89

-36.24

54,000,000

311.58

ZUE

8.21

-6.81

7.90

15.14

N/A

22,000,000

180.62

service space, respectively, and will feature under- and aboveground parking spaces for a total of 34 cars. Vantage Development is mostly active in the Wroc∏aw market where the company’s projects include the Promenady Wroc∏awskie mixed-use complex, the Gamma office building and Osiedle Centauris residential scheme. Warsaw Stock Exchange-listed Impel is one of the largest shareholders in Vantage Development. Adam Zdrodowski

Tieto to be main tenant at Aquarius Business House

COURTESY OF ECHO INVESTMENT

Security

tractors in the Wroc∏aw market. The scheme will be ready by the end of 2012 and the launch of the construction is scheduled for the turn of October and November this year,” Roman Meysner, member of Vantage Development’s management board, said in a statement. The Delta44 development will be a four-storey B+ class office-retail-service facility offering a total of 3,857 sqm of leasable space. The project will comprise 2,768 sqm and 1,089 sqm of office and retail-

Construction on the Aquarius Business House is scheduled to finish in November 2012 IT company Tieto Poland has leased 8,000 sqm in the first building of Echo Investment’s Aquarius Business House class-A office project in Wroc∏aw, Lower Silesia voivodship. The scheme is located at the intersection of the city’s ul. Borowska and ul. Swobodna; construction has been carried out by Eiffage Budownictwo Mitex since June and is scheduled to finish in November next year. “We would like to thank

Tieto Poland for appreciating our experience in the development of offices in Poland,” Rafa∏ Mazurczak, sales director in the office projects department at Echo Investment, said in a statement. He added that Aquarius Business House competed with several other very good buildings during the final stage of Tieto’s analysis of projects. “I think that this proves that the technological solutions applied by us in

Aquarius Business House have once again met the requirements of our clients,” Mr Mazurczak said. Designed by the Kielcebased Arcad architectural studio, the Aquarius Business House development will comprise two seven-storey buildings offering a total of 25,000 sqm of leasable office space. Construction on the second building in the complex will start in May 2012 and finish in October 2013. Adam Zdrodowski

LOKALE IMMOBILIA – REAL ESTATE

OCTOBER 17-23, 2011

www.wbj.pl

Industrial parks

Prime locations for business Two major Polish industrial parks are attracting significant levels of investment due to a number of key attributes. The Grudziàdz Industrial Park, which is located in Grudziàdz, in the KujawskoPomorskie voivodship, and the Upper Silesian Industrial Park in Katowice, Silesia voivodship, offer investors significant tax exemptions and a good location. Both are located within special economic zones (SEZs).

Prime logistics spot Located some 120 km from the sea ports of Gdaƒsk and Gdynia, the city of Grudziàdz boasts access to the under-construction A1 highway. This route will connect the north and south of Poland. Grudziàdz currently provides access to transportation routes to some of Poland’s major cities including Olsztyn, Toruƒ, Bydgoszcz, as well as Poznaƒ and Lódê. Essentially, Grudziàdz

A guide to Polish business and industry

Industrial Park representatives say, any road traffic coming from Gdaƒsk or Gdynia will have to pass by the city, making it a prime spot for logistics companies. The industrial park is seeing a boom in the construction of warehouse facilities, with the Rossmann logistics center and the Limito warehouse both currently under construction. The Rossmann facility will comprise 35,000 sqm and employ 500 people when it is completed in 2015. The first phase of construction, due to be completed at the end of this year, will provide 25,000 sqm. Building on the second and third phases will begin in 2013 and 2015 respectively. Joanna John-B∏a˝yƒska, the president of Grudziàdz Industrial Park told Lokale Immobilia at the recent Expo Real real estate fair in Munich that “one of the reasons Rossmann chose the city was because of its location in the SEZ which allowed the company real estate tax exemptions for up to nine years.” In August, Gdaƒsk-based Limito, laid the cornerstone of a facility in Grudziàdz Industrial Park that will host produc-

Przewodnik po polskim biznesie i gospodarce

tion and storage facilities for smoked salmon, much of which will be exported. The scheme will cost around z∏.25 million to build and offer approximately 11,500 sqm. Construction is due to finish by the end of this year, with processing of salmon set to begin in 2012. Ms John-B∏a˝yƒska said the park also has space for another logistics center, a retail center and a hotel.

Green credentials The Upper Silesian Industrial Park in Katowice has around 8 ha of space on which, in addition to existing warehouse-office buildings, four eco-friendly office buildings (8,800 sqm each) are being built. The first is due to be finished in May 2012. The new buildings will use the Trigeneration technology system which can “simultaneously produce electricity, heating and cooling from a gas.” According to Justyna Bartecka, marketing director of the Upper Silesian Industrial Park, this will help to decrease operational costs. Construction of the sustainable building was followed by the decision to apply for a

The Rossmann logistics center will comprise 35,000 sqm of space BREEAM certificate, an accreditation that demonstrates a high level of environmental awareness. The project has a chance to achieve a high rating in the BREEAM assessment method thanks to the following solutions it employs: Trigenaration system, rainwater recycling, underground parking space, including parking for alternative means of transport (bicycles), charging

The 2011 edition of Book of Lists is now available!

• Find key information about the dominant players in the market • Expand your portfolio of contacts • See who’s on top of your sector

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COURTESY OF ROSSMANN

Grudziàdz Industrial Park and the Upper Silesian Industrial Park are both expanding

Please contact us at +48 22 639 85 68 or kwilinski@valkea.com

stations for vehicles powered by electricity, a green roof, a heat recovery system, light intensity sensors and many other “green” solutions. Already there are several firms in the Upper Silesian Industrial Park which are located in the warehouse and office building, such as TNT Express, Lektronix Poland, AP Holding SKA, Lorencic Polska, Döllken, Transpoint Inter-

national and many others, which represent diversified branches. If the recent proliferation of companies moving into the Grudziàdz Industrial Park and the Upper Silesian Industrial Park is any indication of future potential, both investment parks could become major industrial centers for Poland. Ella Pa∏ka

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

Segro to build for Opek

Ruch in Kraków logistics center Industrial space provider Goodman Group has leased 5,200 sqm of warehouse space and 650 sqm of space for offices and other functions at the second warehouse of its Kraków Airport Logistics Centre complex in southern Poland to press distributor Ruch. The latter company is the second tenant in the warehouse which, following the deal, is now fully leased out. Construction on the second warehouse in the Kraków Airport Logistics Centre project will deliver over 22,400 sqm of space. ●

Warsaw’s Wilanów less popular with developers COURTESY OF WIKIMEDIA COMMONS

UK-based real estate investment and development company Segro will build a 7,600 sqm modern warehouse facility at Tulipan Park in ¸ódê for Polish courier company Opek. The building, which Opek will use as its main sorting hub in Poland, is set for completion in the third quarter of 2012.

OCTOBER 17-23, 2011

Wilanów was one of the capital’s hottest locations during the pre-crisis construction boom

concerned, the study noted. While the primary residential offer in Warsaw has recently seen growth, this has not been the case in Wilanów, where 30 projects with a total of almost 1,400 available apartments are already located. The bulk of them are completed units designed before the crisis. According to the report, they do not completely meet the expectations of today’s buyers and are thus difficult for developers to sell.

The number of apartments available for sale in the capital’s Wilanów district is decreasing, with cautious developers having recently stopped creating new projects in this area, according to a recent report by real estate services provider Emmerson. During the pre-crisis residential boom Wilanów was one of the hottest locations in Warsaw; as recently as the first half of 2010 the district featured the largest offer as far as the primary housing market is

Even though consecutive phases of a number of ongoing developments are expected to appear in the market soon, the high number of existing investments in Wilanów has generally prevented developers from investing in new projects before the current supply is absorbed. This has resulted in developers shifting their attention to other parts of the Polish capital, the Emmerson report said. Adam Zdrodowski

Long Bridge building residences in S∏u˝ewiec Developer Long Bridge is in the process of building the first of two apartment buildings that will comprise the Luxor Residences residential scheme in Warsaw. The buildings will be located at the corner of ul. Wynalazek and ul. Cybernetyki, in what used to be an industrial area of S∏u˝ewiec in the capital’s Mokotów district. The apartments are to be built in two phases, the first of which is to be completed in the autumn of 2013. The first building will have seven

storeys and offer 58 apartments ranging in size from 42 to 110 sqm. The second building will be seven storeys tall and offer 194 units sized between 33 and 146 sqm. All units will have a balcony. There will also be a two-level underground parking area. The developer has not disclosed when work on the second phase of the scheme will be started or completed. Pricing of the units will range from z∏.7,700 to z∏.8,800 per sqm while a parking space

is set to cost z∏.36,600. One of the advantages of the area is its close proximity to Warsaw’s Chopin airport. The Luxor Residences are also within the vicinity of shopping mall Galeria Mokotów, several schools and medical centers. Mierzejewski Kasprzycki Czaplicki is the architectural office that furnished the design of the project. Construction on the scheme is being carried out by SPS Construction. Ella Pa∏ka

COURTESY OF LONG BRIDGE

Apartments in the Luxor Residences development will be priced from z∏.7,700 to z∏.8,800 per sqm

Pick up the latest edition of Warsaw Business Journal Group’s popular series of busines guides. The publication features Trendbook Poland, a comprehensive view of the business trends shaping Poland’s market. To order, e-mail kwilinski@wbj.pl or call (+48) 22 639-8567 ext. 255

LOKALE IMMOBILIA – REAL ESTATE

OCTOBER 17-23, 2011

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Residential developers

Rogowski to launch new Warsaw projects

Bia∏ystok-based residential developer Rogowski Development is working on a number of new housing projects in Warsaw. By the end of this year the company wants to start construction on its Ogrody Potoki scheme which will be sitting on a threehectare plot in Mokotów; plans for the near future also include two smaller developments located on the district’s ul. Post´pu and ul. Pu∏awska. Last month Rogowski Development commenced construction on the second phase of the Apartamenty Wilanowska project, which is being built on 20,000 sqm of land located at the intersection of Warsaw’s Al. Wilanowska and ul. Dolina S∏u˝ewiecka. The scheme comprises 219 apartments whose total value exceeds z∏.200 million. All of Rogowski Development’s new projects in Warsaw will be upper-standard or luxury schemes. The company is focused on the delivery of

prestigious investments in which buyers can find large apartments. The developer is not planning to be present in the popular segment of the capital’s housing market, which has seen lots of development activity of late. “We have been building and will continue to build upper-standard and luxury apartments. We have the ambition to deliver high-quality units. We want the Rogowski Development logo to continue to be associated with high-quality finishing and interesting architectural solutions,” said Remigiusz Rogowski, president of the company’s management board. Rogowski Development has been present in the Warsaw market for more than 10 years now, with the company’s completed projects in the city including Apartamenty Cybernetyki and Apartamenty Stegny, both of which are located in Warsaw’s Mokotów district. Construction is currently underway on Apartamenty przy WyÊcigach in Mokotów and Apartamenty Miƒska in Praga Po∏udnie. When the developer was debuting in Warsaw, it had already been active in the east-

ern Polish city of Bia∏ystok, Podlaskie voivodship, for several years. It took the company just half a year then, Mr Rogowski stressed, to go through the whole praparatory process and launch its first Warsaw project, on ul. Cynamonowa in the capital’s Ursynów district.

Strong in home city Meanwhile, Rogowski Development remains one of the largest players in its home city where the company’s current land bank should allow it to continue construction for the next seven to eight years. “In Bia∏ystok, we are building a larger number of apartments. In Warsaw, the number of units is smaller but the value of our projects in both cities is similar,” Mr Rogowski said. He added that the company’s decision to be simultaneously active in Bia∏ystok and Warsaw resulted from the fact that the former city’s market could not absorb more than the 600 apartments that the company builds there per year. New projects will be regularly launched in both markets with Rogowski Development having 30 hectares of land in Bia∏ystok alone, Mr Rogowski said. “For the time being, we are

Ronson homes sales growth Developer Ronson Development sold 300 housing units in the first nine months of this year, 40% more than in the same period of 2010. “Gemini II is definitely the hit in our offer this year. Even before construction was launched, 40% of all apartments had been sold and now, a year before completion, only one-fifth of the units remain available,” Andrzej Gutowski, sales and marketing director at Ronson Development, said in a statement.

Robyg boosts Gdaƒsk presence

COURTESY OF PRESTIGE PUBLIC RELATIONS

The company will remain focused on the upper standard and luxury segments of the capital’s housing market

Remigiusz Rogowski says his firm is not planning investments in cities other than Warsaw and Bia∏ystok not planning investments in cities other than Warsaw and Bia∏ystok,” Mr Rogowski said, adding that the company has prepared long-term investment strategies for those two

markets. “Before we finish construction on the planned projects, we are not going to invest in any other cities,” Mr Rogowski said. Adam Zdrodowski

Developer Robyg wants to launch construction on almost 400 apartments in the northern Polish city of Gdaƒsk next year. The units will be located in the company’s Lawendowe Wzgórza, Albatross Towers and S∏oneczna Morena projects. According to the developer, the Gdaƒsk market currently has the largest growth potential in Poland. ●

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MARKETS

www.wbj.pl

OCTOBER 17-23, 2011

Stocks report

world stock indices DIJA

NASDAQ

S&P500

FTSE100

DAX

Stocks seesaw

NIKKEI225

11,478.13 (Oct 13 close)

2,620.24 (Oct 13 close)

1,203.66 (Oct 13 close)

5,403.40 (Oct 13 close)

5,914.84 (Oct 13 close)

8,823.25 (Oct 13 close)

3.19% (for the week)

4.52% (for the week)

3.32% (for the week)

2.12% (for the week)

4.78% (for the week)

3.53% (for the week)

CHANGE: -3.92%

CHANGE: -6.34%

CHANGE: -7.37%

CHANGE: -10.32%

CHANGE: -19.05%

CHANGE: -17.68%

(year to Oct 13)

52-week high: 12,928.50

52-week high: 2,887.75

52-week high: 1,370.58

52-week high: 6,105.80

52-week high: 7,600.41

52-week high: 10,891.60

52-week low: 10,362.30

52-week low: 2,298.89

52-week low: 1,074.77

52-week low: 4,791.00

52-week low: 4,965.80

52-week low: 8,227.63

Andrew Nawrocki, Market analyst & trader, gowebtrade.com After stronger-than-expected non-farm payroll data was released in the US on Friday, October 7, stocks opened last week with gains. Aside from an improved jobs situation for September in the world’s largest economy, stocks also got some relief with yet another strong pledge by German and French leaders to resolve the debt crisis over the weekend of October 8-9. Gains were shortlived though, with indices seesawing throughout the week. Monday, October 10, saw the strongest gains of the week, with the WIG up 2.93 percent, while the WIG20 gained 3.44 percent. Gains were even stronger across the Atlantic, with the S&P500 breaking its 50-day moving average for the first

Major indices WIG

39,608.13 (October 13 close)

WIG20

2,272.42 (October 13 close)

13.10

12.10

11.10

10.10

07.10

06.10

05.10

04.10

03.10

30.09

29.09

28.09

27.09

13.10

12.10

11.10

10.10

07.10

06.10

05.10

04.10

03.10

2,000

30.09

35,000

29.09

2100

28.09

36,600

27.09

2,200

26.09

38,200

23.09

2,300

22.09

39,800

21.09

2,400

20.09

41,400

19.09

2,500

16.09

43,000

26.09

52-week low: 2,089.84

23.09

Change year to October 13: -21.11%

22.09

52-week low: 36,549.47

21.09

52-week high: 2,932.62

Change year to October 13: -20.43%

20.09

Change for the week: 4.56%

19.09

52-week high: 50,371.74

16.09

Change for the week: 4.47%

Top 5 IGROUP EUIMPLANT BORYSZEW TRITON KOMPUTRON

Closing 0.47 0.27 0.63 2.64 5.38

% change (week) 52-week high 56.67 0.59 28.57 0.81 28.57 2.31 27.54 6.50 24.25 10.90

52-week low 0.16 0.18 0.39 1.86 3.90

Top 5 PBG GETIN LOTOS POLIMEXMS ASSECOPOL

Closing 82.50 8.51 26.70 1.70 46.50

% change (week) 16.69 16.58 16.54 13.33 11.64

52-week high 227.50 15.29 49.42 4.30 56.45

52-week low 56.05 6.76 22.70 1.23 35.45

Bottom 5 POLREST ANTI AMPLI OLYMPIC TFONE

Closing 0.08 1.05 1.43 4.50 2.18

% change (week) -50.00 -28.57 -20.11 -15.89 -12.10

52-week low 0.05 1.05 1.43 4.50 0.24

Bottom 5 TVN PGNIG TPSA PGE BZWBK

Closing 14.68 3.93 17.06 19.70 227.00

% change (week) -4.30 -1.01 1.67 2.07 2.39

52-week high 18.80 4.64 19.01 24.90 239.00

52-week low 11.25 3.45 15.10 17.01 210.00

52-week high 0.65 3.08 4.35 7.22 6.69

Currency report

Still no plan for Greece

Other indices mWIG40

2,247.25 (October 13 close)

sWIG80

8,967.57 (October 13 close)

Change for the week: 5.39%

52-week high: 2,987.72

Change for the week: 3.17%

Change year to October 13: -24.06%

52-week low: 2,086.64

Change year to October 13: -29.04%

52-week high: 12,932.00 52-week low: 8,483.22

Adam Narczewski, X-Trade Brokers Dom Maklerski SA

10,000

2,500 2,400

9,500

2,300 9,000 2,200

NewConnect

42.02 (October 13 close)

WIG-Banki

13.10

12.10

11.10

10.10

07.10

06.10

05.10

04.10

03.10

30.09

29.09

28.09

27.09

26.09

23.09

22.09

21.09

20.09

19.09

8,000

13.10

12.10

11.10

10.10

07.10

06.10

05.10

04.10

03.10

30.09

29.09

28.09

27.09

26.09

23.09

22.09

21.09

20.09

19.09

16.09

2,000

16.09

8,500

2,100

5,684.52 (October 13 close)

SOURCE: WSE

13.10

12.10

11.10

10.10

07.10

06.10

05.10

04.10

03.10

30.09

29.09

28.09

27.09

13.10

12.10

11.10

10.10

07.10

06.10

05.10

04.10

03.10

4,900

30.09

41.0

29.09

5,100 28.09

42.2

27.09

5,300

26.09

43.4

23.09

5,500

22.09

44.6

21.09

5,700

20.09

45.8

19.09

5,900

16.09

47.0

26.09

52-week low: 4,944.19

23.09

Change year to October 13: -21.17%

22.09

52-week low: 42.02

21.09

52-week high: 7,387.49

Change year to October 13: -32.74%

20.09

Change for the week: 3.58%

19.09

52-week high: 64.39

16.09

Change for the week: -1.48%

time since July, a bullish technical signal. On Tuesday stocks oscillated up and down, shortly before a key vote in Slovakia on expanding the euro zone rescue fund. The Slovakian parliament rejected the muchneeded increase, leading stocks to close lower. On Wednesday, after Slovakian leaders pledged to pass the vote by the weekend, momentum buying took hold and stocks saw further increases. The WIG gained 2.2 percent, while the WIG20 saw a 2.42 percent gain. Global stocks fell on Thursday, as a mix of poor earnings and macroeconomic data eclipsed the tiring euro-zone situation. Still, Friday saw solid gains, with the WIG ending the week 4 percent higher. ●

The main topic on last week’s financial markets remained the Greek crisis. After the meeting over the weekend between Angela Merkel and Nicolas Sarkozy, investors were reassured that the euro zone would aid Greece, but no details were revealed. Moreover, the last obstacle to accepting the expansion of the European Financial Stability Facility (EFSF) was removed after the Slovakian government voted in favor of the plan. The markets needed some positive signals and they got it. The EUR/USD as well as the z∏oty began to rally. On Thursday however, the ECB warned that forcing banks to accept large losses on Greek debt could have a severe impact on the banking sector and consequently on the whole economy. The

ECB was reluctant to accept even the previous solution (agreed on in July) but since it is certain that Greece cannot sustain its debt, someone needs to take losses. To add more uncertainty, the S&P ratings agency lowered Spain’s rating to AA-. More details and action are expected after the G20 meeting that begins in November. Throughout the week, the EUR/USD continued its rebound, reaching $1.38, its two-week high, and was balancing around that level by the end of the week. The parliamentary elections held last Sunday did not have much effect on the local currency as the ruling party, PO, won. Decreased risk aversion helped the z∏oty climb to its two-week highs at z∏.4.28 against the euro and z∏.3.09 against the dollar. ●

currency rates 4.0972

4.0870

12.10

13.10

4.0448

4.1646 11.10

14.10

07.10

SOURCE: NBP

4.1604 10.10

4.2527

0.1006 14.10

13.10

12.10

11.10

10.10

0.08

07.10

PLN-100JPY

0.1005

0.1003

0.1010

0.1001

0.1012

3.4704 14.10

13.10

12.10

11.10

10.10

14.10

13.10

12.10

11.10

10.10

07.10

3.20

07.10

PLN-RUB

0.11

3.4974

3.4870

3.5228

3.4922

3.45

3.5410

4.9040

4.9285

4.9140

4.9908

4.9873

5.0612

3.1107 14.10

13.10

12.10

11.10

10.10

07.10

14.10

13.10

12.10

11.10

10.10

07.10

PLN-CHF

3.70

3.0

PLN-GBP

3.1409

3.1352

3.1936

3.2593

4.2925

3.1865

PLN-USD

3.5

4.3161

4.3150

4.3410

4.3779

4.3235

PLN-EUR

THE LIST

OCTOBER 17-23, 2011

www.wbj.pl

Construction & Real Estate

Exhibition and Convention Venues

Rank

Ranked by total gross indoor exhibition space

Company name Address Tel./Fax E-mail Web page

Gross indoor exhibition space (sqm) / Conference rooms Outdoor exhibition space (sqm) space (sqm)

www.bookoflists.pl

Total number of fairs organized in 2010

Total number of fairs organized in 2010: Own fairs / Polish organizers / Foreign organizers

Other events organized in 2010: Conferences / Congresses / Corporate meetings

Other events organized in 2010: Concerts / Sport events / Galas

Other events organized in 2010

Total number of events organized in 2010

Total number of fairs and events organized in 2010

Mi´dzynarodowe Targi Poznaƒskie Sp. z o.o. ul. G∏ogowska 14, 60-734 Poznaƒ 1 61 869-2000/61 866-5827 info@mtp.com.pl www.mtp.pl

107,654 30,622

9,006

65 3 -

1,446 22 31

6 1 5

401

1,980

2,048

Targi Kielce SA ul. Zak∏adowa 1, 25-672 Kielce 2 41 365-1222/41 345-6261 biuro@targikielce.pl www.targikielce.pl

35,000 65,000

916

54 1 -

289 2 114

1 2 26

475

530

Mi´dzynarodowe Targi Gdaƒskie SA ul. Beniowskiego 5, 80-382 Gdaƒsk 3 58 552-3600/58 552-2243 sekretariat@mtgsa.com.pl www.mtgsa.com.pl

14,595 3,575

260

12 11 -

2 1 5

13,500 2,200

950

38 5

312 15 44

1 25

399

442

Mi´dzynarodowe Targi Polska Sp. z o.o. ul. Makowska 95, 04-307 Warsaw 5 22 529-3950/22 529-3930 info@mtpolska.com.pl www.halamtpolska.pl

10,000 4,000

250

21 1

31 5 10

147

195

217

Demuth Alfa Sp. z o.o. - Ostróda S.K.A ul. Grunwaldzka 55, 14-100 Ostróda 6 89 647-7800/89 647-7810 bk@demuth-group.com www.ostroda-mtm.pl

9,250 -

2 -

Targi w Krakowie Sp. z o.o. ul. Centralna 41A, 31-586 Kraków 7 12 644-5932/12 644-614 biuro@targi.krakow.pl www.targi.krakow.pl

6,000 7,000

WND

10 6 1

27 4 2

3 1 3

Mi´dzynarodowe Targi Katowickie Sp. z o. o. u. Bytkowska 1B, 40-955 Katowice 8 32 789-9100/32 254-0227 info@mtk.katowice.pl www.mtk.katowice.pl

5,100 4,000

550

11 6 -

3 19

1 -

Mi´dzynarodowe Targi Szczeciƒskie Sp. z o.o. ul. Struga 6-8, 70-777 Szczecin 9 91 464-4401/91 464-4402 office@mts.pl www.mts.pl

4,150 60,000

320

11 8 -

1 1 1

1 4

Targi Toruƒskie Sp. z o. o. ul. Szosa Che∏miƒska 27, 87-100 Toruƒ 10 56 658-2090/56 658-2099 biuro@targitorunskie.pl www.targitorunskie.pl

3,065 17.000

320

8 2 -

81 3 10

1 2

104

114

Mi´dzynarodowe Targi Lubelskie SA ul. Dworcowa 11, 20-406 Lublin 11 81 534-4614/81 534-9295 mtl@targi.lublin.pl www.targi.lublin.pl

2,800 7,000

200

12 2 -

5 2

1 -

Warszawskie Centrum EXPO XXI Sp. z o. o. ul. Pràdzyƒskiego 12/14, 01-222 Warsaw 4 22 256-7130/22 256-7111

sales@expoxxi.pl www.expo21.pl

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 e-mail 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.

Notes: NA = Not Applicable, NR = Not Ranked, WND = Would Not Disclose. All information provided by Polska Izba Przemys∏u Targowego.

LIFESTYLE

www.wbj.pl

Concert

OCTOBER 17-23, 2011

Festival

Britain’s next big talent A taste of Asian cinema Anna Calvi Palladium ul. Z∏ota 9 October 17

For more information log on to palladium.art.pl

For the fifth time in Poland, East Asian and Southeast Asian cinema will be the focus of the Five Flavours Film Festi-

val. This is the first time that Japanese films are being screened, with “Norwegian Wood,” the adaptation of Haruki Murakami’s novel of the same name, directed by Tran Anh Hung, and “13 Assassins,” by cult director Takashi Miike, among those to be

shown. Movies will be accompanied by discussions with some of the directors and producers, as well as other events including lectures, exhibitions and concerts. ● For more information log on to piecsmakow.pl

Concert

A ‘world’ of classical music Britten Sinfonia Warsaw Philharmonic ul. Jasna 5 October 19, 7:30 pm

COURTESY OF WIKIMEDIA COMMONS

English singer Anna Clavi has already been likened to Edith Piaf and PJ Harvey, despite only releasing her debut album in January of this year. As well as being nominated for the prestigious 2011 Mercury Music Prize, she was also described by legendary producer Brian Eno as “phenomenal,” and “the biggest female talent since Patti Smith.” This concert will be the only chance to hear her unique sound, which is driven by intense indie guitar and brooding vocals, in Poland this year. ●

5th Five Flavours Film Festival Kino Muranów ul. Gen. Andersa 5 October 20-25

A concert from the series “Orchestras of the World,” this

event will see the celebrated and innovative Britten orchestra play works both by contemporary composers, namely Erkii-Sven Tüür and James McMillan (the conductor), as

well as by classical forefathers like Beethoven. Tickets for the event are priced at z∏.25-50. ● For more information log on to filharmonia.pl

Anna Calvi

Dance

Founded in Buenos Aires in 1996, Estampas Porteñas have been entertaining fans

around the world with their own blend of music and dance, based on the traditional roots of tango, for the last 15 years. The troupe is composed of the most experienced dancers from Argentina’s best dance schools and at

the helm is the brilliant ballerina and choreographer, Carolina Soler. Tickets for the event are priced from z∏.95. ● For more information log on to kongresowa.pl

Britten Sinfonia

An oasis just across the river A new restaurant review feature from WBJ Le Cedre Al. SolidarnoÊci 61 lecedre.pl Although the Praga neighborhood of Warsaw has become increasingly trendy in recent years, few would probably think of going there for a business lunch. It’s time to think again, because just one tram stop away from the Old Town, Lebanese restaurant Le Cedre makes an excellent case for why one should. Its refined, traditional Lebanese cuisine is worlds away from the omnipresent kebabs which most Poles seem to have developed a great taste for. And one of the best ways to take advantage of the wonderful array of exotic dishes available at Le Cedre is to pick one of the four set menus, priced from z∏.118 to z∏.190 for two people. Each offers a selection of between 14 to 21 warm and cold appetizers (mezzah) and main courses. Tabbouleh (a lovely, fresh parsley-based salad) and hummus (a homemade chickpea and sesame sauce puree), two

COURTESY OF LE CEDRE

Estampas Porteñas – “Tango Feeling” PKiN Sala Kongresowa Pl. Defilad 1 October 22, 7 pm

COURTESY OF FILHARMONIA NARODOWA

Tradition and tango

Le Cedre offers Lebanese delights in a unique setting absolute musts of any Lebanese lunch, are representative of the exotic yet fresh tastes on the menu. Also worthy of recommendation is kibbeh nayeh, a Lebanese tartar with pine nuts, and basterma, which is sliced smoked beef with a special blend of spices (which are brought back from Beirut by owner Tony Nasr several times a year). A savory vegetarian set menu is also available. On top of offering a wide variety of tastes, set menus are ideal for sharing, which helps to create a favorable atmosphere for team-building and developing business relationships, says

Mr Nasr. But while the relaxed atmosphere and lush decor invite a feeling of celebration, Le Cedre also offers a quiet, private setting where it is possible to get work done. The restaurant provides private rooms and free wireless internet access. Before you leave, don’t forget to try the Lebanese coffee (with cardamom) or tea (with cardamom, cinnamon and mint), paired with some of Warsaw’s freshest baklavas – its simply divine. ● Reservations: 22 670 11 66, lecedre@lecedre.pl

LAST WORD

OCTOBER 17-23, 2011

www.wbj.pl

Tech Eye

Good technology + bad literature = satisfaction

OF AMAZON COURTESY

Techeye is an unabashed fan of bad literature. We love all kinds of stories, from the ribald wit of Chaucer and the fusty gothicity of Horace Walpole (who, by the way, serendipitously coined the word “serendipity”) to the metaphor-slathered trysts of Danielle Steele. But there’s something spectacular about the books whose words lumber ponderously across the page, like a walrus lured across a beach by the siren song of the sea cucumber. The stories which open up a huge can of Pandora’s box but never quite close it, or build precarious plots like houses of cards and then put them on the backburner until the epilogue. Ah, drivel. It warms the very bottom of our heart. Perhaps the greatest thing we’ve ever read was “The Night of the Sprightly Glockenspiel,” a semi-autobiographical novella written by a retired pizza delivery guy who lives down the hall from us. This masterpiece is about a magical glockenspiel that embarks upon a journey of self-discovery in Omaha, Nebraska. It ultimately realizes that it has

always been attracted to other glockenspiels of the same key, and the story ends with a torrid glockenspiel-onglockenspiel scene which culminates in a frenzy of aural ecstasy. It’s a real page-turner. Or at least it would be, if the pages of our neighbor’s manuscript weren’t slick with pizza grease. Anyway, he plans to publish it soon and he’s eyeing Amazon’s selfpublishing platform because “the pub-

“The Kindle Fire costs less than half what Apple charges for the iPad2” lishing establishment doesn’t understand real art.” The upshot is that people who buy Amazon’s forthcoming Kindle Fire may soon be able to savor “Night of the Sprightly Glockenspiel” for themselves. The Kindle Fire, which ships November 15, is the online retailer’s first foray into the tablet market. It has a seven-inch touchscreen, a dual-core 1 GHz TI OMAP CPU, 512 MB of RAM and 8 GB of internal storage. Under the hood is a scarcely recognizable

Android operating system. Perhaps most enticing of all is the $199 price tag. The Kindle Fire can’t compete with the iPad 2 (the market leader) on hardware specs – it’s smaller, thicker and lacks cameras, for example – but it costs less than half what Apple charges for the cheapest version of its second-gen tablet. Amazon is also banking on content, in the form of its Amazon Instant Video and Amazon MP3 services, not to mention its catalogue of Kindle e-books, periodicals and the ability to buy Android apps. In addition, the company is pushing cloud-related services, such as its Amazon Silk “cloud-accelerated web browser. The jury’s out on this, however, since Silk puts all your web-surfing data in Amazon’s hands, which raises serious questions about privacy and security. This has the potential to be the soft underbelly of the Kindle Fire’s Achilles’ Heel, but only time will tell. The Kindle Fire may not appeal to diehard geeks who comprise Apple’s most loyal demographic, but it’s a serious contender in the tablet market. And the combination of access to legendarily bad e-literature and a pizza grease-free touchscreen will appeal to an important group of consumers – people like Techeye.

Ever embarked upon a journey of self-discovery in Omaha, Nebraska? Let us know: techeye.wbj@gmail.com