The president of Lithuania says Poland is throwing her country under the bus 4
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Domestic air travel is seeing sky-high growth in popularity 6
VOLUME 18, NUMBER 21 • MAY 28 – JUNE 3, 2012 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127
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Private equity investors may not see the rest of Central Europe as “in vogue,” but Poland is a different story
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COURTESY OF STANIS¸AW ˚ELICHOWSKI
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Interview: Stanis∏aw ˚elichowski A prominent member of PSL shares his view of the coalition’s tug-of-war 12-13
In this issue
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News . . . . . . . . . . . . . . . . . . . . . . .2-4 Business . . . . . . . . . . . . . . . . . . . .5-6 Finance & Economics . . . . . . . . . . .7 Opinion & Analysis . . . . . . . . . . . .8-9 Cover Story . . . . . . . . . . . . . . . .10-11 Interview . . . . . . . . . . . . . . . . . .12-13 Lokale Immobilia . . . . . . . . . . .15-18 The List . . . . . . . . . . . . . . . . . . . . . .19 Markets . . . . . . . . . . . . . . . . . . . . . .20 Sports . . . . . . . . . . . . . . . . . . . . . . .21 Lifestyle . . . . . . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23
Kaczyƒski calls for a truce
Who foots the Afghanistan bill?
Will Poland’s political infighting pause for the good of the Euro 2012 tournament? 3
The US wants Poland to contribute $20 million to post-pullout Afghanistan aid
4
NEWS
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Tomaszewski ‘disgusted’ with Polish team A former Polish international goalkeeper and current member of parliament for main opposition party Law and Justice, Jan Tomaszewski, has once again criticized his nation’s soccer team ahead of Euro 2012. “Today I no longer feel ashamed, I’m disgusted,” he said in an interview with RMF FM. His comments relate to the fact that some members of Poland’s team were born in other countries. ●
2.9% is how much Poland’s industrial production increased in April 2012, higher than a month earlier, but less than analysts’ forecasts of 3.2 percent.
z∏.3,719 was the total amount of fines imposed on businesses by the competition regulator for wrongful or illegal conduct last year. A total of 431 companies were fined.
The Russian national soccer team The draw for the group stages of Euro 2012 has thrown together some interesting match-ups, none more so than the meeting of rivals Poland and Russia, who face off in Warsaw on June 12. To say the two countries have history is something of an understatement. Much of Poland spent 123 years under Russian control following the third and final partition of the Polish-Lithuanian commonwealth in 1795. Later, during World War II, 22,000 army officers and other Polish nationals were murdered by the Soviet secret police in and around Katyn Forest, Russia. It was a crime that Soviet authorities denied was committed by Russia for the next 50 years. Following the end of WWII and the creation of the People’s Republic of Poland, the country became a satellite communist state of the Soviet Union, a development which still causes
bitterness among many Poles who lived through the era. More recently, relations between the two countries have been roiled by the 2010 Smolensk disaster, which claimed the lives of 96 people, including major military and political figures, among them then-President Lech Kaczyƒski. A government investigation into the tragedy subsequently found that both Russian and Polish authorities were at fault for the accident. But some – notably opposition party Law and Justice (PiS) – lay the blame firmly at Russia’s door, with the current PiS leader and the twin brother of the late president, Jaros∏aw Kaczyƒski, publicly stating that Russia had purposely caused the crash. Last week, the controversy surrounding Smolensk looked set to once again beleaguer relations between the two countries, as Poland’s Minister of Sport Joanna Mucha announced she
was in discussions with Russian representatives regarding the possibility of changing their Euro 2012 base. The Russian soccer team and management are set to stay at Warsaw’s Bristol Hotel, which is located in the heart of the capital next to Poland’s Presidential Palace. However, on June 10, two days after the start of the tournament, a demonstration – fervent Smolensk disaster conspiracy theorists hold them monthly – to mark the anniversary of the catastrophe is set to take place outside the palace. The Russian soccer association has since announced that it has no intention of changing accommodation, but the fact remains that while Poland is doing everything it can to show itself to be a modern, civilized, European nation, anti-Russian protests could negatively harm its image at a time when the whole world is watching. David Ingham
5th from last is where Poland came in an innovation ranking of EU countries in April.
Quote of the Week “Some in Europe think Poland’s face is powdered-up, that Kaczyƒski’s Poland is the real Poland.” EU Commissioner Janusz Lewandowski at the Innovation Congress in Warsaw, explaining how some European elites believe Law and Justice leader Jaros∏aw Kaczyƒski’s ultra-conservative views are more reflective of Poles’ actual views than those of the current, centrist, ruling party Civic Platform.
Figures in focus Energy costs Household electricity prices including all taxes, average price per 100 kWh in H2 2011, selected EU27 countries
30 25 *Highest in EU27 **Lowest
20 15
On WBJ.pl
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DATELINE
May/June MAY 28 Event:
Location: Web:
Location: Web:
Web:
The forum provides independent, professional and reliable knowledge about the processes that occur on the property market in Poland. This unique event aims are to share insights and opinions on the functioning of the market over the past year. Sopot nowyadres.pl
31
LEWIATAN BUSINESS ANGELS SEMINAR
Event:
The seminar is held to share the experience of LBA’s Italian partners in evaluating projects and best teams, structuring deals, valu-
Location:
ing them and preparing for exits, so as to increase the number and quality of deals closed in our angel group. Registration until May 30, 2012. Warsaw lba.pl
JUNE 1-3 WALLSTREET
ma ny De nm ar k*
ain Sp
Company index ACE ............................................17 Gap ..............................................5
Phoenix Technologies........Sup 2,4 Acteum Central Europe ............17 H&M ............................................5 Allegro Group ..............................7 Hilton ..........................................16
Audi ............................................23 IDMSA ..........................................6
Royal Dutch Shell ........................9 BG Group......................................5 INFADO ..............................Sup 2,4 Biedecki......................................12 JEMS Architekci ........................15
GEWINN
CMS ............................................10 LOT Polish Airlines ......................6
Event:
The GEWINN Real Estate Conference is a platform for commercial real estate and investments in Central, Eastern and Southeastern Europe – including Russia, CIS and Turkey. Vienna gewinn.com
Cushman & Wakefield ..............15 Lufthansa Systems ....................15
Web:
Retail Concept............................17
Azoty Tarnów ................................6 IKEA..............................................5
11
Location:
PKO BP ......................................20
Arx ..............................................11 Hines Polska ..............................15 Polkomtel ..................................10
Web:
Location:
PharmaSwiss ............................11
Acron ............................................6 Griffin Group ..............................15
The conference is the largest meeting of investors in Central and Eastern Europe. This year will mark the event’s 16th consecutive edition and will take place in Zakopane, nestled in the Polish Tatra Mountains. Zakopane wallstreet.org.pl
Event:
28-29 POLISH REAL ESTATE FORUM Event:
Source: Eurostat
Acanthus ....................................11 Gant Development ....................18 Petrolinvest ..................................5
TRADE & INVESTMENT CONFERENCE This conference brings together British and Polish business leaders to discuss the prospects of enhancing investment flows between the two countries and will mark the 20th anniversary year of the British Polish Chamber of Commerce. Warsaw bpcc.org.pl
0 Ge r
Communist grandeur This week Warsaw Insider takes you for a stroll around one of Warsaw's most bizarre neighborhoods with a look at Plac Konstytucji, a gargantuan project built as a showpiece district by the communist regime after WWII.
UK
S∏awomir Dudziƒski was sacked from his job as president of statecontrolled lottery operator Totalizator Sportowy (TS) last week. “The decision is a result of the company’s lack of vision and conception of further revenue growth, as well as unsatisfactory collaboration with the supervisory board,” Magdalena Kobos, spokesperson for the state Treasury, told Puls Biznesu.
was the number of people arrested due to Poland’s strict drug possession laws between 2001 and 2011.
nia Gr ee ce Fra nc e Po la Cz n ec hR d ep ub lic
Treasury sacks lottery president
350,000
**
Poland’s planned oil and gas tax is not aimed at raising revenue for the state budget, but is instead being implemented to encourage firms to develop the country’s shale reserves by providing a stable legal framework, Reuters reported Deputy Finance Minister Maciej Grabowski as saying last week. Around 20 companies have been granted over 100 shale gas exploration licenses to help develop Poland’s reserves.
Russia and Poland at Euro 2012
Es to
Shale tax good for investors?
Numbers in the News
ria
Within the next few months Russia will deliver the wreckage of the presidential TU-154 which crashed in Smolensk on April 10, 2010, said Valentina Matviyenko, chairman of the Federation Council of the Russian Federation, last week. She said this will happen immediately after the Russian prosecutor’s office finishes its investigation into the Smolensk disaster.
IN THE SPOTLIGHT
lga
Smolensk wreck return
MAY 28 – JUNE 3, 2012
Bu
2
Rynek.Pierwotny.com ................18
Biuro Inwestycji Kapita∏owych ..17 Jones Lang LaSalle ..................15 San Leon Energy..........................4 Bose International ....................17 Kruk............................................11
Sephora ........................................5
Bouygues Immobilier Polska ....18 Kulczyk Investments....................5 Syntaxis Capital..........................10 BZ WBK ....................................3, 7 Kury∏owicz & Associates ..........15 CBRE Global Investors ..............17 Lewiatan ..............................Sup 1
Tesco ..........................................17
Chevron ........................................9 Lewiatan Business Angels ..Sup 1 Torus ..........................................16 Citi Handlowy ............................20 Libra Project ..............................17
Total ..............................................5 Total E&P Koblandy ....................5
DealWatch ..................................10 Motor Polimer............................11
Totalizator Sportowy ....................2
DeLorean Motor Company ........23 NAI Estate Fellows ....................15 TP Group ....................................10 Dom Badawczy Maison ............18 Nomi ..........................................17
Ubraniometr ......................Sup 2,4
EgzoTech............................Sup 2,4 OilTechnoGroup............................5 Wrapp ..........................................5 Enkev ............................................5 OKRE Development ..................15 Euro Styl ....................................15 OLT Expres ..................................6
X-Trade Brokers DM ..................20
Facebook ......................................5 Ophir ............................................5 Zero Motorcycles ......................23
NEWS
MAY 28 – JUNE 3, 2012
www.wbj.pl
Politics and Euro 2012
Parliament approves pension reform
Ceasefire on all fronts during Euro 2012? Jaros∏aw Kaczyƒski, leader of Poland’s biggest opposition party, Law and Justice (PiS), has called for a political “ceasefire” during the upcoming Euro 2012 soccer championship, saying he is doing so “unconditionally.” “We want that period to be a calm one and we will abide by that rule,” Mr Kaczyƒski told journalists. The PiS leader said his party would not be holding any public gatherings or events during the period. Some had feared that the outspoken Mr Kaczyƒski and his party would organize political demonstrations criticizing Prime Minister Donald Tusk and his government during the championships.
bill has been passed by both houses of Poland’s parliament and now awaits the president’s signature. Last week, the Solidarity trade union held protests in front of the Presidential Palace in Warsaw and the union’s leader, Piotr Duda, met with President Bronis∏aw Komorowski to urge him not to sign the bill. “Some people call on me not to sign this law, others are calling on me to do it immediately. ... I will do what the constitution says, I mean I do not plan any undue delay, but I have to take the time to deeply study all the pros and cons,” the president told journalists after the meeting. “As of today I do not see threats to the constitutional nature of the law,” he added.
In response to Mr Kaczyƒski’s announcement Mr Tusk, who heads the Civic Platform (PO) party, said he was taking the PiS leader’s pledge in good faith. He added that what is most important is that Euro 2012 takes place in a “peaceful atmosphere.” He then publicly invited Mr Kaczyƒski to attend the opening match with him. The PiS leader, however, declined the offer, saying he would be watching the games on his TV set “like millions of Poles.” Worries remain though that labor unions such as Solidarity will take the chance during Euro 2012 to protest against the government’s recent decision to raise the retirement age for men and women to 67. The
Protests not popular A recent Homo Homini survey indicates that 72 percent of
The Polish Senate adopted a controversial pension reform bill last Thursday without making any amendments. The legislation raises the retirement age to 67 for both men and women and had already been passed by the lower house. It now awaits the signature of the president before it officially becomes law. JACEK WASZKIEWICZ/REPORTER
Poland’s main opposition leader says his party wants peace and calm during the tournament, but it is still unclear whether trade unions want the same
KwaÊniewski: we were wrong about drugs
Jaros∏aw Kaczyƒski has turned down the PM’s offer to attend the opening match of Euro 2012 Poles are opposed to unions holding protests during the tournament. When asked about Solidarity’s plans during the games, Mr Duda said that while they had not yet decided whether to protest during the tournament, he felt Mr Tusk’s government was “playing a cynical PR game … by getting the president to sign the pension reform bill quickly before the
Euro and then pushing Solidarity to the wall by painting us as those who want to spoil the tournament with protests.” “Then, after Euro 2012, people will go on vacation and it will be game over [regarding the effort to stop the reform going through],” he added. The tournament, which is being co-hosted by Poland and Ukraine, runs from June 8 to Remi Adekoya July 1.
Euro-zone crisis
has increased considerably, and comments from eurozone policymakers suggest their thinking has changed. Until recently a Greek exit was out of the question. Now it seems inevitable, and they think they are better prepared and that there is a chance they
COURTESY OF THE EUROPEAN COMMISSION
Markets swung wildly last week, dropping ahead of an EU summit on Wednesday and picking up again on Thursday, although leaders failed to decide on any further course of action for facing the euro-zone crisis. “The risk of a Greek exit
German Chancellor Angela Merkel is trying to stay tough on Greece
can block contagion,” said Piotr Bielski, a senior economist at BZ WBK. “The market swings between optimism that eurozone leaders will be able to stop this contagion and pessimism that they won’t, in which case the consequences could be dramatic,” he added. Indeed, the dominant position among euro-zone leaders after last week’s EU summit was that they would stand by Greece if the country stands by the terms of its €174 billion bailout. “We want Greece to remain in the euro zone. But the precondition is that Greece upholds the commitments it has made,” German Chancellor Angela Merkel told journalists after the meeting. Germany’s central bank said last week the consequences of a Greek euro-zone exit “for the euro area and Germany would be considerable, but manageable given prudent crisis management.” It also emerged last week that senior euro-zone finance ministry officials had held a conference call during which
each country was asked to detail the contingency planning their treasuries had done to prepare for a Greek departure. Greeks go to the polls on June 17 in a parliamentary election that is widely perceived as a referendum for or against Greece remaining in the euro.
The view from Poland Poland’s markets and currency were not spared last week, and Polish Prime Minister Donald Tusk told the Sejm that “In our opinion we have to do everything so that Europe is prepared in the case of Greece’s exit from the euro area.”
Although the risk of contagion in Poland is much lower than in the euro zone, in the last few years there has been a high inflow of foreign capital into the country, said Mr Bielski. “Today about one-third of outstanding treasury bonds are held in foreign capital. That’s a lot, and it means that significant funds could flee in case of a panic.” Meanwhile, Danske markets analysts warned that CEE currencies had already come under pressure and that this trend could “easily escalate ... we are likely to start revising our FX forecast for the region in a more negative direction.” Alice Trudelle
Steep drop The Warsaw Stock Exchange’s WIG index close, May 18-24 38,000 37,600 37,200 36,800 36,400 36,000
18.05
21.05
22.05
23.05
Former Polish President Aleksander KwaÊniewski became the latest in a long line of former heads of state to call for less restrictive drug laws. He has joined the Global Commission on Drug Policy to help reform what he sees as ineffective and harmful drug laws. In 2000, Mr KwaÊniewski signed into law some of the strongest anti-drug measures in Europe. As a result, some 350,000 young people arrested between 2001 and 2011.
Taxi drivers gridlock capital
Markets swing as European leaders prepare for Greek exit As the prospect of Greece leaving the euro zone becomes more real, euro-zone leaders are still no closer to a common stance on resolving the crisis
3
24.05 Source: Money.pl
Polish taxi drivers brought Warsaw to a standstill last week as they blocked major roads in protest at government plans to abandon the taxi permit system currently in operation. “We don’t rule out the possibility of doing something on June 8,” said Pawe∏ Biedrzycki, one of the protest organizers, regarding the possibility of a Euro 2012 protest. “But we are also soccer fans, so we really don’t want to block [the city]. It would be our last resort.”
Poor quality of life in Poland? When it comes to quality of life, Poland was ranked eighth to last among 34 countries rated by the Organization for Economic Cooperation and Development (OECD), reported Parkiet. Poland fared marginally better than Greece and Portugal, but lagged behind countries such as Slovenia and Israel. ●
NEWS
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Poland came in 26th in a ranking of 34 countries regarding readiness to launch mobile payments. Singapore came first, followed by Canada, the US, Kenya and South Korea, according to MasterCard’s Mobile Payments Readiness Index. The main reason for Poland’s lowly position is that it lacks a legal framework that would allow the infrastructure for mobile payments to be launched quickly.
San Leon Energy gets Praszka concession The Ministry of the Environment has awarded San Leon Energy the Praszka concession, an area in the Southern Permian/SW Carboniferous Basin. The land, which covers 1,200 sq km, will be used for shale gas exploration purposes. ●
NATO
Poland reluctant to foot post-2014 bill in Afghanistan NATO’s ability to defend its own territory must remain the alliance’s top focus, said Polish officials in Chicago While the May 20-21 NATO summit in Chicago confirmed that the ISAF mission in Afghanistan would wind up by the end of 2014, it left open questions about the alliance’s contribution to the country’s security after that date. Poland was not among the countries to pledge financial contribution, with Polish President Bronis∏aw Komorowski saying that post-2014 aid to Afghanistan will be regulated by “completely new decisions, a new mandate and a new concept.” According to Beata GórkaWinter, international security program coordinator at the Polish Institute of International Affairs, while the official stance is that Poland is studying the idea of participating financially after 2014, “Our message is that Poland was engaged in
Afghanistan for many years with the largest NATO contingent, so we suggest looking for other possibilities.” One of these, she said, is that other countries that did not participate militarily might contribute more. Another is that Afghanistan’s neighbors contribute too. “China, India and Iran are currently the biggest investors in Afghanistan, so right now NATO is also protecting the economy and thus their investments.” The NATO summit’s “Declaration on Afghanistan” envisages a post-2014 force of 228,500 with an estimated annual budget of $4.1 billion, with the aim for Afghanistan to assume full financial responsibility “no later than 2024.” In the meantime, the US administration is unwilling to foot the entire bill, and has been seeking pledges from allies of $1.3 billion. Among concrete contributions that have already been announced are the UK ($100 million annually), Italy ($120 million), Australia ($100 million) and Turkey ($20 million). The suggested
Media patronage
Central & Eastern European entrepreneurs meet in Warsaw On May 24-25 the Novotel Warszawa Centrum Hotel hosted the Center for Entrepreneurship and Executive Development’s (CEED) “Growing Up & Out” conference. The event served as an opportunity for European entrepreneurs to gain insight on expansion into Central and Eastern Europe, as well as to participate in various networking activities. Approximately 100 business owners from Albania, Armenia, Bosnia, Bulgaria, Kosovo, Macedonia, Romania, Serbia and Slovenia visited Warsaw to attend. The first day of the conference was held under the slogan “Doing Business in Poland.” Guests visited the Warsaw Stock Exchange to gain information about opportunities available for foreign companies both on the bourse’s main floor and on its alternative market NewConnect. This was followed by a presentation by Jacek Adamski, deputy director general at the Polish Confederation of Private Employers – Lewiatan, who shared his experience in conducting business in the region. The day ended with the panel discussion “What does it take to make it in Poland?” during which foreign entrepreneurs discussed their experiences concerning introducing companies into the
Polish market, as well as cross border cooperation. On the second day Jerry Colonna, an early investor in Twitter who has been named as one of the 100 Most Influential People for the New Economy by Upside Magazine, conducted a presentation entitled “Become the entrepreneur & CEO that can manage and induce change.” Mr Colonna discussed issues such as dealing with extreme mental and physical stress, as well as other challenges that entrepreneurs often face. This address was followed by two panel discussions entitled “Sharing the Entrepreneurial Journey” and “Find the Funding.” Guest speakers included entrepreneurs, CEOs and investors, who discussed their experiences both in establishing and running a business, as well as in finding financial backing for various projects. The conference also included various networking opportunities in between the keynote addresses and panel discussions. In addition to team building and group networking activities, attendees were also able to meet one on one. CEED is currently comprised of over 1,000 members and has already assisted over 10,000 Central and Eastern European entrepreneurs. ●
Polish military policemen conduct training for the Afghan National Police in Ghazni annual contribution for Poland is $20 million, Foreign Affairs Minister Rados∏aw Sikorski told reporters earlier in May.
On the home front In Chicago, both Mr Sikorski and Mr Komorowski underlined that maintaining NATO’s capacity to defend the territory of its members remained of crucial importance to Poland. “Much of Europe – primarily the countries which emerged from the former Soviet Bloc –
still does not enjoy the security that other European states within NATO enjoy,” said Mr Sikorski in a speech at the Chicago Council on Global Affairs. “NATO’s core Article V capabilities need to stay sharp. This means a robust exercises policy, exercises with troops – not just staff officers and their maps – [as well as] stronger contingency planning, and pooling of allied intelligence.” Part of reaffirming and
sharpening this capability, despite the fact that technology grows more expensive and that defense budgets are under pressure, is the alliance’s new Connected Forces and Smart Defense initiatives, which pave the way for multinational defense projects among allies. “I want to thank President Obama that we have those plans. But it took 10 years to start planning,” Mr Sikorski said. Alice Trudelle
Poland-Lithuania row
Lithuanian president slams Poland on Russia relations Dalia Grybauskaite said Poland favors Russia over small allies. Poles point out that they are defending Baltic skies Diplomatic difficulties between Poland and Lithuania show no signs of abating, as Lithuanian President Dalia Grybauskaite is reported to have taken a swipe at Poland while on a visit to the US to attend last week’s NATO summit in Chicago. Ms Grybauskaite, while speaking to a gathering of the Lithuanian-American community in Illinois, said that “Polish politicians have decided that … it is better to have Russia as a friend, and all other smaller countries, which are not so important, could become scapegoats. It seems that this is the role we have been given,” the Lithuania Tribune news portal reported. In response, Polish Foreign Minister Rados∏aw Sikorski told journalists, “We don’t have the original transcript of the statements, but I can’t imagine that such a statement
COURTESY OF THE EUROPEAN COMMISSION
Poland illprepared for mobile payments
MAY 28 – JUNE 3, 2012
COURTESY OF US DOD
4
Polish politicians use Lithuania as a “scapegoat,” Ms Grybauskaite reportedly said could come now when Polish pilots are protecting the skies over the Baltic states.” “It seems to me that it would be easier to establish rights under the European Charter on Minority Languages, than to build exotic theories,” he added, referring to ongoing efforts by Lithuania’s Polish minority to use Polish versions of their names in official documents. Polish-Lithuanian ties have been strained in recent years, largely due to Polish accusations that the Lithuanian government has discriminated
against Polish minorities who live in Lithuania. Over 6 percent of Lithuania’s 3.2 million citizens are of Polish origin, making them the largest minority in the Baltic state. Polish president Bronis∏aw Komorowski refrained from commenting on Ms Grybauskaite’s words directly, though he did say that during last week’s NATO summit in Chicago he had “the satisfaction of discussing the Polish involvement in the security of the Baltic states, including airpolicing missions.” Remi Adekoya
BUSINESS
MAY 28 – JUNE 3, 2012
www.wbj.pl
Energy
Social gifting
Kulczyk strikes gas again in Tanzania
Wrapp social giftcard service coming to Poland
Africa has “huge potential” for investment, says Kulczyk Investments’ CEO
COURTESY OF FLICKR/BG GROUP
Ophir, an oil and gas exploration company in which Kulczyk Investments holds a 10.2 percent stake, struck massive gas reserves for the second time in just a few weeks off the coast of Tanzania in May. Recoverable gas at the Mzia-1 well is estimated at between 2 and 6 trillion cubic feet. Prior to Mzia-1, the firm and its partner, British gas producer BG Group, estimated total gross recoverable resources at their Tanzania offshore wells at 7 TCF. In April, results from drilling at Ophir’s Jodari-1 exploration well had already doubled the Firm’s estimated gross recoverable gas reserves in the country. The latest discovery was described by Ophir Energy CEO Nick Cooper as “a major step towards a Tanzanian LNG hub development.” Although he declined to reveal if Kulczyk Investments is planning to acquire more shares in Ophir or other companies prospecting for gas in Africa, CEO Dariusz Mioduski said that the continent plays a
A new app will link Polish Wrapp retailers with Facebook
Kulczyk Investments has struck massive reserves off the coast of Tanzania “very important role” in the firm’s strategy. “[Our firm] already invests in 12 African countries such as Gabon, Kenya, Madagascar, Nigeria, Somalia, Tanzania and others. We believe huge potential lies in that region not only because of natural resources but also because of all the development projects that will have to be done there, for example in the infrastructure or downstream sector,” Mr Mioduski said. “In our opinion investing in Africa is not only a chance for companies like KI, but it can also be a great opportunity for Poland and the whole European economy,” he added.
Although KI’s stake in Ophir has not yet brought tangible financial gains – in 2011 the firm made a $19.1 million loss – Mr Mioduski said he was already sure that Ophir will be a very successful project for investors. Indeed, the share price of the London Stock Exchangelisted firm has soared from £2.50 in December 2011 to £5.90 in mid-May, valuing KI’s stake at £239 million, or z∏.1.27 billion. According to Puls Biznesu, Polish billionaire Jan Kulczyk purchased a 13 percent stake in Ophir through his investment fund in 2006 for around z∏.400 million. Alice Trudelle
IKEA opens €140 million production plant in Poland Swedish furniture giant IKEA Group last Thursday officially opened a factory in Koszyki, Podlaskie voivodship, in northeastern Poland. The new plant, which employs some 250 workers, includes a workshop for producing furniture panels, as well as a sawmill. A plant where panels can be cut to size and laminated has also been constructed as part of the investment.
According to the Polish Information and Foreign Investment Agency the factory, construction on which was partially funded by the EU Innovative Economy Programme, was the largest foreign investment in Poland in 2010. Work on the scheme lasted for nearly two years and cost €140 million. The project, whose investor was IKEA Group subsidiary
Swedspan, is expected to turn out 250,000 cubic meters of paneling per year when it reaches full capacity. Swedspan now plans to build a technological center in Koszyki to design new materials for IKEA. The investment will cost €2.6 million, managing director for Swedspan Poland Laimonas Rackauskas said during a press conference. GP
Petrolinvest and Total sign Kazakhstan agreement OilTechnoGroup, a Kazakh company controlled by Gdyniabased oil company Petrolinvest, and Total E&P Koblandy, a firm owned by French company Total, have signed a cooperation agreement concerning operations in Kazakhstan. The two companies will now continue exploring for oil and gas on the OTG concession in Kazakhstan. The French company has pledged
to invest $70 million, with which it plans to dig a deep borehole at the site. In return for the investment Total has acquired a 50 percent stake in the OTG concession. The prospective resources that could result from the contract are estimated at 1,909.2 million barrels, Petrolinvest said in a statement. The value of Petrolinvest’s share in the license amounts to $2.3 billion.
“Total’s cooperation was requested not only in terms of financing, but also the wealth of experience in the development of hydrocarbon deposits resulting from its handling of oil fields around the world, including in Kazakhstan, where it is one of the largest investors,” said Bertrand Le Guern, president of Petrolinvest. David Ingham
Already available in the UK, the US, Norway and Sweden, Swedish social gifting start-up Wrapp aims to expand its online social gift-giving service to Poland. Using the Wrapp app, Facebook users are able to “celebrate” their friends by sending them free gift cards from various retailers such as H&M, Sephora and Gap. Choosing from the list of participating companies, users are able to add gift cards to their friend’s “wallet” and contribute additional funds to raise the card’s value if they wish. Friends then receive a notification about their gift via Facebook, e-mail, or SMS. Since the app’s debut last November, 1.7 million gift cards have already been sent by 250,000 users. The app is appealing to companies as it provides a cheap alternative marketing strategy. On average, the value of purchases generated by Wrapp is four to six times greater than the initial value of
the gift card. Customers redeem their gift cards by presenting a bar code sent to their smart phone to the sales clerk. Thomas Krotkiewski, the country manager for Wrapp, hopes to launch Wrapp in Poland by the fall. Though participating companies are yet to be revealed, the list will most likely include the country’s best-known retailers. Mr Krotkiewski believes Wrapp’s success in Sweden and the UK can easily be repeated in Poland, since “the need for gift-giving is a universal concept.” Though smart phones are not yet nearly as popular in Poland as they are in countries where Wrapp is already available, Mr Krotkiewski does not see this as an obstacle to the app’s popularity. “Our target group is young people who are already very involved with social media via their smart phones,” he said. With Polish smartphone sales on the rise, the number of potential Wrapp users is only expected to grow. Natalia Kopytnik
5
¸ódê to expropriate Enkev’s land? The city of ¸ódê has told Enkev, a manufacturer of natural filling materials, that if it does not accept the city’s offer of z∏.21 million to relocate its factory, the city will expropriate the land on which the facility sits in order to build a highway. The company had until the end of May to make its decision, the city hall said. Enkev president Czes∏aw Grochulski told WBJ that his firm cannot accept the compensation, since it is barely half of what Enkev would need to relocate. He added that accepting the deal would force Enkev to close.
Facebook office in Poland Facebook, the biggest social networking site in the world, which currently has 8.3 million Polish users, is set to open an office in Poland. The location of Facebook Poland is as yet unconfirmed, but the company will sell advertising to Polish entities. ●
6
BUSINESS
www.wbj.pl
Chemicals
MAY 28 – JUNE 3, 2012
Travel
Acron’s Tarnów bid Popularity of domestic ‘too low’ says Treasury air travel takes off Polish Treasury Minister Miko∏aj Budzanowski told reporters last week that an offer by Russian fertilizer maker Acron to buy up to 66 percent in Polish chemicals company Azoty Tarnów is too low. At z∏.36 per share the offer is actually 12.1 percent above the value stock-listed Tarnów closed at on the day before the bid was made, in mid-May. Nevertheless, analysts say that the offer, which runs from
June 6 through June 22, undervalues the company, since it has good long-term prospects following its purchase of several smaller chemical firms. “Given that the offer includes the sale of a control premium, the minimum offer price shareholders would likely ask for is over z∏.40,” said ¸ukasz Prokopiuk, analyst at brokerage house IDMSA. “We currently value the company at z∏.41.50 per share and are advising clients to hold the stock and wait for Acron to increase its offer,” said Konrad Anuszkiewicz, analyst at Ipopema Securities.
Price jolt Azoty Tarnów's share price over the last month (in z∏.) 36.56
35.41
34.26
33.11
Apr. 30
May 7
May 14
May 21 Source: Stooq.pl
31.97
But the Polish state, whose 32.05 percent stake makes it the largest shareholder in the company, will also have to take into consideration factors other than the offer price. The Russian company, which said in a statement that it bid for Tarnów because it wanted to expand into European markets, is also thought to be interested in the Polish company’s domestic rival, state-controlled Zak∏ady Azotowe Pu∏awy. However, it is expected to bid for the latter firm only if it first wins control of Tarnów. Analysts says Acron’s plans to invest in Tarnów in order to increase the Polish company’s value would lead to a reduction in Pu∏awy’s price, since the two Polish companies operate in some of the same markets. This would shrink the – potentially much larger – amount the state would get from selling Pu∏awy, hitting the state budget. Moreover, said Mr Prokopiuk, “If [Acron] buys both firms, then it would control companies that account for 25 percent of natural-gas conGP sumption in Poland.”
Cheap flights and new connections are persuading Poles to forgo train and car travel High gas prices and chaotic train schedules are not the only factors drawing Poles to regional airports. In the past year, LOT Polish Airlines and its main competitor, OLT Express, have made traveling around the country by air much more popular by expanding their services around Poland. The trend first took root last summer, when Eurolot, an airline owned by LOT, began its own routes between Kraków, Gdaƒsk and Wroc∏aw for z∏.199 a flight. The success of this venture prompted OLT Express to open 30 connections between 10 cities for z∏.79 each way. Since then, the low prices and convenience of these flights have continued to draw much larger numbers of people to travel around the country by plane. Most of Poland’s major air-
COURTESY OF WIKIMEDIA COMMMONS
Analysts say shareholders should hold out for a higher offer
Eurolot began domestic flights to major Polish cities last summer ports have been renovated or expanded in the past few years and are therefore capable of servicing the influx of travelers. The numbers are impressive: Gdaƒsk saw a year-onyear increase of 203 percent this April, while Wroc∏aw and Katowice serviced 140 and 175 percent more travelers respectively, according to a report by daily newspaper Gazeta Wyborcza. During April, 327,000 Poles traveled on domestic flights, a 91 percent increase on the
same period a year earlier. LOT has not lost any clients on its domestic flights, despite the success of OLT Express. Instead, OLT clients represent a new customer demographic which is frequently choosing to travel by air instead of by car or train, Gazeta Wyborcza wrote. Growth in the sector could slow from 2015, when new high-speed Pendolino trains are expected to begin operating between Poland’s major Natalia Kopytnik cities.
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FINANCE & ECONOMICS
Unemployment among world’s youth stuck at crisis peak levels Since 2000, Poland has seen the sharpest increase in the use of temporary contracts for young workers in the EU
ong people aged under 25 in the EU stood at 21.4 percent in 2011, and at 25.8 percent in Poland. Spain and Greece had the highest youth unemployment rates, at 46.4 and 44.4 percent respectively.
25.8%
centage points, compared to 4.3 percentage points for the EU. Job creation for young people must become a key priority in policy-making, according to José Manuel Salazar-Xirinachs, executive director of the ILO Employment Sector. “This includes measures such as offering tax and other incentives to enterprises who hire young people, efforts to reduce the skills mismatch among youth, entrepreneurship programs that integrate skills training, mentoring and access to capital, and the improvement of social protection for the young,” he said in a statement.
nd
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ia
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y
27
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EU
lic
ub
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Ge
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Gr
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in La tv ia Be lgi Un um ite d Kin gd om Lit hu an ia
Source: International Labour Organization
Nearly 75 million young people around the world are curis the youth rently without a job, an unemployment rate increase of more than four in Poland million since 2007, according Another sign of the times is to a new report by the International Labour Organization the rise in the use of temporary contracts for young work(ILO). The unemployment rate ers. Poland was the leader in among the world’s youth that category in Europe for the (those aged 15 to 24) in 2011 period between 2000 and when temporary reached 12.6 percent, the same 2008, as it was in 2009. It is projected employment among youths Alice Trudelle to reach 12.7 percent this year. increased by almost 50 perThese figures are unlikely to improve until 2016, Temporary solution warns the ILO. Change in the incidence of temporary employment in total employment Including those who, in the European Union, youth and adults, 2000-2008 (Q2) discouraged by a lack of prospects, have given up 50 on or postponed the Youth process of looking for a 40 Adult job, unemployment among the world’s youth in 30 2011 was 13.6 percent. ILO doesn’t provide 20 information about youth unemployment by coun- 10 try, but says in its report 0 that youth unemployment in the “Developed –10 Economies & European Union” region stood at –20 18 percent in 2011. According to Eurostat data, unemployment am-
Poland’s Finance Ministry sold €11 billion on the currency market during 2011, it said in a statement. This was done in an attempt to stabilize the z∏oty throughout the year. At one point in 2011, the currency dropped to its lowest level in four years. In a statement, the Finance Ministry said it had converted EU funds directly on the market, in addition to selling foreign debt. In 2010, the ministry sold only €1.25 billion for the same purpose. Clearly more drastic measures needed to be taken last year, when the z∏oty lost 11 percent against the euro due to worries that the euro-zone debt crisis would harm the Polish economy. Maintaining a stronger z∏oty throughout 2011 curbed the local-currency value of Poland’s foreign debt. Consequently, the ministry was able to prevent public debt from surpassing 55 percent of GDP.
SHUTTERSTOCK
Poland’s Finance Ministry sold €11 bln to stabilize z∏oty in 2011
The z∏oty dropped to its lowest level in four years in 2011 If this level had been breached, it would have triggered legally mandated budget cuts. During the first quarter of 2012, the z∏oty strengthened and the ministry reverted to its usual practice of exchanging funds at the central bank
rather than on the currency market. However, the currency weakened recently to around z∏.4.40 against the euro, prompting the Finance Ministry to once again step into currency markets in midMay. Natalia Kopytnik
7
Retail sales slow, unemployment drops Retail sales decelerated in April to 5.5 percent year-onyear from 10.7 percent y/y in March, considerably below market expectations of around 9.3 percent, Central Statistical Office data showed last week. “Deceleration of retail sales is partly an effect of a high statistical base from April 2011, due to the Easter schedule (this year Easter was celebrated at the very beginning of April, so some purchases took place in March),” Bank Zachodni WBK analysts wrote in a market report. On the year, trade of automobiles and parts rose 10.6 percent while fuel sales were up 11.3 percent. Sales of food, beverages and tobacco rose 1 percent y/y. Meanwhile, the unemployment rate declined to 12.9 percent from 13.3 percent in March. The reading was in line
with forecasts. Looking ahead, BZ WBK wrote, “In coming months we do not exclude a further gradual decline of the unemployment rate due to seasonal factors and the organization of
Euro 2012.” “From the point of view of monetary policy, [the] data indicate no need for further interest-rate hikes,” BZ WBK wrote. Gareth Price
On its way back down? Poland's unemployment rate, April 2010-April 2012 14.00
13.25
12.50
11.75
11.00
Source: Central Statistical Office
Industrial production rises, analysts unimpressed Poland’s industrial production rose 2.9 percent year-on-year in April, following on from weak figures reported in March, according to the Central Statistical Office. The increase in production was slightly lower than expected, with analysts predicting
growth of around 3 percent. The largest rise was seen in the construction industry, which saw growth of 8.1 percent compared to the same period last year. Mining and quarrying companies saw the largest decrease in production, at 11 percent year-on-year.
“Output growth in April slightly accelerated, but this is largely due to statistical factors. The data confirm that the debt crisis in the euro area is gradually filtering through to the Polish economy,” wrote Citibank analysts in a market DI, AT report.
Media patronage
Classic and contemporary Ailey II, one of the most prestigious modern ballet companies in the US, performed in Poland for the first time on Friday, May 25, at Warsaw’s Palace of Culture and Science. The company, which is known for skillfully mixing classical and contemporary choreography with modern music, was in the capital as part of its international tour which will continue on to Germany, Estonia, Latvia and Lithuania. For dance enthusiasts, the company’s performance provided a fresh approach to traditional ballet choreography. During their Warsaw performance, which was sponsored by Allegro Group, the troop danced to Shards as choreographed by Donald Byrd. Performances of Splendid Isolation II, The Hunt, and Revelations were also part of Friday night’s program. Ailey II is the Ailey School’s junior
COURTESY OF AILEY II
Youth unemployment
www.wbj.pl
Ap r. Ma '10 y Jun '10 .' Jul 10 Au . '10 g Sep. '10 . Oc '10 t. No '10 v De . '10 c. ' Jan 10 . Feb '11 Ma . '11 r. Ap '11 r. Ma '11 y Jun '11 .' Jul 11 Au . '11 g Sep. '11 . Oc '11 t. No '11 v De . '11 c. Jan '11 . Feb '12 Ma . '12 r. Ap '12 r. '1 2
MAY 28 – JUNE 3, 2012
company in residence, and membership is seen as a crucial step for talented young dancers and choreographers on their way to the professional dance world. Today, the Ailey School, which was founded in the 1960s by dancer and choreographer Alvin Ailey, trains over 3,500 students, and has preformed for around 23 million people in a total of 71 countries. ●
8
OPINION & ANALYSIS
www.wbj.pl
MAY 28 – JUNE 3, 2012
Courage, Mr Prime Minister Remi Adekoya
“Few leaders in Europe today enjoy the luxury of having such feeble political opposition” Poles, shows clearly that Poles simply do not see any alternative to the PM and his government and will not throw their support behind PiS or any other party, come what may. Mr Tusk and his party have made several political errors this year, starting with an ill-conceived prescription drug reform that caused chaos and
confusion in its first few weeks. After that, they unleashed the wrath of Poland’s youth by initially backing the ACTA treaty which aims to implement stricter copyright laws on the internet. Mr Tusk later admitted that he had been “mistaken” in backing the treaty and withdrew his support. Then there are the many infrastructure projects that were supposed to be ready for the upcoming Euro 2012 tournament and have yet to be finished. And now Mr Tusk has passed a hugely unpopular reform raising the retirement age for men and women to 67. Various polls have shown anything from 80 to 90 percent of Poles oppose this reform. The Solidarity labor union gathered two million signatures from people calling for a referendum on the subject and have staged several protests against the change, including blocking MPs from Donald Tusk’s party from leaving parliament after they passed the bill. Despite all of this, PO is still number one in the polls.
For example, the labor-participation rate in Poland is low, at about 56 percent according to World Bank data. By comparison, it is at 60 percent in Germany and 59 percent in the Czech Republic. Efforts should be made to address this. There is also the problem of KRUS, the farmers’ national-insurance system, which is still a heavy burden on the state, costing taxpayers some z∏.17 billion every year. That’s about half the size of the entire budget deficit expected for Poland this year. It is also only z∏.1 billion less than the amount Poland has spent on R&D since it joined the EU in 2004. Of course, KRUS would be a tricky thing to reform as Mr Tusk’s junior coalition partner, the Polish People’s Party (PSL), is a rural party and will be loathe to antagonize its electorate. No one is asking the PM to axe KRUS altogether, but steps can be taken to at least limit some of the privileges that farmers still enjoy despite being the largest beneficiaries of EU funds. Mr Tusk should exploit his strength and the opposition’s weakness for the good of his country. ●
COURTESY OF MSZ
A mid-May TNS Polska poll indicates that the ruling Civic Platform (PO) party now has 28 percent support among Poles, ahead of Law and Justice (PIS) with 25 percent. Third is Palikot’s Movement (RP) which is backed by 10 percent of Poles followed, by the Democratic Left Alliance (SLD) at 7 percent. This poll, taken after Prime Minister Donald Tusk pushed through reforms to the pension system opposed by some 80-90 percent of
Nothing to fear This should give the prime minister courage to implement more badly needed reforms in Poland. Few leaders in Europe today enjoy the luxury of having such feeble political opposi-
tion as Mr Tusk has. He should take advantage of this. Poland’s economy is not doing badly but with some help, could do much better.
However, this will only happen if certain problems are tackled head on, and if Mr Tusk takes the bulls by the horns.
Remi Adekoya is Warsaw Business Journal’s politics editor. Read his blog, “The business of politics” on WBJ.pl
Is the euro ending or beginning? Jean Pisani-Ferry
W
hen the architects of the euro started drawing up plans for its creation in the late 1980s, economists warned them that a viable monetary union required more than an independent central bank and a framework for budgetary discipline. Study after study emphasized asymmetries within the future commoncurrency area, the possible inadequacy of a one-size-fits-all monetary policy, the weakness of adjustment channels in the absence of cross-border labor mobility, and the need for some sort of fiscal union involving insurance-type mechanisms to assist countries in trouble. Beyond economics, many observers noted that European Union citizens would accept tight monetary bonds only if they were participating in a shared political community. The former president of the Bundesbank, Hans Tietmeyer, liked to quote a medieval French philosopher, Nicolas Oresme, who wrote that money does not belong to the prince, but to the community. The question was, which political community would support the euro?
Deep doubts Some of these warnings were inspired by deep-seated doubts about European monetary unification. But others merely wanted to emphasize that Europeans needed a better-equipped and stronger vessel for the journey that they were contemplating. Their message was simple: National gov-
ernments must make their economies fit for the strictures of monetary union; the euro must be supported by deeper economic integration; and a common currency needs political legitimacy – that is, a polity. In the end, the leaders at that time – especially German Chancellor Helmut Kohl and French President Francois Mitterrand and his successor, Jacques Chirac – set forth to sea in a light vessel. On the economic front, they agreed on only a bare-bones Economic and Monetary Union built around monetary rectitude and an unenforceable promise of fiscal discipline. On the political front, they did not agree at all, so the creation of a European polity remained stillborn. Some at the time, like then-European Commission President Jacques Delors, openly deplored this narrow approach. Though political constraints prevailed, the euro’s architects were however not naive. They knew that their brainchild was incomplete. But they assumed that, over time, monetary unification would create momentum for national reforms, further economic integration, and some form of political unification. After all, that piecemeal approach is what had helped to build the EU ever since its origins in the coal and steel community of the 1950s. Few among the euro’s proponents expected that there would be no significant change after its launch.
Mistaken assumption But this assumption was mistaken. From the signing of the Maastricht Treaty in 1992 to the 10th anniversary of the euro in 2009, the expected momentum for creating a common European polity was nowhere in sight. Indeed, very few countries have bothered to spell out, let alone implement, a euro-inspired economicreform agenda. Having agreed to delegate responsibility for monetary policy to the European Central Bank, most governments put up fierce resistance to any further transfer of sovereignty. In 2005, a timid attempt to foster political integration by adopting a constitutional treaty was defeated in popular referenda in France and the Netherlands. So, contrary to expectations, things stayed put. Soon after the introduction of the euro in 1999, it became clear that the scenario favored by the common currency’s architects would not be realized. Everybody accepted – if grudgingly – that the bare-bones EMU was the only game in town. Now, however, what did not happen through smooth evolution has started to happen through crisis. Since 2009, the Europeans have already put in place the crisis-management and resolution apparatus that they initially refused even to discuss. Simultaneously, governments, under merciless pressure from the bond markets, are introducing labor-
and product-market reforms that they deemed politically inconceivable only a few quarters ago. But the bond markets want more. The questions that they are asking more loudly with each passing day demand answers. Will Europeans agree to mutualize part of the cost of the crisis? Greece’s creditors (mostly euro-zone residents) have already accepted some of the burden by accepting a “haircut” on their assets. But, if another country finds itself unable to bear the fiscal cost of the crisis, will it also shift the burden to its external creditors in some form or another? And, beyond transfers, will Europeans, or some of them, agree to create a banking union (that is, Europeanization of banking supervision, deposit insurance, and crisis resolution)? Will they agree to pool tax revenues so that EU-level institutions can credibly take charge of financial stability?
Vital questions These questions are vital for the future of the common European currency. In spite of their desire not to raise them, European leaders face the uncomfortable prospect of having to answer them – and without much delay. The historical irony is that an environment of crisis is forcing Europeans to make choices that they did not want to envisage, much less confront, in quieter times. The Greek
debt crisis forced them to create an assistance mechanism. The Spanish crisis may well force them to create a banking union. And the threat of a Greek exit from the euro may force them to decide how far-reaching a fiscal union they are prepared to embrace.
“The crisis is forcing Europeans to make choices that they did not want to confront in quieter times” For many, recent developments mark the beginning of the end for the euro architects’ bold creation. But, depending on how Europeans answer these questions, today’s crises might one day be remembered as the end of the beginning. ● Jean Pisani-Ferry is director of Bruegel, an international economics think tank, professor of economics at Université Paris-Dauphine, and a member of the French Prime Minister’s Council of Economic Analysis. Copyright: Project Syndicate, 2012. project-syndicate.org
OPINION & ANALYSIS
MAY 28 – JUNE 3, 2012
www.wbj.pl
9
Why Europe still needs nuclear deterrence Imants Liegis, Linas Linkevicius, and Janusz Onyszkiewicz
In
recent months, we have joined discussions led by former United States Senator Sam Nunn, former British Minister of Defense Lord Desmond Browne, and others to find a way to reduce nuclear weapons in Europe. Although we fully endorse the aim of working towards a world free of nuclear arms, we firmly believe that NATO must remain a nuclear alliance so long as these weapons continue to exist around the world. There are a number of powerful reasons for maintaining NATO’s current mix of capabilities, including the presence of US nuclear weapons in Europe.
Overwhelming disparity For starters, there remains an overwhelming disparity between the US and Russia on non-strategic nuclear weapons in Europe, with roughly 200 for the former and an estimated 2,000 for the latter. Every effort must
be made to reduce these numbers, but only by reciprocal measures. Indeed, there are serious doubts that unilateral withdrawals by NATO would encourage Russian President Vladimir Putin to review his country’s deepening reliance on nuclear deterrence. Given that our countries are very close to Russia’s deployed nuclear arsenal, an increasing nuclear disparity between NATO and Russia resulting from NATO reductions would be of paramount concern to our fellow citizens. That ongoing disparity should and must remain a concern for NATO as a whole. Let us not forget that, only a few years ago, Russia and Belarus conducted joint military exercises according to a scenario that included a nuclear attack on Poland.
No progress in sight Second, it seems unlikely that there will be much progress in talks with Russia on reducing tactical nuclear
weapons in the near future, and certainly not until after November’s presidential election in the US. We regret this. Our countries welcomed the ratification in 2011 of the New START agreement between the US and Russia – a positive outcome of US President Barack Obama’s policy towards Russia of reducing strategic nuclear weapons, and we hope that there will be no backtracking on this treaty. But the fact is that there is no follow-on process in sight to make good on this goal. Moreover, missiledefense cooperation has stalled over fundamental differences in political approaches, and Mr Putin has indicated that he will not attend the NATO-Russia summit in Chicago. Senator Nunn has rightly pointed out that US/NATO and Russian threat perceptions will never completely overlap. Yet a great number of the threats facing the two sides are increasingly shared and can often best
be confronted together. For this reason, we need to continue to engage our Russian partners with patience, transparency, and a view to enhancing mutual trust and confidence.
Long-term commitment Finally, reducing the presence of US tactical nuclear weapons in Europe would add to the concerns expressed by many European leaders about America’s long-term commitments to the continent. Thanks to US leadership, Poland, Latvia, Lithuania, and other European countries have enjoyed historically unsurpassed security since joining NATO, but that security should not be taken for granted. All of the NATO allies must understand that the global security landscape is changing. Cyber threats and energy security have come to the fore. The situation in the Asia-Pacific region requires moving US troops who were once based in Europe to
Australia. But we believe that the ongoing reductions of US conventional forces in Europe should not yet be compounded by any possible reduction in America’s nuclear capabilities there. This would weaken the transatlantic link that is essential for Europe’s security and NATO’s cohesion. Nuclear disarmament needs to remain high on NATO’s agenda, but new and creative approaches are needed if disarmament is to enhance, rather than undermine, the Allies’ security. Only those approaches that ensure reciprocity, transparency, cohesion, and undiminished security for all of NATO’s members have a chance at success. ● Imants Liegis is a former defense minister of Latvia. Linas Linkevicius is a former defense minister of Lithuania. Janusz Onyszkiewicz is a former defense minister of Poland. Copyright: Project Syndicate, 2012. project-syndicate.org
Getting it right on Polish shale gas: what American companies may be missing Peter B. Doran
T
he stakes for shale gas in Central and Eastern Europe just got a whole lot bigger. Last week’s announcement that Chevron and Royal Dutch Shell would lead the planned exploration for unconventional gas in Ukraine has increased the likelihood that Europe might someday be flush with commercial quantities of non-Russian natural gas. Yet recent setbacks for shale gas in Bulgaria and Romania, together with a possible ban in the Czech Republic and a slow start to the first round of regulations in Poland are reminders that a bright future for this resource is far from assured. While most attention has focused on the role of regional capitals in creating the right climate for energy investment, the international oil companies who are pioneering the search for shale gas in countries like Poland can do more to ensure their own success. Should it materialize, the benefits of a commercially-viable arc of unconventional gas from the Baltic to the Black Sea would be a boon to regional economies, a catalyst for closer commercial links with the United States and a robust solution to one Central Europe’s greatest vul-
nerabilities: energy insecurity. Even so, events of the last six months have also shown just how irregular the process of regional unconventional gas development is likely to be in practice. From Bulgaria’s whiplash reversal on shale exploration last December to the Romanian government’s new moratorium on hydraulic fracturing – the process for recovering shale gas – and a possible ban in the Czech Republic, public pushback against unconventional gas has quickly surfaced.
Three ways to be more effective Against this backdrop, Polish policymakers have begun to write the country’s first set of rules, which are tailored specifically for unconventional gas. How this process unfolds, and what it manages to produce in the critical early rounds, could determine the chances for success of shale gas development in not just Poland but the wider European neighborhood. It is a pivotal moment, one for which private energy companies need to act strategically. A rapid sequence of negative developments – a few empty wells, a suboptimal first tranche of laws, an unexpected turn in public
perceptions – could have a chilling effect on shale gas development for years to come. While companies appear to understand this fact and are doing what they can to ensure success, here are three additional ways that they could be more effective: 1. Think long-term. Since late last year, the overriding focus of the energy industry has been directed at the upcoming hydrocarbon tax, now under preparation and consideration inside the Polish government. However, this levy only represents one piece of a larger framework. Like the hydrocarbon tax, additional regulatory components on issues such as environmental rules for hydraulic fracturing will be enacted in three broad stages: the internal government drafting process, a social and industry dialogue and parliamentary debate. Rather than addressing these tranches piecemeal, companies could increase the odds of success for shale gas by putting forward a coordinated strategy for engaging the full-spectrum of pending regulations at decisive points in the public vetting process. So far, the approach has mainly been ad hoc. 2. Educate the public – proactive-
ly. One lesson from the US shale boom is that public perceptions matter, particularly when local communities are unaccustomed to hydrocarbon extraction. Yet, there is a success story about shale gas in North America that is not being told in Poland. As the number of unconventional wells proliferates and municipalities encounter commercial gas production for the first time, Polish voters are likely to ask themselves: Is this safe? In the United States, the record of wide-scale unconventional drilling is remarkably strong. To date, proponents of unconventional gas have underutilized this fact to dispel popular misconceptions of hydraulic fracturing. At this early phase, a forwardleaning offense aimed at closing the knowledge gap on Polish shale gas could pay dividends down the road. 3. Work outside of government. In addition to the archipelago of state ministries with a stake in unconventional gas (e.g. Environment, Finance and Economy), energy producers could amplify their efforts to engage a wider audience of opinion-makers. To this end, the domestic policy debate would benefit from a more sustained, high-profile conversation with gas producers on the best prac-
tices and safety strategies, which have been perfected in North America and could be applied to Poland. This level of outreach is likely to prove beneficial once upcoming regulatory trances are presented for legislative approval and scrutinized by the policy-conscious public.
Poland, the model Going forward, what happens in Poland over the next 12 months will likely resonate across Central and Eastern Europe for years to come. For their part, the energy companies now operating in Poland can help to ensure the country becomes a model for others in the region to follow. Companies should think long-term in their strategy, proactively educate the public and engage a wider domestic audience. In the United States, shale gas has meant greater prosperity and supply security for millions. It is a story that Europeans can replicate and an added incentive for all stakeholders in Polish shale gas to it right the first time. ● Peter B. Doran is senior policy analyst at the Center for European Policy Analysis (CEPA). CEPA.org
Editorials are the opinions of WBJ’s editorial board. Other opinions are those of the authors alone. Comments, opinions and letters should be sent to editor@wbj.pl. Please include a name and contact information and clearly indicate if they are to be considered for publication.
PUBLISHER VALKEA MEDIA SA CO-MANAGING EDITOR
GARETH PRICE (GPRICE@WBJ.PL)
REAL ESTATE EDITOR
ADAM ZDRODOWSKI (AZDRODOWSKI@WBJ.PL) SPORTS & LIFESTYLE EDITOR
CO-MANAGING EDITOR
ALICE TRUDELLE (ATRUDELLE@WBJ.PL) POLITICS EDITOR
REMI ADEKOYA (RADEKOYA@WBJ.PL)
COLUMNISTS
ADAM NARCZEWSKI ANDREW NAWROCKI INTERN
DAVID INGHAM (DINGHAM@WBJ.PL)
NATALIA KOPYTNIK
JOURNALIST
PIOTR WYSKOK
IZABELA DEPCZYK CONTRIBUTORS
E. BLAKE BERRY EWA BONIECKA ALEX ZARGANIS
PRODUCTION MANAGER GRAPHIC DESIGNER
EDITOR-IN-CHIEF ANDREW KURETH (AKURETH@WBJ.PL) MARKETING &SALES
MARTA CZESZEJKO-SOCHACKA (MCZESZEJKO-SOCHACKAKA@WBJ.PL)
AGNIESZKA BREJWO
KAROL KOSIOREK (KKOSIOREK@WBJ.PL)
MARKETING &SALES DIRECTOR
(ABREJWO@WBJ.PL)
PR & MARKETING SPECIALIST
MAGDALENA KARPI¡SKA (MKARPINSKA@WBJ.PL)
¸UKASZ MAZUREK CARTOONS
PIOTR WYSKOK
MANAGING DIRECTOR MONIKA STAWICKA
NATALIA ROGACZEWSKA (NROGACZEWSKA@WBJ.PL) SUBSCRIPTIONS MANAGER
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PRINT & DISTRIBUTION COORDINATOR
KRZYSZTOF WILI¡SKI (DYSTRYBUCJA@VALKEA.COM)
BOOK OF LISTS SPECIALIST
JOANNA RASZKA (JRASZKA@VALKEA.COM)
10
COVER STORY
www.wbj.pl
MAY 28 – JUNE 3, 2012
Private equity
Poland stands out in CEE
Gareth Price
Once seen as offering emerging-market profits with European risk, Central and Eastern Europe has of late fallen out of favor with private equity investors, many of whom have now turned their attentions to what they see as more rewarding opportunities elsewhere. A recent survey by the Emerging Markets Private Equity Association (EMPEA) shows CEE languishing behind all other emerging markets in terms of investment attractiveness. The survey polled representatives from 106 limited partnerships (LPs) in 28 countries.
a relatively paltry €300 million in fundraising, according to Acanthus data. At the same time as CEE has seen its attractiveness fall, many other emerging markets have leaped ahead. According to EMPEA’s survey, Latin America beyond Brazil is seen as the most attractive destination for dealmaking in the upcoming years, with Brazil, China and Southeast Asia fol-
“It is fair to say that CEE is not in vogue at the moment”
Out of fashion “The results of the survey are fairly dire on the surface – CEE ranked very low in terms of perceived attractiveness,” said Kanika Kumar, an associate at Acanthus, an advisory firm focused on private equity fund placement.“It is fair to say that CEE is not in vogue at the moment with investors.” From the heady heights of 2006-2007, when around €2-3 billion was raised for CEE private equity deals, last year saw
lowing close behind. Increased commitments are also expected in Sub-Saharan Africa and Turkey. These markets are in many cases seen as being riskier than CEE, but are also thought to offer higher potential profits. “CEE has fallen out of favor due to investors looking for higher returns around the globe,” said Przemek Szczepaƒski, a partner at Syntaxis Capital, a provider of
mezzanine finance for midmarket buyouts and capital growth transactions in CEE. “It is a much tougher fundraising environment. Those who have proven themselves during the crisis and have a unique strategy could do well, but the market is starting to consolidate with smaller, weaker [PE] players merging with stronger companies.” CEE’s reputation has also been blighted by the fiscal performance of several countries, with the state of Hungary’s public finances proving to be particularly off-putting for investors. Meanwhile, Ukraine – often included in CEE PE portfolios – has found itself hampered by its reputation for corruption and unstable governance. Individually, moreover, many CEE countries’ populations are simply too small to compete with behemoths like India, China or even Brazil, whose markets are much larger.
Legal News Contact: Miros∏aw Stefanik ms@pnplaw.pl
Remuneration rights for foreigners staying illegally in Poland On May 10, the Sejm, Poland’s lower house of parliament, adopted the draft Act on Consequences of Employing Foreigners Staying Illegally in Poland. The draft Act, which is now being reviewed by the Senate, defines sanctions for entities which employ foreigners who stay in Poland illegally. It also sets out procedures that foreigners have to follow in order to claim remuneration and related benefits. Pursuant to the Act, foreigners are defined as persons who are not citizens of the EU, the European Free Trade Association or Switzerland.
No more advance payments on the milk market On May 15, 2012 the Polish president signed into law legislation which changed the Act on Organizing the Milk and Dairy Produce Market. The changes are expected to have a positive impact on economic competitiveness and entrepreneurship.
Under the law, milk producers will not be obliged to make advance payments for fees for exceeding individual milk quotas in a given year. If there is no real danger of exceeding the national quota, producers will be able to spend all funds earned from milk sales to settle their ongoing obligations, or to allocate them for investments.
Court: PGE can’t take over Energa On May 14, the Competition and Consumer Protection Court upheld the decision of the president of the Office for Competition and Consumer Protection (UOKiK) which prohibited Polish stateowned electrical utility PGE from taking over smaller sibling Energa. UOKiK had said that such a takeover would limit competition. On October 20, 2010 PGE applied to UOKiK for consent to take over Energa, with the regulator then announcing its decision on January 2011. PGE is the biggest energy producer in Poland. Energa is engaged in the production, sale and distribution of electrical energy. ●
BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE
mainly due to large transactions in the mining sector – accounted for 65 percent of the deal
The region is now rarely considered a suitable
UK. In CEE excluding Poland, growth of 1 percent is forecast. Companies from the consumer-goods, health-care, pharmaceutical and retail sectors are forecast to see particularly strong investment activity, with a number of mergers and acquisitions expected in those sectors.
Active investors
SHUTTERSTOCK
Though Central Europe has lost some of its luster for private equity investors, Poland remains an attractive target. But getting the region back on investors’ radars is crucial for continued success
market for first-up investments. “As many investors currently consider other markets more attractive, it is increasingly rare to find new first-time investors in the region,” said Ms Kumar. “However, the next six to 12 months, as more managers return to market, will be really crucial in clarifying the future.”
Stand-out performer Poland, with its sizable population of 38 million and solid economic fundamentals, is the stand-out country in CEE, and in many ways bucks the trend seen in the rest of the region. “We can all agree that Poland is the most emerged market,” said Ms Kumar. “Economically, Poland has performed the best in Europe throughout the crisis, its stock market is well developed and investors are comfortable with it.” According to a report by law firm CMS and DealWatch, 3,792 deals with a total value of €150 billion took place last year in “Emerging Europe” (CEE, Russia and Ukraine). Russia –
value, while Poland was at 12 percent. The largest transaction outside of Russia was tycoon Zygmunt Solorz-˚ak’s €4.8 billion purchase of mobile telephone operator Polkomtel. Another notable deal was Montagu Private Equity’s €420 million buyout of Polish TV and radio broadcast infrastructure operator Emitel from TP Group. Experts say that LPs whose portfolios are focused on Europe as a whole rather than emerging markets as such, are now increasingly turning their attention to Poland – seeing it as a stable alternative to troubled euro-zone markets. Partly as a result, Poland is expected to fare better than all other European countries in 2012. According to a Roland Berger survey of private-equity-sector firms from across Europe, Poland is forecast to see growth of 4 percent in M&A activity involving private equity funds this year. That’s compared to -10 percent in Greece, -7 percent in Spain, Portugal, Italy, France and the Benelux countries, -3 percent in Germany and -2 percent in the
Polish private equity players that WBJ spoke to painted a generally positive picture of the situation on the ground. And their firms are not doing business just in Poland, suggesting that the region as a whole still offers investment opportunities despite of having fallen out of favor with many investors. While admitting that the supply of capital had dropped, Syntaxis Capital’s Przemek Szczepaƒski said he saw the glass as being half full. After finalizing two major deals in the first quarter, he said Syntaxis expected to close several other transactions in the near future in a number of CEE countries. The company, which has €250 million under management, invests between €5 million and €20 million per deal. Poland, Mr Szczepaƒski said, has some particularly attractive sectors for investments. “In Poland, companies involved in the consumer product sector are especially strong. Health care is another potentially attractive sector, but since it’s a regulated market it is difficult to predict cash flow in the medium term. There is a good deal flow of leveraged buyout financing opportunities for which we’re keen on
Selected major private equity investments in Poland, 2011 Investor
Company
Estimated value (€ billions)
Stake
Zygmunt Solorz-˚ak
Polkomtel
4.8
100%
Montagu Private Equity
Emitel
0.42
N/A
˚abka Polska
0.4
100%
Mid Europa Partners
Description Tycoon Zygmunt Solorz-˚ak purchased mobile telephone operator Polkomtel Montagu Private Equity bought Polish TV and radio broadcast infrastructure operator Emitel from Telekomunikacja Polska Group Mid Europa Partners signed an agreement to acquire 100% of ˚abka Polska, the leading convenience store chain in Poland, from Penta Investments
Source: Deloitte's Central Europe Private Equity confidence survey; company statements
COVER STORY
MAY 28 – JUNE 3, 2012
www.wbj.pl
11
Investor focus
Double dip
Poland on top
Investors to focus on opportunities in the following sectors (in Central Europe)
Central Europe PE Confidence Index
Expected change in M&A activity involving private equity funds in 2012 compared to 2011, selected European regions and countries (in %) 4
200
2 11.8
Technology
Energy & utilities
Manufacturing
Food & beverage
8.8 20.6
0
150
-2 100
23.5 Health care 8.8
-6 50 -8
Other
providing financing.” Jacek Korpala, co-managing partner of Arx, a mid-market private equity firm that focuses on CEE, was equally effusive about the outlook, stating that Poland is the most interesting market in the region.
“We are not concerned, we have not stopped investing,” he said, adding that his company will start a new round of fundraising in late 2013. Despite it being too early to talk about specifics, he said Arx, which invests between €5 million and €15
Investment approaches Prior to the crisis, one strategy frequently employed by emerging market investors was to put money into sectors with attractive underlying macroeconomic drivers and then ride the wave of growth. Acanthus associate Kanika Kumar described this approach as potentially less realistic in today’s environment, when a lot of the low hanging fruit has already been picked. It is also a strategy that relies more on exogenous factors and therefore is inherently more vulnerable to cyclical fluctuations, a factor
which may have contributed to the CEE bubble of 2006-07. “It was inevitable the boom would come to and end … it could be the same for Brazil in five years’ time,” said Ms Kumar. For CEE in particular, extracting growth is increasingly a matter of maximizing efficiency at the micro level: working directly with entrepreneurs and helping them to expand their businesses.“For this you need the right manager with local knowledge and experience,” she said. ●
ece Gre
nce
&I tal y
Ibe
ria
Fra
lux
d
ne
an
Be
&S
wit zer l
UK
str ia
E(
Sca
Au
CE
Source: Deloitte's Central Europe Private Equity Confidence survey, May 2012
million per deal, is currently involved in transactions in the manufacturing and medical sectors. Besides Poland, the Czech Republic and Slovenia presently offer interesting investment opportunities, he said. He nevertheless tem-
rm a
d Po lan
M Se arch pte 20 mb 05 er Ma 2005 rch Oc 20 tob 06 er 2 Ap 006 r Oc il 20 tob 07 er 2 Ap 007 ril Oc 20 tob 08 er 2 Ap 008 ril Oc 20 tob 09 er 20 Ap 09 r Oc il 20 tob 10 er 20 Ap 10 ril Oc 20 tob 11 er 2 Ap 011 ril 20 12 Source: Deloitte's Central Europe Private Equity Confidence survey, May 2012
ny
-10
0
Ge
Financial services
via exc l. P ola nd )
11.8
ina
8.8
-4
Retail
nd
5.9
pered his optimism, saying that “the next three to four years will be difficult” when it comes to fundraising. In CEE, Mr Szczepaƒski said, investors now distinguish Poland from other countries due to its strong performance during the crisis, when its economy continued to grow every year. “It is now almost easier to raise a Poland-only fund, since the perception of risk is much lower,” he said.
Source: Roland Berger Strategy Consultants’ survey European Private Equity Outlook 2012
Poland needs a strong CEE But such is the size of the Polish market that Poland cannot afford its neighbors in CEE to lag behind for too long. The Polish market for PE investments is relatively shallow, meaning fund managers rarely limit themselves to Poland alone. Instead, they tend to take a pan-CEE approach, to increase their chances of hitting the jackpot. For this reason, the attractive-
ness of the CEE market as a whole is critical for Poland. To avoid being subject to the ever-changing whims and moods of investors, the region needs to establish itself as a stable asset class that doesn’t need to be in fashion to attract sustainable levels of capital, said Mr Szczepaƒski. “It would be good if there was a consistent group supporting CEE strategies, to ensure solid and stable cash flow into the region,” he added. ●
Selected significant exits in Poland, 2011 Company
Seller
Buyer
Value (€ millions)
Stake
Kruk
Enterprise Investors
IPO
78.7
50%
PharmaSwiss
Enterprise Investors
Valeant Pharmaceuticals International
52.5
N/A
Motor Polimer
Carlson Capital Partners
European Polymers and Chemicals Distribution
N/A
100%
Source: Deloitte's Trimming the sails Central Europe Private Equity confidence survey; company statements
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PO-PSL relations
Trouble in the coalition? The ruling coalition, composed of the Polish People’s Party (PSL) and PM Donald Tusk’s (PO) Civic Platform, seems to be having trouble finding common ground on several issues, most recently on the government’s flagship reform to raise the retirement age. Stanis∏aw ˚elichowski, a prominent member of PSL, tells WBJ how this tug of war at the top is playing out Ewa Boniecka: PSL has recently presented several legislative proposals. Is your party making a calculated political move to show its independence from coalition partner, PO? Stanis∏aw ˚elichowski: It is not a calculated political move on our part. As an experienced party, we have a deep conviction that there is currently an opportunity for Poland to move forward rapidly. Poland has inherited a much more difficult road to development than richer
Western countries, but those difficult experiences have forced Poles to deal with crises and made us more resistant. European capital tries to escape crises by fleeing to Asia, Africa and other regions. Poland, with its economic stability and still relatively low labor costs, could attract and absorb part of that capital. Another element of this momentum for Poland is the flow of substantial amounts of funds from the European Union, which we have to absorb most effectively while it lasts. But in order to take advan-
tage of these opportunities we have to conduct a policy tying economic growth with social policies, because Poland is still a country of deep economic and social contrasts. To reduce these gaps we need job-creating policies, incentives for families to support a higher birth rate and we need to create conditions to integrate groups of people who live in poverty. And it is to deal with these problems that my party is now presenting a package of proposals. When PSL acts independently of PO, as it did in pushing for changes and additions to the government’s recent pension-reform bill, the result is often confusion and tension within the coalition. If PSL does not feel responsible for pushing government proposals, where is the coalition heading? During tough talks in the
coalition, PSL made clear that we saw Prime Minister Tusk’s proposal of extending the retirement age to 67 years as a technical proposition, which needed additional social elements. This reform is needed due to our demographic situation, but it has to be adapted to our social context, which was understood by PO and the whole government due to PSL’s efforts. What are the most important elements of PSL’s social package? At this moment, they are open to discussion, and we want to consult with various social groups. The main focus is to create conditions to increase the number of births in Poland by helping families and improving working conditions for women, including those who are self-employed and are currently not entitled to state-funded health insur-
ance. We also want to increase the threshold of income for receiving social welfare, and are considering the introduction of tax breaks for firms that establish day nurseries in the workplace. These proposals would be expensive: Are they realistic? If we increase our present
working abroad they work at home, income to the budget will be higher, allowing us to finance these proposals. PSL’s proposal to create a program for young people to build their own houses on land offered at a very low price by the state (“Ziemia za z∏otówk´”) is very controver-
“The supposition that PSL could be feeling threatened by Palikot’s Movement is totally unfounded and simply ridiculous” rate of economic growth, attract more foreign capital, increase our productivity and are able to create more jobs for Poles, so that instead of
sial. Why is it a good idea? In countries such as Sweden and Portugal, the government provides free land in regions Continued on p. 13 ➡
Legal Forum
Increased purchaser protection – does it work? Rados∏aw Biedecki Partner Is it time to purchase an apartment? Will prices decrease or increase in the coming months? The last few weeks have been quite confusing regarding the standing and condition of developers and the state of Poland’s construction sector as a whole. On the one hand, developers have lately been announcing that they plan to build more apartments than in previous months, and this despite a credit freeze by the banks. On the other hand, construction companies, and in particular those involved in the construction of highways, have been hit by invoice settlement delays, leading to spectacular bankruptcy motions. The reason for the increase in residential developers’ activity was the entry into force on April 29, 2012 of the so-called Developers Act, which imposes on them new obligations towards individual buyers. It also applies to apartment cooperatives which act as sellers. Prior to the entry into force of the Developers Act, about 53 percent of housing investments were carried out without the use of any bank financing. The most important changes concern: the form of the notarial deed for the preliminary sale agreement, the duty to provide an informational prospectus,
and payment of the purchase price into an escrow account.
Integral prospectus The scope of key information to be contained in the prospectus is as follows: description of the last three projects completed and information showing that no enforcement procedure has been conducted against the developer for an amount exceeding z∏.100,000; information about the plot on which the building will be constructed and about neighboring plots. In case there is no local zoning plan, the developer shall include in its prospectus details about planned roads and other large investments, within a radius of 1 km from the plot; information about whether the developer holds a building permit decision, details about when it plans to start and finish construction work, information about project financing, details about the kind of escrow agreement that will be used (please see below), and a list of the conditions under which the agreement can be terminated; price per sqm, number of floors, building technology, number of premises and garage spaces, surface area of the apartment; consent of the bank financing the investment to transfer
to the purchaser ownership of the apartment free of any liens/mortgages in connection with any potential debt held by the developer. The provision of false information in the prospectus can result in a sentence of up to two years in prison, but in case there is no prospectus at all – just a fine.
Integral prospectus The prospectus is an integral part of the above-mentioned preliminary purchase agreement in the form of a notarial deed. Moreover, a purchaser’s claim arising from such an agreement shall be disclosed in the land and mortgage register kept for the property.
Land and mortgage entry Developers complain that in case the purchaser does not obtain a loan or simply does not enter into a final sales agreement, the claim will still be disclosed in the land and mortgage register. This will make it almost impossible to sell such an apartment before the claim is deleted. Moreover, such a deletion can take a considerable period of time, in particular when the former client is not ready to cooperate.
Escrow account The requirement for an escrow account was introduced in order to protect the purchaser from financial troubles experienced by the developer (including bankruptcy and unfair practices). Under the new law, the purchaser will pay installments into an escrow account kept by the bank. The bank will release funds to the developer: after receipt of the notarial deed (agreement) transferring the ownership of the apartment/house to the purchaser (closed-end escrow account); or step-by-step after completion of each construction stage (open-end escrow account); in this case the banks will most probably verify on-site the completion of the stages of construction. In the case of an open-end escrow account, developers have the option (but not the duty) to provide the client with a bank guarantee or insurance policy. Developers are not eager to provide prospective clients with such guarantees and if they do, it has an impact on the costs borne by the client. In case of a developer’s bankruptcy the funds accumulated in the escrow account and the title to the land on which the investment is carried out will be excluded from the bankruptcy estate.
Legal Forum is a paid-for module which gives law firms in Poland an opportunity to discuss and inform readers about important developments in the market. The content is created in consultation with Warsaw Business Journal's editorial staff.
Until 2008 the surface area of new apartments had been growing, with the average reaching around 68 sqm. Since then the average area has decreased to 35-40 sqm for a two-room apartment and to 45-55 sqm for a three-room apartment. This is mainly due to purchasers’ limited financing opportunities. The reduced area and fall in price does not apply to apartments in attractive downtown locations and prestigious buildings. Developers obtained numerous building permits and accumulated a substantial number of offers prior to the entry into force of the Developer’s Act. Consequently, most of their projects on sale are now not subject to the requirement of the escrow account. The escrow is applicable to offers introduced on the market after April 29, 2012 and experts estimate that the present offers correspond to a six-month sale period. According to them, the increased loan requirements by the banks and the large offer of small apartments should lead to a further downward adjustment of prices. Thus, it is a buyer’s market. But the legal protection in connection with the escrow account will be truly applicable probably only next year. ●
The winners of the Zacznij.biz competition were selected during the Final Gala 4
MEDIA PATRONAGE: ZACZNIJ.BIZ A special media patronage supplement on promoting enterpreneurship
MAY 28 – JUNE 3, 2012
Zacznij.biz is a business-plan competition organized by the Polish Confederation of Private Employers Lewiatan and Lewiatan Business Angels. The idea behind the contests is to promote entrepreneurship, assist in preparing business plans and attract investors – business angels – to work with the best ideas.
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The prize for those who entered the best ideas into the competition was to interest potential investors from Lewiatan Business Angels (LBA) – the largest and most active Business Angels network in Poland. LBA matches entrepreneurs who have innovative ideas and ambitious development plans with private investors.
On December 1, 2011 two editions of the competition began: Zacznij.biz “Science – the hidden potential of your business” and Zacznij.biz “A new face of your business”. Zacznij.biz “Science – the hidden potential of your business” was aimed at academics: researchers, graduate students and stu-
dents of technical universities, who want to commercialize their ideas. Zacznij.biz “A new face of your business” was aimed at micro and small enterprises with big growth potential, operating in the hi-tech sector, seeking to raise capital for development and implementation of new technologies.
Members of Jury of Honour of the Zacznij.biz competition were: • Bo˝ena Lubliƒska-Kasprzak, President of the Polish Agency for Enterprise Development • Henryka Bochniarz, President of the Polish Confederation of Private Employers Lewiatan • Professor W∏odzimierz Kurnik, Rector of the Warsaw University of Technology • Professor Micha∏ Kleiber, President of the Polish Academy of Sciences. In the early stage of the competition the jury selected 80 participants out of 100 applications. Members of the Zacznij.biz jury included Jacek B∏oƒski, Tomasz Grzybowski, Edward Kozicki, Szymon Kurzyca, Maciej Strz´bicki. ●
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Workshops then voted on by the jury. The jury chose 23 projects (6 projects from Zacznij.biz “Science – the hidden potential of your business”, 17 projects from Zacznij.biz “A new face of your business”) to take part in the semi-final phase of the competition. Prior to the semi-final presentations, these projects were invited to participate in Innovatorium II. The purpose of this workshop (which took place on March 30, 2012) was to prepare the participants for the pitch, i.e. presentation of their ideas to the potential investors – business angels. The first
ARTUR ROZWALAK PIOTR GAMDZYK
All the participants then prepared for project presentations in front of the jury – which took place on April 16-17, 2012. Each of the contestants had 15 minutes to make their pitch, and a further 15 minutes for a question-and-answer session. After two days of over 20 presentations, jury selected the Finalists.
ARTUR ROZWALAK
ARTUR ROZWALAK PIOTR GAMDZYK
After Innovatorium I, which took place on February 14-15, 2012, participants had time to improve their business plans, which were
part of the workshops was conducted by Szymon Kurzyca and Maciej Strz´bicki. The coaches who conducted second part were Artur Bartosiƒski and Adam Gieniusz.
PIOTR GAMDZYK
Selected contestants were invited to take part in the Innovatorium I. The purpose of this workshop was to deliver knowledge about business angels’ expectations regarding marketing aspects, competitors or financial projections and valuations. The workshops were conducted by Szymon Kurzyca and Maciej Strz´bicki, a marketing expert cooperating with LBA.
The Winners Zacznij.biz “Science – the hidden potential of your business” 1st Place - Phoenix Technologies – plasma systems processing waste into electricity – the business concept is to develop and implement the sale of equipment used for processing waste into electricity and heat. The technology fits with current government policies on waste management and with the general pro-ecology trend. www.phoenixtech.pl 2nd place - EgzoTech – uniaxial rehabilitation exoskeletons – the business concept is to create a company which would manufacture, research and distribute exoskeletons as well as medical
and utility equipment. EgzoTech’s flagship product would be the stationary rehabilitation exoskeleton which would be steered by an electromyograph. www.egzotech.pl Zacznij.biz “A new face of your business” 1st Place - INFADO – active set of hi-fi DSP – a start-up with a high-tech profile in the electronics area, IT and mathematical algorithms for digital signal processing (DSP). The first INFADO product is an active set of hi-fi DSP speakers that use a range of advanced technologies in order to combine the convenience of playing music in the form of files from a PC or an iPod, with the high-
est audio quality. www.infado.pl 2nd place - Ubraniometr – a mechanism which would precisely measure the differences in clothing sizes according to the clothes’ brand. The aim is to increase clothes-purchasing online by decreasing the risk of buying the wrong size. www.ubraniometr.pl Aside from the Finalists, the jury also decided on five “semi-finalists” – two projects from the “Science” competition, and three projects from the “Business” competition. These semi-finalists had the opportunity to showcase their ideas at a stand at the Gala. ●
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PIOTR GAMDZYK
On May 17, 2012 in Dom Dochodowy, Warsaw the Competition Final Gala took place. The Finalists presented their projects to potential investors. The winners of both competitions were selected by all the guests attending the Final Gala. Among the voters were members of the Jury of Honor, the Jury, as well as business angels brought together through Lewiatan Business Angels. The Finalists also had the opportunity to set up a promotional stand during the Gala. ●
PIOTR GAMDZYK
The Gala
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3
4
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Zacznij.biz “Science – the hidden potential of your business” 1st Place – Phoenix Technologies 2nd Place – EgzoTech
Jakub Sza∏atkiewicz and Joanna Tytz (Phoenix Technologies)
Micha∏ Mikulski (EgzoTech)
“Lewiatan’s trainers were especially helpful in showing us how to translate the technical language of our project into more investorfriendly jargon,” said Joanna Tytz of Phoenix Technologies, winner of the “Science – the hidden potential of your business” edition of the competition. Micha∏ Mikulski, a finalist in the Zacznij.biz contest, said, “The trainers were very helpful and open with us, and were able to
HONORARY PATRON
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Zacznij.biz “A new face of your business” 1st Place – INFADO 2nd Place – Ubraniometr
Pawe∏ Piwowarski (INFADO)
Marta Moksa (Ubraniometr)
explain how to handle many difficult issues. It isn't always easy for us to simultaneously lead a project from a technical, business and PR standpoint, so Lewiatan's guidance was very helpful in this respect.”
skills focused more on the technical and business aspects, rather than marketing,” explained Pawe∏ Piwowarski of Infado, winner of the “A new face of your business” edition of the competition.
“There was a lot of emphasis on marketing strategy and creating a stand-out element for the investor's presentation. This was important for the contest's participants, since the majority of their knowledge and
On behalf of the Polish Confederation of Private Employers Lewiatan and Lewiatan Business Angels, we would like to congratulate the winners and thank all of our Partners:
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INTERVIEW
MAY 28 – JUNE 3, 2012
What is your attitude towards some of the more controversial ethical draft bills currently being discussed, such as state financing for in vitro fertilization and same-sex civil unions? It is difficult to say whether regulating some ethical matters should be dealt with through government policy or be left to the conscience of parliamentary club members. I could not allow myself, with a clear conscience, to prevent poorer people from having access to in vitro fertilization, while rich people are able to pay for it by themselves. As far as civil unions are concerned, nobody living in such informal unions should feel excluded on any basis, including sexual orientation. But our civil code provides all the necessary rights and regulations for dealing with issues such as inheritance in such unions. So I consider the idea of a civil unions bill not to be a real problem, but rather one invented by [liberal party] Palikot’s Movement for political calculation. Do you think that Civil Platform could reach out to the socially liberal Palikot’s Movement for support in passing certain draft bills which PSL is reluctant to back? The Civil Platform is a sensible party and will not throw the interests of the country into the hands of an unpredictable party such as Palikot’s Movement. Nobody
COURTESY OF STANIS¸AW ˚ELICHOWSKI
➡ Continued from p. 12 with diminishing populations on the condition that people build homes and settle there within the following five years. In Poland the land would be provided by the Agricultural Property Agency, which has at its disposal over two million acres, of which over 300,000 is unused. The program is addressed to young Poles returning from work abroad and also to Poles of various ages who settled in countries such as Belarus and Kazakhstan, but want to resettle in their country of origin. It also opens the door for the 12 million Poles who live abroad to come back. The influx of new people, some well educated and with broad professional experience, would rejuvenate life in remote places with unused land, such as the Lower Silesia, Warmiƒsko-Mazurskie and Zachodniopomorskie voivodships. Civic Platform is currently skeptical about this program.
PSL MP Stanis∏aw ˚elichowski wants to lure home Poles living abroad with cheap land knows what Janusz Palikot really wants, what definite political views he holds and how his MPs will behave in concrete situations. The supposition that PSL could be feeling threatened by Palikot’s Movement in terms of our position and role in the ruling coalition is totally unfounded and simply ridiculous. It seems that PSL is distancing itself from the war between Law and Justice
ed our society, a divide which is purposely fed by PiS in order to make political gains. Do you think that those divisions will remain? Yes, because I do not see a way out of it. There is no good solution, we have to live with this political war. I do not believe that the most matterof-fact expert’s opinions could help to stop this war, because the people who believe that it was an assassination will continue to hold
“We have to conduct a policy tying economic growth with social policies, because Poland is still a country of deep economic and social contrasts” (PiS) and PO over the Smolensk catastrophe, and that PM Tusk has to reject the accusations being thrown at him and the government on his own. How do you see the situation? I do not agree that PSL is distancing itself from the Smolensk catastrophe, which is a national tragedy that should be fully explained. But I think that all of us in government did not foresee the impact of all those absurd theories about the motives and circumstances of that catastrophe, which PiS’s leader [Jaros∏aw Kaczyƒski] and his colleagues are spreading. In every society there are some people who are prone to feeling persecuted. Because they feel disappointed in life, they look for enemies, and here they find it in Russia. I thought at the beginning that the Smolensk catastrophe would unite Poles, but instead this tragedy has divid-
that view. Even establishing a parliamentary commission to deal with the catastrophe or calling in international experts would be fruitless, because PiS would stick to its opinions, regardless of the facts. PSL does not want to conduct politics on the graves of people who perished in the Smolensk catastrophe. I think that the largest part of our society does not want this war, has accomplished a lot and is working hard to help our country to progress. But another part is lagging behind and is looking for enemies to explain their failures. Maybe in our history we have had a tragic tendency to divide among ourselves. The great Polish poet Cyprian Kamil Norwid wrote that building a strong nation requires searching for those things which unite us, not those which divide. I believe that we should remember this in present-day Poland. ●
www.wbj.pl
13
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There is a hotel development boom underway on Poland’s Baltic coast
The 31,000-sqm Galeria Solna mall in Inowroc∏aw has obtained a building permit 16
17
LOKALE IMMOBILIA
W a r s a w B u s i n e s s J o u r n a l ’s w e e k ly s u p p l e m e n t o n re a l e s t a t e , c o n s t r u c t i o n a n d d e v e l o p m e n t
Real estate investor and developer Griffin Group has acquired 4.5 hectares of land in the Sienna Grobla area of downtown Gdaƒsk. The company has revealed that almost 75,000 sqm of residential and office space can be developed on the property. This is the latest of a number of real estate acquisitions made by Griffin Group in the last two years. In late 2010, the company bought 37 hectares of land in Warsaw on which it plans to build an exclusive single-family housing project. In November 2011, Griffin Group acquired seven investment plots across Poland.
Lufthansa Systems in Opera Office Lufthansa Systems has leased over 3,500 sqm of office space at developer Euro Styl’s Opera Office project in Gdaƒsk. Jones Lang LaSalle, the exclusive leasing agent for the scheme, brokered the transaction. “The Tri-city office market has been very dynamic in 2012, both when it comes to developers and tenants,” Magdalena Reƒska, manager of the Gdaƒsk office of Jones Lang LaSalle, said in a statement. ●
In this issue GreenWings Offices . . . . . . . . . .15 New Hines fund . . . . . . . . . . . . .15 Seaside hotels . . . . . . . . . . . . . .16 Alchemia certification . . . . . . .16 Property-related stocks . . . . . .16 New Inowrocław mall . . . . . . .17 Galeria Dzierżoniów project . .17 Retail Horizons Conference . . .17 Property marketing . . . . . . . . . .18 New Bouygues apartments . . .18
Office
OKRE Development to launch GreenWings project in Warsaw in Q3 The company is also planning an office investment in the capital’s Ochota district Developer OKRE Development will this September launch construction on its GreenWings office project in Warsaw. The scheme will be built on the city’s ul. 17 Stycznia, near the capital’s Warsaw Chopin Airport, and will deliver 10,850 sqm of office and conference space on its seven floors. “We are finalizing the
agreement with the general contractor,” said Ronnie Richardson, president of OKRE Development’s management board. He added that construction would take 18 months, with the building expected to be completed in February 2014 and ready for occupancy three months later. Mr Richardson touted the convenient location of the GreenWings project, as well as the green building credentials of the facility. Designed by the JEMS Architekci studio, the development has already earned a “Very Good” BREAM evaluation.
COURTESY OF OKRE DEVELOPMENT
Griffin Group investment plot
MAY 28 – JUNE 3, 2012, LI 17/21
GreenWings will deliver 10,850 sqm of space
New Hines fund to invest over €900 million International real estate company Hines has announced the closing of the Hines Russia & Poland Fund (HRPF) that has been formed to invest more than €900 million in the Russian and Polish property markets. HRPF is the fourth Hines fund with a strategy to invest in the two countries. Approximately 80 percent of its capital will be invested in Russia, with the fund having already allocated equity to three new retail projects in the country,
and 20 percent in Poland. “Poland remains a growing and vibrant economy in spite of European economic headwinds,” Mieczys∏aw Godzisz, president of the management board of Hines Polska, said in a statement. “We continue to believe that very interesting opportunities for investment in the office, retail and mixed-use sectors are available in multiple cities throughout Poland,” Mr Godzisz added. Adam Zdrodowski
Each floor of GreenWings will offer around 1,600 sqm of space, with the smallest leasable modules sized from 400 sqm. “We can offer space for all sorts of tenants, including those who will take up one or more floors, but we also target the scheme to small and medium-sized businesses,” Mr Richardson said.
The scheme is being leased by Cushman & Wakefield and NAI Estate Fellows. Apart from the planned GreenWings investment, the company is now also working on another office project in Warsaw that will be located on Al. Grójecka in the capital’s Ochota district and comprise approximately 7,500
sqm of space. The developer is now awaiting a planning decision for the site and expects to obtain a building permit for the Kury∏owicz & Associates-designed facility in October. “Construction will be launched in 2013,” Mr Richardson said. Adam Zdrodowski
LOKALE IMMOBILIA – REAL ESTATE
www.wbj.pl
Hotels
Polish seaside hotel boom underway
Increased interest in seaside vacations has led both Polish and international companies to invest in hotel developments on Poland’s Baltic coast. A Hampton by Hilton hotel has just opened in ÂwinoujÊcie, while a Golden Tulip Residence is set to open in Mi´dzyzdroje in late July, and a Hotel Grand Cru and Hotel Fahrenheit are set to welcome visitors in Gdaƒsk in June. Development in the sector has been widespread, with projects encompassing not only budget and mid-range hotels, but also luxury investments. According to Eurostat, there were 113 hotels in the Pomorskie region five years ago. Now there are 158, with several more set to open within the coming year. Four- and five-star hotels are becoming increasingly attractive options for holiday-
SHUTTERSTOCK
The popularity of seaside vacations is driving the development of hotels on Poland’s Baltic coast
There are now 158 hotels in the Pomorskie region makers and the number of four-star hotels has more than doubled (to 25) since 2007. Since 2005, the proportion of Poles who stayed at hotels and chose four- or five-star facilities rose from 28 to 42 percent, according to Eurostat. Plans for large projects such as the Baltic Park Molo in ÂwinoujÊcie are already underway. This investment will include two luxury condo hotels with a mall, conference center, entertainment center and water park.
Apart from increased interest among Polish vacationers, the hotel industry has also benefited from overall economic growth in the Pomorskie region. Infrastructural improvements as well as a greater variety of domestic flight options have made the coast more accessible for domestic holidaymakers. Eurostat data show that the Polish hotel occupancy rate rose by 7.6 percent last year, higher than the EU average of 3.8 percent. Natalia Kopytnik
MAY 28 – JUNE 3, 2012
Alchemia in Gdaƒsk receives platinum LEED pre-certification Developer Torus has received a platinum-level LEED pre-certificate for its Alchemia multifunction investment in Gdaƒsk. Receiving the pre-certificate, which denotes that the development is on track to getting a LEED certificate for sustainable development, is the first stage of a three-stage certification process. “There are two more stages ahead of us, namely the project review and the construction review,” said company leasing director Maciej Bro˝ek. Alchemia, which is located in Gdaƒsk’s Oliwia district, is to have a total of 21,000 sqm of leasable area, over 16,000 sqm of which will be office space. A recreation area including sports facilities will take up 4,000 sqm. Construction on the first phase, which comprises two buildings, is scheduled to finish in the third quarter of 2013. Mr Bro˝ek said the company had already leased out 3,000 sqm, although he declined to disclose to whom. S∏awomir Gajewski, president of the management board at Torus, said the company had planned to acquire the LEED certificate as early as the design and planning stage. “It was very important for us
COURTESY OF TORUS
16
Torus leasing director Maciej Bro˝ek says LEEDcertified buildings help raise environmental awarenesss to make the decision about acquiring the LEED when we started planning the building,” Mr Gajewski said. He added that early planning helped to reduce the time and cost of the certification process. Mr Gajewski said that constructing a LEED-certified building raises environmental awareness among both those who lease space and members of the local community. Among all the company’s “green” plans, water efficiency is a priority for Torus.
“Our strategy is to design a water storage reservoir that would collect rainwater from rooftops. A reservoir of this kind could provide water for the building’s occupants for up to 21 days,” the company said in a statement. Torus will also seek to minimize energy wastage at Alchemia by deliberately not employing heating, ventilating, air-conditioning and cooling systems which run on chlorofluorocarbons-based substances. Izabela Depczyk
Property-related stocks Security
Closing price on May 24
% change (week)
52-week low
52-week high
% change (year)
Total shares
Market value (z∏. mln)
BUDIMEX
66.25
3.52
63.90
102.80
-34.92
25,530,098
1,691.37
CELTIC
12.76
0.00
12.95
22.70
-37.76
34,068,252
434.71
DOMDEV
30.90
-1.59
23.50
50.80
-33.55
24,670,397
762.32
ECHO
3.69
-3.15
3.05
5.45
-33.51
420,000,000
1,549.80
ELBUDOWA
100.00
-2.82
87.00
165.00
-35.44
4,747,608
474.76
ENERGOPLD
1.70
-4.49
1.70
4.00
-57.39
70,972,001
120.65
ERBUD
15.60
0.84
14.15
30.50
-47.10
12,644,169
197.25
GANT
7.25
3.57
5.85
13.19
-44.70
20,499,953
148.62
GTC
6.07
2.53
5.92
19.99
-66.65
219,372,990
1,331.59
HBPOLSKA
0.41
0.00
0.41
2.35
-80.29
210,558,445
86.33
JWCONSTR
4.95
8.32
4.36
15.39
-67.65
54,073,280
267.66
LCCORP
1.33
0.76
0.85
1.56
-11.33
447,558,311
595.25
MARVIPOL
8.30
1.34
6.20
9.95
0.00
36,923,400
306.46
MIRBUD
1.12
13.13
0.99
4.07
-70.91
75,000,000
84.00
MOSTALWAR
13.20
0.38
11.30
34.41
-61.13
20,000,000
264.00
MOSTALZAB
1.09
-0.91
1.07
2.89
-57.92
149,130,538
162.55
ORCOGROUP
10.25
-6.22
9.68
36.01
-72.09
35,415,406
363.01
PBG
21.19
5.69
19.52
154.80
-84.95
14,295,000
302.91
PLAZACNTR
2.40
2.13
1.80
4.60
-52.85
297,174,515
713.22
POLAQUA
5.13
-11.40
4.53
18.80
-72.12
27,500,100
141.08
POLIMEXMS
1.12
15.46
0.78
3.53
-63.16
521,154,076
583.69
POLNORD
11.95
-3.63
11.03
28.95
-57.32
23,798,439
284.39
RANKPROGR
9.90
2.27
8.60
16.97
-23.55
37,145,050
367.74
ROBYG
1.35
-1.46
1.04
2.05
-33.50
257,390,000
347.48
RONSON
0.95
3.26
0.77
1.45
-34.03
272,360,000
258.74
TRAKCJA
1.08
2.86
0.65
3.22
-60.00
232,105,480
250.67
ULMA
43.50
0.81
39.00
83.70
-47.97
5,255,632
228.62
UNIBEP
5.00
6.84
4.47
7.00
-26.47
33,927,184
169.64
WARIMPEX
3.88
-1.52
2.95
9.85
-59.50
54,000,000
209.52
ZUE
7.10
1.43
5.07
11.55
-34.26
22,000,000
156.20
LOKALE IMMOBILIA – REAL ESTATE
Shopping centers
Galeria Solna mall gets building permit Acteum Central Europe- and Libra Project-established ACE 1, the investor of the planned Galeria Solna shopping mall in Inowroc∏aw, KujawskoPomorskie voivodship, has obtained a building permit for the more than 31,000-sqm development. Construction on the scheme is scheduled to launch in June and finish in the first half of 2013. “The obtaining of a building permit is a milestone for each investment,” Tomasz Szewczyk, president of the management board at Acteum, said in a statement. “It sends a clear signal to tenants that the project is proceeding according to schedule and is fully legitimized by the city authorities. From now on, we can talk about the details concerning the dates of the construction launch and the finishing of the project,” Mr Szewczyk added. In late April, the investor secured bank financing for
COURTESY OF MEDIADEM CONSULTING
The 31,000-sqm shopping center is scheduled to open in the first half of 2013
Construction on the scheme is set to finish in H1 2013 Galeria Solna from Pekao. “The obtaining of financing for this kind of investment proves that the project is well prepared and well planned,” stated Grzegorz P´kalski, president of the management board of Libra Project. The Galeria Solna mall will comprise over 31,000 sqm of leasable space. Key tenants will include a Tesco hypermarket and a Nomi DIY store. The
shopping center will house approximately 100 other retail units. Acteum Central Europe is currently expanding two retail projects from CBRE Global Investors’ portfolio – Sarni Stok in Bielsko-Bia∏a and Ogrody in Elblàg. The majority shareholder of Libra Project is Dariusz Mi∏ek whose Galeria Korona Kielce mall in Kielce opened in AZ mid-May.
www.wbj.pl
17
Work on Galeria Dzier˝oniów to launch in third quarter A new shopping center called Galeria Dzier˝oniów will be developed by Biuro Inwestycji Kapita∏owych in Dzier˝oniów, Lower Silesia voivodship. Construction on the 5,000-sqm scheme is scheduled to launch in the third quarter of this year. “The excellent location in the downtown, at the main intersection, and the large potential of the urban center, led to our decision to purchase the plot and to develop a shopping center on it,” stated Miros∏aw Koszany, president of the management board at Biuro Inwestycji Kapita∏owych. The architectural concept of the Galeria Dzier˝oniów mall has been furnished by the
COURTESY OF MEDIADEM CONSULTING
MAY 28 – JUNE 3, 2012
Galeria Dzier˝oniów will comprise 5,000 sqm of space Bose International studio. The development, which will open in Q3 2013, is being commercialized by Retail Concept. Kraków-based Biuro Inwes-
tycji Kapita∏owych has until recently specialized mostly in the development and lease of warehouse investments. Adam Zdrodowski
PRCH presents Best Practice Manual The Polish Council of Shopping Centers (PRCH) presented its “Best Practice Manual” at its recent Retail Horizons Conference in Warsaw. The manual, which was put together by landlords and tenants who are members of PRCH, provides information regarding best practices for businesses in terms of lease agreements, service charges
and marketing costs. It also sets out best practices for ensuring sustainable growth for Poland’s shopping center market. Anna Szmeja-Kroplewska, general manager of PRCH, said it was important that all those who helped produce the manual agreed with every practice contained within it. She added that the issues on which they could not reach
a consensus were listed in the annex and would be used to help produce future editions of the publication. PRCH is a non-profit organization comprised of over 190 companies from the retail property market. This year’s PRCH conference was attended by over 300 representatives from 150 companies. Izabela Depczyk
18
LOKALE IMMOBILIA – REAL ESTATE
www.wbj.pl
Real estate marketing
Bouygues launches new residential project in Warsaw
Coming up with the right marketing strategy is crucial in today’s residential market, in which there is a substantial supply of new homes, said participants at the Premedium Trendy 2012 conference in Warsaw last week. Admittedly, being aware of buyers’ expectations and offering the right product still plays a major role. Analysis of the preferences of potential clients shows that certain types of apartments are today in particularly high demand, said Jaros∏aw J´drzyƒski, analyst at Rynek.Pierwotny.com. However, in a situation when there are many similar residential projects in the same location and buyers are more cautious while making a purchase decision, having the right product is often not enough to ensure the desired sales results, stressed Daria Affel-
towicz of Dom Badawczy Maison. She added that making marketing mistakes can thus be costly and argued that what is crucial is targeting distinctive groups of clients, characterized by a particular lifestyle and attitude to banks and spending money. “Do not sell your apartments to the average Pole,” Ms Affeltowicz said. She added that developers need to always think about their target group and choose their communication accordingly. “Remember about the needs and motivation of the particular segment [of buyers]. Find the right bait.” Ms Affel-
towicz said. Dariusz Wilk, marketing and sales director at Gant Development, pointed out that as there are now many completed apartments in the market, buyers are increasingly making their purchase decisions having seen the real product, rather than just a rendering. He added that the trend will likely also remain visible in the near future and said that it is therefore important these days that developers think about the marketing side of their projects while still at the design stage. Adam Zdrodowski
Size matters Buyers’ preferences (in percent) concerning apartment sizes in major Polish cities Warsaw
Kraków
Wroc∏aw
Below 40 sqm
13.67
23.18
21.23
50.00
21.95
From 40 sqm to 60 sqm
49.07
29.80
47.49
30.65
60.98
From 60 sqm to 80 sqm
22.43
25.83
25.14
12.90
9.76
From 80 sqm to 100 sqm 11.45
19.87
3.91
3.23
3.66
Over 100 sqm
1.32
2.23
3.23
3.66
3.39
Tri-city Poznaƒ
Source: Rynek.Pierwotny.com
COURTESY OF BRANDLAB
The significance of segmentation In a residential market bursting with new apartments, developers need to come up with new marketing strategies
MAY 28 – JUNE 3, 2012
The La Tour Residence development will deliver 246 apartments by the end of 2014 Developer Bouygues Immobilier Polska has launched sales of apartments in its La Tour Residence multifamily residential project in Warsaw. The scheme will deliver 246 apartments which are scheduled to be completed in the last quarter of 2014. The 12-storey La Tour Residence development will be built at the intersection of Al. Bohaterów WrzeÊnia and ul. Bitwy Warszawskiej 1920 r. in Warsaw’s Ochota district, close to the city’s Warsaw West
railway station and the Blue City and Reduta malls. “The La Tour Residence investment combines all the key advantages of big city life,” stated Katarzyna Rauber, sales and marketing director at Bouygues Immobilier Polska. She pointed to the good transport links of the location and the project’s proximity to public facilities and green areas. The housing units in La Tour Residence are sized from 37 sqm to 150 sqm and priced
at an average of z∏.7,500 per sqm. They can, optionally, be bought as turnkey apartments, with the developer offering three finishing standards. One of the largest developers in France, Bouygues Immobilier has been active in Poland since 2001 and had by the end of 2010 completed more than 1,600 homes in the country. The company’s ongoing schemes include the Patio Avenir and La Cascade projects in the Polish capital. Adam Zdrodowski
THE LIST
MAY 28 – JUNE 3, 2012
www.wbj.pl
19
Financial Services
Factoring Companies Ranked by revenue from factoring in 2010
Collateral required
Debt collection / Analysis of debtor’s financial situation
Debt administration / Financial advisory / Ledger maintenance
Number of clients / Total employees / Year founded
ING Commercial Finance Polska SA ul. Malczewskiego 45, 02-622 Warsaw 1 22 558-7400/22 558-7490 sekretariat@ingcomfin.pl www.ingcomfin.pl
41.0 82.2 81.0 127.8
44.6 87.2 87.6 132.0
✓ ✓
✓ ✓
WND WND
WND WND
Blank promissory note with declarations
WND
✓ ✓
✓ -
75 WND 1994
None ING Lease Holding 100%
Polfactor SA ul. Królewska 14, 00-065 Warsaw 2 22 829-1460/22 829-1499 sekretariat@polfactor.pl www.polfactor.pl
24.1 44.6 43.8 47.0
24.1 44.6 43.8 47.0
✓ ✓
✓ ✓
100% 70-100%
max 2 WND
Promissory note
All sectors
✓ ✓
✓ ✓ -
WND WND 1995
BRE Holding - 100% None
Coface Poland Factoring Sp. z o.o. Al. Jerozolimskie 136, 02-305 Warsaw 3 22 465-0235/22 465-4235 factoring@coface.pl www.coface.pl
WND 42.5 26.6 25.6
WND WND WND WND
✓ ✓
✓ -
80-100% WND
WND WND
in which firms Blank promissory note; Industries sell goods and services power of attorney over with a deferred payment bank account terms
✓ ✓
✓ -
WND 28 2006
None Coface Austria Holding 100%
Jaros∏aw Jaworski; Pawe∏ Tobis
Pekao Faktoring Sp. z o.o. ul. Lubartowska 74A, 20-094 Lublin 4 81 445-2000/81 445-2002 biuro@pekaofaktoring.com.pl www.pekaofaktoring.com.pl
WND 36.9 41.7 50.7
WND WND WND WND
✓ ✓
✓ ✓
80 - 100% 80 - 95%
on-line, max 1
Blank promissory note; power of attorney over bank account
All sectors
✓ ✓
✓ ✓
WND 54 1998
Bank Pekao - 100% None
Miros∏aw Jakowiecki
BZWBK Faktor Sp. z o.o. Al. Jana Paw∏a II 23, 00-854 Warsaw 5 22 586-8292/22 586-8034 faktor@bzwbk.pl http://faktor.bzwbk.pl
18.2 28.8 31.6 39.1
18.1 28.9 31.9 39.5
✓ ✓
✓ -
90% 70-90%
1-2 WND
Blank promissory note; power of attorney over bank account
Pharmaceutical; chemical; cosmetics; telecom; sports; metallurgy; furniture industry; medical; food industry; electronics
✓ ✓
✓ -
484 68 2003
Bank Zachodni WBK Finanse - 100% None
Maurice Tracey
Bibby Financial Services Sp. z o.o. ul. Wo∏oska 9A, 02-538 Warsaw 6 22 545-6123/22 545-6124 info@bibbyfinancialservices.pl www.bibbyfinancialservices.pl
14.6 21.6 19.3 19.0
14.8 21.9 19.6 19.0
✓ ✓
✓ -
90% 70-90%
1 WND
Blank promissory note; power of attorney over bank account
Manufacturing; trade; services
✓ ✓
✓ -
WND WND 2002
None Bibby Group of Factors 99.9%
Krzysztof Kuniewicz
Pragma Faktoring SA ul. Mieczyków 14, 40-748 Katowice 7 32 442-0200/32 442-0240 biuro@pragmafaktoring.pl www.pragmafaktoring.pl
3.2 5.8 4.9 6.9
6.4 11.4 10.3 14.4
✓ ✓
✓ -
WND WND
WND WND
Blank promissory note
WND
✓ ✓
✓ ✓ ✓
WND 29 1996
Pragma Inkaso - 58.2% WND
Tomasz Boduszek
Cash Flow SA ul. Perla 14, 41-300 Dàbrowa Górnicza 8 32 763-2000/32 763-2020 biuro@cashflow.com.pl www.cashflow.com.pl
2.3 4.0 9.0 19.0
1.6 7.3 17.9 64.0
✓
-
80% 30-90%
3-7 3%
WND
WND
✓ ✓
✓ ✓ ✓
WND 26 1997
WND
arvato Polska, oddzia∏ Bertelsmann Media Sp. z o.o.- faktoring ul. Kolejowa 150, NR 62-064 Plewiska k/Poznania 61 652-8800/61 652-8755 faktoring@arvato.pl www.faktoring.arvato.pl
WND WND 13.2 12.5
WND WND 145.0 246.0
✓ ✓
✓ -
90% 80-90%
7-180 WND
Blank promissory note
All sectors
✓ ✓
✓ ✓ ✓
30 25 1994
None Bertelsmann - 100%
Janusz Jankowiak
Raiffeisen Bank Polska SA ul. Pi´kna 20, 00-549 Warsaw NR 22 585-2001/22 585-2585 faktoring@raiffeisen.pl www.raiffeisen.pl/faktoring
WND WND WND WND
WND 1,706.4 1,407.0 1,556.0
✓ ✓
✓ -
Up to 100% Up to 100%
1 WND
Power of attorney over bank account
All sectors
✓ ✓
✓ -
WND 36 1991
None Raiffeisen Bank International - 100%
Piotr Czarnecki
Rank
First payment due (days) / Commission
Services
Maximum risk covered / First pay-out
Factoring
www.bookoflists.pl
Company name Address Tel./Fax E-mail Web page
Revenue from Total revenue factoring (z∏. mln) (z∏. mln)
Full / Partial
Export / Import
1st half of 2011 / 2010 / 2009 / 2008
Notes: NR = Not Ranked, WND = Would Not Disclose. Research for The List was conducted in November 2011. Number of employees and ownership structure are as of October 2011. All information pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed.
Sectors serviced
Ownership: Polish / Foreign
Top local executive / Title
Andrzej ˚bikowski President
Pawe∏ Bry∏a; Dariusz Steç Board Members
President; Vice-President
President
General Director
President
Grzegorz Gniady President
President
President
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.
20
MARKETS
www.wbj.pl
MAY 28 – JUNE 3, 2012
Stocks report
world stock indices DJIA
NASDAQ
S&P500
FTSE100
DAX
No end in sight
NIKKEI225
12,529.75 (May 24 close)
2,839.38 (May 24 close)
1,320.68 (May 24 close)
5,350.00 (May 24 close)
6,315.89 (May 24 close)
8,563.38 (May 24 close)
0.70% (for the week)
0.91% (for the week)
1.21% (for the week)
0.22% (for the week)
0.11% (for the week)
-3.53% (for the week)
CHANGE: 1.07%
CHANGE: 7.20%
CHANGE: 3.42%
CHANGE: -6.14%
CHANGE: 3.96%
CHANGE: 0.04%
(year to May 24)
(year to May 24)
(year to May 24)
(year to May 24)
(year to May 24)
(year to May 24)
52-week high: 13,359.60
52-week high: 3,134.17
52-week high: 1,422.38
52-week high: 6,084.10
52-week high: 7,523.53
52-week high: 10,255.20
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: 8,135.79
Andrew Nawrocki WBJ market analyst The blue-chip WIG20 nearly dropped below 2,000 points last week, a low that has not been seen since as far back as 2009. It was yet another turbulent week for markets as worries over Greece’s future paralyzed Europe, while China’s softer growth compounded fears of a slowing global economy. Last Monday, stocks got some much-needed relief after large declines the week before. Strong words from world leaders emphasizing support for the euro zone and China briefly appeased investors. Both the overall WIG and WIG20 saw solid gains of about 1.5 percent. On Tuesday, shares continued their bounce back, with gains throughout Europe. The WIG20 underperformed the rest of the continent’s blue-chip stocks,
Major indices WIG
36,852.75 (May 24 close)
WIG20
2,035.80 (May 24 close)
24.05
23.05
22.05
21.05
18.05
17.05
16.05
15.05
14.05
11.05
10.05
09.05
25.04
24.05
23.05
22.05
21.05
18.05
17.05
16.05
15.05
14.05
2,000 11.05
36,000 10.05
2,060
09.05
37,000
08.05
2,120
07.05
38,000
04.05
2,180
02.05
39,000
30.04
2,240
27.04
40,000
26.04
2,300
25.04
41,000
08.05
52-week low: 2,035.80
07.05
Change year to May 24: -7.22%
04.05
52-week low: 36,549.47
02.05
52-week high: 2,903.61
Change year to May 24: -3.82%
30.04
Change for the week: -1.04%
27.04
52-week high: 50,025.61
26.04
Change for the week: -1.01%
Top 5 IFCAPITAL DREWEX EDINVEST RESBUD MISPOL
Closing 5.63 0.68 5.88 18.65 1.32
% change (week) 52-week high 77.04 14.97 36.00 1.25 25.11 5.95 23.51 70.00 21.10 6.55
52-week low 0.45 0.16 2.32 2.88 1.00
Top 5 BZWBK POLIMEXMS TVN PBG ASSECOPOL
Closing 229.00 1.12 8.36 21.19 45.70
% change (week) 27.23 15.46 5.69 5.69 3.86
52-week high 240.00 3.55 17.45 156.00 55.45
52-week low 190.10 0.77 7.70 19.21 34.50
Bottom 5 PLASTBOX B3SYSTEM ALTERCO MOBRUK ONE2ONE
Closing 2.30 0.72 11.70 74.55 0.68
% change (week) -78.66 -29.41 -26.88 -24.70 -24.44
52-week low 2.08 0.72 11.50 74.55 0.68
Bottom 5 GETIN PGNIG PGE PEKAO BRE
Closing 1.78 3.77 17.41 130.90 265.00
% change (week) -9.64 -3.58 -3.33 -3.11 -2.57
52-week high 7.30 4.65 25.07 173.90 349.00
52-week low 3.37 3.25 15.98 115.10 203.30
52-week high 14.66 2.05 47.98 139.08 5.28
Currency report
Z∏oty under pressure
Other indices sWIG80
9,069.24 (May 24
NewConnect
38.09 (May 24 close)
close)
52-week high: 12,779.22
WIG-Banki
5,181.61 (May 24 close)
SOURCE: WSE
24.05
23.05
22.05
21.05
18.05
17.05
16.05
15.05
14.05
11.05
10.05
09.05
25.04
24.05
23.05
22.05
21.05
18.05
17.05
16.05
15.05
14.05
11.05
5,100
10.05
38.0 09.05
5,260
08.05
38.8
07.05
5,420
04.05
39.6
02.05
5,580
30.04
40.4
27.04
5,740
26.04
41.2
25.04
5,900
08.05
52-week low: 4,944.19
07.05
Change year to May 24: -6.52%
04.05
52-week low: 38.09
02.05
52-week high: 7,112.78
Change year to May 24: -8.19%
30.04
Change for the week: -2.03%
27.04
52-week high: 57.46
26.04
Change for the week: -2.06%
42.0
Adam Narczewski X-Trade Brokers DM SA
24.05
23.05
22.05
21.05
18.05
17.05
16.05
15.05
14.05
52-week low: 8,604.31
11.05
07.05
04.05
25.04
24.05
23.05
22.05
21.05
18.05
17.05
16.05
15.05
14.05
9,000 11.05
2,200 10.05
9,220
09.05
2,260
08.05
9,440
07.05
2,320
04.05
9,660
02.05
2,380
30.04
9,880
27.04
2,440
26.04
10,100
25.04
2,500
02.05
Change year to May 24: 5.40%
30.04
52-week low: 2,076.52
27.04
Change year to May 24: 2.83%
26.04
Change for the week: -1.23%
10.05
close)
52-week high: 2,959.86
09.05
2,035.80 (May 24
Change for the week: -0.86%
08.05
mWIG40
eking out a 0.16 percent gain. Shares of PZU dragged the main index down, closing 2.2 percent lower than at the start of the day. The mini-gains then came to an end on Wednesday. Aside from Greece, poor macroeconomic data from Japan and the UK broadened worries of a global recession. Financials were hit particularly hard. Only shares of TVN rose, continuing impressive recent gains. On Thursday May 24, stocks saw small gains, with many wondering whether the market has pulled back far enough. In a volatile session, the WIG eventually closed nearly a quarter of a percent lower. Finally on Friday, May 25, the WIG closed up 0.02 percent. ●
The z∏oty remains under pressure as risk aversion on currency markets remains high. The situation in Greece is far from solved, with the EU summit not bringing any clear solutions. Market participants are becoming more tense as euro-zone countries prepare for Greece to exit the monetary union. The US dollar had another strong week, advancing to $1.2520 against the euro, its lowest since August of 2010. The outlook still remains negative for the euro, but next week we might observe a rebound to levels just above $1.26. In terms of domestic figures, it was revealed last week that industrial production increased by just 2.9 percent on an annual basis. On the other hand, core CPI inflation climbed to 2.7
percent, giving stronger arguments for hawks in the Monetary Policy Council. Also, the drop in retail sales proved that – just as in Europe – economic growth in Poland is slowing down, piling pressure on the z∏oty. Last week the EUR/PLN was unable to break the z∏.4.30 level, and a rebound from there lifted it to the recent highs of z∏.4.40. Towards the end of the week, the market corrected and the EUR/PLN finished at z∏.4.36, but the outlook is still negative if there is no agreement about Greece. External factors will continue to affect the z∏oty – it will only appreciate if there is a decline in risk aversion. In the case of a “Grexit,” get ready for a much weaker z∏oty.●
currency rates 4.3460 25.05
SOURCE: NBP
4.3794 24.05
4.3379
4.2470 22.05
23.05
4.2718
4.3407 18.05
0.1097
0.1087 25.05
4.0
21.05
PLN-100JPY
4.4
24.05
0.1085
0.1097 23.05
22.05
21.05
0.1097 18.05
3.6357
3.6206 25.05
0.1
0.1088
PLN-RUB
0.12
24.05
3.6285 23.05
3.5973 22.05
21.05
3.6371 18.05
5.4496
5.4178 25.05
3.5
3.6070
PLN-CHF
3.7
24.05
5.4122 23.05
5.3419 22.05
5.4356
5.3656 21.05
25.05
24.05
5.20
18.05
3.4589
3.4779
3.4460
PLN-GBP
5.5
5.35
23.05
3.3811 22.05
21.05
3.4431 18.05
4.3665
4.3510 25.05
3.0
3.3928
PLN-USD
3.5
24.05
4.3576 23.05
4.3683
4.3205 22.05
21.05
4.2
18.05
4.3
4.3322
PLN-EUR
4.4
SPORTS
MAY 28 – JUNE 3, 2012
Soccer
www.wbj.pl
21
American football
Poland defeats Latvia Koz∏y fall one play short in Euro 2012 warmup of shocking Topliga The Poznaƒ team came close to defeating Devils Wroc∏aw
Artur Sobiech scored the only goal of the game
Koz∏y Poznaƒ came within a whisker of pulling off one of the biggest upsets in Polish American football history in the Topliga’s seventh round of matches at the end of May. They failed on a go-ahead twopoint conversion attempt in the last minute of the game, allowing the home team Devils Wroc∏aw to escape with a 7-6
COURTESY OF WIKIMEDIA COMMONS
Kuba B∏aszczykowski will captain the national side 23-man squad for Euro 2012, with three of the players currently in Austria set to be cut from the final squad. Poland was due to play Slovakia on May 26 (after WBJ went to press), with the Borussia Dortmund trio of Robert Lewandowski, ¸ukasz Piszczek, and captain Jakub B∏aszczykowski all set to play, as the national side fine-tunes its preparations ahead of its opening match against Greece
on June 8. Poland’s manager was then set to reveal the names of the players who failed to make the final cut for the tournament squad. Asked what his hopes were for the tournament the national team coach said, “There is one aim, I’ll still say, to get out of the group. But of course this is not as easy as everyone thinks.” David Ingham
COURTESY OF LUKASZ SKIWIOT/SKIWOT.PL
Polish national soccer team coach Franciszek Smuda said he was pleased with his team following a 1-0 victory over Latvia last week. “In general I am happy with the match, although there were times I was not happy, but we have time to correct it,” he told journalists after the game at the Hypo-Arena, in Klagenfurt, Austria. “We should play more direct soccer, maybe then I would not be so upset on the bench. But this can be explained by fatigue,” he added. The Polish side, which largely comprised reserve players, overcame their Latvian counterparts courtesy of a goal from 21-year-old Hannover striker Artur Sobiech, who came off the bench to head home an 81st-minute winner. However, despite the result, Mr Smuda said he was still no nearer to naming his
victory. History was not on Poznaƒ’s side coming into the game. They had won only once in five attempts all-time against the Devils, getting shut out in each of the other four. Like the first game this year between these two teams, it was a defensive struggle in the purest sense. Both teams had chances to score throughout, but each time either offense approached the end zone, the opposing defense would force a turnover.
The Devils went into halftime up 7-0 following a 77yard punt return by Grzegorz Mazur in the second quarter. Going in to the final minute, Koz∏y had still failed to get past the Devils’ defense, until Deante Battle manged to carry the ball four yards to the end zone on fourth down to make it 7-6. Koz∏y quickly decided to go for two and the win, but the drama dissipated immediately when a botched exchange between center and quarterback on the snap left Koz∏y unable to convert. Elsewhere, the Warsaw Eagles crushed the Dom-Bud Kraków Tigers 52-0 to condemn the Tigers to their fifth straight defeat. Tyrone Landrum and Piotr Osuchowski each scored a pair of touchdowns for the victors as Warsaw ended their two-game losing streak in impressive fashion. In the weekend’s other game the Gdynia Seahawks took care of business at home, cruising past the AZS Silesia Rebels 61-19 to maintain their share of first place in the PLFA Topliga.
The Devils’ Niles Mittesch fumbles the ball
Euro 2012 roundup
Alex Zarganis
Olympics
Poland’s top player, elephant Judo medal oracles, and topless protesters hope injured in crash
Polish striker Robert Lewandowski says he does not need to train heavily ahead of Euro 2012, but just has to maintain the form that saw him score 30 goals for German giants Borussia Dortmund last season. The 23-year-old joined up with his international teammates in the Austrian town of Leinz for a pre-tournament training camp last week, after helping his club side secure the German cup and league championships earlier in May. Lewandowski scored a hat trick as Dortmund demolished Bayern Munich 5-2 in the season-ending German Cup to finish their league title-winning season in style.
“This short rest has come in handy, because we are fresh. We rested mentally and now we need to get back to work,” he said.
Tomasz Kowalski suffered serious injuries in a motorcycle accident
Elephant replaces octopus Remember Paul, the scorepredicting octopus from the 2010 World Cup? Well now, Poland has its very own “psychic” animal in the shape of Citta the elephant, who currently lives at Kraków Zoo. Zookeepers plan to give the elephant a ball to help it predict Euro 2012 results in much the same way as Paul the octopus did two years ago. However, in a trial run things didn’t exactly go as planned, as Citta swallowed the ball she was given to play with.
COURTESY OF KRAKOW ZOO
Lewandowski aims to maintain form
Citta the elephant Topless protesters attempt to steal trophy Feminist protesters in Ukraine tried to steal the European Championship trophy while it was on display in the country’s fourth-largest city Dnipropetrovsk, last week. Two women who belong to
the group FEMEN invaded the stage before removing their tops and trying to take the trophy. FEMEN has gained global notoriety for unique protests, which often involve nudity in public places. David Ingham
One of Poland’s major medal hopes for this summer’s London Olympics was seriously injured in a motorcycle accident in northern Poland on May 20, and has ruled himself out of the event as a result. Thirty-year-old Polish judo star Tomasz Kowalski was riding as a passenger on a motorbike with his 30-year-old teammate Tomasz Adamiec, when they collided with a car and ended up in a ditch by the side of the road. Mr Adamiec escaped with
minor injuries but Mr Kowalski, who won silver at this year’s European Judo Championships, suffered serious injuries to his pelvis and lower leg. In an interview with Polish daily Gazeta Wyborcza Mr Kowalski said he was resigned to the fact that he will not make this year’s Olympics, but plans to do everything he can to make the games in Rio de Janeiro in four years’ time. “The most important thing is that we lived. … I now have time for deep reflection, and I know that I will be a stronger man,” he said. 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
22
LIFESTYLE
www.wbj.pl
MAY 28 – JUNE 3, 2012
Festival
Exhibition
Ready to rock
Art from the right
COURTESY OF WIKIMEDIA COMMONS
Limp Bizkit
This new exhibition, developed in conjunction with the 7th Berlin Biennale art project, is focused on national-patriotic visual culture in modern-day Poland. Described as “a ubiquitous style that has thrived without awareness or support on the part of art institutions,” the installations, paintings, films, and books on display share one main theme – being used as a tool to influence people and to shape their views. The curators of the exhibition have sought to highlight the impact that right-wing art can have on society and highlight its immediacy in compar-
ison to the art often favored by left-leaning, elitist art institutions. By displaying nationalpatriotic art the museum hopes to capture the true character of political art and its impact on social moods in modern-day Poland.
Among the works on display is “Smoleƒsk” a painting by Zbigniew Dowgia∏∏o, who describes the piece, which commemorates the lives lost in the Smolesnk plane tragedy of 2010, as a manifestation of his own soul. David Ingham
COURTESY OF ARTMUSEUM.PL
New National Art June 2-August 19 Museum of Modern Art ul.Paƒska 3 Warsaw
“Smoleƒsk” by Zbigniew M. Dowgia∏∏o
Opera Ursynalia Warsaw Student Festival 2012 June 1-3 ul. Nowoursynowska 166 Warsaw Since it began back in 1983, Ursynalia has evolved from a small-scale local rock festival in to one of the largest student
festivals. From mid-2000, the event has featured a number of famous groups such as American rockers Korn and British indie band The Future Heads. This year’s main lineup boasts big names as well, with nu-metal pioneers Limp Bizkit, influential metal band Slay-
Return of the king
er, and Canadian punk rockers Billy Talent set to be among the numerous bands entertaining revelers in the capital. Tickets for the festival begin at z∏.30, with three-day passes priced from z∏.60.
Nabucco June 3 and 5, Teatr Wielki, Plac Teatralny 1 Warsaw
Natalia Kopytnik
For more information log on to ursynalia.pl
Nabucco, the opera that permanently cemented Giuseppe Verdi’s place as a worldrenowned composer, tells the story of Jews who were exiled from their homeland by the
Tex-Mex in the capital
Blue Cactus ul. Zajàczkowska 11 Warsaw bluecactus.pl Since it opened for business in 1996, Blue Cactus has prided itself on bringing a little bit of color to the capital. Along with staples of Mexican cuisine such as fajitas, burritos and enchiladas, the main menu offers American dishes including hot wings, gourmet burgers, and T-bone and ribeye steaks, or, for seafood enthusiasts, shrimp (grilled or fried), salmon tartar and ceviche. If you’re an avocado lover, then we recommend you start your Blue Cactus experience with a bowl of guacamole served with crispy tortilla chips. Blue Cactus also has a special menu which changes with the seasons, offering guests dishes based on seasonal produce. Currently the special menu focuses on asparagus,
Centre for Contemporary Art at Ujazdowski Castle ul. Jazdów 2 www.csw.art.pl Czarna Gallery ul. Marsza∏kowska 4 www.czarnagaleria.art.pl Galeria 022, DAP, Lufcik ul. Mazowiecka 11a www.owzpap.pl
Veronika Joy, Izabela Depczyk
Reservations: (22) 851 23 23
Galeria 65 ul. Bema 65 www.galeria65.com Galeria Appendix 2 ul. Bia∏ostocka 9 www.appendix2.com Galeria Asymetria ul. Nowogrodzka 18a www.asymetria.eu Galeria Foksal ul. Foksal 1-4 www.galeriafoksal.pl Galeria Milano Rondo Waszyngtona 2A www.milano.arts.pl Galeria Schody ul. Nowy Âwiat 39 www.galeriaschody.pl
Blue Cactus
“Va, pensiero!” (“Raise your thoughts on golden wings”), which is often repeated as an encore at the end of performances. For performances in Warsaw this June, the magnificent stage set was created by famed artist Andrzej Kreütz Majewski. David Ingham
Museums, galleries and venues in Warsaw
tures an outdoor sitting area, perfect for enjoying a margarita on a hot summer night. Blue Cactus also offers breakfasts, all for z∏.18, and on Sundays between 12 and 3 pm you can enjoy brunch for z∏.80. In the evenings, you can also enjoy dancing in the Iguana Lounge right next door.
COURTESY OF BLUE CACTUS
WBJ’s restaurant review feature
with dishes including asparagus salad, salmon with asparagus, and white asparagus and green curry soup. The restaurant is made up of two separate and spacious rooms. Featuring painted and hand-carved tables and chairs, as well as authentic decorations, the interior of Blue Cactus looks like something out of a Mexican wedding fiesta. The restaurant also fea-
Babylonian King Nabucco (known as Nebuchadnezzar in English). In four acts this opera manages to combine strong biblical themes with the typical theatrical drama and conflict based around the topics of politics, family and religion. The most famous musical piece in Nabucco is the chorus
Green Gallery ul. Krzywe Ko∏o 2/4 www.greengallery.pl
Simonis Gallery ul. Burakowska 9 www.simonisgallery.com
Katarzyna Napiórkowska Art Gallery ul. Âwi´tokrzyska 32, ul. Krakowskie PrzedmieÊcie 42/44 and Old Town Square 19/21 www.napiorkowska.pl
State Archaeological Museum in Warsaw ul. D∏uga 52 www.pma.pl
Królikarnia National Gallery ul. Pu∏awska 113a www.krolikarnia.mnw.art.pl Le Guern Gallery ul. Widok 8, www.leguern.pl Museum of Independence Aleja SolidarnoÊci 62 www.muzeumniepodleglosci.art.pl National Museum in Warsaw Al. Jerozolimskie 3 www.mnw.art.pl Polish National Opera at Teatr Wielki Pl. Teatralny 1 www.teatrwielki.pl Pracownia Galeria ul. Emilii Plater 14 www.pracowniagaleria.pl
State Ethnographic Museum ul. Kredytowa 1 www.ethnomuseum.website.pl Historical Museum of Warsaw Old Town Square 28-42 www.mhw.pl History Meeting House of Warsaw ul. Karowa 20 www.dsh.waw.pl Warsaw Philharmonic ul. Jasna 5 www.filharmonia.pl Warsaw Rising Museum ul. Grzybowska 79 www.1944.pl
Galeria XX1 Al. Jana Paw∏a II 36 www.galeriaxx1.pl
Rempex Art and Auction House ul. Karowa 31 www.rempex.com.pl
Wilanów Palace Museum and Wilanów Poster Museum ul. St Kostki Potockiego 10/16 www.milanow-palac.pl www.postermuseum.pl
Galeria Zoya ul. Kopernika 32 m.8 www.zoya.art.pl
Royal Castle Pl. Zamkowy 4 www.zamek-krolewski.com.pl
Zachęta National Art Gallery Pl. Ma∏achowskiego 3 www.zacheta.art.pl
LAST WORD
MAY 28 – JUNE 3, 2012
www.wbj.pl
23
Tech Eye
Techeye knew that kid. Dodgeball was really fun when he played. His name was Gary, which was reason enough for other kids not to like him. To make matters worse he had a unibrow and reeked of carrots (his mother put them in everything he ate, including peanut butter and jelly sandwiches). Gary had at least one thing going for him, though – a really radical bike. Shiny, silver and fast, it never made up for his social inadequacies, but it sometimes came close. Techeye recently bumped into
Gary, who is today the proud owner of Hairy Gary’s Beauty Emporium, the only source of carrot-infused shampoo in the whole village. So this week, in his honor, we’re looking at some of the newest, radest twowheelers in the world. First up is the DeLorean Anyday, from DeLorean Motor Company (deloreanbicycle.com), the maker of the car from “Back to the Future.” Having seen the future, the firm has decided bicycles are the best way forward. Several bicycle models are promised – we’ve got our fingers crossed
The Wörthersee
for one with gull-wing doors – but only the Anyday has been unveiled. Designed and custom built by Italy’s Sarto Antonio Racing Bicycles, with a frame made of Columbus XCr stainless steel tubing and boasting a belt drive (rather than a chain), this thing is shiny, silver and fast. No word on whether it’ll hit 88 mph, though. The DeLorean Anyday costs $5,500. Just keep in mind that its maker has a spotty track record – only around 9,000 DeLorean cars were made, over a period of two years, before the company went
The Zero DS
COURTESY OF AUDI
The DeLorean Anyday
COURTESY OF DELOREAN MOTOR COMPANY
You know that kid who got picked last, and grudgingly, for team games in elementary school? The one that was popular for dodgeball, but only because he or she was an easy target? The one that ran with all the grace of a one-legged duck?
bankrupt in the 1980s. So if you’re interested in the Anyday, it might be wise to buy now. Then there’s the Wörthersee, an electric bike designed by Teutonic transport manufacturer Audi (audi.com). This is just a concept vehicle, prepared for the Wörthersee 2012 auto show, so don’t get too excited about buying one. Nevertheless, it offers a fascinating look at the (possible) future of bicycles. The Wörthersee is built from carbon fiber-reinforced polymer and weighs a piffling 24 lbs. It has a lithium-ion battery and a 44-mile range, with a top speed of 50 mph. Oh, and there’s also a “wheelie mode,” a built-in touchscreen, integrated WiFi and smartphone connectivity. On the negative side, the bike seat looks about as wide as a
COURTESY OF ZERO MOTORCYCLES
Past, present and future, on two wheels g-string. In Audi’s vision of the future, cyclists apparently have tiny buttocks. Last up this week is the Zero DS Electric Motorcycle from Zero Motorcycles (zeromotorcycles.com). Advertised as “lightweight and stealthy,” this might just be the motorcycle modern-day ninjas have been clamoring for. Or not. The Zero DS comes in two models, differentiated mainly by their power systems. The ZF6 ($11,495) charges faster but only has a 75-mile range, while the ZF9 ($13,995) is slower to charge but will take you 112 miles. Both models have a max top speed of 80 mph, with a sustained top speed of 70 mph. Other features include a maintenance-free powertrain, advanced battery-cell technology, regenerative braking, a power pack “designed to last the life of the motorcycle” and an aircraft-grade aluminum frame. Plus, let’s face it, the Zero DS looks wicked. Any kid whose family owns one of these is practically guaranteed to get picked for team games. Even if he or she runs like a one-legged duck. ●
Ever tasted the glory of the peanut butter, jelly and carrot sandwich? Let us know: techeye.wbj@gmail.com