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SPECIAL EDITION
• Warsaw office market • Euro 2012 progress report • Trends in Warsaw’s land market 15-25 • Investment climate
VOLUME 18, NUMBER 9 • MARCH 5-11, 2012 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127
Banking on Poland
Since 1994 . Poland’s only business weekly in English
Moving up COURTESY OF WIKIMEDIA COMMONS
Warsaw’s office market is seeing significant rises in lease and construction activity: a special report for MIPIM 2012 15
Santander will increase its presence in Poland by merging its Polish lender with Kredyt Bank 9
Fashion foul Retail group EM&F posted a profit, despite a difficult year for most of its fashion brands 10
In this issue
SHUTTERSTOCK
News . . . . . . . . . . . . . . . . . . . . . . .2-6 Business . . . . . . . . . . . . . . . . . . .9-10 Lokale Immobilia . . . . . . . . . . .11-22 The List . . . . . . . . . . . . . . . . . . .24-25 Business in Brief . . . . . . . . . . .26-27 Markets . . . . . . . . . . . . . . . . . . . . . .28 Sports . . . . . . . . . . . . . . . . . . . . . . .29 Lifestyle . . . . . . . . . . . . . . . . . . . . .30 Last Word . . . . . . . . . . . . . . . . . . . .31
Belarusian bugbear
Salty scandal
The EU and Minsk are caught in a tit-for-tat spat over sanctions
Three firms stand accused of selling road salt for use in food 6
4
NEWS
www.wbj.pl
Tusk signs European fiscal pact
IN THE SPOTLIGHT
Polish-US relations
$1.2 billion
300 is the number of companies that Poland’s Treasury Ministry wants to sell within the next two years, according to its latest privatization plan.
6.5% was the percentage by which the number of hotel beds in Poland increased year-on-year by the end of 2011, according to real estate firm Cushman & Wakefield.
On March 7, Polish Foreign Minister Rados∏aw Sikorski will meet with US Secretary of State Hillary Clinton in Washington, DC. They are expected to discuss security issues concerning NATO, Afghanistan and the situation in the Middle East, as well as issues relating to general Polish-US cooperation. Last month, Mr Sikorski described the Poland-US relationship as “mature and friendly.” He also pointed to the fact that Poland recently took on the role of representing Washington’s interests in war-torn Syria. In a phone conversation in which Ms Clinton thanked Mr Sikorski for Poland’s role in
The US Energy Information Administration’s estimates of Poland’s shale gas reserves, made in 2010, may be too high. Ahead of a much-awaited report by Poland’s Geological Institute, which will contain the first Polish estimate of possible shale gas reserves, Deputy Environment Minister Piotr Woêniak said shale gas deposits in the country are likely lower than the 5.3 trillion cubic meters estimated by the US agency. Mr Woêniak did not provide a different figure. The Polish Geological Institute’s report is expected on March 21.
Treasury Minister Miko∏aj Budzanowski announced last Thursday that Poland’s second-largest oil refiner, state-controlled Lotos, will not be privatized this year or next. Among the most anticipated privatizations in recent years, the sale of Lotos has been abandoned for a minimum of two years, with analysts saying difficult market conditions plus the company’s falling margins and indebtedness meant the Treasury’s efforts to sell the company were in vain. ●
z∏.11.3 billion was Polish copper miner KGHM’s net profit for 2011, 2.5 times higher than a year earlier.
was the loss recorded in 2011 by CEDC, a producer of vodkas such as Bols and ˚ubrówka. It is reportedly the largest loss ever for a company on the Warsaw Stock Exchange.
Poland to scale down shale gas estimates?
Syria, the two also reportedly discussed a proposed missile defense shield which would be partially located in Poland starting from 2018. Last year, ahead of a meeting with Mr Sikorski in Washington, Ms Clinton confirmed the US government’s plans to deploy the missile defenses as well as US Air Force units in Poland. Moreover, with US President Barack Obama making a trip to Poland last year, it would seem that relations between Poland and the US are warm, despite certain differences and some lingering irritations. One issue that particularly rankles is Poland’s absence
from the US’s Visa Waiver Program. As a result, Poles still don’t enjoy visa-free entry to the United States, while most other European Union countries – some of which are much less supportive of Washington on the international scene – are included in the program. This includes Poland’s neighbor, the Czech Republic. US firms are also actively exploring for shale gas in Poland, another topic discussed during Mr Obama’s visit to Warsaw last year. If Poland’s shale gas reserves are proven to have significant commercial potential, then US interests in Poland could grow further still. Remi Adekoya
Quote of the Week “I hope that the future guests of the Kempinski hotel will remember how long people had to spend in prison so that they could stay in the hotel.” Foreign Minister Rados∏aw Sikorski, commenting on Slovenia’s veto against putting businessman Yuri Chizh on a list of Belarusians to be banned from traveling to the European Union. Mr Chizh has hired a Slovenian company to build a €100 million residential and office complex in the center of Minsk, which will include the Kempinski hotel.
Figures in focus Behind bars Prison population rate per 100,000, average per year, 2007-2009, selected EU27 countries 350 280 210
On WBJ.pl
140 70
DATELINE
March
in Wa les ) Fra nc e Ge rm an y De nm ar k Fin lan d* *
Sp a
ia hu an ia Po lan d
ton
(En gla
nd &
Lit
a*
0 Es
Source: Eurostat
Company index Agora ..........................................10 Energa ........................................26 PBG ............................................20 Alior Bank ..................................20 Energopol Po∏udnie ..................20
Hannover, Germany cebit.de
ATAL............................................22 Gide ..............................................8
POLISH ECONOMIC CONGRESS
Location:
Event:
Web:
Web:
This congress and its accompanying conferences offer debate on Poland’s current economic situation, along with discussions on specific issues in each sector. Warsaw University of Technology polskikongresgospodarczy.pl
6 -9
MIPIM
Location:
Event:
MIPIM is the world’s leading international real estate fair. Over 4,000 investors and over 19,000 participants attend these four days of workshops, debates and networking. Palais des Festivals, Cannes, France mipim.com
Web:
Poland’s leading event dedicated to Nordicand Scandinavian-Polish cooperation, focused on business issues, education and culture. Szczecin nordiccrosspoint.pl
28
GREAT PLACE TO WORK GALA
Cushman & Wakefield ....2, 13, 15 Kredyt Bank ................................9
Event:
This event honors the Polish enterprises using unique practices and human resource management programs that promote the values of credibility, respect, fairness, pride and camaraderie in the relationship between management and employees. Warsaw Stock Exchange greatplacetowork.pl
Delphi Poland ............................11 Kulczyk Investments..................26
Location: Web:
6-10
CEBIT 2012
Event:
CeBIT is the world’s largest trade fair showcasing digital IT and telecommunications solutions.
PGE ............................................26
Apple ..........................................31 Eurolot..........................................9
6-8
Location:
*Highest in EU27 **Lowest in EU27
UK
According to a study released by Poland’s Geological Institute last week, shale gas exploration isn’t dangerous for the quality of soil, air or water. Polish findings, based on the study of a single well, contradict several previous scientific analyzes on the controversial process of hydraulic fracturing. To learn more, log on to WBJ.pl
tvi
Does shale gas extraction really pollute?
COURTESY OF PIG
No Lotos sale at least until 2014
Numbers in the News
COURTESY OF FLICKR / US DEPARTMENT OF STATE
Polish PM Donald Tusk was among the 25 heads of state who signed the European fiscal pact last Friday. All EU countries except the UK and the Czech Republic have now signed the treaty, which is aimed at increasing budget discipline in the euro zone. Among the treaty’s articles is the obligation to enshrine a balanced budget into national law. The treaty will enter into force once 12 euro-zone member states have ratified it. It will only apply to eurozone signatories, while others signatories, like Poland, will be bound by its provisions once they adopt the euro.
MARCH 5-11, 2012
La
2
Banco Santander ........................9 Grill & Co ..................................30 PointPark Properties ................16 Bank Zachodni WBK....................9 HB Reavis ............................11, 14
16-17 NORDIC CROSS POINT Event:
Web:
Pol-Aqua ....................................20
BBI Development ......................15 Helios ........................................10 Beiten Burkhardt ........................6 HTC ............................................31
Polish Power Exchange ............26
Blackstone ................................20 Hydrobudowa ............................20 Quadra........................................27 Bombardier ..................................9 Iberdrola ....................................26
Rank Progress ..........................20
BZ WBK ........................................9 Inpro ..........................................19 CBRE ........................11, 13, 15, 19 Jones Lang LaSalle ......11, 19, 22
ROBYG ........................................19
CEDC ............................................2 JW Construction ........................14 Samsung ....................................31 Celtic Property Developments ..20 KBC ..............................................9 Savills ........................................15 Colliers International ..........14, 16 KGHM ....................................2, 27
Location:
PHN ......................................15, 16
Avestus Real Estate ..................11 Globe Trade Centre....................20 PKN Orlen ..................................26
SEGRO ........................................16 Skanska Property Poland..........14
DEME..........................................26 KVL Bauconsult GmbH..............27 Trakcja ........................................20 DolnoÊlàskie Surowce Skalne ..26 LCP Properties ..........................11
Ulma ..........................................20
Dom Development ....................14 LOT Polish Airlines ......................9 Dom Inwestycyjny BRE Bank ....10 Lotos ............................................2
Unibep ..................................20, 22
Dong Energy ..............................26 LPP ............................................11 UniCredit ....................................16 DPD Polska ................................16 Lubasa........................................11 Unidevelopment ........................22 ECE ............................................22 Mayland Real Estate..................11
Virgin ..........................................27
Echo Investment ..................14, 15 Mondi..........................................16 EDPR ..........................................26 Nokia ..........................................31
Warsaw Stock Exchange 2, 20, 26
EM&F..........................................10 P4................................................27 X-Trade Brokers DM ..................28
4
NEWS
www.wbj.pl
MARCH 5-11, 2012
Belarus
Following an escalation of tensions, diplomats on both sides have been withdrawn A diplomatic spat between Belarus and the EU broke out last Tuesday when Minsk expelled the Polish ambassador and the EU’s permanent representative to Belarus, and said it would withdraw its own representatives from Brussels and Warsaw. The move came in response to the decision of the EU Foreign Affairs Council on February 28 to widen sanctions against Belarus. This included the addition of 21 people to the list of Belarusian judicial and law-enforcement officials who will have their assets in the EU frozen and be barred from receiving visas allowing them to
travel within the bloc. There are now roughly 200 names of high-ranking Belarusian officials, among them President Alexander Lukashenko, on the list. Poland was instrumental in persuading the EU to toughen sanctions on Minsk, a move it has made on the grounds that the human rights situation in the country is deteriorating.
‘Nervous and drastic’ Polish Prime Minister Donald Tusk said the “nervous and quite drastic” reaction of Minsk shows that the sanctions are proving troublesome for Mr Lukashenko’s regime. Addressing Belarusians in their language, Mr Tusk said “Long live Belarus. Hold on.” He also stated that Poland would continue to work with
Belarusian opposition activists. The Polish Foreign Ministry released a statement saying it regarded Belarus’ expulsion of the representatives as “an unfriendly step taken by Belarus towards the whole European Union” and that the EU would “respond to the measure.”
Tit for tat Then, last Wednesday, the EU withdrew all of its ambassadors from Belarus. Minsk strongly criticized the bloc’s move, saying it is a “path into deadlock.” At the EU summit which took place on March 1-2, EU leaders expressed their dissatisfaction with the worsening situation in Belarus and called for their foreign ministers to work on even more sanctions against Minsk.
COURTESY OF THE COUNCIL OF THE EU
Diplomatic face-off between EU and Belarus
Alexander Lukashenko Alexander Lukashenko has led Belarus with an authoritarian hand for some 18 years, maintaining Soviet-style controls over the economy and stifling political opposition and
independent media. As the rift between Belarus and the EU widens, the country is likely to be pushed closer to Moscow, even though Mr Lukashenko and the Kremlin have tussled
in the past, with Mr Lukashenko accusing Moscow of trying to erode his country’s sovereignty and gain control of its assets. Remi Adekoya
Poland working to get dead US journalist’s body out of Syria As WBJ went to press, the Polish embassy in Damascus, Syria, was still trying to locate and evacuate the body of American journalist Marie Colvin, who was killed in a Syrian government attack on the city of Homs on February 22. “The embassy is making
every effort to recover the body of Marie Colvin. The ambassador stays in contact with Syrian authorities and the Syrian Red Crescent, [as well as] US, French and British diplomats,” the Ministry of Foreign affairs wrote to WBJ in a statement. In February,
the Polish Embassy in Damascus took over the representation of US interests in Syria. Last Thursday, the official Syrian news agency Sana quoted a Syrian Foreign Ministry “competent source” as saying that Syrian authorities had located the bodies of Ms
Colvin and French journalist Rémi Ochlik, “buried in the area which armed terrorist groups had controlled in Baba Amr, in Homs.” After DNA tests, Ms Colvin’s body will be handed over to the Polish embassy, and Mr Ochlik’s body to the French embassy,
Sana reported. As of press time, the Polish Foreign Ministry declined to make further comments on the situation. Meanwhile, last Thursday the United Nations Human Rights Council voted to condemn the government of President Bashar al-Assad for
widespread violations of human rights in the crackdown on its opponents and to demand an end to violence. The UN estimates that “well over” 7,500 people have died since the beginning of Syria’s 11-month uprising. Alice Trudelle
6
NEWS
www.wbj.pl
MARCH 5-11, 2012
Salt scandal
Three companies are suspected of selling road salt for use in meat and dairy products Poland’s Chief Sanitary Inspectorate (GIS) launched an investigation last Wednesday into revelations that some companies had been selling industrial salt – repackaged as edible salt – to food-processing plants. The investigation started after five men were arrested last Monday following the discovery by Poland’s Central Bureau of Investigation that
companies the men worked for had been engaged in the practice. If faced with charges of placing food on the market that poses a danger to human health, the men could face up to five years in prison. The type of salt in question is used for deicing roads. As much as 1,000 metric tons of industrial salt could have been sold to food companies each month for the past 10 years, TVN24 reported. Last Wednesday, GIS and the Chief Veterinary Officer began inspecting facilities where the salt may have been used in food. Chief Sanitary Inspector
Przemys∏aw Biliƒski told the Sejm last Thursday that three companies had marketed large amounts of non-edible salt to producers of meats, fish, dairy, and baked goods, and that these producers seemed to have bought it in good faith. However, he stressed that firms producing and placing food on the market were responsible for the safety of their products. Mr Biliƒski also said that preliminary results of studies on the possible risks the salt in question could pose to human health, commissioned by GIS, would be available within a
few days. Last Monday, Prime Minister Donald Tusk told a press conference that he had asked the Minister of Agriculture to prepare a report on the potential dangers of consuming industrial salt. “There is no doubt that something bad was going on, however, for now we do not have all the information about the effect this could have had on the quality of the food products, and ultimately on people’s health,” Mr Tusk said. Izabela Depczyk, Alice Trudelle
SHUTTERSTOCK
Investigation launched into use of industrial salt in food
The salt in question is used for deicing roads
Auschwitz
US and Poland disagree over return of Auschwitz barrack Poland says a museum in Washington should give back the historical artifact The fate of a barrack that once housed prisoners of the Auschwitz death camp in Nazi-occupied Poland is currently the subject of intense discussion between Polish and US authorities. Presently on display at the
United States Holocaust Memorial Museum in Washington, DC, the barrack was shipped to the US over 20 years ago. Poland is now demanding the artifact’s return, since Polish law says any historical object loaned to another country must be handed back once every five years for inspection. The law was introduced in 2003 to ensure the preservation of Poland’s cultural heritage.
Poland’s Culture Minister Bogdan Zdrojewski has said the barrack should return to Poland. He told reporters last week that the barrack had originally been loaned for 10 years in 1989, before the period was extended for another 10 years, meaning the loan period has passed. He also stressed, however, the “importance of American expectations … that the bar-
rack could stay [in America] for the anniversary of the United States Holocaust Memorial Museum.” The US Holocaust Memorial Museum opposes the demand for the barrack to be returned partly on the grounds that the object is in a fragile state. “Due to the barrack’s size and the complexity of its installation, removing and trans-
porting it to Poland presents special difficulties, including potentially damaging the artifact,” the US Holocaust museum said in a statement sent to The Associated Press. “Both the Museum and our Polish partners have been actively discussing various proposals, and we remain committed to continue working with them to resolve this matter.” Prisoners slept in the bar-
rack and others at Auschwitz in appalling conditions as they awaited extermination. The object is in fact one half of a full barrack, the other half of which still stands at Birkenau, part of the Auschwitz-Birkenau complex. Up to 1.5 million people – most of whom were Jews – were killed by the Nazis in the camp during WWII. Gareth Price
Expert commentary
Changes in the residential real estate market New legislation enacts additional security measures for purchasers of residential real estate Until now developers have held a privileged position in Poland’s residential real estate market due to the economic and organizational advantage of the developer over the purchaser. Decades ago a number of countries in Western Europe took note of this problem and introduced relevant legal regulations to help minimize the risk of the purchaser losing money. We prepared the first draft of this kind of regulation in Poland with Professor Fryderyk Zoll at the Jagiellonian University as early as 10 years ago. On April 29, 2012, the residential real estate market will enter into a new era of legal protection for those who purchase residential premises or detached houses through the implementation of the act often referred to as the “developers act,” as it governs the relationship between the developer and the customer. The purpose of the regulation includes introducing regulations concerning a means for protecting the purchaser as well as for drafting contracts to be concluded between developers and purchasers. In accordance with the act, the contract should be con-
cluded in the form of a notarial deed and comprise specific elements, described in detail in the Act. The developer is obliged to enter into an escrow agreement with a bank for each investment. If the developer declares insolvency, monies held in the escrow account, ownership of the real estate or perpetual usufruct and the liabilities of the developer towards the purchaser would constitute a separate insolvency estate and a receiver or a trustee would be obliged to continue the developer’s project, should the committee of purchasers decide that it should do so. The only transitional provision in the act excludes the obligation for developers to secure purchasers’ claims following the commencement of the sale. The aim of the transitional provision is to ensure that once the developer starts the investment, it already bears certain costs and planning financing with the customers’ money, and it would be able to finish that investment under the provisions.
DAILY EXECUTIVE DIGEST Poland A.M. gives you the biggest Polish stories of the day. Have the most valuable news delivered to your inbox each weekday morning.
Pawe∏ Kuglarz Attorney at Law, Head of Real Estate Department Partner, Beiten Burkhardt P. Daszkowski Pawel.Kuglarz@bblaw.com +48 22 37 88 900
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S i g n u p f o r a 2 - w e e k f r e e - t r i a l ! w w w. p o l a n d a m . p l G e r m a n v e r s i o n : w w w. p o l e n a m m o r g e n . p l
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MARCH 5-11, 2012
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Expert commentary
Implications of new residential legislation hopefully before it enters into force. The act applies only to private, non-professional investors.
What will this act mean for developers?
Andrzej Lulka, a legal advisor and partner at the Gide Loyrette Nouel law firm, talks about the changes that will come about as a result of the new “Developers Act” What are the most important issues concerning real estate in Poland now? Andrzej Lulka: Looking at the real estate sector in Poland, I would say that the most important issue to have arisen in the last few months is new legislation concerning the residential market. The Act on Protecting the Rights of Purchasers of Apartments and Houses, known as the “Developers Act,” was adopted in September last year, after the Polish Constitutional Tribunal showed the Polish Parliament a loophole in the legal regulation of developer contracts in violation of constitutional principles on housing policy and consumer protection. Even thought the act will not come into force until end of April 2012, it has already raised a lot of controversy in real estate circles and provoked widespread discussion. The developers and the banks are not sure how to meet the new obligations imposed on them, and the new regulation will certainly generate costs to be borne by the developers, and passed on to property buyers.
What is the aim of this new legislation? The need to implement a law regulating developers contracts has been discussed in Poland for many years, with the Constitutional Tribunal decision acting as the catalyst for rushing through this law as soon as possible. The aim of the new legislation is to protect anyone purchasing apartments or houses, or obtaining the perpetual usufruct to the land on which houses are located, from the negative effects of a developer going bankrupt or violating the contract for other reasons. The goal of the new act was to contribute to the development of improved market standards in the preparation of new housing investments. Has this goal been achieved? Partly yes, but there are certainly corrections to be made to the act,
This act imposes several new obligations on real estate developers. They will have to conclude developer agreements on constructing and selling the properties they are developing in the form of a notarial deed, and the buyer’s claims will have to be entered in the relevant land and mortgage register, meaning that if the developer wanted to back out of the contract, the buyer would be able to apply to the court for an order conveying title to the property. There are some informational duties imposed on the developer, which can be controversial as some of the information, according to developers, should not be made public or can constitute business secrets. Upon the first contact with a “potential buyer” interested in purchasing a property, and in any case before a developer contract is concluded, the developer has to deliver an informational prospectus setting out detailed information on the developer, its professional experience and the property being sold. The developer has to present this prospectus to potential clients at their request. Some of the information provided in the prospectus may change between the delivery of this document to the client and the conclusion of the developer contract. If so, the developer is obliged to provide potential buyers with a list of changes, which may lead to complications as, for example, it is hard to define a “potential buyer”. The act provides a list of contractual provisions that must be implemented in the contract, including penalties, and specifies situations in which both parties can rescind the contract.
What, in your opinion, is the most important change implemented by the new Developers Act? The most-discussed change implemented by the act is the obligation for developers to hold an open-end or closed-end escrow account in a bank for the investment. An escrow account may be used exclusively for storing funds entrusted by a third party to the account holder under a separate agreement. The escrow account agreement is concluded between the bank and the developer, and should specify the conditions under which the funds may be transferred to the developer. Prospective homeor apartment-owners will pay cash directly into this account. Developers may choose between four kinds of collateral offered to secure the monies of prospective purchasers: a closed-end escrow account, an open-end escrow account, an open-end escrow account with a bank guarantee, and an open-end escrow account with a insurance guarantee. Opening open-end escrow accounts with bank or insurance guarantee is unlikely to be popular, as it would generate extra costs, and one way of securing the project
is sufficient. For open-end escrow accounts, the bank which is financing the project is obliged to monitor the performance of the construction work and to transfer funds to the developer only after approving the completion of each given stage of the construction, i.e. if the developer’s obligations concerning the respective investment stages have been duly fulfilled. In the case of a closed-end escrow account, all the funds will be disbursed once the ownership title to an apartment or a plot of land has been transferred to the buyer. This will definitely have an impact on the costs of financing, since the money paid by the purchasers may not be used in advance to cover the costs of ongoing works. However, developers will not be obliged to offer an escrow account if the sale of residences started before the act comes into force. According to the act, “starting the sale” means publishing information on commencing the process of offering apartments or houses within a certain residential project. What this actually means is a topic of intense discussion and could prove to be a nightmare. There are developers eager to publish information on their investment plans for the decade to come, in order to avoid opening escrow accounts.
What consequences does the obligation to provide escrow accounts bring for developers? One possible implication of the new regulations will be that banks will effectively gain control over investment projects carried out by developers, that is, carrying out projects will be de facto dependent on the bank consenting to open a special kind of account. If banks insist on closed- rather than openend escrow accounts, then the residential project will have to be financed completely from the developer’s own funds or through a bank loan. This would lead to the risk of smaller developers going under. If the banks agree to offer open-end escrow accounts, the developer will bear increased costs connected with the bank’s monitoring of the project, so housing prices may go up. As mentioned above, the costs of financing will also increase.
What is the banks’ reaction to this new law? Banks are generally critical of the new regulations. They will share responsibility for the success of the projects with the developers. They will be obliged to monitor the course of developments in an effective manner, they will be entitled to check certain documentation owned by the developer and will have access to the developer’s bank accounts, finally they will be obliged to assess the legal effects of certain documents, for instance the validity of the purchaser’s statement on the rescission of the development contract, a role that banks usually are reluctant to assume. Upon delivery of such a statement by the purchaser, the bank is legally bound to release funds from the escrow account to the purchaser. It is hard to predict at this point how the banks will carry out their tasks related to supervision over investment projects car-
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ried out by developers. Banks will probably prefer to cooperate with more experienced companies, to minimize the risk of suffering the consequences of failure of a residential project. It seems that the bank financing the project will tend to be the bank holding the escrow account, in order to have easier control over the disbursement of the monies from that account. On the other hand, banks can financially benefit from the new act, once they successfully work out their new products: closed-end and open-end escrow accounts for the purpose of residential projects. Other provisions of the act that are seen as unfriendly to the banks concern the bankruptcy of the developer. The act provides that the land and the money in escrow are excluded from the bankruptcy estate, and serve to secure the purchasers’ claims and/or the continuation of works. This is not fully coherent with the standard collateral for a bank loan, namely a mortgage on the land. The act is not clear on what the impact of the developer’s bankruptcy on that mortgage is. In any case, enforcing such a mortgage is illusory, since nobody would purchase such property. Unless the act is amended to provide for more detailed terms on that issue, the further continuation of the project would probably require an agreement between the bank and the community of the purchasers. Otherwise, it would have to be financed from the purchasers’ funds solely and, in addition, before the purchase of the apartments it would have to cover fully and reasonably the bank’s claims under the facility agreement with the developer secured by the mortgage.
How does this new legislation affect your work and your clients? Real estate and construction law is one of Gide Loyrette Nouel’s key areas of specialization. The Real Estate Department at GLN offers legal services at every stage of real estate projects, for commercial, office, residential or logistics purposes, and others. We have naturally analyzed the new regulation carefully, even though it is unclear in many points. We have taken or recommended all necessary actions, even purely out of precaution, in order to help our clients, who are developers and banks, to meet the requirements of the Developers Act. The interest in the legal know how concerning the new act is spectacular. We have done our best to help our clients understand the new law and how it may affect them. Since there are no court decisions based on the new regulation yet, the risk cannot be completely excluded, but we are prepared to give our clients full and accurate legal advice concerning this act. The criticism of the new regulation may lead to an amendment of the Developers Act in the near future. It may also turn out that, due to the massive publication of developers’ investments plans and the commencement of the sale of their projects scheduled for the decade to come, the provisions of the act relating to escrow accounts may actually start to apply with a few years’ delay. ●
BUSINESS
MARCH 5-11, 2012
www.wbj.pl
9
Banking
BZ WBK and Kredyt Bank will merge to create the thirdlargest financial institution in Poland
company will be owned by minority shareholders. The deal requires a final agreement from BZ WBK and Kredyt Bank, as well as the regulatory approval of the Polish Financial Supervision Authority. The Belgian lender, which received €7 billion from Belgium and the region of Flanders during the 2008-09 financial crisis, has agreed with the European Commission to sell off assets such as Kredyt Bank in order to pay back the aid. Remi Adekoya
COURTESY OF BZ WBK
Spanish lender Banco Santander has reached a deal to merge its Polish unit Bank Zachodni WBK with Kredyt Bank, the Polish arm of the Belgian financial group KBC. The tie-up will create the third-largest bank in Poland by deposits, loans, branches and profit, Santander said in a statement. The total value of the merged entity will come to €5 billion and it will have 899 branches and 3.5 million clients in Poland. “Thanks to this merger, Banco Santander will significantly strengthen its presence in Poland, one of the most dynamically growing economies in Europe,” Emilio Botin, executive chairman of Banco Santander, said in a statement. “I think in the short-term, meaning 2012 and H1 of 2013, BZ WBK will try to consolidate, do some cross-selling and upselling, especially on the corporate side and in the insurance business. There will be a more
aggressive strategy which will probably start to be very visible by 2014,” said Tomasz Bursa, an analyst at Ipopema Securities. Mr Bursa also said the merged company will be significantly diversified, since premerger BZ WBK was largely focused on corporate clients, while Kredyt Bank concentrated on the mortgage business. KBC will initially hold a 16.4 percent stake in the merged entity, with Santander holding 76.5 percent. KBC will then gradually divest itself of its stake. The remainder of the
BZ WBK focuses largely on corporate clients
COURTESY OF BOMBARDIER
BZ WBK-Kredyt Bank merger to create Poland’s no. 3 bank
Airlines
Eurolot buys eight planes from Bombardier The deal is reportedly worth some z∏.400 million Poland’s Treasury Ministry approved the purchase of eight Q400 NextGen planes by Polish regional budget airline Eurolot from Canadian aerospace company Bombardier. Eurolot, meanwhile, has said that several of the new planes will be ready for use before the start of the Euro 2012 soccer championships. The transaction was worth a total of z∏.400 million, reported Puls Biznesu. Eurolot also said it may opt to purchase an additional 12 more planes of this
type in the future. “We want to expand our airline,” said Mariusz Dàbrowski, president of Eurolot, adding that, “we will be able to fly faster and further than we do now.” The company hopes the new aircraft will make it more competitive and allow it to expand, as well as provide greater opportunities to improve its offer. The planes will operate not only on Eurolot’s network but also on connections used by its partner, Poland’s national carrier LOT Polish Airlines. The Treasury currently owns 62.1 percent of Eurolot while the remaining stake – 37.9 per-
cent – belongs to LOT. Is is expected that Eurolot’s new purchase may enable it to add international flights to its current regional list of destinations. Presently, the company services flights to most of Poland’s major cities including Gdaƒsk, Kraków, Poznaƒ, Szczecin, Warsaw and Wroc∏aw. It also flies to one city outside of Poland: Poprad, Slovakia. Bombardier first announced the order of four Q400 models by a buyer who wished to remain anonymous back in August 2011, with the option for that buyer to purchase an additional four planes. Ella Pa∏ka
10
BUSINESS
www.wbj.pl
MARCH 5-11, 2012
Retail
The retail group has “too many” fashion brands, its CEO said Polish retailer Empik Media & Fashion Group (EM&F) recorded a profit both in Q4 2011 and for the full-year 2011, despite nagging difficulties with its fashion segment, the company revealed last week. For the whole of 2011, the company’s total sales rose 11 percent y/y to z∏.3.22 billion. Net profit for all of 2011 stood at z∏.89 million, an increase of 9 percent over the previous year. The company saw profit
growth of 19 percent year-onyear for the fourth quarter of 2011, from z∏.77 million to z∏.91 million. Three of the group’s segments – Empik bookstores, Smyk toy stores and its language schools – are “doing fine,” EM&F CEO Maciej Szymaƒski told journalists last week. However, the group’s fashion segment is continuing to suffer “massive losses,” he said. Peacocks, a clothing brand franchise from which the company was recently forced to exit, had a particularly “bad
year,” Mr Szymaƒski said. But under current conditions, he added, it may be possible to sell other brands in stores that once sold Peacocks products. EM&F’s other fashion brands, including Esprit and Wallis, did not fare much better. Unseasonably warm weather led to a decrease in sales of winter clothing at the end of 2011, while lackluster collections also contributed to weak results, the company said. EM&F also withdrew from its Hugo Boss and Spring brands, and sold off a 31 percent stake in Empik Parfums
Christian Dior, a distributor of Christian Dior cosmetics. It continues to hold a 49 percent stake in the company. With so many of its fashion brands underperforming or in trouble, EM&F does not plan to introduce any new clothing brands on the Polish market. “The problem isn’t that we don’t have brands but that we have too many,” Mr Szymaski said, adding that the group doesn’t want to withdraw from fashion. “We just want to work with four to five larger partners and not with 20,” he said. Ella Pa∏ka
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EM&F sees profit despite tough year in fashion
Empik group’s profits rose 11 percent y/y
Publishing
Agora profits down less than expected in Q4 The publisher’s profits fell in the last quarter of 2011, although its cinema chain enjoyed a healthy rise in revenue Agora, the publisher of Polish daily Gazeta Wyborcza, earned a net profit of z∏.9.7 million in the final quarter of 2011, 47 percent down from a year earli-
er, according to data released last week by the company. The firm said in a statement that an impairment loss of z∏.14.3 million affected the consolidated results of the company in the fourth quarter. But despite the year-on-year drop, the results were still better than those predicted by analysts. Market expectations were for a z∏.5.1 million net profit.
Agora’s consolidated revenues for the whole of 2011 increased 10.6 percent to z∏.1.23 billion, but at the same time the publisher saw its net profit decline for full-year 2011 by 39 percent to z∏.43.8 million. “Agora’s results were better than expected mainly because of the good performance of their cinema business. Also the EBITDA of their press business
is declining more slowly than expected,” said Piotr Grzybowski, analyst at Dom Inwestycyjny BRE Bank. Agora’s cinema business, the Helios cinema chain, enjoyed a 30.6 percent rise in total revenues to z∏.60.2 million in Q4 2011. Mr Grzybowski said Agora is in good shape, since the firm has roughly z∏.110 million in net
cash, a “huge” EBITDA and no problem with covering its investment needs. Its profits as a whole are falling though, due to the general decline in the advertising sector, which shrunk by 4 percent as a whole in Q4 of 2011, Mr Grzybowski said. Agora’s advertising sales for full-year 2011 fell 1.4 percent y/y to z∏.705.6 million.
The company’s board is yet to make a dividend recommendation for 2012 but Piotr Niemczycki, Agora’s CEO, said last week that “we have a specific dividend policy and we are not planning to make exceptions from it this year.” In 2005, Agora adopted a policy of paying out z∏.0.5 per share in dividends. Remi Adekoya
Land deals in Warsaw this year will exceed the nearly z∏.1 billion done in 2011
The Polish capital now features the second-most active office market in Europe
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15
SPECIAL MIPIM EDITION
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
LPP brands in Gdynia’s Wzgórza mall Brands of the LPP clothing company will open their stores in the under-construction Wzgórze shopping center project in Gdynia. The company has taken up 3,500 sqm of space in the 70,000-sqm mall. The Wzgórze project, which involves the extension of an existing retail facility, is being developed by Mayland Real Estate. Construction on the development launched in October last year and is scheduled to finish in Q3 of 2013. ●
In this issue HB Reavis buys land . . . . . . . . .11 Galeria EMKA expansion . . . . .11 Euro 2012 progress . . . . . . . . . .13 Investment land . . . . . . . . . . . . .14 Warsaw office market . . . . . . .15 PHN plans . . . . . . . . . . . . . . . . . .16 Polish cities . . . . . . . . . . . . . . . . .17 Property-related stocks . . . . . .17 Investor advice . . . . . . . . . . . . . .19 WSE trends . . . . . . . . . . . . . . . . .20 MIPIM events . . . . . . . . . . . . . . .22
HB Reavis Group acquires Inflancka plot in central Warsaw Developer Lubasa Polska was originally planning its Gdaƒski Business Court at the site HB Reavis Group has acquired approximately 28,700 sqm of land located on ul. Inflancka in Warsaw’s central district from Spanish developer Lubasa. The value of the transaction has not been revealed but is said to have been one of the largest singleasset deals in the capital in recent years. “The Inflancka site was one of the best and most desired Warsaw development sites and we would like to congratulate both sides on concluding such a successful transaction,” Miko∏aj Martynuska, director of development consultancy at CBRE, which brokered the deal, said in a statement. Originally, Lubasa intended to develop its Gdaƒski
Business Court office project at the site, but the troubled investment was never launched. The property holds a building permit, with HB Reavis planning to announce
The Galeria EMKA shopping center project in Koszalin, Zachodniopomorskie voivodship, will see its leasable retail space increased from the current 15,000 sqm to 30,000 sqm by the third quarter of 2014. Jones Lang LaSalle has just been appointed the exclusive leasing agent of the extension of Galeria EMKA, which belongs to LCP Properties. The company will also advise the investor on the re-modeling of the existing part of the mall. “We would like to confirm our intention to continue the
investment in and modernization and extension of Galeria EMKA as a priority project in our portfolio,” James Fife, CEO of LCP Properties in Poland, said in a statement. “We are very excited to have the opportunity to participate in an assignment which has a chance to transform the gallery into the most important shopping center in the city,” stated Gra˝yna Melibruda, associate director in the retail agency of Jones Lang LaSalle. She added that the Galeria
REAL ESTATE EDITOR
CONTRIBUTORS
PRODUCTION MANAGER
ADAM ZDRODOWSKI (AZDRODOWSKI@WBJ.PL)
E. BLAKE BERRY EWA BONIECKA MARK ORDON LIAM NOLAN
PIOTR WYSKOK
COPY EDITORS
POLITICS EDITOR
REMI ADEKOYA (RADEKOYA@WBJ.PL)
GRAPHIC DESIGNER
Adam Zdrodowski
ADAM NARCZEWSKI ANDREW NAWROCKI
The Galeria EMKA shopping center currently features 15,000 sqm of GLA
MANAGING DIRECTOR MONIKA STAWICKA
MARKETING &SALES
MARTA CZESZEJKO-SOCHACKA (MCZESZEJKO-SOCHACKAKA@WBJ.PL)
AGNIESZKA BREJWO
KAROL KOSIOREK (KKOSIOREK@WBJ.PL)
(ABREJWO@WBJ.PL)
PR & MARKETING SPECIALIST
MAGDALENA KARPI¡SKA (MKARPINSKA@WBJ.PL)
NATALIA ROGACZEWSKA (NROGACZEWSKA@WBJ.PL) SUBSCRIPTIONS MANAGER
COLUMNISTS
INTERN IZABELA DEPCZYK
Adam Zdrodowski
MARKETING &SALES DIRECTOR
¸UKASZ MAZUREK
DAVID INGHAM ELLA PA¸KA
EMKA project would get a more comprehensive tenant mix which will make its fashion offer more attractive. The mall will have a larger dining offer and will also see the opening of new leisure facilities. Opened in 2002, Galeria EMKA currently houses 100 stores and points of service and offers parking spaces for 550 cars. Major tenants include Reserved, Rossmann, Empik, Sano and RTV Euro AGD.
EDITOR-IN-CHIEF ANDREW KURETH (AKURETH@WBJ.PL)
GARETH PRICE (GPRICE@WBJ.PL)
(ATRUDELLE@WBJ.PL)
tion on its €110 million Warszawa Zachodnia scheme in the city. “The acquisition has been a logical conclusion of our continuing interest in the Polish property market. This prime asset is a desired addition to our already very extensive project pipeline in Poland,” Stanislav Frnka, CEO of HB Reavis Poland, said in a statement. “Furthermore, this transaction proves that the underlying fundamentals of our group are strong and financially sound with long-term commitment to the CEE market and beyond,” Mr Frnka added. Established in 1993, HB Reavis is an international commercial property developer operating in Croatia, the Czech Republic, Hungary, Poland and Slovakia. The company currently develops and manages assets worth a total of €1.3 billion.
Galeria EMKA mall in Koszalin to double its space in Q3 2014
CO-MANAGING EDITOR
ALICE TRUDELLE
be completed in the second quarter of 2014. By that time, the company, which is now building Konstruktorska Business Centre in Warsaw, is also expected to launch construc-
The 28,700-sqm plot was originally meant to house the Gdaƒsk Business Court project
PUBLISHER VALKEA MEDIA SA
CO-MANAGING EDITOR
the details of its scheme for the site within the next few weeks. It says it will start construction in H1 of this year. The first phase of the development is scheduled to
COURTESY OF JONES LANG LASALLE
Automotive electronics and technologies supplier Delphi Poland has leased 8,500 sqm in developer Avestus Real Estate’s Enterprise Park office complex, construction on which is now underway in Kraków’s Podgórze district. The tenant will take up space on four floors in two buildings comprising the first phase of Enterprise Park. This phase, which will be spread over 15,000 sqm, is expected to obtain its occupancy permit in September this year.
MARCH 5-11, 2012
Office property
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Anchor tenant at Enterprise Park
•
CARTOONS
PIOTR WYSKOK
AGNIESZKA KUCZY¡SKA (AKUCZYNSKA@WBJ.PL)
AGNIESZKA MICHALIK (AMICHALIK@VALKEA.COM)
PRINT & DISTRIBUTION COORDINATOR
KRZYSZTOF WILI¡SKI (DYSTRYBUCJA@VALKEA.COM)
BOOK OF LISTS SPECIALIST
JOANNA RASZKA (JRASZKA@VALKEA.COM)
MARCH 5-11, 2012
LOKALE IMMOBILIA – SPECIAL MIPIM EDITION
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13
Euro 2012
With three months to go before Euro 2012 begins, Lokale Immobilia assesses Poland’s readiness for the event When UEFA president Michel Platini announced in April 2007 that Poland and Ukraine would co-host Euro 2012, there were real fears among many Poles that the challenge of modernizing or building new stadiums, highways and accommodation would prove to be an almost impossible task. Concerns were understandable given the state of the country’s transport infrastructure and the fact that three of the tournament’s four stadiums did not even exist. However, just last week Poland’s Sports Minister Joanna Mucha told journalists at a press conference held to mark 100 days until the tournament’s start date, that “Everything is going as planned.” But is that really the case?
Match day seats The program to build stadiums in time for the championship has certainly been a success, since all venues are now com-
plete. Yet according to Miko∏aj Martynuska, director of development and consultancy at CBRE Poland, problems may begin to surface after the tournament. “The stadiums were not properly designed to serve future needs,” Mr Martynuska said. “At the National Stadium in Warsaw there are thousands of square meters of commercial space not leased and I am concerned they serve short-term projects but do not meet longterm requirements.”
The road to victory Poland’s program to build adequate road infrastructure in time for Euro 2012 has without a doubt been the most problematic aspect of the country’s preparations, plagued as it has been by numerous delays caused by factors including flooding and contractual disputes. In February the country’s Minister of Transport announced that both the A1 (which will connect Gdaƒsk on the Baltic Sea to the PolishCzech border) and the A4 (which will connect Poland with both Germany and Ukraine) highways will almost certainly
not be fully ready before the start of the tournament. The government has since announced that cars will be able to use certain sections of highways that lack planned facilities, including petrol stations and sound barriers, as long as the roads in question are deemed safe by authorities. According to experts who spoke with Lokale Immobilia, delays were to be expected given the ambitious nature of the transport infrastructure project, but the main positive is that the country will eventually have far superior transport infrastructure than it would have had without Euro 2012. However, Mr Martynuska did say “the biggest concern is that the transport infrastructure was prepared only with the Euros in mind ... we can’t just look at it being about Euro 2012.”
A place to stay By the end of 2011, Poland offered 2,106 officially licensed hotels with 201,360 beds, a recent report by Cushman & Wakefield shows. This represents a 6.5 percent year-on-year increase in capacity. According to Dorota Malinowska, a hospitality consultant
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A work in progress
Gdaƒsk’s PGE Arena was officially opened in August 2011 at Cushman & Wakefield, the increase in supply was in line with what could be expected in a normal year. This is because many of the hotel projects that were proposed after Poland was awarded the right to co-host Euro 2012 were never realized due to the financial crisis of 2009. However, Ms Malinowska does not expect there to be any shortage of places to stay during the tournament. “I would say there won’t be
a problem. We already know there are enough rooms for the teams and UEFA officials ... with fans it could be an issue on some specific days but considering the variety of lodging options, hotel supply is expected to meet the demand,” she said.
Waiting game It certainly hasn’t been easy for Poland to prepare itself to cohost Euro 2012. But in terms of providing venues and accom-
modation, as well transporting fans between its major cities, it seems the country is now relatively well prepared, or at least as prepared as it could be in the time available. The real success of the projects will depend on their longterm sustainability and the impact they have on the future growth of business in the country. Only time will tell if the Euro 2012 project will be deemed a success. David Ingham
14
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MARCH 5-11, 2012
Investment land
Demand for investment land in Warsaw on the rise The total value of 2012 transactions in the capital is expected to exceed last year’s sum of almost z∏.1 billion The demand for investment plots in Warsaw has been on the rise in recent months, with developers having spent almost z∏.1 billion on land acquisitions in the city in 2011. According to real estate advisors who deal with land transactions, the volume is likely to see a further increase this year. Daniel Puchalski, an associate director at Colliers International, said the market is now bouncing back after the crisis, with both supply of and demand for land seeing an increase. “I am 90 percent sure
that the 2012 transaction volume will be higher than last year’s,” he said. He added that the price of land has now stabilized and accounts for 15-20 percent of the total investment value, measured per sqm of leasable and sqm of usable space in the case of office and residential projects, respectively. This is a level that is considered “normal” in the property market, he said. In the office market, this means land owners currently expect z∏.650-2,500 per sqm of GLA that can be developed on plots located outside the city center. In Warsaw’s Central Business District, the prices range z∏.2,000-4,000 per sqm of leasable office space, Mr Puchalski said.
Large deals Significant levels of residential developer activity, large volumes of individual transactions and a focus on established locations in Warsaw have characterized the capital’s land market of late, said Miko∏aj Martynuska, director of development consultancy at CBRE. He noted that among land deals carried out in 2011 were transactions involving JW Construction’s takeover of a site in the Wola district for approximately z∏.174 million and Dom Development’s acquisition of land in ˚oliborz for some z∏.168 million. “We expect that this trend will also prevail in the course of 2012. However, it has already been noticed that an
Land deals Selected major land transactions signed in Warsaw, 2010-2011
Investor
Location, district
Value (z∏. millions)
JW Construction
ul. Kasprzaka, Wola
174
Dom Development
ul. Powàzkowska, ˚oliborz
168
Echo Investment
Hotel Mercure, CBD
125
Skanska Property Poland
ul. Ostrobramska, Praga Po∏udnie 110
Echo Investment
ul. Konstruktorska, Mokotów
63 Source: Colliers International, CBRE
increased level of investment activity will be registered in the office sector,” Mr Martynuska said. He added that a notable example of this is the recent acquisition of the Gdaƒski Business Court development site in Warsaw’s central district. Slovak developer HB Reavis recently took over this troubled investment from Spanish company Lubasa. “The transaction, completed in February 2012, will probably be one of the largest single-asset land deals of the last few years,” Mr Martynuska said. The exact value of the transaction has not yet been revealed.
Transactions galore Many more transactions are expected to take place in Warsaw this year. Colliers International’s Puchalski pointed to the growing popularity of the Wola district where, he estimates, plots worth a total of over z∏.200 million will be sold this year. Another z∏.100-120 million will be invested in Ochota and Ok´cie, while the Lower Mokotów area will account for some z∏.30 million. “The latter figure will increase to over z∏.100 million if the sale
of land currently belonging to developer Sando comes to fruition,” Mr Puchalski said. Leading Polish and international developers already present in Poland will remain the most active players. However, a number of newcomers to the market are also expected to execute their first investments in the office and residential sectors, CBRE’s Martynuska said. Both he and Colliers International’s Puchalski mentioned the growing role of banks in the Warsaw land market. “We also expect that 2012 may finally become a year when the banking sector involved in the development market will become an important player,” Mr Martynuska said.
Downtown dearth According to Mr Puchalski, the so-called “near” and “far” Wola areas currently feature land on sale that would allow for the development of 200,000 sqm and 300,000 sqm of leasable office and usable residential space, respectively. Other locations in Warsaw with considerable development potential include Ok´cie and the area around Al. Jerozolimskie between ul.
¸opuszaƒska and Rondo Zes∏aƒców Syberyjskich. In both of these areas there is available land that would allow for the construction of approximately 500,000 sqm of space. Little land will change hands in the city center in the upcoming months. One of the few deals, the details of which are to be announced in the next few weeks, will involve the sale of a downtown plot for approximately z∏.40 million. City Hall should announce a tender for the sale of an investment plot on the capital’s Plac Defilad in autumn, but otherwise the prestigiously located area around the capital’s Palace of Culture and Science will likely continue to suffer from problems including complicated ownership issues. “I know at least four investors who would be interested in acquiring land on Plac Defilad,” Mr Puchalski said, adding that in his opinion the much-anticipated development of new high-rise projects nearby, on the eastern side of ul. Emilii Plater will not commence within the next five years. Adam Zdrodowski
MARCH 5-11, 2012
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Office space
The Polish capital is now the second city in Europe in terms of office construction activity The office market in Warsaw saw a rebound in 2011 with sector analysts saying growth is set to continue this year. The Polish capital has recently recorded a major rise in lease activity to which developers are already responding by announcing increasingly ambitious development plans.
Capital dominance According to CBRE’s Poland
Office Destinations 2012 report, Warsaw is now the second-most active market in Europe in terms of the development of new office space, ranking above Moscow and lower only than Paris. “Although Warsaw is far behind Western Europe in terms of total office stock, CBRE underlines that the capital of Poland is ranked as second in Europe in terms of office construction activity, with over 700,000 sqm under construction or planned,” the report said. Joanna Mroczek, director of research and consultancy at CBRE, noted that the city is
Big plans Office space planned in major European cities, 2012-2013 1,500,000 1,200,000 900,000 600,000 300,000
Pa r
is
(Ile
-d
e-F
ra nc e Wa ) rsa w Mo sc ow Vie nn a Lo nd o Fra B n nk rus fur s t a els m Ma in Be rlin So fia Ma d Am rid ste rd am Pr ag ue
0
Source: CBRE
currently seeing massive infrastructural work, including the construction of a new bridge and a new subway line, and that its image should also be enhanced due to the Euro 2012 soccer championships. Warsaw also saw high investment activity in 2011, in stark contrast to the situation in Poland’s regional cities. According to a recent report by Cushman & Wakefield, only one out of the 19 sales agreements for office buildings last year was signed outside the Polish capital. “The stock of modern office in Warsaw significantly exceeds the total stock of modern offices located in major regional markets,” said Micha∏ St´pieƒ, a senior consultant in the research and consultancy department of Savills. He added that the capital now accounts for approximately 64 percent of the total modern office stock in Poland. Admittedly, the share of regional cities is growing with the share of Warsaw expected to decrease to approximately 60 percent by the end of 2013.
Development boom “Nevertheless, it doesn’t mean that the development activity in Warsaw is slowing down.
SHUTTERSTOCK
Warsaw office market – further growth in 2012
Warsaw accounts for approximately 64 percent of Poland’s modern office stock The new supply of offices is estimated at around 225,000 sqm in 2012 and even up to 280,000 sqm in 2013,” Mr St´pieƒ said. “Warsaw is a clear leader in terms of construction activity with almost 630,000 sqm of modern office space under construction, including a 100,000sqm tower planned for 2015,” CBRE’s Mroczek said. She added that the capital has recently recorded some of the best leasing demand and vacancy rate results on the continent. “Given the high number of inquiries registered
both from existing tenants and newcomers, 2012 should also be spectacular in terms of demand in Warsaw,” Ms Mroczek said. Arguably among the most impressive of the new projects will be the office towers that are planned for downtown Warsaw. A number of these have recently been announced by developers and investors including BBI Development, Echo Investment and PHN. “Our preparatory activities aimed at the introduction to the market of the project on Al. Jana Paw∏a II are proof of
our conviction about the development potential of the capital,” said Waldemar Lesiak, office and hotel space department director at Echo Investment. He added that his company is also in the process of preparing two other large office investments in Warsaw whose total leasable space will amount to some 80,000 sqm. “Warsaw is the most important office market in Poland and so we are interested in obtaining new schemes in the capital.” Adam Zdrodowski
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SEGRO Industrial Park Wroc∏aw tenant Parcel delivery services provider DPD Polska has taken up a 7,000-sqm cross-dock terminal that will be built within the first phase of the planned SEGRO Industrial Park Wroc∏aw logistics project in Lower Silesia. Scheduled to be delivered in Q1 of 2013, the scheme will be the first logistics project of developer SEGRO in the Lower Silesia region. The company will build the scheme in partnership with stateowned real estate holding PHN.
Mondi stays at PointPark Mszczonów Containerboard and sack-paper producer Mondi Warszawa has renegotiated its lease agreement for 3,600 sqm of space at developer PointPark Properties’ PointPark Mszczonów logistics park in Mszczonów near Warsaw. The deal was brokered by Colliers International. ●
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PHN IPO
Waiting for the right moment The state hopes to float real estate holding group PHN this year, but analysts say it’s still unclear precisely what the entity will bring to the market Poland’s Treasury Ministry is hoping the right moment to launch the initial public offering of the Polish Real Estate Holding Group (PHN) will finally present itself at some point this year. Citing unnamed sources, daily Parkiet recently reported that the IPO of the stateowned real estate company may take place in June. Contacted by Lokale Immobilia however, Treasury spokesperson Magdalena Kobos said no concrete date for the Warsaw Stock Exchange debut had been set, but that the ministry hopes to float the company “some time during this year.” The Treasury created PHN in 2011 by grouping together 180 diverse real estate holdings whose assets include more than 1,300 hectares of undeveloped land. Many of these are located in the vicinity of major transportation links throughout Poland. The com-
pany also owns numerous buildings, including the Intraco tower, one of Warsaw’s oldest skyscrapers. Valued by analysts at z∏.2.8 billion, the state could potentially add more properties to PHN’s portfolio, therefore making it more valuable ahead of its IPO. PHN CEO Wojciech Papierak has said the company could potentially fetch up to z∏.3 billion. However Ms Kobos said the “package of shares [that will be offered] and the money we will get from the IPO will depend on the market situation.” Reuters recently reported unnamed sources as saying the Treasury may sell part of the company publicly on the stock exchange and part to a real estate fund, to ensure it meets its z∏.10 billion privatization target for this year. In response, the Treasury’s Kobos told Lokale Immobilia that “all investors can take part in the process of the IPO, there is no limitation.”
Uncertain market Analysts are nevertheless far from certain that the equity market will be stable enough to support the IPO this year. “We don’t know yet if market
conditions will even allow PHN to go public,” said Andrzej Kasperek, an analyst at UniCredit. “We also don’t know what the equity story is behind the company. There are many real estate companies on the bourse, so we have to ask: What is the company bringing that is new? At present it is unclear where the value is and how management will release this value for shareholders,”
he added. The firm’s CEO, Mr Papierak, has in the past mooted the idea of turning the company into an investment firm, but since PHN owns so much land, analysts say it would need to develop this to realize the firm’s full potential.
Diverse holdings Certainly, PHN has shown a willingness to engage in development projects, either on its
COURTESY OF PHN
16
The PHN Tower will be a 150-meter skyscraper located on Warsaw’s ul. Âwi´tokrzyska
own or with sector partners, and already has a number of diverse schemes underway or in the planning stage. In partnership with Real Estate Investment Trust SEGRO, PHN will develop the SEGRO Industrial Park Wroc∏aw logistics project on a plot it owns in Lower Silesia. The development will sit on 10 hectares of land and comprise 40,000 sqm of usable space when it is delivered in the first quarter of 2013. Among other projects, PHN is also planning to build a 150-meter skyscraper on ul. Âwi´tokrzyska in Warsaw. Called PHN Tower, the scheme will offer a total area of 60,000 sqm and function either as an office or as a combined office-hotel project. While PHN may not be a streamlined, sector-specific developer in the conventional sense, the sheer range of well-located assets it owns and the investment opportunities these afford means the company is well-placed to generate income. Only time will tell though if the equity market will be in the mood to welcome PHN’s potentially mammoth IPO later this year. Gareth Price
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17
Choosing a Polish city to invest in With perhaps the exception of Kraków and Gdaƒsk, Poland’s secondary cities can still seem like a mystery for investors. But an increasing number are picking up on the potential of cities such as ¸ódê, Wroc∏aw and Poznaƒ. Although by no means the only ones, projects such as Sterlinga Business Center and Green Horizon office building in ¸ódê, Poznaƒ’s Business Garden and Intergrated Transport Center, and Wroc∏aw’s Synergy Business Park and Idylla shopping center attest to the fact that secondary cities are clearly on investors’ radar.
Warsaw The capital is the center of most of the nation’s political, administrative, financial, and educational institutions, and the country’s wealthiest city, while remaining a relatively cheap place to locate a business. Plans to develop new museums and skyscrapers in the city center are expected to give Warsaw a modern look, bringing new office and service space to the market at the same time. Contact: Warsaw City Hall Investors Service Department inwestor@um.warszawa.pl tel. (+48) 22 443 29 65
Gdaƒsk
commercial and retail space, and a new road system are due to be built as part of the scheme, which also includes the complete revamping of the city’s main railway station. Contact: Katowice City Hall Investments Department urzad_miasta@katowice.eu tel. (+48) 32 609 09 56
The country’s largest seaport, Gdaƒsk is gradually turning into a major European transport hub. Other thriving industries there include oil and chemicals, pharmaceuticals and cosmetics, IT, and many others. The Euro 2012 soccer championships have given the city a new soccer stadium, the PGE Gdaƒsk Arena, as well as a second terminal at its Gdaƒsk Lech Wa∏´sa Airport. Contact: Gdansk Economic Development Agency ceo@investgda.pl, tel. (+48) 58 722 03 00
Katowice The capital of Silesia is at the heart a region situated within 600 km of Berlin, Bratislava, Budapest, Prague, Warsaw and Vienna. A major revitalization project worth over z∏.1 billion is currently underway. New public buildings, museums,
Kraków
The city of Kraków is known as one of Poland’s major cultural, historical and educational centers. Major infrastructure investments currently underway include road renovation, as well as the construction of a modern conference center (Kraków Congress Center) and a new headquarters for the local investor service center. Contact: City Development Agency
Property-related stocks Security
Closing price on Mar 1
% change (week)
52-week low
52-week high
% change (year)
Total shares
Market value (z∏. mln)
BUDIMEX
86.00
-2.66
64.00
109.20
94.60
25,530,098
2,195.59
CELTIC
17.00
-2.52
15.55
22.70
21.00
34,068,252
579.16
DOMDEV
40.71
-1.07
23.50
50.80
45.90
24,560,222
999.85
ECHO
4.07
1.24
3.05
5.55
4.63
420,000,000
1,709.40
ELBUDOWA
119.40
3.92
87.00
168.00
158.00
4,747,608
566.86
ENERGOPLD
2.10
-3.23
1.81
4.10
3.79
70,972,001
149.04
ERBUD
21.40
-4.76
14.65
45.51
48.00
12,644,169
270.59
GANT
9.16
2.00
5.85
15.00
15.99
20,499,953
187.78
GTC
8.39
-2.33
7.91
21.79
21.08
219,372,990
1,840.54
HBPOLSKA
1.24
-0.80
0.70
2.79
2.61
210,558,445
261.09
JWCONSTR
7.72
-5.85
4.36
15.50
14.44
54,073,280
417.45
LCCORP
1.25
5.04
0.85
1.67
1.69
447,558,311
559.45
MARVIPOL
9.60
-1.34
7.22
9.95
9.24
36,923,400
354.46
MIRBUD
2.24
2.75
1.94
4.74
4.40
75,000,000
168.00
MOSTALWAR
19.50
2.31
15.40
48.55
47.01
20,000,000
390.00
MOSTALZAB
1.62
-1.82
1.07
3.00
2.87
149,130,538
241.59
ORCOGROUP
17.00
1.01
14.00
40.00
32.55
17,053,866
289.92
PBG
62.75
-6.76
56.05
204.90
195.50
14,295,000
897.01
PLAZACNTR
2.73
-3.87
1.80
5.15
4.00
297,174,515
811.29
POLAQUA
7.68
2.40
4.53
18.99
19.49
27,500,100
211.20
POLIMEXMS
1.72
-7.03
1.23
3.76
3.45
521,154,076
896.39
POLNORD
18.10
-5.04
11.03
33.55
30.98
23,798,439
430.75
RANKPROGR
14.90
6.43
8.60
14.98
10.18
37,145,050
553.46
ROBYG
1.43
2.88
1.04
2.13
1.86
257,390,000
368.07
RONSON
1.01
3.06
0.77
1.58
1.41
272,360,000
275.08
TRAKCJA
1.33
-4.32
0.65
3.72
3.61
232,105,480
308.70
ULMA
62.85
-1.80
57.00
88.00
83.30
5,255,632
330.32
UNIBEP
5.90
-2.48
4.47
8.40
8.93
33,927,184
200.17
WARIMPEX
4.18
-5.22
2.95
10.89
10.75
54,000,000
225.72
ZUE
7.55
-7.81
5.07
14.05
14.00
22,000,000
166.10
board@arm.krakow.pl tel. (+48) 12 429 25 13
¸ódê Located at Poland’s geographical center, ¸ódê lies within 200 km of each of the country’s eight other major cities. Construction on a multi-billionz∏oty high-speed railway link is due to reduce travel times between Warsaw and ¸ódê to just 75 minutes, and the A1 and A2 motorways which run north-south and east-west, respectively, will intersect the city. Many of ¸ódê’s postindustrial properties have been revitalized to serve modern commercial and residential purposes. Contact: ¸ódê City Hall Investor Relations Office tel. (+48) 42 638 59 38
Located halfway between Berlin and Warsaw, Poznaƒ is already a popular transport hub, and the new 150 km section of the A2 motorway will ultimately connect the city with the German border, opening the way for future visitors and investors. Already known for its cultural life, Poznaƒ saw its soccer stadium upgraded for the Euro 2012 soccer championships, and will host sporting and cultural events during and after the event. Contact: Poznaƒ City Hall Investor Relations Department promocja@um.poznan.pl tel. (+48) 61 878 54 28
Wroc∏aw
Poznaƒ
The capital of Lower Silesia, Wroc∏aw is an important logistics hub, and has long enjoyed a good reputation among foreign investors. Arts, culture and
sports are also becoming draws for the city. Its new stadium will host several matches during the Euro 2012 soccer championships, for example, and Wroc∏aw has also been selected as European Capital of Culture for 2016. Contact: Wroc∏aw Agglomeration Development Agency araw@araw.pl tel. (+48) 71 783 53 10 This article is based on information from the 2012 edition of Warsaw Business Journal’s annual publication Investing in Poland. For an in-depth guide to investing in the country’s different regions, look out for a copy of Investing in Poland at MIPIM or place an order at kwilinski@valkea.com.
MARCH 5-11, 2012
LOKALE IMMOBILIA – SPECIAL MIPIM EDITION
A good return on investment
Returns on investment In terms of the main advantages of the Polish real estate sector, the potential for a sizable return on investment is seen as a major plus point for
SHUTTERSTOCK
In the World Bank’s Doing Business 2012 report, Poland ranked 63rd out of 183 countries in the world for doing business, a figure which suggests there are some significant barriers to investing in Poland’s real estate market. However, experts say the advantages and potential returns far outweigh the disadvantages for those considering making an investment in the Polish property market. Patrick O’Gorman, head of CEE capital markets at CBRE, told Lokale Immobilia that there are no specific laws that would inhibit an investor’s ability to do business in Poland. Instead he feels that the main obstacle is a lack of knowledge and understanding of how to do business in the country. “Investors have to understand the Polish market and this takes time,” he said. “You definitely have to invest the time to get to know the market and the people involved, and if you do this then the benefits are obvious.”
Developer Inpro has sold almost 40% of apartments in its Kwarta∏ Kamienic luxury residential project in downtown Gdaƒsk. The current offer comprises 51 units, out of the total of 83 homes that have been planned within the investment. Construction on the scheme, which is being built in Gdaƒsk’s historic center, launched in spring last year and is scheduled to finish in Q3 2012. The prices of the apartments in the development start at z∏.13,000 per sqm.
Get the right advice Tomasz Puch, national director of capital markets at Jones Lang LaSalle, agrees that understanding the market is the key to making a solid investment. He advises investors to get in touch with a good commercial advisor and legal firm as part of a first step towards doing business in Poland’s real estate sector. Mr Puch explained that although “there are no specific barriers [to investing] in general, there may be administrative issues that need to be resolved.” These administrative issues may include the lengthy procedure involved in getting the correct permits, with Poland currently ranked 160th in the world for dealing with construction permits, according to the World Bank report. Other potential problems include the issue of accessing the correct data related to the investment process, which is why seeking professional advice is a must for firsttime investors in Poland.
19
Inpro touts Kwarta∏ Kamienic sales
Investing in Poland
Knowledge is the key to cracking Poland’s real estate market
www.wbj.pl
Warsaw’s office market has seen a strong upswing in take-up foreign investors. “The fundamental factor is the huge growth potential that exists across all sectors,” Mr O’Gorman said. “On a property level, the office market is a particular sector which provides a solid investment. We have seen a real solid upswing in office take-up, particularly in Warsaw,” he added. From a retail perspective,
strong economic growth in Poland in recent years has helped increase consumer spending power and as a result helped maximize rent potential for retail outlets and shopping mall developments. “The key element that makes Poland attractive is the strong economic fundamentals, particularly in retail,” Mr Puch said. According to the World
Bank report, Poland does score particularly highly in terms of access to credit, an important factor in today’s environment. So with the correct professional advice, a genuine understanding of the Polish market and the right investment project, Poland really does offer a great location for foreign firms seeking to ensure a return on investment. David Ingham
ROBYG launches new phases on Gdaƒsk projects Developer ROBYG has launched sales of apartments in new phases of its ongoing residential projects in Gdaƒsk. On sale are a total of 154 units in the sixth phases of the company’s Lawendowe Wzgórza and S∏oneczna Morena schemes in the city. ●
20
www.wbj.pl
LOKALE IMMOBILIA – SPECIAL MIPIM EDITION
MARCH 5-11, 2012
Warsaw Stock Exchange
Real estate stocks rising in 2012 affected by the same environment, he said.
recommendations by [regulators] which limited the ‘Family on its Own,’ [government subsidy] program, which caused a drop in demand in the primary market due to lower loan opportunities for buyers,” he said. But commercial developers were not without problems either. “Investors’ expectations about the economic slowdown and an increase in yields translated into a downward valuation of real estate,” Mr Obara added. Construction companies were largely
Construction and development companies have fared better on the WSE recently
Re-building value Top ten performing real estate stocks since January 1, 2012
Recovery mode
COURTESY OF THE WARSAW STOCK EXCHANGE
However, looking at the stock performances of companies in the sector over the past two months, it appears many are entering recovery mode. Nearly all of the companies that saw their stock prices drop over the past year – some by as much as 60 percent – are now inching higher. And it appears that trend is set to continue. “The beginning of the year is bringing a decidedly vast improvement in sentiment and I would expect that the rates of return on shares of development companies in 2012 will be among the highest. The reason for this is the overselling of shares of companies in this sector in 2011,” Mr Obara said. Highly undervalued during 2011, real estate companies are finally bouncing back on the Polish bourse. The sector appears healthier overall since the start of the year with both the WIG-budownictwo and the WIG-deweloperzy up 11.25 and 13.86 percent respectively over the past two months. Only a few of the top com-
80 70 60 50 40 30 20 10 0
kP rog res Hy sR dr ob NK ud ow aH Tra BP kc ja TR Po K l-A qu aP QA LC Co rp LC C Ga Pla nt z G aC Do NT m en De ter ve lop s PL Z me nt DO Po M lno rd PN D Er bu dE RB
Since the start of the new year, many of Poland’s top property-related stocks have increased their share prices significantly. The improvement comes after a long and steep decline that plagued the sector for most of last year. In 2011, the real estate indices on the Warsaw Stock Exchange, the
WIG-deweloperzy (developers) and WIG-budownictwo (construction) were down 54.72 and 51.29 percent respectively. “In 2011, [these two] were the worst indices on the Warsaw Stock Exchange,” said Zbigniew Obara, an analyst from Alior Bank. “In the case of residential developers, such decreases occurred, among other things, because of investor concerns with regard to changes introduced in 2011, some from the
Ra n
Poland’s major real estate players are seeing a recovery in their stock prices
Source: Warsaw Stock Exchange
panies have so far recorded drops in their overall share prices since the beginning of 2012. These include Celtic Property Developments, Energopol Po∏udnie, Globe Trade Centre, PBG, Ulma and Unibep. This year’s rebounds have been most noticeable for companies such as Rank Progress, Hydrobudowa, Trakcja and Pol-Aqua, which have seen their share prices rise by 65.56, 65.33, 64.20 and 57.06 percent respectively. Signed contracts for work in 2012 and higher profits have
contributed to their share price increases. Rank Progress, which recently sold Galeria T´cza in Kalisz to Blackstone for z∏.154.3 million, has five new projects in the pipeline. The company also increased net profits to z∏.95.39 million for the first nine months of 2011 – an increase of 23.4 percent y/y. Moreover, a consortium controlled by PolAqua recently signed an agreement to build the S8 expressway for around z∏.1.13 billion and won a tender for railway work for LCS ¸ukow for z∏.427.39 million. Ella Pa∏ka
www.wbj.pl
Unidevelopment to build in Warsaw Developer Unidevelopment, a subsidiary of WSE-listed construction company Unibep, will build a multifamily residential project called Lykke on ul. Berensona in Warsaw’s Bia∏o∏´ka district. Construction on the complex, which will comprise nine buildings with a total of 165 apartments, is scheduled to launch in the second quarter of this year.
ATAL launches Kraków projects Developer ATAL has launched construction on its Lindego Park and City Towers residential projects in Kraków. Located in the city’s Bronowice and Czy˝yny districts, the investments are valued at a total of almost z∏.150 million. The Lindego Park scheme will comprise seven four-storey buildings offering a total of 154 apartments.●
LOKALE IMMOBILIA – SPECIAL MIPIM EDITION
MARCH 5-11, 2012
MIPIM 2012
CEE-related events you shouldn’t miss This year’s MIPIM international property trade fair takes place in Cannes from March 6-9. Below, Lokale Immobilia sets out the key meetings that will be of particular significance for those interested in the CEE region Tuesday, March 6
4 pm – 5 pm
10 am – 11 am
CEE investment: where is the finance coming from and under what conditions?
Markets, malls and main streets – where is the future of European retail investment? Location: Palais des Festivals, Le Corbusier room, Level 01 The key speaker at this event, which aims to answer a wide range of questions related to Europe’s retail market, is Josip Kardun, the deputy managing director of ECE, a European market leader in retail real estate development.
Location: Palais des Festivals, Hoban room, Level 3 With investors sitting on the sidelines and fewer banks willing to lend money for investment purposes, what should investors and developers expect in the upcoming 12-18 months? Tomasz Trzós∏o, international director at Jones Lang LaSalle, will seek to provide the answers.
Wednesday, March 7 2:30 pm – 3:30 pm More to come from Poland’s Investment Market Location: Palais des Festivals, Hoban room, Level 3 This conference seeks to uncover whether investment demand is starting to outstrip development supply in Poland and what regional demand is like in Poland’s major cities.
9:30am – 10:30am Passion for Real Germany – 60 places to see before you … invest Location: Palais des Festivals, Auditorium H, Level 3 What’s hot and what’s not in MIPIM 2012’s country of honor? IVG Research gives valuable and focused insights into the current developments
on the German market.
4 pm – 4:40 pm The Czech Republic – The Dynamic Hub of Central Europe: The potential of science and research center projects in the Czech Republic
investors Location: Palais des Festivals, Lerins Hall – Stand: LR 3.03 Presentation by the Polish Military Property Agency about selected investment offers as attractive proposals for foreign investors.
7:30 pm – 8:30 pm Location: Palais des Festivals, Agora, Level 01 This event, organized by the city of Prague, aims to highlight the current role of the Czech Republic as a dynamic center for science and research centers.
MIPIM Awards 2012 Ceremony Location: Palais des Festivals, Grand Auditorium, Level 1 The most innovative, ambitious and exciting real estate projects battle it out in the prestigious MIPIM awards.
Thursday, March 8 10 am – 10:45 am Riga – Smart European Investment Location: Palais des Festivals, Agora, Level 01 This seminar will provide information on investment opportunities in Latvia’s capital Riga. Among the keynote speakers are Nils Usakovs, mayor of Riga and Uldis Jansons, the director of the city’s development department.
3 pm – 4 pm Former military real estate – attractive offer for foreign
COURTESY OF REED MIDEM
22
Friday, March 9 10 am – 11.30 am Wrap-Up Keynote address: Austerity-Stimulus, RisksOpportunities: Fresh insights and way forward Location: Palais des Festivals, Le Corbusier room, Level 01 How should investors approach the market today? What strategies are investors pursuing for a brighter tomorrow? This combination of panelists’ research and insights gathered during MIPIM looks to provide the answers. ●
24
THE LIST
www.wbj.pl
MARCH 5-11, 2012
Construction & Real Estate
Commercial Real Estate Developers - Office
Rank
Ranked by office investments completed in 2010
Company name Address Tel./Fax E-mail Web page
Office investments completed: total area Office investments sqm completed overall (sqm)
www.bookoflists.pl
Largest investments completed in Key current investments: name 2010-2011: name (location; total Total employees / (location; total space - sqm, rentable space - sqm, rentable space - sqm; Year established space - sqm; class, completion year) class)
Ownership: Polish / Foreign
Top local executive / Title
120 1991
None Ghelamco Group - 100%
Jeroen van der Toolen
Malta Office Park - 2nd phase (Poznaƒ; 17,400; 15,800; A); Oxygen (Szczecin; 19,300; 14,100; A; Park Post´pu (Warsaw; 58,200; 33,800; A)
WND 1994
Micha∏ So∏owow - 40.5% None
Piotr Gromniak
Poleczki Business Park II (Warsaw; 210,000; Commercial real estate; hotels; WND; WND; 2012); Galeria Szperk (Gdynie; Poleczki Business Park - 1st phase (Warsaw; warehouses; residential 23,000; WND; WND; 2012); FMZ Lublin (Lublin; 45,000; WND; WND; 2009) buildings 27,000; WND; WND; 2012)
WND 1993
None UBM Realitatenentwicklung 100%
Peter Obernhuber; Sebastian Vetter
51 (Poznaƒ; 5,077; WND; WND; Dolina Pot´gowska (Gdaƒsk; 5,253; 5,253; WND; Z∏otowska Apartamenty Che∏moƒskiego 2-4-6 2012); Quadro House (Poznaƒ; 10,160; 10,160; 2010); (ÂwinoujÊcie; 950; 950; WND; 2010); WND; 2012); Hampton by Hilton (ÂwinoujÊcie; Apartamenty Wojska Polskiego” (ÂwinoujÊcie; 4,807; 4,560; WND; 2012) 4,260; 4,260; WND; 2010)”
30 2010
PBG - 45.5% PBG DOM INVEST - 54.5%
Tomasz Hofman
Wspólna Project (Warsaw; WND; WND; WND; WND); Królewska Project (Warsaw; WND; WND; Zebra Tower (Warsaw; 17,800; 16,160; A) WND; WND)
WND 2007
WND
Specialization
1st half of 2011 / 2010 / 2009 / 2008
Ghelamco Poland Sp. z o.o. ul. Domaniewska 52, 02-672 Warsaw 1 22 455-1600/22 455-1610 ghelamco@ghelamco.com www.ghelamco.com
28,564 51,000 60,000 143,000
356,000
Office, residential buildings; warehouses
Echo Investment SA Al. SolidarnoÊci 36, 25-323 Kielce 2 41 333-3333/41 333-2333 office@echo.com.pl www.echo.com.pl
WND 49,800 53,200 15,700
185,000
Shopping malls; office, residential buildings; hotels
UBM Polska Sp. z o.o. ul. Poleczki 35, 02-822 Warsaw 3 22 356-8000/22 356-8001 biuro@ubm.pl www.ubm.pl
WND 45,000 WND WND
95,000
PBG Ergio Sp. z o.o. ul. Skórzewska 35, Wysogotowo, 62-081 Poznaƒ 4 785-020-526/61 663-0369 lucyna.pieterek@pbg-ergio.pl www.skalaroffice.pl
WND 23,124 NA NA
WND
Office and residential buildings; hotels
S+B Plan und Bau Warschau Sp. z o.o. ul. Mokotowska 1, 00-640 Warsaw 5 609-307-099/22 375-3010 izabella.kieler@sb-gruppe.at www.sb-gruppe.at
17,800 17,800 WND WND
17,800
Office, retail, residential buildings; hotels
Allcon Investment Sp. z o.o., Sp.k. ul. ¸u˝ycka 6, 81-537 Gdynia 6 58 660-1990/58 660-1991 investment@allcon.pl www.officepark.pl
11,830 8,500 16,383 17,264
69,037
Commercial buildings
WND
ALLCON@park 3 (Gdaƒsk; 11,830; 9,050; A); ¸u˝ycka Office Park C, D, E (Gdynia; 24,883; 13,600; A)
8 1994
WND None
Sergiusz Gniadecki
Torus Sp. z o.o., Sp.k. ul. Arkoƒska 6/A4, 80-387 Gdaƒsk 7 58 764-6376/58 764-6311 torus@torus.gda.pl www.torus.gda.pl
WND 7,450 11,198 12,725
WND
Class-A office buildings; multifamily residential buildings; hotels; warehouses
Alchemia (Gdaƒsk; 23,862; 21,572; A; 2013)
Arkoƒska Business Park A5 (Gdaƒsk; 7,450; 6,638; A; 2010)
40 2002
Ma∏gorzata Dobrowolska; S∏awomir Gajewski; Torus None
S∏awomir Gajewski
Adgar Post´pu Sp. z o.o. ul. Post´pu 17A, 02-676 Warsaw NR 22 323-8100/22 323-8103 adgar@adgarplaza.pl www.adgar.pl
58,000 WND WND WND
WND
WND
WND
Adgar Plaza A (Warsaw; 32,000; 15,000; A); Adgar Plaza B (Warsaw; 26,000; 11,000; A)
WND 1999
None Adgar Investment and Development Poland - 100%
Michael Mevorach
AIG/Lincoln Polska Sp. z o.o. ul. Grzybowska 5A, 00-132 Warsaw NR 22 564-5000/22 564-5085 office.warsaw@aiglincoln.com.pl www.aiglincoln.com.pl
WND WND WND 11,571
65,071
Office buildings; warehouses; shopping malls
WND
WND
WND 1997
WND
Aldesa Polska Diamante Plaza Sp. z o.o. ul. Dekerta 24, 30-703 Kraków NR 12 421-0953/12 421-0953 diamante@aldesa.pl www.aldesa.pl
17,962 WND 17,962 WND
WND
Developer
WND
Diamante Plaza (Kraków; 19,785; 18,141; A; 2010)
WND 2006
None Aldesa Construcciones - 100%
Jose Maria Arguelles
Avestus Real Estate Sp. z o.o. ul. Nowogrodzka 47A, 00-695 Warsaw NR 22 520-6000/22 520-6001 mgolebiewski@avestusrealestate.com www.avestusrealestate.com
WND WND WND WND
149,109
Commercial and residential buildings
Enterprise Park (Kraków; 29,239; 15,150; A; 2012)
WND
40 1990
WND Avestus Real Estate
Mariusz Fràckiewicz
Capital Park SA ul. Marynarska 11, 02-674 Warsaw NR 22 318-8888/22 318-8889 biuro@capitalpark.pl www.capitalpark.pl
4,982 WND WND WND
4,982
Office and retail buildings
42 2003
WND
Warsaw Spire (Warsaw; 279,000; 100,000; A; Trinity Park III (Warsaw; 60,000; 30,500; A); 2014); Senator (Warsaw; 45,000; 25,000; A; Crown Square (Warsaw; 24,000; 16,000; A); 2012); Mokotów Nova (Warsaw; 79,000; 40,000; Katowice Business Point (Katowice; 27,000; A; 2011-2012) 17,000; A)
Malta Office Park - 3rd phase (Poznaƒ; 7,400; 6,500; A; 2012); Aquarius Business House - 1st phase (Wroc∏aw; 19,100; 15,700; A; 2012)
Eurocentrum (Warsaw; WND; 65,800; A; 2014); Royal Wilanów (Warsaw; WND; 35,000; A; Rac∏awicka Point (Warsaw; WND; 2,320; A; 2014); Neptun House (Gdaƒsk; WND; 6,945; A; 2010) 2014)
Managing Director
President
Board Members
President
Edmund Volker WND
President
President
Director
Brian Patterson; Miros∏aw Szydelski Managing Director; Investment Director
General Director
Director
Jan Motz President
THE LIST
Rank
MARCH 5-11, 2012
Company name Address Tel./Fax E-mail Web page
ECC Real Estate Sp. z o.o. ul. Ostrobramska 75C, 04-175 Warsaw
Office investments completed: total area Office investments sqm completed overall (sqm) 1st half of 2011 / 2010 / 2009 / 2008
Specialization
www.wbj.pl
Largest investments completed in Key current investments: name 2010-2011: name (location; total Total employees / (location; total space - sqm, rentable space - sqm, rentable space - sqm; Year established space - sqm; class, completion year) class)
25
Ownership: Polish / Foreign
Top local executive / Title
WND WND WND WND
22,500
Office, residential, retail buildings
Office building (ul. 17 Stycznia, Warsaw; 2,500; 1,530; B; WND)
WND
WND 1989
ECC Holdings Poland - WND% WND
Adrian Heymans
Globe Trade Centre SA ul. Wo∏oska 5, 02-675 Warsaw NR 22 606-0700/22 606-0410 gtc@gtc.com.pl www.gtc.com.pl
WND WND WND WND
310,000
Office, residential buildings
Platinium Business Park V (Warsaw; WND; 11,000; A; 2011); Ok´cie Business Park III (Warsaw; WND; 9,000; A; 2011); Wilson Office Park (Poznaƒ; WND; 12,500; A; 2012-2013)
Platinium Business Park III (Warsaw; WND; 11,600; A); Centrum Biurowe Kazimierz (Kraków; WND; 15,000; A); University Business Park (¸ódê; WND; 18,500; A)
163 1994
None GTC Real Estate Holding - 27.1%; ING OFE - 7.7%; Aviva OFE - 7.2
Piotr Kroenke
Hines Polska Sp. z o.o. ul. Bonifraterska 17, 00-203 Warsaw NR 22 351-2400/22 351-2401 hinespl@hines.com www.hines.pl
WND WND WND WND
140,000
Developer; investor
Centrum Biurowe Neptun (Gdaƒsk; 15,860; WND; A; 2014); Arboretum (¸ódê; 22,000; WND; WND; 2012)
Sterlinga Business Center (¸ódê; 13,400; WND; A; 2010); Quattro Towers (Gdaƒsk; 25,000; WND; WND; 2010)
35 1997
None Hines International Real Estate Holding
Mieczys∏aw Godzisz
Immobel Poland So. z o.o. ul. Bonifraterska17, 00-203 Warsaw NR 22 351-0190/22 351-0191 office@immobelpoland.com www.immobelpoland.com
WND NA NA NA
WND
Office, retail and residential buildings
Okràglak (Poznaƒ; WND; WND; A; 2012)
WND
20 2011
WND
Liebrecht & Wood Polska Sp. z o.o. Al. Jerozolimskie 212A, 02-486 Warsaw NR 22 571-4444/22 571-4443 info@liebrecht-wood.com www.liebrecht-wood.pl
50,320 WND 16,795 6,171
WND
WND
WND 1994
None Patrick Van Den Bossche - 50%; Marc Lebbe - 50%
Marc Lebbe; Patrick Van Den Bossche
Mayfield Polska Sp. z o.o. ul. S∏omiƒskiego 19/508, 00-195 Warsaw NR 22 637-5508/22 637-5508 info@mayfield.pl www.mayfield.pl
WND WND WND WND
WND
3 2006
None Mayfield East Estate - 100%
Jerzy Haƒczewski
7,000 WND 14,000 WND
WND
17 2009
WND
Rados∏aw Sieroƒ
NDI SA ul. Powstaƒców Warszawy 19, 81-718 Sopot NR 58 771-7700/58 771-7701 ndi@ndi.com.pl www.ndi.com.pl
WND WND 13,107 25,342
WND
WND
MARINA 2 (Gdaƒsk; 10,839; 7,142; A; WND); MARINA 3 (Gdaƒsk; 11,087; 7,903; A; WND)
CORT (Gdaƒsk; 10,557; WND; A; 2010)
WND 1991
WND
Jerzy Gajewski
Polnord SA ul. Âlàska 35/37, 81-310 Gdynia NR 22 351-9600/22 351-9601 anna.lowinska@polnord.pl www.polnord.pl
14,301 WND WND WND
WND
Residential buildings
Wilanów Office Park B3 (Warsaw; 17,056; 5,331; A; 2012); Wilanów Office Park A1 (Warsaw; 39,000; 20,300; A; 2012)
WND
97 1977
Prokom Investments - 27.1%; Osiedle Wilanowska - 6.3%; other shareholders - 53.6% Templeton Asset Management 13.0%
Sjaelso Poland Sp. z o.o. Al. Rzeczypospolitej 18/70, 02-972 Warsaw NR 22 419-2000/22 419-2010 sjaelso@sjaelso.pl www.sjaelso.com
WND WND WND WND
WND
Residential, office buildings; shopping malls
Tower Terraces (Warsaw; WND; 28,000; A; 2012); Post´pu 22 (Warsaw; WND; 17,000; A; 2012)
WND
14 2007
None WND
John Kristensen
Skanska Property Poland Sp. z o.o. Al. Jana Paw∏a II 19, 00-854 Warsaw NR 22 653-8400/22 653-8401 offices@skanska.pl www.skanska.pl
WND WND WND WND
125,000
Green office buildings
Green Towers (Wroc∏aw; WND; 23,000; A; Deloitte House (Warsaw; WND; 20,000; A; 2012); Green Corner (Warsaw; WND; 27,000; A; 2009); Grunwaldzki Center (Wroc∏aw; WND; 2012); Green Horizon (¸ódê; WND; 33,000; A; 27,000; A; 2009) 2012-2013)
51 1997
None Skanska Project Development Europe - 100%
Waldemar Olbryk
SwedeCenter Sp. z o.o. Al. Jerozolimskie 56C, 00-803 Warsaw NR 22 370-1444/22 820-9140 info@swedecenter.pl www.swedecenter.pl
WND WND WND WND
WND
WND
Business Garden Warszawa (Warsaw; WND; 90,000; A; 2012); Business Garden Poznaƒ (Poznaƒ; WND; 80,000; A; 2013); Business Garden Wroc∏aw (Wroc∏aw; WND; 120,000; A; 2014); Brama Portowa I (Szczecin; WND; 4,600; A; 2012); Brama Portowa II (Szczecin; WND; 8,100; A; 2012)
WND
29 1992
WND
Roger Andersson
Von der Heyden Group ul. Mysia 5, 00-496 Warsaw NR 22 596-5000/22 596-5001 vdhgroup@vdhgroup.pl www.vdhgroup.com
WND WND WND WND
104,268
High-class customized office buildings; hotels; historical buildings renovation
Andersia Business Centre (Poznaƒ; 22,703; 20,254; A; 2012); Nowy Âwiat Atrium (Warsaw; 6,500; 5200; A+; 2013-2014)
WND
140 1991
WND
Javier Errejón Sainz de la Maza
Yareal Polska Sp. z o.o. ul. Krucza 16/22, 00-526 Warsaw NR 22 331-3000/22 331-3011 office@yareal.com www.yareal.pl
WND WND WND WND
WND
Office and residential buildings
Oxygen Park (Warsaw; WND; 18,293; A; 2013)
Cristal Park (Warsaw; WND; 10,300; A)
23 2005
WND Yareal International - 100%
NR 22 611-3700/22 611-3753
info.europe.ce@eccrealestate.com www.eccrealestate.com
NR
Mermaid Properties Sp. z o.o. ul. S∏omiƒskiego 19/508, 00-195 Warsaw 22 444-1999/22 444-1998
WND
Flanders Business Park A (Warsaw; 8,942; Plac Unii (Warsaw; 56,500; 56,500; A+; 2013) 8,392; A); Batory Office Buildings II (Warsaw; 7,808; 7,193; A)
WND
WND
26 (Warsaw; 8,200; 5,187; A; 2013); Libra Office and residential buildings; Jasna Business Centre (Warsaw; 26,000; 26,000; A; Cross Point (¸ódê; 14,000; 12,500; A; 2009) revitalization of historical and 2012); Cross Point II (¸ódê; 9,130; 6,200; A; postindustrial buildings WND)
Notes: NA = Not Applicable, NR = Not Ranked, WND = Would Not Disclose. Research for the The List was conducted in September 2011. Number of employees and ownership structure are as of August 2011. All information pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed.
President
General Director
President
Bart∏omiej Hofman President
Managing Directors
Country Manager
President
President
Bartosz Puzdrowski President
President
President
WND
Managing Director
Eric Dapoigny 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.
26
BUSINESS IN BRIEF
www.wbj.pl
Roman Karkosik, Poland’s sixth-richest man according to Forbes’ 2012 annual ranking, may be preparing to enter the Mongolian market in search of raw materials. The foray would be made possible thanks to a number of M&As that the businessman has made or plans to make. Citing unnamed sources, daily Puls Biznesu reported that Mr Karkosik was mulling the acquisition of WSE-listed DolnoÊlàskie Surowce Skalne (DSS), a leading Polish
crushed aggregate supplier for Poland’s roads and motorways. As part of its own expansion strategy, DSS acquired a concession in Mongolia’s Gobi Desert and a 100 percent stake in a Mongolian company in July 2011. DSS is hoping to find rare earth metals, commonly used in electronic devices, military guidance systems, wind turbines and solar panels. According to Puls Biznesu, Mr Karkosik’s acquisition of PBG at the end of February
would give him an advantage in the search for such resources in Mongolia. PBG, a Polish contractor providing domestic and foreign geophysical exploration services for oil and gas, minerals, and geothermal sources, has in the past been engaged in projects in Libya, Tunisia, and more recently in the Philippines. Mr Karkosik owns over half the stock in WSE-listed Boryszew, one of Poland’s largest industrial groups. Alice Trudelle
WSE acquires Polish Power Exchange
COURTESY OF DSS
Polish billionaire to look for rare earth metals in Mongolia?
MARCH 5-11, 2012
DSS hopes to find rare earth metals in Mongolia
The Warsaw Stock Exchange last week finalized the knotty process of acquiring the majority of shares in the POLPX power exchange. “It was a complex deal subject to almost all conditions, restrictions and formalities possible in an acquisition,” WSE CEO Ludwik Sobolewski said in a statement. POLPX, which runs the commodity exchange where electric energy turnover takes
place, had been owned by the Polish State Treasury and several utilities, including PGE, Elektrim and Energa. The WSE’s target is to buy over 90 percent of POLPX shares. Last week it acquired 82.66 percent of shares for z∏.179.4 million, and has already signed agreements to acquire a further 7.68 percent. With the takeover, POLPX becomes the WSE’s fifth trading platform. The Warsaw bourse already runs trading platforms including its main market, its NewConnect alternative market, its Catalyst bond market, and its Poee Rynek Energii electric energy trading platform. “We are closing yet another stage of integrating the national trading and clearing infrastructure on the capital and commodity markets,” said Mr Sobolewski. Poland’s competition watchdog gave the green light for the deal in January this year. Alice Trudelle
Poland in for wind energy boom? Investments in offshore wind farms to the tune of around z∏.680 billion are in the works, according to calculations by daily Rzeczpospolita. The paper, citing unnamed sources, reports that the Polish government is currently processing 54 applications from investors who are seeking to develop wind power projects. Domestic firms that have submitted applications include utility PGE, smaller rival Energa, oil refiner PKN Orlen and Kulczyk Investments. Foreign firms that have expressed an interest in building offshore wind farms in Poland include Belgium’s DEME, Portugual’s EDPR, Spain’s Iberdrola and Danish Dong Energy. The daily calculated that the size of the wind-farm investment proposals range from 700 to 1,500 Megawatts. Assuming that the average of the 54 projects will be 1,000 MW, and knowing that the cost of a 1,000-MW offshore windmill is around €3 million, Rzeczpospolita puts the total value of potential investments at €162 billion, or about z∏.680 billion. The first farms could be built around 2018, the daily added. Alice Trudelle
BUSINESS IN BRIEF
MARCH 5-11, 2012
www.wbj.pl
KGHM triples revenue, gains final approval for Quadra deal
UK giant Virgin Mobile, the world’s first mobile virtual network operator, is looking to enter the Polish market, reported daily Rzeczpospolita. A telecoms blogger for the daily, Tomasz Âwiderek, wrote, citing unnamed sources, that Virgin is likely to begin operations in Poland in cooperation with P4, operator of the mobile network Play, the fourth largest mobile telecom in Poland. Virgin Mobile, mostly in partnership with local companies, has operations in Australia, Canada, Chile, France, India, South Africa, the United Kingdom and the United States. Meanwhile, P4 announced last week that it is steadily growing its share of the thriving Polish telecoms industry. According to P4 president Jorgen Bang-Jensen, who disclosed the company’s 2011 results at the Mobile World Congress in Barcelona, last year Play’s client base expanded by 37 percent, reaching 7.8 million people. According to Mr BangJensen, this gives Play a 14 percent share of the Polish mobile market. The firm also said that 70 percent of users switching companies over the last year AT, KA chose Play.
Copper miner KGHM has tripled its consolidated net income in the fourth quarter after the sale of its stake in cellphone operator Polkomtel. The income in the same period last year was z∏.1.3 billion, increasing in the last three months of 2011 to z∏.3.81 billion. The figure exceeded the z∏.3.72 billion average estimate from analysts polled by Bloomberg. Poland’s sole copper and silver miner reported a yearly profit of z∏.11.3 billion. Also last week, KGHM
Polish Q4 GDP growth above forecast
SHUTTERSTOCK
Virgin to enter the Polish mobile market?
Virgin could team-up with P4 in Poland’s mobile market
AK
Meanwhile, last Friday the Sejm, Poland’s lower house of parliament, approved a new copper and silver mining tax, which the government expects will bring over z∏.2 billion to the state budget annually from 2013 and will be drawn mainly from KGHM. The bill will now go to the Senate, which could modify it and send it back to the Sejm for a new vote. The tax will come into force after it receives the president’s signature. RG, KA
Expert commentary
Bank controlling in the light of the Polish ‘Developer’ law • Open housing fiduciary account and insurance contract / -guarantee, • Open housing fiduciary account and bank guarantee, • Open housing fiduciary account (4th option – changed by the Senate),
Univ.-Prof. Dr.-Ing. Bernd Kochendörfer
Poland’s economy grew by 4.3 percent year-on-year in the last three months of 2011, only slightly higher than market expectations and confirming Poland’s economy is on solid ground, data showed last Thursday. Poland’s economy grew by 4.2 percent in the third quarter of last year and a preliminary estimate of the statistics office put 2011 full-year growth at 4.3 percent. Analysts polled by Reuters expected fourth-quarter growth at 4.2 percent in annual terms. The zloty gained 0.10.2 percent against the euro after the data were released, while bond yields fell by 3-4 basis points. In reaction to the news, Anna Zieliƒska-Gl´bocka, a member of Poland’s Monetary Policy Council, said, “There is a chance that GDP growth [in 2012] will be higher than 2.5 percent, it may stand at around 3.0 percent.”
received the go-ahead from Canada’s Ministry of Industry for its takeover of Canadian copper miner Quadra. This represents the final condition that KGHM needed to meet before the transaction could be closed. KGHM will now take a 100 percent stake in Quadra, valued at CAD3 billion (z∏.9.5 billion). The company says the new assets will allow it to increase production of mined copper by around 25 percent this year, and eventually by nearly 50 percent.
27
Legislation in Poland will soon be supplemented by a law providing comprehensive consumer protection for the buyer of a house or apartment. Sales contracts between the purchaser and developer will therefore soon offer improved legal protection. According to Polish bankruptcy law, the assets of an insolvent debtor – here the developer – are, in cases of liquidation insolvency, sold by the liquidator in a tender. Under the legislation that will soon be replaced, the situation of the consumer – here the purchaser of an owner-occupied apartment or single-family home – is difficult in such cases. The purchaser’s claims in the form of advanced payments are repaid only according to a legal category that puts the purchaser in the same bracket as creditors, such as construction companies or building material suppliers. By
contrast, the claims banks have on developers to whom they have given mortgages have priority in Polish law. This means the purchaser has a very high risk of losing his or her claims for advanced payments. Since the sale contracts to date are completed only rarely by notarial authentication, the purchaser does not get his or her property rights transferred. He may assert against the developer only indemnity claims, which weakens the position of the purchaser significantly and, in case of the developer’s insolvency, entails the complete or substantial loss of the advanced payments he has already made.
In the above cases banks have specific, important monitoring requirements. This arises from the fact that developers will be obliged under the new law to create for each of their projects a fiduciary account in a bank. The fiduciary account must exist for the entire duration of the developer’s project and cannot be dissolved. The funds credited to the fiduciary account may only be used by the developer for the project in question, and then only if the developer carries out the project as agreed in the relevant contract. The banks are obliged to make available advanced payments only if the contractual requirements are met by the developer. In order to fulfil this statutory obligation banks need to ensure that constructors carry out their duties according to the technical and economic aspects of the contract. In addition to the level of work completed on the construction, the actual, or “intrinsic” value of the quality of work carried out must also be verified before advanced payments can be made. This is reviewed during a site inspection.
and financiers have used comparable services for decades and also use management and consulting services offered by the internationally active KVL group. Its subsidiary, KVL Consult Polska Sp z o.o., now also offers its services and expertise on the Polish market and especially for Polish banks. The KVL group (kvlgroup.com), with its international staff, is active in the core business of project management and related segments. It also works in bank controlling, offering services related to: • Scheduling/schedule review • Determination of construction performance levels • Cost planning/budget monitoring • Quality management and monitoring • Valuation/due diligence. Services related to the socalled “bank controlling” of development projects include the necessary (and unannounced) inspection of sites, and the production of informative and summarized reports. Where it is necessary or desired, the client can also be supported in enforcing obligations or claims against contractors. The KVL group has carried out bank controlling projects in the residential, office and commercial, industrial, and systems engineering sectors, as well as in the transport and infrastructure (highways, railways, etc.) sectors. ● www.kvlgroup.com
Under the planned law change, the developer can choose to protect the purchaser through: • Closed account
housing
fiduciary
These reviews can be carried out by banks, either on their own using specially trained staff, or by external competent and specially authorized service providers. International investors
BROUGHT TO YOU BY KVL BAUCONSULT GMBH
28
MARKETS
www.wbj.pl
MARCH 5-11, 2012
Stocks report
world stock indices DJIA
NASDAQ
S&P500
FTSE100
DAX
NIKKEI225
12,980.30 (Mar 1 close)
2,988.97 (Mar 1 close)
1,374.09 (Mar 1 close)
5,931.25 (Mar 1 close)
6,941.77 (Mar 1 close)
9,707.37 (Mar 1 close)
-0.03% (for the week)
1.08% (for the week)
0.78% (for the week)
0.19% (for the week)
1.94% (for the week)
1.17% (for the week)
CHANGE: 4.70%
CHANGE: 12.85%
CHANGE: 7.60%
CHANGE: 4.06%
CHANGE: 14.26%
CHANGE: 13.40%
(year to Mar 1 close)
(year to Mar 1)
(year to Mar 1)
(year to Mar 1)
(year to Mar 1)
(year to Mar 1)
52-week high: 13,005.04
52-week high: 3,000.11
52-week high: 1,378.04
52-week high: 6,103.73
52-week high: 7,600.41
52-week high: 10,768.43
52-week low: 10,404.49
52-week low: 2,298.89
52-week low: 1,074.77
52-week low: 4,791.01
52-week low: 4,965.80
52-week low: 8,135.79
Mixed feelings Investors started last week with mixed feelings. At the previous weekend’s summit of G20 finance ministers, an appeal had been made that the EU support the IMF with more funds to address the debt crisis and stimulate the economy. Some investors interpreted this as a signal that the European economy will not be able to recover without further help. Most indices in Europe and the US lost more than 1 percent, but the WSE didn’t do too badly, reacting well to positive news from the US housing market. The bluechip WIG20 gained 0.06 percent, while the main WIG index lost 0.09 percent. On Tuesday, the WIG20 ended the day slightly higher than at Monday’s close. Kredyt Bank was the star, with its share price rising by 18 percent as investors heard it would be merged
Major indices WIG
41,533.87 (March 1 close)
WIG20
2,320.89 (March 1 close)
01.03
29.02
28.02
27.02
24.02
23.02
22.02
21.02
20.02
17.02
16.02
15.02
14.02
01.03
29.02
28.02
27.02
24.02
23.02
22.02
21.02
20.02
2,200
17.02
41,000
16.02
2,240
15.02
41,400
14.02
2,280
13.02
41,800
10.02
2,320
09.02
42,200
08.02
2,360
07.02
42,600
06.02
2,400
03.02
43,000
13.02
52-week low: 2,089.84
10.02
Change year to March 1: 5.78%
09.02
52-week low: 36,549.47
08.02
52-week high: 2,932.62
Change year to March 1: 8.39%
07.02
Change for the week: 1.02%
06.02
52-week high: 50,371.74
03.02
Change for the week: 0.67%
Top 5 PRONOX KREDYTB ENERGOINS IMPEL TUP
Closing 0.16 14.17 8.70 31.90 4.95
% change (week) 52-week high 23.08 1.51 17.30 19.20 15.54 9.31 13.93 38.15 13.53 7.60
52-week low 0.08 8.80 4.00 21.26 3.15
Top 5 KGHM LOTOS PEKAO PGE PGNIG
Closing 149.90 27.90 156.90 19.70 3.73
% change (week) 8.23 3.33 2.89 1.70 1.36
52-week high 200.30 49.50 180.20 25.07 4.65
52-week low 102.40 21.30 115.10 15.98 3.25
Bottom 5 FON RESBUD CEDC WISTIL DELKO
Closing 0.18 7.00 13.98 26.00 4.65
% change (week) -35.71 -21.96 -20.66 -17.93 -16.06
52-week low 0.15 2.88 9.27 5.33 3.70
Bottom 5 POLIMEXMS PBG TVN CEZ TAURONPE
Closing 1.72 62.75 10.82 132.90 5.11
% change (week) -7.03 -6.76 -6.72 -2.99 -2.85
52-week high 3.78 205.00 18.53 155.00 6.81
52-week low 1.19 53.70 8.90 116.10 4.65
52-week high 0.49 10.94 46.50 33.02 10.28
2,462.28 (March 1 close)
sWIG80
Depreciation ahead?
10,317.07 (March 1 close)
Change for the week: 0.71%
52-week high: 2,987.72
Change for the week: -1.01%
Change year to March 1: 12.42%
52-week low: 2,076.52
Change year to March 1: 19.91%
Adam Narczewski X-Trade Brokers DM SA
52-week low: 8,218.71
10,400
2,460
10,200
2,420
10,000
2,380
WIG-Banki
01.03
29.02
28.02
27.02
24.02
23.02
22.02
21.02
20.02
17.02
16.02
15.02
14.02
13.02
10.02
09.02
08.02
07.02
06.02
01.03
29.02
28.02
27.02
24.02
42.72 (March 1 close)
5,964.99 (March 1 close)
01.03
29.02
28.02
27.02
24.02
23.02
22.02
21.02
20.02
17.02
16.02
15.02
14.02
01.03
29.02
28.02
27.02
24.02
23.02
22.02
21.02
20.02
5,800 17.02
41.0
16.02
5,880
15.02
41.6
14.02
5,960
13.02
42.2
10.02
6,040
09.02
42.8
08.02
6,120
07.02
43.4
06.02
6,200
03.02
44.0
13.02
52-week low: 4,944.19
10.02
Change year to March 1: 7.61%
09.02
52-week low: 40.23
08.02
52-week high: 7,387.49
Change year to March 1: 2.96%
07.02
Change for the week: 1.22%
06.02
52-week high: 59.16
03.02
Change for the week: -1.50%
SOURCE: WSE
NewConnect
23.02
22.02
21.02
20.02
17.02
16.02
15.02
14.02
13.02
10.02
09.02
08.02
07.02
06.02
03.02
9,600
03.02
9,800
2,340 2,300
52-week high: 12,932.00
10,600
2,500
Remi Adekoya
Currency report
Other indices mWIG40
with BZ WBK. On Wednesday, US Federal Reserve chairman Ben Bernanke spoiled investors’ moods when he warned the US Congress of mounting inflationary pressures. Investors interpreted this as a sign that the Fed could close the tap on the money it has been pumping into the US economy. The WIG20 ended the day 0.09 percent down, while the WIG ended 0.11 percent down. Thursday was a rollercoaster ride with good macroeconomic news from Poland (4.3 percent Q4 GDP growth versus the 4.2 percent expected) but disappointing industry news from the US. The WIG20 ended the day 0.2 percent higher. Friday also ended on a modestly positive note, with the WIG20 closing 0.19 percent up while the WIG gained 0.25 percent.
The European Central Bank lent €530 billion in threeyear loans, known as LTROs, to 800 banks last week. This success of the program, which is designed to inject money into the financial system, helped boost European stocks. The EUR/USD, lifted by the LTRO lending, attacked the resistance at $1.3485, but, unable to break it, retreated to $1.32 with the outlook set for a possible larger decline. Some blame US Federal Reserve chairman Ben Bernanke’s statement last week that the speed of recovery in the US is “uneven and modest.” Moreover, macroeconomic reports from eurozone countries as well as from the US were worse than those in January, possibly indicating that investors will be forced to yield some
of their recent gains. The z∏oty remains one of the strongest currencies so far this year. GDP data surprised the markets, with the Polish economy growing by 4.3 percent y/y in Q4 2011. Moreover, several investment banks increased their growth forecasts for Poland. The gains on the z∏oty extended, with the EUR/PLN reaching z∏.4.10 (its lowest since August 2011) while the CHF/PLN reached z∏.3.40 (lowest since July 2011). The USD/PLN, due to moves on the EUR/USD, didn’t change much This week should bring a corrective movement for the z∏oty, but not higher than z∏.4.18 against the euro. In the longer term, we should worry about oil prices, which, if they remain high, will slow the recovery. ●
currency rates 3.8367
3.8133
3.8074
28.02
29.02
01.03
02.03
3.8661 27.02
SOURCE: NBP
3.8610 24.02
0.1056
0.1058 02.03
3.5
3.8049
PLN-100JPY
4.0
01.03
0.1069
0.1057 29.02
28.02
27.02
0.1060 24.02
3.4178
3.4119 02.03
0.10
0.1069
PLN-RUB
0.12
01.03
3.4318 29.02
3.4535 28.02
27.02
3.4543 24.02
4.9186
4.9423 02.03
3
3.4730
PLN-CHF
4
01.03
4.8973 29.02
4.9130 28.02
27.02
4.9167 24.02
3.0887
3.1023 02.03
4.8
4.9415
PLN-GBP
5.2
01.03
3.0730 29.02
3.0977 28.02
27.02
3.1103 24.02
4.1198
4.1125 02.03
3.0
3.1176
PLN-USD
3.5
01.03
4.1365 29.02
4.1654
4.1630 28.02
27.02
24.02
4
4.1845
PLN-EUR
5
SPORTS
MARCH 5-11, 2012
Tennis
Radwaƒska wins in Dubai The Polish star has now moved up to fifth place in the latest WTA rankings
number-one spot was still some way away. “I’m not really going to think about it too much. I’m going to keep playing my game and try to keep up my good tennis, especially in big events like this. I just want to enjoy my tennis and try winning matches,” she told reporters. David Ingham
Agnieszka Radwaƒska
COURTESY OF FACEBOOK/AGNIESZKA RADWANSKA
Poland’s top female tennis player, Agnieszka Radwaƒska, secured the eighth title of her career at the end of February, following a 7-5 6-4 victory over Julia Goerges at the Dubai Duty Free Open. The 22-year-old from Kraków produced a commanding display to overcome her German opponent 2-0 in the final and ensure she moved up one place to fifth in the latest WTA world rankings. In the first round Ms Radwaƒska faced a tough test against Aleksandra Wozniak, eventually overcoming the Canadian 6-1, 6-7, 7-5. She then dispatched both Israel’s Shahar Peer and Germany’s Sabine Lisicki in straight sets before facing Serbia’s Jelena Jankoviç in the semi-final. Ms
Radwaƒska took the first set but then lost the second to the world number 8. The Pole then produced some of her best tennis of the tournament to take the decider 6-0. After the match Ms Radwaƒska said she was pleased to have moved up one place in the rankings but stated that her main goal of taking the
National Stadium
Poland fails to win in National Stadium opener The game ended goalless despite chances for both sides
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The Polish national soccer team played its first-ever match at the new National Stadium in Warsaw last Wednesday night, but despite high hopes from the capacity crowd of 55,000, the friendly match with Portugal ended in a 0-0 draw. In a game of few chances for either side, the Portuguese dominated possession but failed to turn their territorial advantage into goals. Manchester United winger Nani arguably had Portugal’s best opportunity, but he squandered a one-on-one with Poland’s goalkeeper Wojciech Szcz´sny. The Polish team, playing without injured striker Robert Lewandowski, never really looked likely to break the deadlock. Adrian Mierzejewski and FC Köln midfielder S∏awomir Peszko both had chances, but neither player was able to capitalize. Nevertheless, the Polish team can take some heart from the result, considering it was playing a team ranked 62 places above it in the latest FIFA world rankings. Moreover, Portugal features one of world soccer’s best players in Real Madrid’s Cristiano Ronaldo. Admittedly, Ronaldo wasn’t at his best on the night, although he did draw a fine save from Szcz´sny in the first
half. Following the game, Poland’s head coach Franciszek Smuda told journalists, “After this match against Portugal, I’m as calm about things as I was before the match. … What can we do better? Score goals of course.”
Cristiano Ronaldo
Poland’s next international friendly takes place on May 22 when the team takes on Latvia at the Hypo-Arena in Austria. The game will be one of three more warm-up games before Poland plays Greece on June 8, in Euro 2012’s opening match. David Ingham
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LIFESTYLE
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Exhibition
Simply unique
Grill & Co. ul. Stanis∏awa ˚aryna 2B Warsaw grill-co.com A relative newcomer to Warsaw’s restaurant scene, Grill & Co. just celebrated its oneyear anniversary. It offers what few other restaurants in Warsaw do: simple, fresh, tasty Mediterranean food. And it manages to do it at a reasonable price, especially for lunch. For now, people working in nearby offices in the Mokotów district are the main beneficiaries of the lunch specials, which consist of two courses plus a drink for z∏.25. But during the evenings and weekends, customers from all over town pile in. They include the owners of famed Warsaw restaurant “U Kucharzy,” who have become regular clients. An additional venue is planned closer to the center soon. It seems owner João Rodrigues, a serial Portuguese entrepreneur who first came to Poland a decade ago and tried his hand at different sectors
Real Polish design Soc-Design-Photo 50.60. Through April 3 Asymetria Gallery ul. Jakubowska 16 Warsaw
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WBJ’s restaurant review feature
before settling on the restaurant business, has found a winning formula. Of his menu, he said, “People like to complicate their lives. We believe in keeping things simple.” “We don’t want the owners or the chefs to be stars. The restaurant has to maintain the same quality independently of single individuals,” he added. For that reason, the staff were instructed not to tell the cooks they were preparing a meal for reviewers. Whether or not that instruction was followed, the restaurant’s bet on simple dishes with high-quality ingredients won us over. From the Spanish olives to the caramel mousse with Madeira wine, with grilled dorada stuffed with fresh herbs in between, everything on our plates was uniquely delicious, and a taste from the vast selection of affordable wines from small Portuguese producers provided a great addition. For the carnivores among us, an important plus is that Grill & Co. might just be one of the best places to get a good steak in the capital,
MARCH 5-11, 2012
whether you prefer the classic filet mignon or are in for a more exotic Madeira-style grilled beef skewer. As spring settles in, the restaurant is also introducing new dishes, including a half Boston lobster with half filet mignon. It is also gearing up for this summer’s Euro 2012 matches, and plans to show them on giant HD screens. We advise you to judge the food for yourself – perhaps even on the restaurant’s outdoor terrace, once the weather warms up. Alice Trudelle
Reservations: 22 646 00 45 info@grill-co.com
A recently launched exhibition at the capital’s Asymetria Gallery aims to show the true face of Polish design from the 1950s and 1960s. Soc-Design-Photo 50.60., which forms part of the Polish Design Photo series, includes photographs of neon signs, buildings, furniture, and interiors from this important period of the country’s history. Exhibition curator Rafa∏ Lewandowski said in a preview for the show that as well as documenting the period, the exhibition also aims to improve people’s understanding of the function taken on by design during the
COURTESY OF GALERIA ASYMETRIA/TADEUSZ SUMI¡SKI
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Warsaw Ochota Railway Station
Socialist era. “Its power lay not only in rejecting the socialist realist doctrine imposed by the communist regime, but also in the qualities … of a new formal language. Totality was the modern project’s fundamental feature, since everything
was now to become modern: art, architecture, science, but also dwellings, furniture, fashion, photography and, above all, man,” Mr Lewandowski said. David Ingham
For more information log on to asymetria.eu
Concert
Belgium’s Amy Winehouse Selah Sue March 7, 6.30 pm Stodo∏a ul. Batorego 10 Warsaw Due to her distinctive voice and neo-soul tinged music, Belgian singer-songwriter Selah Sue has already been compared to such musical greats as Lauryn Hill and the late Amy Winehouse. And there is no doubt that
traces of an Amy Winehouse influence can be found on Selah Sue’s eponymous debut album, which was released last year. A massive hit in both Belgium and France, the album sold more than 400,000 copies worldwide, with standout tracks “Raggamuffin” and “This World” having already been viewed more than 13 million times on YouTube.
The success of the album also ensured that when guitar legend Prince came to Antwerp for a major concert last summer, Ms Sue was asked to support him. During her visit to Poland, she will play a gig in Warsaw and one at Wroc∏aw’s Klub Eter. David Ingham
For more information log on to stodola.pl
Museums, galleries and venues in Warsaw 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 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
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
MARCH 5-11, 2012
LAST WORD
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Tech Eye
Nokia 808 PureView You know what the worst thing about old people is? That weird gummy chewing thing they do, seemingly for hours, like a horse eating peanut butter. It’s probably their way of torturing the young. Unfortunately, last week somebody pointed out that Techeye was doing the weird gummy chewing thing. And it was horribly, terribly true. We’re becoming an old people. We’ve noticed the signs, of course, but tried to ignore them. People have begun to address us as
has a 4.7-inch touchscreen and an eight-megapixel camera, which isn’t half bad. Unless you compare it to Nokia’s 808 PureView, of course. Then it’s more like four-fifths bad. Finally, Samsung took the wraps off the Galaxy Tab 2, the successor to the fairly popular tablet released by the Galaxy Tab 2 Korean electronics giant in 2010. The Galaxy Tab 2 comes in two versions therein lies the rub – judging from – seven-inch and 10.1-inch (pic- the data sheets, Samsung plans to tured). The latter is the same size compete against the iPad on price, as the original Tab and has a better rather than flashy tech. Good luck with that, Samsung. battery, but it’s also a mite thicker than its predecessor. The device Apple is expected to reveal its iPad 3 runs the latest Ice Cream Sandwich this week and retailers are already OS on a one GHz dual-core slashing iPad 2 prices. The exact hardware specs of the processor and has just a threeiPad 3 were still the subject of great megapixel main camera. If you’re not getting too excited speculation as WBJ went to press, by the Tab 2’s tech specs, don’t but one thing seems clear – it’s going worry. You’re not the only one. It’s to make the Tab 2 feel more than a simply not a flashy machine. But little antiquated. ●
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“venerable oaf,” for example, and achieves its eye-popping level of there’s that other thing … the one megapixeltude through a trick called that, um … you know, the thing with “oversampling,” which we can’t be asked to explain. Suffice it to say that the thing? 41 megapixels on a smartphone is Nevermind. Let’s just concentrate on tech- not the same quality you’d see in an nology, that ever-flowing fountain equivalent SLR camera. The picof novelty, ok? Last week at the tures are still pretty amazing, but the Mobile World Congress 2012 in extra megapixels also mean the Barcelona, Spain, a whole slew of phone is a bit chunkier than its newfangled telecommunications peers. Also, the 808 PureView runs equipment was unveiled. One thing to keep in mind: pricing and release Nokia’s much-maligned Symbian operating system (OS), dates were hard to a choice which has come by at the event, plenty of people but most everything is scratching their heads. expected to appear Another phone offiwithin the next few cially unveiled at MWC months. 2012 was the HTC One Lets start with the X, a smartphone runnew Nokia 808 Purening Android Ice View, a newly anCream Sandwich OS nounced smartphone on a quad-core with a four-inch touchNVIDIA Tegra 3 screen. This thing processor. Unless you packs a 41-megapixel happen to live in the camera, which is supeUS, of course – those rior to Techeye’s curpoor schmucks have to rent phone by approximake do with a dualmately 36 megapixels. core Snapdragon Still, that’s not processor. quite as ginormous as Anyway, the One X it sounds. The camera HTC One X COURTESY OF HTC
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Feeling old amidst technological novelty
Ever started a sentence but then … um … What were we talking about? Let us know: techeye.wbj@gmail.com